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Management and Operations of Wm Morrison Supermarkets Plc

Question :

Operations manager is responsible to understand impact of leaders as well as managers on business operation so as to identify the possibilities for an organization to achieve its long termed pre-determined goals. Wm Morrison Supermarkets Plc. Becomes the largest chain of supermarkets of UK. It has attained large number of customers due to involving in wide range of products. Writer is asked to submit Management and operation assessment by following Learning Outcomes:

  • Determine the comparison of between of leader and work of manager at Wm Morrison Supermarkets Plc.
  • Evaluate leader’s role and manager’s function in certain situations at Wm Morrison Supermarkets Plc
  • Examine functions of managers and leaders in various approaches of operations management.
  • Analyze interlink between leadership and management in current business environment.
Answer :
Organization Selected : Wm Morrison Supermarkets Plc.

INTRODUCTION

Management and operations are main strength elements of any organization, which helps in improving efficiency of production and developing quality of products. It is the business practices aimed at creating high level of coherence in an organization that includes design, execution and control of operations.

This report includes the study on Wm Morrison Supermarkets Plc.., which is the largest chain of supermarkets of UK. It discusses the role of manager and a leader in an organization along with theories and approaches of leadership. This report also examines several functions, characteristics and importance of a manager.

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TASK 1

(a)Definition of Leader and Manager

Wm Morrison Supermarkets Plc.. is the fourth largest chain of supermarket in UK, which has operations over 500 stores and online home delivery services. The organization has certain priorities for business such as serving customers better, competitive, develop popular and useful services etc.  Management and operations is essential for Wm Morrison Supermarkets Plc.. as it helps in achieving customer services and utilisation of resources (Alderton and Saieva, 2013).  One of the main priorities of Morrison’s is serving customers in better way so it makes sure that all needs of customers are met by managing activities. It is also needed to ensure that resources are utilised effectively reducing the cost of production and increasing profit margins.

Effective leadership and management can bring in efficient productivity of goods and services at Wm Morrison Supermarkets Plc.. and at the same time reduces wastage of resources. To survive and be successful in the turbulent environment of Wm Morrison Supermarkets Plc.., it needs to apply strategic resource based theories that can sustain competitive advantage. Bringing changes to leadership and management can help the company face challenges of changing market and economic conditions.

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Leader is a superior person in the organization who leads with commands and influences a group to follow them for achieving goals. Leadership is the process or art of motivating and guiding a group of people to act towards attaining a common objective.  Manager is an individual who controls or administers an organization and staff and is responsible for carrying out business. Management is the process of controlling and organizing activities of a business in order to achieve defined objectives.

(b)Functions of manager in Wm Morrison Supermarkets Plc.

Henry Fayol who is known as the Father of Modern Operational Management defined five distinct functions of management, which are important for managers to understand.

The manager of Wm Morrison Supermarkets Plc.. performs these functions in the following way:

Planning- Manager of Wm Morrison Supermarkets Plc. involves entire organization and prepares a course of action to manage production, personnel and resources (David, 2011). The plans might be short term or long term which must include objectives that Wm Morrison Supermarkets Plc. wants to achieve. It is a continuous process so the manager plans to implement,  reviews the process and also makes changes as per the progress.

Organizing- This function helps in coordination of tasks and duties between different levels and departments of Wm Morrison Supermarkets Plc. where they have several organizational structures or sizes. The manager of Wm Morrison Supermarkets Plc. organizes an appropriate structure for better workflow and decision-making. Morrison’s manager must organise resources properly for effective and optimum utilization.

Commanding- Manager of Wm Morrison Supermarkets Plc. instructs the team and motivates them to complete tasks that is being assigned to them. The employees are given clear commands to produce desired outputs. These instructions of manager with integrity makes staff communicates clearly and perform their desired targets.

Coordinating- Morrisons’s manager ensures proper workflow, employee motivation as well as high productivity which is all  attained through proper coordination. To attain this communication is used by the manager of Wm Morrison Supermarkets Plc. with training.

Controlling- Manager of Wm Morrison Supermarkets Plc. monitors and ensures that all activities are running as per the plan. They evaluate performance of employees regularly and set standards to measure the work carried out by workforce.  Morrison’s manager also controls all workings and checks whether it is implemented as per the proposed plan.

Comparison of different characteristics or features of a leader and manager:

Basis Leader Manager
Charisma They possess this quality which makes them gain followers trust, influence and persuasion (Haksever and Render, 2013). This is a quality which a manager needs to develop to
Decision making Leaders cannot make any decisions in an organisation they follows what is made by the top management. Managers are the decision makers of an organization as they make important judgements.
Interpersonal skill They possess skills like strategic thinking, people management, communication, persuasion, influencing, innovation etc. Managers have decision making, communication, problem solving, negotiation, assertiveness skills etc.
Communication skill Leaders need this skill to control and lead employees to pass orders or command instructions (Jacobs, Chase and Lummus, 2014). Managers have verbal and non-verbal skills that it required for efficient execution of activities in the organization.
Vision It helps them achieve end results of an organization. A manger's vision is to attain the short term goals of the organization.

Comparison of role of a leader and manager:

Role Leader Manager
Decision making They facilitates decisions They takes or creates decisions
Risk Leaders bears or are ready to take risks Managers control risks be taking preventive actions
Focus They focus on people or staff They visage on processes and procedures
Operations Leaders implement operational strategies through changes and serves or influence subordinates Managers operates by managing change and serving superiors
Governance Uses influence, conflicts and acts decisively They uses authority to avoid conflicts and acts responsibly.
Goal setting Looks outward and focuses on people They focus on things by inward looking.

(c) Different theories and approaches to leadership in Wm Morrison Supermarkets Plc.

Systems Theory- It investigates both principles common to all complex entities and models, which can be used to describe them. This is also known as social systems theory, which studies the society as a complex arrangement of elements including individuals, their beliefs (Krajewski, Ritzman and Malhotra, 2010). This is also involved in analysing how society adapts to its environment through adjustments in the structure with implications that are important for understanding social order.

Wm Morrison Supermarkets Plc.. use this theory and treats itself as a system, which is open to interact with its environment by inputs and outputs. These elements are received by Wm Morrison Supermarkets Plc. where it uses the inputs such as natural resources, equipment etc. It is then transformed into outputs after yielding like products or services.  Wm Morrison Supermarkets Plc. treats  the business as a system which exist in the environment of kind  and makes constant adjustments to survive in that situation.

Contingency Theory- It is the organizational theory, which claims that there is no best way of organizing a corporation, lead a company or make decisions. Optimal course of action is dependent upon the external and internal situations. These are focused on specific situational factors of Wm Morrison Supermarkets Plc. that can affect direct relationships between independent and dependent variables. It suggests that success of Wm Morrison Supermarkets Plc..'s leadership relies on circumstantial conditions and certain factors that determines success or failure. It motivates Wm Morrison Supermarkets Plc.. thinking about particular aspect of leader's situation which need more intense focus.

Situational Theory- This leadership style suggests that there is no single leadership style is the best; instead it all depends on situation at hand and type of leadership or strategies that are best suited to the tasks. The most effective leaders of Wm Morrison Supermarkets Plc. are those who are able to adapt their style to situation and look at evidences that contributes to job getting done. The efficient leaders of Wm Morrison Supermarkets Plc. handle situations in a decisive and innovative way where they perform corrective measures according to situations which  company faces.

TASK 2

Different approaches to Operations Management

Six Sigma: These are the set of techniques and tools for improving processes (Slack, Brandon-Jones and Johnston, 2011). The ideology focuses on statistical improvements to organization's process, which advocates qualitative measurements of success. This is usually used as a methodology for solving problems which is a customer focused strategy for continuous improvements which minimizes defects of variation. The main uses are as follows:

  • Improve quality within organization
  • Render customer satisfaction as it is customer driven approach, which is the main force for any organization
  • Reduces delivery time and fault rates
  • Manages cost and increases production

Lean production: This is a systematic method of waste minimization within a manufacturing system without sacrificing on productivity (Subramanian and Ramanathan, 2012). This technique eliminates wastage within production system by cutting out waste at the same time ensuring quality, increases value and reduces costs (What is Lean?, 2018). It is a minimal waste manufacturing system where it increases speed and efficiency which are its principles.

Just in time (JIT): JIT inventory system is a strategy or philosophy of management, which increases efficiency and reduces waste by receiving raw materials from suppliers only when they are needed in the process of production.

This manufacturing is a production model where items are created to meet the demands and not for advance or surplus needs which avoids wastage associated with overproduction.  

Total Quality Management (TQM): It is a philosophy or approach used by organizations to improve internal process of detecting or eliminating errors in manufacturing and improves customer satisfaction. It is the continuous effort by management and employees of a company for ensuring quality of outputs, services and attains long-term loyalty of customers.

Business process Re-engineering (BPR): This is a management approach for managing  change where the related tasks are required to obtain specific business outcomes that is redesigned. BPR analyses workflow in order to optimize end-to-end processes and eliminate tasks that do not provide customer value (Wu, Olson and Birge, 2011). It is also known as process innovation or core process redesign, which aims at reducing enterprise costs and redundancies in processes.

Continuous improvement: It is a method used for identifying opportunities for efficient work and waste reducing, which can be a formal practice or informal set of guidelines. This is also known as Kaizen and is a long-term approach of work that seeks to achieve small changes in processes for improving efficiency and quality. 

Operations management of Wm Morrison Supermarkets Plc. uses Total quality management and JIT approaches to increase efficiency in their production or manufacturing and continuously tries to gain customer satisfaction through improvements.

Role of a store manager

Operations Manager is a senior of an organization who oversees the production of goods and services (Alderton and Saieva, 2013). Store manager also ensure that the company is running in its best possible manner with efficient services which meets needs and wants of customers or clients. Operations Manager administrates several departments like purchase, warehousing, manufacturing etc.

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Role of operations manager in an organization

Resources management- Operations manager plays a major role of managing raw materials and personnel of an organization where they oversee  inventory, purchases and supplies. Determine needs, employee-hiring, assignment overseeing of staff, planning and development of employees duties are also performed by an operations manager.

Administration- Operations manager provides administrative support and direction to various managers and departments like regular reviewing of schedules, confirming itineraries and meetings with corporate clients etc.

Communication and resolving conflicts- Operations manager with their good interpersonal and communication skills manages different parts of an organization by facilitating information exchanges between employees or departments. Centralising communication through operations manager reduces misunderstandings between departments that can boost morale and motivation. They spots conflicts or issues early and resolve them to the satisfaction of involved parties.

Planning and scheduling-  Operations manager proactively plans and schedules projects of an organization through interacting with external agencies or firms, ensuring deadlines assembly with quality, effective managing of time etc.

In the case of scarcity of inventory, operations manager of Wm Morrison Supermarkets Plc. needs to act efficiently for the purchase of supplies for organization economically (Baldwin, Allen and Ridgway, 2010). They must check with availability of resources or raw materials, which is currently available in Morrisons. Operations manager must consult with the store department and make list of required supplies to ease  process of purchase by avoiding over purchase to save money. They must also cross check with the  requisites bought to ensure that all supplies are rendered to Wm Morrison Supermarkets Plc. for smooth functioning.

Importance of Operations Manager in Wm Morrison Supermarkets Plc.

  • Operations manager of Wm Morrison Supermarkets Plc. plays the role in improving productivity and profitability
  • They provide efficiency and effectiveness through overseeing production and making processes accurate
  • Operations manager supplements to all other activities like purchase, finance, marketing etc. of Wm Morrison Supermarkets Plc.
  • It is necessary to attain Wm Morrison Supermarkets Plc. customer satisfaction by providing better services and utilizing resources properly

Effects of external factors on Operations Management of Morrison’s

Political Economical Social Technological Legal Environmental
Changes in government policies, new tax, duty, fiscal policy, trade tariffs etc. (David, 2011) may affect Morrisons business environment and revenue generating structure change. Inflation rate rising, interest rate, foreign exchange rates fluctuations, economic growth patterns and FDI etc. directly impacts Wm Morrison Supermarkets Plc. and may have a long lasting effect on their performance. Cultural trends, demographics, population, buying patterns, demands etc. affects Wm Morrison Supermarkets Plc. products line and tends to make changes that may incur expenses. Innovations in technology, latest advancements may affect Wm Morrison Supermarkets Plc. operations and market favourably. This makes Wm Morrison Supermarkets Plc. to upgrade their existing systems to the current technological discoveries. Greater regulations and legislations of laws and obligations places new challenges for Wm Morrison Supermarkets Plc. operational objectives Climate, weather, geographical locations, natural disasters, global climatic fluctuations, environment offsets etc. can have a serious effect on Morrisons’s which are unavoidable.

Changes in government policies, new tax, duty, fiscal policy, trade tariffs etc. (David, 2011) may affect Morrisons business environment and revenue generating structure change.

Inflation rate rising, interest rate, foreign exchange rates fluctuations, economic growth patterns and FDI etc. directly impacts Wm Morrison Supermarkets Plc. and may have a long lasting effect on their performance.

Cultural trends, demographics, population, buying patterns, demands etc. affects Wm Morrison Supermarkets Plc. products line and tends to make changes that may incur expenses.

Innovations in technology, latest advancements may affect Wm Morrison Supermarkets Plc. operations and market favourably. This makes Wm Morrison Supermarkets Plc. to upgrade their existing systems to the current technological discoveries.

Greater regulations and legislations of laws and obligations places new challenges for Wm Morrison Supermarkets Plc. operational objectives

Climate, weather, geographical locations, natural disasters, global climatic fluctuations, environment offsets etc. can have a serious effect on Morrisons’s which are unavoidable.

Impact of external and internal factors on store manager's decision making

For the success of Wm Morrison Supermarkets Plc. business and gain competitive advantages, it is necessary for the store manager to understand factors that affect overall development (Haksever and Render, 2013). They need to know positive and negative effects within and outside the company to produce suitable strategies to handle situations.

Conducting SWOT and PESTLE   analysis will help them in understanding internal and external factors that have an impact over operations of Wm Morrison Supermarkets Plc. Internal factors which are under the control of  store manager like capital resources, personnel, operational efficiency and organizational structure can affect working of Wm Morrison Supermarkets Plc. business and operations. This can affect  production and process of  firm that can be altered by store manager. External factors like economic situation, laws, customer demands, etc. are under no control of Wm Morrison Supermarkets Plc.. Therefore, the store manager needs to consider these factors before making any decisions that can provide a smooth working environment.

CONCLUSION

From this report on management and operations, it can be concluded that operational department has a crucial role in an organization's activities. The report discussed the roles, characteristics and functions of leaders and managers in a company. It also examined various approaches of leadership and operations management. The report studied the role of operations manager and their importance in Wm Morrison Supermarkets Plc. for development. Later it also covered various external and internal factors that affected Morrison’s overall working along with decision making of a store manager.

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