Management and operations is a branch in business, which is further classified into sub specialisations, such as business administration, customer service management etc. which require a different skill set for each specialisation. It comprises of variety of business operations which ensures effective professionals – managers are present in an organisation for ensuring increase in productivity and overall performance of the workforce of the organisation. (Barrett, 2013) The operations management is a field which comprises of supervision and coordination of operations pertaining to production and manufacturing of goods. This assignment is based on management and operations related aspects in the organisation Benugo UK, which is a leading American coffee company and coffee house chain. The report elaborates on the roles and functions of leaders and managers, their characteristics, behaviours and traits which are required in effective management and leadership. The report focuses on understanding how these make a significant positive, efficient and effective contribution to an organisation at basic levels.
P1 Role and characteristics of a leader and manager
Benugo is a British catering company operating high street cafes, restaurants, dining spaces public buildings and in-house corporate cafes. It was started in the year 1998 by Ben Warner with the vision of serving fine quality food and experience to the customers. Currently the company is operating in more than 11 high street stores and more than 70 stores across London with more than 2000 employees.
A leader is an individual having extensive knowledge and understands the need to lead people in whenever required by influencing the work and behaviour of a group of people. A leader is responsible for designing and managing the structure of work in order to achieve the specified goals and objectives at a given point of time. (Bens, 2017) A leader manages and examines the work done and performance of employee at the basic level. In Benugo, the leaders are required to effectively address the personal requirements of the employees in order to retain skilled talent. Also, they support the teams at the times of pressure or in case there is a change in strategies within the company.
A manager is an individual having the traits of a leader, who is responsible for managing and supervising all or any of the activities in an organisation. A manager looks into whether the operations are carried on or performed by the employees. Even in the outlets of the company Benugo there are various persons who ensures that the work is managed efficiently, such as the store managers, sales managers etc. The managers are responsible to plan and execute effective strategies and properly train the employees in using innovative techniques and methods. They also decide the incentives and promotion schemes to be applied with the employees.
A manager and a leader could be compared on the following grounds:
A person is a leader because of his inherit personal qualities.
A person becomes a manager by the virtue of job description.
Leaders strive on to accomplish the set objectives while working with the team.
Managers are responsible for setting up objectives for the leaders of Benugo to achieve the goals.
Leaders have no well defined accountability as the managers.
Managers are accountable for the behaviour and performance of self and subordinates.
Leaders' concern is to achieve group objectives and member satisfaction.
Managers' concern is to achieve organisational goals.
A leader challenges the status quo.
A manager accepts the status quo.
A leader is having a long term prospective.
A manager possesses a short term prospective.
In Benugo, leaders are the driving force towards taking risks. They are willing to effectively try new methods which could help the firm in improving their profit margin.
Managers at Benugo channelize their efforts towards minimising the risks. They apply risk management techniques in order to reduce the level of risk that could add to the cost or inefficiency in the firm.
Leaders at Benugo coach the employees whenever a new method, technique or equipments are employed within the organisations.
Managers in the firm direct the employees towards implemented changes. They set targets for them and evaluate their performances based on their targets.
Role and Characteristics of a Leader
The role and characteristics of a leader in an organisation is as follows:
Motivation – as a leader, an individual must possess the quality to motivate the employees for achieving the personal and organisational goals. A leader should encourage and motivate the employees to perform better.( Black, Morrison and Gregersen, 2013)
- Communication – a leader should possess excellent communication skills and the leader should inform the team about the progress of the work and whether there are any hurdles in achieving the goals or not.
The traits of a good leader are as follows:
- Honesty and Integrity – these are the important characteristics that a leader must possess to gain the trust of the team. The leaders of Benugo should possess both the traits.
- Ability to challenge – a leader must not be afraid to challenge the status quo and should have a thinking to do the things differently.
Role and Characteristics of a Manager
The role of a manager is as follows:
- Implementing policies and plans – a manager has a crucial role in introducing new policies and strategies which are developed by the higher authorities in an organisation, in order to ensure effective management of the organisational goals.
Provide training – managers monitor and evaluate the performance of the employees and also plan to provide training to the employees for inculcating and developing skills required in the organisation. (Bolman and Deal, 2017)
Some of the common traits that must be possessed by a strong manager are as follows:
- Ability to direct – the manager should put in day-to-day work efforts and review the resources required for work. Similarly, the managers of Benugo must possess the ability to direct.
- Positive attitude – the mangers of Benugo should possess positive attitude in handling and dealing with the issues arising in the company.
P2 Roles of leader and functions of manage in different situations
There are various types of situations which could occasionally arise in an organisation and the management is required to deal with the situations arising and ensuring that the business of the organisation is not impacted, such as stable situation, stable to moderate situation and fast managerial situations. (Buckingham and Coffman, 2014)
Autocratic Leadership refers to a type where decision-making power lies with the leaders of the team. This means that all the strategies as well as the equipments to effectively accomplish the tasks are decided by the leader of the team. For instance, manager at Benugo is assigned a task by the management and he has given a specified time to finish off the task. The manager should plan the operations and working activities while encouraging the employees by providing incentives to them to increase the output (Wang and Pizam, 2011). The leader must use autocratic leadership as it would help them attain power required to get the job done within the specific time frame. The productivity level of this type is more than almost all the other styles of leadership as the decision-making power lies with a single person. In addition to this, the leader through effective delegation of authority and responsibilities could enhance the productivity levels of the employees..
Benugo is facing a problem of inflated rates of beans because of the ongoing environmental conditions unpredictable weather conditions in the regions from where the beans are procured. And, in such situations the implementation of functions of management and skills of a leader is required to plan certain strategies and adopt techniques which would help in handle the situation and ensure that the sales of the company are not affected. In this situation, the leaders must use democratic style as they could use opinions of employees and the workforce in order to handle the situations well. Democratic leadership is necessary in this situation as employees could effectively suggest ideas on how best to cope up with inflation and what methods could be used to sail the firm out of it. The productivity level of democratic leadership in this situation would be moderate as opinions of employees would be taken into consideration and their ideas would be applied by the managers wherever necessary.
Benugo is planning to modify its operations and introduce new and cost-effective methods to enhance their productivity levels and serve more customers across the country. It is necessary as the firm aims to expand its business across the UK along with enhancements in their productivity levels as well as customer base. This is one of the major types of leadership styles which allows the employees to enjoy full liberty of taking the decision. According to the situation, Benugo would need to research about the methods as well as the tastes and preferences of the customers. Laissez-faire Leadership would serve best for the firm if applied to its Research & Development department. Full independence must be given to them to examine the environment and determine the best methods of expansion as well as techniques to enhance their productivity. The productivity level of the employees of R&D department of the firm would be highest as they would be motivated to work towards identifying the best methods that aid the purpose effectively.
P3 Various theories and models of approach including leadership styles
There are several theories of management which could be applied with to the company to help it grow in operations. The operational management department of Benugo also rely on the management theories with a combination of efforts of leadership skills for varied operational results.
Systems leadership approach can be understood as leadership qualities which are beyond individual professional disciplines. This theory of leadership helps in creating an innovative environment in an organisation. (Capon, 2012) This is a theory used by the managers to resolve all or any of the issues pertaining to business operations so that desired results are achieved. For instance, in case any issue arises in Benugo stores then the manager is required to face it in a systematic and effectively.
Strengths: The biggest strength of this leadership is the concept and the enhancement of the creativity of the employees. Moreover, the system leadership helps in conducting the operations in a structured manner.
Weaknesses: The weakness of system leadership is that power can be misused in resolving the issues of the company
The situational leadership model was first developed by Paul Hersey and Ken Blanchard stating that a manger adopts various leadership styles in accordance to the situations that arise in an organisation rather than following a particular model of leadership. This theory emphasises on the principle that a leader should be flexible and be able to adopt various strategies according to the situations arising in an organisation. (Touboulic and Walker, 2015) Managers and leaders a Benugo should use situational theory depending on the nature of the issue arising so that the work is effectively carried out at the organisation.
Strengths: The strengths of this approach is that the strategies are developed according to the situations. This means that the leaders and the managers take spontaneous decisions that helps the company effectively sideline the issue
Weaknesses: the weakness of this approach is that these strategies might not be fruitful for long term which could mean time taken in developing different strategies rather than a unified strategy for long term.
Contingency theory of leadership emphasises that there is no such thing as lest leadership style which is best suited for an organisation when it comes to taking decision making. A contingent leader effectively adapts and applies to own style of leadership to a situation. (Stacey, 2012) Accordingly, the effectiveness of this theory depends upon the implementation of leaders' own style in resolving any situation arising in an organisation. The managers at Benugo should be using this theory for determination of various types of situations and reaching to a solution for the same.
Strengths: It helps in preparing the firm of the contingency likely to arise in near or distant future.
Weaknesses: It might prove as a waste in case the the contingency did not rise at all. It will add to unnecessary cost and efforts of the managers and leaders.
P4 Key approaches to operations management
Operations management is a specification which consists of supervision and coordination of operations pertaining to production and manufacturing of goods. An organisation works very hard on the process of production of outputs. There are some important approaches of operational management, which are discussed below along with the responsibilities of managers and leaders.
1. Total Quality Management can be defined as the act of monitoring all the tasks and activities which are desired to maintain a level of excellence in an organisation. This approach ensures that the best quality products are produced by an organisation and served to the consumers in accordance to their demands and requirements. (Dwyer, 2011) This approach focuses on total quality management approach ensuring that the organisation is producing quality products to carter the demands and needs of the customers. Benugo provides a foray of fine quality products to its customers. Managers must monitor the activities by applying various techniques that could help in enhancing the performances of various employees.. They could effectively do it by setting various standards and evaluating the performances based on the standards. On leader's front, The leaders in order to ensure top quality management in Benugo must motivate the employees to achieve their highest potential. They must be a constant support to the employees while they work to enhance their performance levels and must ensure that customers are satisfied with the services. Moreover, leaders must also satisfy the personal demands of the employees. They must integrate the personal goals of the employees with that of the organisational goals.
2. Just in time refers to the a strategy which increases efficiency and reduces wastes by receiving only good products whenever they are needed in the production process, which helps in reducing inventory costs. It also refers to the management of stocks wherein the company is producing more products when the manager requires the products to be produced. Benugo could also control the inventory by applying this approach which would increase the efficiency and reduce the extras. Managers must introduce effective waste management techniques that could reduce the waste and optimally utilise the resources. They must also train the employees in working in a certain manner which increases their efficiency and enhance their performance. Leaders in order to increase efficiency and reduce waste, must work closely with the employees to ensure that their tasks are within the ethical frame decided by the firm. Furthermore, they must ensure the efficiency of the resources periodically and communicate the same to the upper management in case they need modifications.
3. Lean Products is an approach which is used to minimise the costs as well as reduce the wastes in the process of production, as it provides support to the production department in an organisation to get the best outcomes by the limited resources available. As the approach focuses on cost cutting of the wastes while ensuring the quality, this could be applied to the all or any of the aspects of a business, from designing to production to distribution. Managers through lean approach would be able to deduct the cost of production. This can be done by employing techniques and methods that aid in reduction of waste and unnecessary expenses. Leaders could be a big support system for the production department by making the employees use each of the production equipment optimally. They also could motivate the employees in modifying the production process that increase the efficiency as well as enhance the productivity of the company.
4. Six Sigma is an approach which is disciplined, statistical based and data driven in nature and is a continuous improvement analysis for reducing the defects in goods or services. This approach consists of various tools and techniques which ensure that the employers could order products securely which are free from defects by providing the sufficient means of commuting methods from an organisation. (Easterby-Smith, Thorpe and Jackson, 2012) This approach helps in maximising the consumer satisfaction by providing them fine quality products. Six sigma would help managers to analyse the strategies and their implication within the company. Regular analysis using various methods could increase the productivity of the company and make them firm perform better in the market place. Leaders could support the managers as well as the employees by ensuring the ease in operating with systems and equipments without over using them. Practices must be introduced by leaders which promote optimum use of the financial, marketing, production and sales resources. They must modify their methods continuously in order to ensure proper and smooth working of operations.
P5 Importance of operations management in achieving business objectives
Operations management involves the process of monitoring, controlling and designing the process of production of goods and services. A systematic and properly designed approach is important in carrying out the activities as it helps improving the performance in an organisation. It is a matter of consideration that focuses is on various procedures and methods of implementing strategies to improve the performance and results. The functions of operations management are as follows:
- Evaluation is considered for monitoring the activities for eradicating the inefficiencies such as the excess of inventory, shortage of raw materials etc. Benugo should also evaluate its activities in order to remove the insufficiencies and ensure that the business prospers.
- Control and distribution systems are very important factors as they keeps in check the production process and ensure that proper distribution of the products is carried out to fulfil the objectives of an organisation.
- Cost Minimisation enables the reduction of costs while ensuring the production of goods and services for full utilisation and allotment of resources out of all the other activities. (Huczynski, 2012) Benugo also needs to take care while manufacturing or introducing new or improved products as if done without considerations it could result in incurring more costs and expenses.
- Financial and Human Resource Management is another important operation in an organisation. Financial management is important for any organisation because any business could not function without the financial resources. Similarly, people are important to carry out the operations and functions, such as managers are important to achieve the organisational goals and objectives.
- Enhance Performance – in any organisation operations management is very important as enhances the performances of the employees and also helps in boosting the morale of the employees by motivating them.
- Time management is another important factor which helps in management of activities on time and increases the efficiency and productivity of work carried out by the employees. (Kouzes and Posner, 2011)Time management also helps in providing the goods and services to the consumers on time.
- Waste Reduction – Operations management, if appropriately used, would allow Benugo to effectively manage the waste incurred in activities. This could be beneficial for ensuring higher productivity in the products as well as top quality service to customers. Waste reduction could also help the company reduce its cost levels that would ultimately be added to its profitability.
- Cost Effectiveness – It would also result in cost effectiveness as regular monitoring and modification in techniques and tools could allow evaluating their efficiencies and Benugo could easily determine the factors that are adding to the cost. Effective operations management would allow the firm to generate more capital that could add to buy more effective equipments for production of coffee.
- Sustainability –It is imperative that organisations consistently enhance their performance to ensure sustainability in the market. Benugo has certain competitors in UK like Starbucks, Nestle, etc. which have highest market shares in the country and beyond. Operations management would allow the firm to make a stand in the marketplace which appreciates systematic approaches in business.
- Budget – When the budget of the company is concerned, operations management could effectively manage its budget more effectively. By applying lean approach, Benugo could ensure reduction in waste that ultimately increase the level of output as well as cashflow within the company. The firm would enhance its financial resources required to conduct its operations smoothly.
P6 Business environmental factors that impact the operation management
The business environment of an organisation is affected by numerous internal factors and external factors affecting the operations of the business and decision making aspects of an organisation. Thus, it becomes very important for an organisation to identify the impacts of internal and external factors so that they could work towards reducing the impacts of internal and external factors. The various external factors are political, economic, social, technological, environmental and legal.
The internal factors are the ones which lie within the organisation and can be controlled by the management.
- Staff: The employees in an organisation are the major part of a company's internal environment and they are expected to be good at their job. The Managers should know how to handle the lower level employees and should be good at monitoring the other factors involving the internal environment (Miner, 2015).
- Finances: No organisation can function or survive if there is lack of financial resources in an organisation. If the financial resources of an organisation are lean or limited then it can affect the other features such as hiring sufficient number of employees, or purchase quality products or equipments etc.
- Company culture: The factors, such as the values, attitudes and priorities of the employee form the part of an internal environment of an organisation. In any organisation the culture impacts the activities such as team work etc.
Benugos’ leadership in the market is linked to the company’s effective addressing of the external factors determined by PESTLE analysis, which is explained below:
- Political factors: The political factors involve the laws and regulations existing in a country which has to be implemented by the government to the businesses in managing its operations. For Benugo it is of prime importance to consider the political factors in order to sustain. The political decisions, such as Brexit would have an impact on the business of the organisation as this has affected access to the market. (Montgomery, 2011)
- Economic factors: These factors include the economic growth, inflation, and managerial operations etc. which influence the business directly or indirectly. The economic growth in the UK has been affected because of the economic factors which have resulted into lower rates of employment. This has affected the business of the company and the revenue generated from each outlet has gone low. Though, the food chain should consider the factors, such as aggressive pricing, product marketing strategies etc., in order to attract the potential customers.
- Social factors: The socio – cultural factors include variety of factors such as taste and preferences of the consumers which can cast an impact on the on the business and production. The change in the tastes of the customers has impacted on the business of Benugo as the customers are looking for different variety in the menu choices.
- Technological factors: The technological factors include the investment by the company on the research and development which might be low in the case of Benugo as the outlets are not much. Benugo has a large presence on the social media which includes face book and twitter across London. Also, technology is helpful in collecting the franchise fees.
- Environmental factors: The environmental factors have gained importance in past fifteen years because of increase in the scarcity of raw materials, pollution, carbon footprint targets etc. (Okitsu and et. al., 2012) Benugo is subject to environmental rules and regulations at both levels – national as well as international. The changing scenario and regulations require that the company should adopt a more sustainable and greener approach. The government of the UK as well as various other developed countries are focusing on the preservation of environment. During the production process, the firm must enable those equipment and techniques that help the firm fulfill its Corporate Social Responsibilities (CSR). This would make it more favorable with the customers as well as preservation of environment would aid to its safety and promote clean methods for business.
- Legal factors: Benugo is operating across London and is subjected to variety of domestic laws as well as European laws till the time Brexit processes are finalised. The laws which the company has to abide by or consider are the employment laws and variety of environment laws which are subject to undergo certain changes because of Brexit. (Rosenbach, 2018) This might cause a situation of uncertainty and complexity, but the national laws should be adhered to by Benugo, such as data protection laws.
All these business factors affect the business environment of Benugo as well as the wider community. While the external environment promotes ethical practices, the internal environment would provide the firm with strength and competence to work ethically and responsibly. The regulations provided by the government must be favourable to the company to conduct its operations ethically in accordance with the policies of the government. The economic stability of the country ensure the firm to develop long term financial strategies. In addition to this, the social environment could impact Benugo in terms of taste, the methods of production, etc. Technological advancements force the firm to implement advanced technology in production as well as distribution. However, the firm needs to work ethically and must fulfil its Corporate Social Responsibilities (CSR) to effectively address the need of the environment of the country. It also must work according to the legal laws stated for the firm to follow. Such rightful practices would have a serious impact on the company and would enhance its customer base and profitability.
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It can be concluded that the report evaluates the role of operation management played in managing the everyday activities of the organisation ranging from production process to the delivery process. The leaders and managers in an organisation are of prime importance to achieve the organisational goals and objectives. The role and characteristics of leader and manager are discussed. The leaders and managers are depend on application of various principles and approaches which ensure that the effectiveness of operations management in the organisation. The role of operation management, managers and leaders in the organisation Benugo is also discussed in the report along with the various factors casting an impact on the operation management of the company by applying various approaches and theories of management.