Professional Documents
Culture Documents
MANAGEMENT AND
OPERATIONS
Table of Contents
UNIT 4: MANAGEMENT AND OPERATIONS
LEARNING OUTCOME 1
Manager:
Managers are people within an organization who design and manage the work of the
organization according to the goals and objectives of the organization. In order to achieve the
objectives successfully, managers are responsible for establishing and developing appropriate
strategies and policies, as well as for planning the work of staff and employees to carry out their
work in accordance with the objectives. Managers are distributed at different levels of the
organization to manage the tasks of different departments. Managers also deal with the
evaluation of personnel and the execution of this task through the implementation of the work
evaluation process at regular intervals.
Leader:
Leaders are people who get the work done from the employees in relation to the goals of the
company. Leaders play an important role in motivating employees through their leadership and
communication skills and help them believe in the vision of the organization. They make
employees work in the way they achieve their goals. The main goal of the leader is to influence
and inspire employees for their work, which leads to increased efficiency and productivity in the
organization.
Manager Leader
Managers set goals for the company. The leaders ensure the objectives defined by
the managers.
Managers convey policies to leaders. Communicate and encourage employees to
work according to policies.
Managers give directions to the groups. Leaders provide directions in team.
Managers create ideas to improve the Leaders play the role of applying these ideas in
organization. practice.
Managers focus on things. Leaders focus on people.
The main role of managers is planning in the While the role of leaders is to motivate
organization. employees to work.
Managers direct work to employees. Leaders inspire employees to work.
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TOYTA a Japanese automotive company specializing in the production, assembly, design and
sale of passenger cars in countries such as Japan, Europe, Asia and North America. Enterprise
management is effective so that strategies developed by organizations increase productivity.
The roles of leaders are effectively differentiated from the leadership role of a company.
TOYOTA executives set standards for the performance of employees and executives of the
company through their effective interpersonal communication skills and perform work done by
employees taking into account criteria defined by managers. These different roles for company
leaders and managers lead to growth in the activity where tasks are separated and better
implemented.
Management Functions:
Planning:
The management planning function controls all the plans necessary for the development of the
organization. Planning involves defining the mission, vision and strategy of the organization, as
well as defining goals and objectives.
The strategies developed by TOYOTA include Kaizen objectives, which contribute to the
continuous improvement of the production process in order to improve the efficiency of the
product. The role of TOYOTA leaders is to link the roles assigned to executives and direct the
efforts of staff to achieve these goals.
Organizing:
The organizing function of management is guided by the general organizational structure of the
corporation, without which it will not be able to carry out its day-to-day activities. The
organizing involves aligning and balancing all the resources that an organization can have to
achieve specific goals and objectives. Priority tasks are organized.
TOYOTA leaders organize and use the resources of the organization effectively to achieve their
goals. The role of leaders is to efficiently allocate resources and motivate staff to work because
available resources are used to achieve the best results.
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Controlling:
The controlling function is put in place to make sure everything goes as planned. This helps
management to check whether all other management functions are working effectively and if
not that when controlling impacts as a corrective measure. In general, this involves continuous
monitoring of employee performance and increased production.
Management strategies are implemented by the leaders of TOYOTA and supervised by the
company's management. Managers check the results of employees based on the criteria set by
management personnel.
Directing:
The directing function of management assists management personnel in their role in achieving
an agreed set of goals and objectives by the organization.
In TOYOTA managers direct the tasks to be performed to the staff, but on the other hand the
leaders play a role in building a team and directing how the work should be done.
Staffing:
Staffing is the job of managers and leaders must make the most of the staff set up in the
company. TOYOTA appoints the staff and assigns them a job according to their skills and
abilities. Leaders continue to motivate staff and adjust work to their capabilities and
communicate with them to resolve complaints and evaluate their performance.
Coordinating:
TOYOTA officials coordinate the functions of the organization for better results, serving various
departments, such as the production department and the financial department of the company,
with the advantages of producing high quality cars at the best price. The role of leaders in
coordinating activities is to implement best practices in developing business coordination
through communication and good leadership skills.
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Theories of Leadership:
Style Leadership:
A classic or scientific management theory is based on the belief that an employee of the
organization has only physical needs and economic needs and does not take into account the
social needs of workers and job satisfaction, but focuses on specialization of workers, central
management, maximizing profits, decision making and generating revenue. This theory is best
suited to an organization in which it deals only with productivity, not with any other need of the
workers.
The theory of trait in leadership is based on the personality and characteristics of leaders
leading to their effectiveness, but it does not identify the attributes that all leaders must share.
This theory is better suited to larger companies where the demand for their products is high and
they must therefore strictly control the productivity of the workforce.
It depends on the approach of the situation and has no specific model. This approach is applied
according to the situation that the company is facing at any time and can be applied to many
different situations such as increased productivity, better coordination between the different
employees of the group or employees more responsible in their approach or facilitating the
retention of employees in the organization.
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Transformational Leadership:
Transformational Leadership is an approach that focuses on the changes that need to be made
in a business to meet the challenges of the marketplace. As far as TOYOTA is concerned, this
style of leadership is applied in order to gain a competitive advantage over its competitors. This
requires leaders to work with their subordinates to implement the changes and can lead
TOYOTA to create a higher position than its competitors.
Transactional Leadership:
Transactional leadership is part of a leadership style that emphasizes monitoring, organization
and performance, and is an integral part of the overall leadership model. Transaction
management is a leadership style in which leaders use rewards and punishments to increase
their dedication to their followers. Thanks to the reward and punishment system, transaction
managers can keep followers motivated in the short term. Unlike transformation leaders, those
make use of a transactional strategy don’t seek to change the future, but try to keep things the
way they are. Managers who use major transactions are seen as a model that allows followers
to detect errors.
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A manager must have sufficient knowledge of the organizational structure to make decisions
more systematic.
Knowledge Planning:
Customer Knowledge:
A manager must have strong experience in customer knowledge management, where the
company cannot identify potential customers or design products for them without sufficient
knowledge of the customer.
Performance measurement:
This is a very important skill that the manager needs to acquire, because without measuring the
performance of the staff in relation to the task, their performance can neither be estimated nor
can it be increased.
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A leader must be self-aware, which means that he must be aware of the strength and weakness
of the job so that it is easy to make the right decisions. The power of self-realization is to help
the person clearly understand others and that his weakness is limited to the external behavior
of the person.
Agility in learning:
This is one of the most important leadership skills for which you should always be interested in
learning from previous situations or experiences, so that the same mistake does not happen
again.
Resistance:
This ability is needed for all skills. You must learn from the mistakes of the past and put you in
difficulty to succeed, you do not have the courage to accept the first and not to repeat the
mistakes.
Emotional Intelligence:
This is very important from an organizational perspective as it helps to understand the needs
and requirements of the organization's employees and markets.
It is extremely important to create an organizational hierarchy within the organization, where all
employees of the institutions are aware of their roles and responsibilities within the
organization.
Political Knowledge:
This is an important factor in soft leadership skills because you cannot make decisions or set
goals for an organization without understanding the political scenario of the country.
This is a very important skill in soft leadership, where unmotivated employees and others are
not enthusiastic or forced to work in the organization.
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For soft leadership skills, this is an important factor because without the creation of effective
management teams, the task will not be spread over time, making team productivity more
difficult.
This is a very important element of soft leadership skills because without creating a culture of
trust and respect, individuals cannot believe in their performance in the organization with other
skills.
Communication:
This is a very important element of soft leadership skills, as communication is very important for
developing teamwork by merging attitudes and identifying their opinions and decisions
accordingly.
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LEARNINGOUTCOME 2
Situational Leadership:
Situational leadership refers to the type of leadership in which the leadership style depends on
the skills and abilities of the employees for who the leaders are required to influence the
execution of the task.
STRENGTHS:
1. There is no single driving style. Employees always want to choose the best possible
driving style, instead of using the same method.
2. The group environment remains comfortable and efficient, contributing to building a
better team unit.
3. Increase motivation because people sometimes participate in the decision process and
feel that they are an important part of the job.
4. Improve awareness by carefully monitoring the situation to know which driving style to
use.
5. Its flexible and intuitive approach, where the role of thought plays a role in decision-
making.
WEAKNESSES:
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Systems Leadership:
The leadership of the systemic approach as a driving force beyond organizational and
geopolitical boundaries, outside the professional hierarchy of individuals, is defined in a range of
organizational cultures and interest groups, often without administrative control. When leading
the organization, the entrepreneur helps not only to think about his perspective or organization,
but also to seek a broader approach that reflects the limitations of geopolitical development and
the prospects of the organization. The application of the leadership model through the
application of the business through the manager will always provide a long-term vision for the
institution, which will help its strategies and procedures to reach new boundaries that are by
nature unique and very difficult. Other organizations reach a size that contributes to the
sustainable growth of the company.
STREANGTHS:
1. Provides a dictionary of terms that researchers can use to understand different areas.
2. Provides a framework for the presentation and interpretation of phenomena and facts.
3. Explains the complexity and dynamics of the environment and provides a framework for
creating ideas.
WEAKNESSES:
Systems leadership as applied in TOYOTA, the leaders control the workings of the employees
and communicate the situations of the company and make the employees to work according to
the needs of the company such as TOYOTA need to make changes in the operations of the
company and implement those strategies for fulfillment of KAIZEN and allow the employees
operational department to enhance the tasks related to the manufacture of the cars in low cost.
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Contingency Approach:
It defines an emergency leadership model that determines there is no better way to lead the
most appropriate institution, or to organize an organization or a decision-making body, so that
the optimal flow of action depends on the internal and external situation of the organization
STRENGHTS:
1. Clarity of objectives, when the manager clearly defines the wishes and requirements of
the organizations.
2. The exact definition of the task and the staff know their roles and responsibilities.
WEAKNESSES:
1. Lack of creativity.
2. Low Morale because the staff is not enthusiastic.
3. Lack of innovation because there is no room for training and development.
TOYOTA officials observed the reasons for rising production costs and applied the theory to
implementing changes in operational activities to reduce the high prices of materials and
equipment received from suppliers. According to their policies, the company's policy in
production and activities has been changed.
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Chaos Theory:
Chaos confirms from the point of view of management theory that, at times, the market is
confronted with changes and disorders that may be associated with changes in the customer
base or the stagnation of a global economic downturn or a declining market and emphasizes
that an organization must be able to adapt to change as quickly as possible in order to avoid
losses caused by such "anarchic" cases.
From an organizational point of view, they must be prepared and used to deal with the anarchy
that occurs at different times in the market and adapt quickly to the new situation. The
company must adapt to the situation by changing its objectives, goals and strategies, investing
more or engaging more people, depending on the nature of market chaos. If an organization
faces a change in customer desire and style, it must adapt to new product design, as per
individual requirements, or modify the current product and evolve to the new customer as a
buyer alternative product to stay on the market. By applying this theory, the institution will
benefit from the development of skills that will suit its employees, helping them to be more
effective and efficient in all situations, without fear. In other organizations, it seems that when
chaos occurs, human resources tend not to decide what to do, which jeopardizes the quality of
the work and therefore makes the growth of the enterprise more difficult. Despite the
organization's adoption of chaos theory, the institution will be self-taught and enthusiastic to
deal with all existing situations, thus contributing to the effective achievement of the task and
sustainable growth.
STRENGTHS:
WEAKNESSES:
1. Loss of time because most of the time is needed for the adjustment process.
2. You can skip some of the work to adapt to the situation.
3. Employees enjoy leisure time, which reduces their productivity.
4. There is never a clear idea of what to change.
5. There is no clear management, where goals vary from time to time.
Management by Objectives:
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Management by objectives is a theory that focuses on the combined efforts of managers and
employees to achieve goals. Manager works with employees and set performance standards
and leaders give them tasks so that they are motivated to do their best.
STREANGTHS:
WEAKNESSES:
LEARNING OUTCOME 3:
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Six Sigma:
The Six Sigma approach is defined as disciplined and managed data that eliminates errors in all
processes, from manufacturing to transaction processes and products to services in different
institutions.
After implementing the Six Sigma approach in operations management, the company can
increase customer satisfaction by reducing deficiencies, improving sales and investment results,
generating job growth by improving the value of stocks, improving production processes and
avoiding production process errors. The Kaizen approach is followed by many industries, such
as, insurance, pharmaceuticals, retail, transportation and logistics.
The role of the managers in developing a global business strategy is to plan such strategies that
can use resources effectively. In TOYOTA, managers can apply six sigma to eliminate the waste
and improve the efficiency of production.
The role of leaders in the Six Sigma application is to help build teamwork among the employees
and develop teamwork to improve the organization.
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Lean Production:
The lean production system is a simple and systematic method of waste disposal in the
production system. Implementing the non-productivity process can help manage business
operations by improving product quality, visual management, increasing production efficiency,
reducing workload, and simplifying workflow process management. This process involves the
entire organization, helps eliminate work problems, reduces space requirements, creates a safer
work environment and improves staff morale.
Lean's production system is mainly used in the automotive industry, such as Ford, John Deere,
Toyota and computer companies such as Intel and apparel like Nike.
Queuing Theory:
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The queuing theory is defined as a mathematical study of lines in which the length of the queue
and its prediction are generated.
Applying separation theory in business management helps solve problems based on a scientific
understanding of problems and optimal problem resolution. In addition, the company can
recommend access to users who need to repair products, set up workstations, and recommend
work requests.
The theory of maintenance is practiced mainly in the agro-industrial sector and the construction
sector, as well as in various supply sectors such as tobacco.
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Total quality managements main goal is to improve the quality and performance of all functions
and departments of the company, and high-quality products and services exceed customer
expectations.
1. Customer focus:
All organizations are currently focused on customer satisfaction with their products or
services, as customers are the mainstay of the company's product or service in the
marketplace. Therefore, the products must be developed taking into account the needs
of the customers.
2. Strong Leadership:
Strong leadership is an important principle of quality management, because without a
quality leader, the task manager cannot be organized and controlled and cannot decide.
3. People Involvement:
It is important to involve people in total quality management, as this cannot end the
collective efforts of many people at all levels, at the community level.
4. Management Methodology:
All companies should prioritize a systematic approach to management to improve the
quality of the product and to achieve its goals, goals and objectives. The methodology is
crucial for quality to become central to all businesses.
5. Continuous Improvement:
The organization must seek and strive to maintain the competition in which the day-to-
day dynamics of the market are changing rapidly and, as a result, companies strive for
continuous improvement to be satisfied.
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Just In Time:
Just in time inventory has been described as a technique to increase productivity and reduce
waste by receiving goods in the production process only when necessary, thus reducing
inventory costs.
The timely application of inventories in management helps the organization to reduce storage
space in the organization, where the funds are stored only at the time of its use and to provide
the funds of the company, a fair action in the deadlines, also helps only in the waste, where to
reduce the inflow of goods, if necessary, The receipt of goods in some cases, so as to stop the
flow of goods and supplies in a timely manner, also helps to reduce the company's investments,
if it is not necessary, increases the investment costs of the company.
The managers at TOYOTA direct the operational and the production department to keep the
inventory in control and the leaders keeps the track of the inventory.
The managers at TOYOTA direct the operational and production department to improve the
production on regular basis just as the company has developed the approach KAIZEN. The
leaders therefore evaluate the performance of the employees in time gaps.
Operational management:
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Operational management is the process of making efficient use of the resources of the
Organization. Its mission is to increase the productivity of the company with a minimum of
implicit resources. The process involves activities that transform raw materials into final
products and services.
1. Operational management makes the organization use the resources efficiently and
effectively.
2. The quality of products and services is constantly improving.
Conclusion:
The value and importance of operational management can be used to achieve sustainability. We
can conclude that the operational management leads the company to improve the production
and the quality of the products. Management methods such as just in time inventory, Total
quality management and the concept of continuous improvement can be applied to the
company.
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LEARNING OUTCOME 4
From the point of view of the institution, it is necessary to determine the influence of external
factors on the business environment in order to be able to identify the appropriate policies to
minimize the impact of external factors on the activities and environment of the institution
society. Making decisions is part of the organization.
The different external factors identified are political, economic, social, technological,
environmental and legal factors.
Companies must set short-term goals for a company that will benefit businesses in the long run.
As a result, the company must make minor changes and comply with CSR practices.
Culture:
Culture is defined as the thoughts, customs and social behavior of people in a particular place.
The culture of the city directly influences the business environment in which the company
determines the culture of the city and designs its products in accordance with the culture of the
city. Culture also plays an important role in operational management: the business process takes
into account the culture of the workforce and therefore develops strategies to increase the
efficiency of the workforce in a given culture. The culture of a particular place also plays an
important role in decision-making in an organization. The company chooses a product that takes
into account the cultural context of each site to monitor the cultural diversity of the site. People
can easily accept culture as part of their culture.
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Values:
Values are defined as a basic criterion or a criterion of behavior. Values are an important factor
in a business in which a company's products, services and services grow and change after an
analysis of the value of a general customer at a given location. In operational management,
values are also important parameters in setting production standards and working standards for
an organization.
Values are very important in decision-making because the values of people in a particular place
help the organization to plan and implement the decision-making process. Managers and
organization leaders should strive to develop an appropriate culture to provide an appropriate
platform for the organization's staff to demonstrate their skills and talents and ensure that their
non-cultural cultures are not developed.
Ethics:
In order to comply with corporate social responsibility, the company must apply ethical business
practices and ensure that its activities do not harm the company's stakeholders and the
environment. Ethical work is a work of moral competence whose purpose is to bring a benefit to
all participants through their activities. Ethics play an important role in the organization's
decision-making process because decisions are made by organizations that must be ethical and
their purpose is to exploit the interests of the company.
Sustainability:
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Managers must follow the company's internal policies to transfer new policies to companies
developing new business processes or changing organizational structures. Entrepreneurship has
helped to regulate growth and develop different ideas for innovation, an appropriate
investment to learn about the benefits of work and is charged with developing a leadership
spirit within the organization among the most helpful employees for succession planning.
Finally, it is also useful to change the direction of the institution's work when a new situation
arises in which all staff cooperate on a common platform.
Leaders and managers must also apply entrepreneurship in their institutions to the benefit and
application of innovative ideas and innovative ideas in business decisions for the adoption of
risk-based institutions. . The application of business theory allows companies to be successful in
the short term because they aim to make many innovative and risky decisions without focusing
on the short-term impact of the decisions made.
The main driver of innovation is innovation, where people tend to innovate products and
services from ordinary products and services. Actors play an important role in the management
of the company's operations, where the company's activities are aimed at satisfying customers,
who are the main players in the business requirements. The decision-making process in the
companies affected by the groups concerned is therefore fully associated with the activities and
expectations of the company.
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