Management and Operation of TESCO
MANAGEMENT AND OPERATION
This assignment is intended to describe the management and the operation of an organisation. In this highly dynamic market to achieve the competitive advantage, it is very much important for the organisation to align the operation of the organisation with the objective of the organisation so organisational objective can be achieved with effectiveness. The main task of the management is to manage the overall activity of the organisation, whereas the operation department of the organisation is associated with managing all of the organisation tasks so it can provide the organisation the competitive advantage. In order to maintain the operation of any organisation with effectiveness, it is important for the organisation to have an effective leader whose tasks will be encouraging all of the employees to achieve the organisational objective.
1. Defining the roles of manager and leadership:
As stated by Tu et al. (2010), management can be defined as the art to get different things done with and through people in any officially designed group of organization. On the other hand, leadership is the ability of the management of any organization that achieve and set different challenging tasks, take conclusive and instantaneous action, outer perform the competition and inspire the other people to do well so that they can perform with effectiveness. Therefore, leadership is associated with the action that helps people to do well in any organization towards the achievement of the goals. The main role of the leadership are helping the management so they can formulate the most effective policies as well as the plans, communicating the rationale of the organization with the external people of the organization, soliciting the full support to the employees so they can be intended to perform well with the effectiveness. Along with that, it is also important for the leaders to act as the friend, philosopher and guide for their employee so they can resolve the entire organizational problem. On the other hand, the role of management includes involving employees in the work, leading the sub-ordinates and motivating them, monitoring the performance of the organization as well as employee, handling conflict in the organisation.
2) Differentiating management and leadership functions as per J.Kotter
According to the John Kotter the leadership and management function are completely different from each other. Kotter describe that the leadership process of any organization mainly involve the development of the vision for the organisation, alignment of the organisational people with the visions through effective level of communication, and generate motivation among the people through fulfilling the basic needs of the employees (Clements-Croome, 2014). On the other hand, according to the Kotter the management process of any organisation mainly include the planning and budgeting process, resolving problem and controlling the entire organisational work and facilitating the staffing and organising in the organisation. In emphasising the differences between the leaders and managers, Warren bennis notes that in order to survive in this competitive business world, it is important to generate more leaders, not the managers.
3) Analysing management by objectives by P.Drucker:
Management by objective was first evaluated by the Peter Ducker who describe the management by objective is the process that can define the specific level of the objective in any organisation that the management of the organisation convey to the organisational members so that they can understand how those objective can be achieved by the organisation (Jung et al. 2011). According to the Peter Ducker the management by objective determines the joint objective and provides the feedback on results. Peter Ducker set a number of the condition that should be addressed by the organisation, which are objective must be formulated at both the qualitative as well as quantitative level, it is important to involve the reward management strategy; the set of objective should be motivating as well as challenging (Berkes, 2013). In order to put the management by practice, Peter Ducker develops five different stages such as determination of the organisational objective, informing the employees regarding the objective, stimulating the involvement of the employee to determine the objective of the organisation, monitoring the progress of the organisation, after that evaluating the performance of employees is important and reward must be given to employees according to the performances.
4) H. Mintzber’s three management role theory:
There are several; roles and responsibilities that any manager has on their organisation so the organisation can achieve the competitive advantage. Henry Mintzburg describe that most of the managers spent their time in organisation in different kinds of role that can be categorised into the three categories. Those three categories are the interpersonal, informational and the decisional. As stated by Dowling and Pfeffer (2013), the managerial role involve in the interpersonal category involved figurehead, liaison and leader. As a manager it is important for any person to have the ceremonial, social as well as the legal responsibilities. Along with that, a manager should have the capability to lead their sub-ordinate and managers should communicate with different external as well as the internal contact. In the informational roles the managers have different types of roles such as the spokesperson, disseminator and the monitor (Premkumar and Ramamurthy, 2013). On the other hand, in the decisional category, the managers should have the capability to handle the conflict, allocate the resources, and negotiate with the team, department and organisation. Along with that the managers must have the capability to control and create different types of changes in the organisation to make organisation more productive.
5) Leadership traits theory and discussing about 2 different types of leadership:
Trait theory of the leadership is based on the characteristics of both the success and unsuccessful leaders so that the effectiveness of the leadership can be predicted. It mainly identifies different types of the personality traits that distinguish any leaders from the non-leaders. According to the trait theory of leadership, any successful leaders definitely have the specific level of the interests, personality traits and the abilities which are different from the less effective leaders. Different core traits based upon which the effectiveness of the leaders are decided are the motivation among the leaders, level of maturity, integrity and honesty, different achievement drive, self-confidence, knowledge of regarding the business . The limitation of trait theory includes there are some disagreement upon the trait as and the theory is very much complex in nature. As stated by Henderson and Venkatraman (2013), there are mainly five different types of leadership style that are autocratic, participative, transactional, and transformational and the laissez fair leadership. Among them this section will describe the autocratic and participative leadership style. The autocratic leadership style mainly allows the managers to make different decisions regarding organisation by alone without the help of others. On the other hand, participative leadership style involves taking values from the employees to make effective level of decisions (Rubenstein et al. 2012). Therefore, participative leadership style is effective to increase the employee morale and the satisfaction, whereas the autocratic leadership creates the de-motivation among the employees.
6) Hard leadership and soft management skills:
As stated by Agnew (2014), hard skills can be defined as the specific abilities or the skills of any people that can be transferred. This kind is skills are very easy to quantify as well as teachand this kind of skills can be easily improved. On the other hand, the soft skills are undefined and the subjective. This kind of skills helps any leader to resolve the conflict among the people facilitates effective level of the communication and helps organisation top resolve their problems. In order to help the management and the employees of the organisation, the leaders should have different hard skills such as the effective level of proficiencies in the job, good knowledge regarding the organisational process, effective knowledge regarding the working of employees, process to get the on-going job done (Simons, 2010). On the other hand, different softy skills regarding the leadership are effective communication skills, problem solving skills, flexibility, time management skills, motivation and the capability to work in a team.
7) Three transformation processes in operations management:
As stated by Chang and Lee (2015), in the operation management the transformation process mainly includes different types of activities that receive input, add some value to the input and generate some output so it can be delivered to the client with effectiveness. In this case the inputs are the raw materials and the outputs are the final products. For example, any hospitals mainly transform the ill patient to the healthy patient. Different types of the transformation process in the organisation mainly includes the changes in the location of the ownership of the information or the materials, accommodation and the storage of the information, customers or the materials and changes the physical characteristics of the customers or the materials. It is seen that every transformation process mainly involve three different entity such as input, process and the output. In the first process, first location is the input, process involves the transportation of the goods and the output is receiving goods in the other location (Papadakis et al. 2012). On the other hand, in the second transformation process the transforming process is storing and the input is sending goods from one location and the output is receiving goods in other location. In the second transformation process the transformation process is changing the physical characteristics.
8) Defining the term quality and costs of quality for managers in achieving business objectives:
According to Lok and Crawford (2011), quality can be defined as the standard of something that can be measured against some pre-determined criteria so the degree of excellence of the goods or services can be understood by the organisation. The cost of quality can be defined as the cost regarding provide the products or services which is poor in quality. The quality related activities that mainly incurs some costs can be divided in the four categories such as the prevention costs, appraisal cost, internal failure costs and the external failure costs, therefore, it is important for the managers to consider these types of costs. Among them the prevention cost is intended to void or prevent their quality regarding problems, different activities such as quality planning, quality assurance, requirements for the product and services and training is associated with this cost. On the other hand, the appraisal costs are associated with the monitoring and measuring the activities regarding the quality so here the related activities are the quality audits, supplier rating. Internal failure costs are intended to resolve the defects that are discovered in the products before delivers it to the customers, here the related activities are the failure analysis, wastes, scrap. On the other hand, external failure costs associated with the cost that cover the resolving problems that are encountered by the customers, here the related activities mainly includes returns, warranty claiming, servicing and repairs.
9) Managers role in total quality management:
As per the viewpoint of Scott and Davis (2015), total quality management can be defined as the continuous effort of the management so the processes as well as systems can be upgraded in order to ensure the superior quality. The managers mainly associated with the implementation and initiation of the total quality programs that require greater level of planning. Along with that, the total quality management involves some budgets so it is important for the managers to assess the allocated budget for the TQM. On the other hand, the managers are associated to act as the facilitator in the workplace. It is the duty of the mangers to assist employees regarding the implementation of the TQM. Along with that, the manager should communicate the other members of the organisation to help them to achieve effective level of understanding regarding the benefits of TQM so they can take active participation in the process.
10) Just in time and waste reduction approach in operations:
Just-in time is one of the inventory management strategies of any organisation that mainly increases the efficiency of the process and decreases the wastes in the manufacturing process by receiving the goods only when they are required in the production process of the organisation so the inventory costs can be minimised. As stated by Meyer and Allen (2011), wastes in any organisation do not provide any kind of value to the organisation so just in time approach is important to eliminate and minimise different wastes in the organisation. However, in order to apply the wastes from the operation it is important to identify the type of the wastes that need to be eliminated. It is very much important to reduce the wastes so the sustainable competitive advantage can be achieved by reducing the operational costs. It is seen that, wastes always increases some overhead cost on the operation, because it increases the cost regarding the inventory management so just in time approach is important.
11) Three capacity management methods that manager can use for operations management:
According to Iriye (2015), Capacity management can be defined as the process that can be utilised to manage the information technology. The primary goal of the capacity management mainly ensures that the IT resources of any organisation can meet the present and future requirements of the business in a very cost effective manner. In order to manage the capacity regarding their business, it is important for the organisation to manage the supply and demand of the organisation, it is important to establish and measure the level of capacity for any service operations. Along with that, it is also needed to manage the higher degree of interaction between the producer as well as the customers.
12) Concluding on the role of managers and leaders:
From the above discussion, it can be concluded that, in order to achieve the competitive advantage, it is very much important for any organisation to have a competent management and effective leaders. Along with that, it is also important for the management to have effective level of role and responsibilities so they can perform their responsibility with effectiveness and helps organisation to achieve more productivity. In order to achieve the competitive advantage, it is important to maintain an effective quality in the organisational process, otherwise they might face huge amount of costs to achieve the required level of quality (Iverson, 2014).
1) Introduction to Tesco:
In order to answer the question, the selected organisation is the Tesco. Tesco is one of the British multinational retail organisation that sell grocery and general merchandise organisation. In the recent time, they are operating in almost 12 countries across the Europe as well as Asia. Tesco become the third largest retailer in the UK with 24.8% shares in the market (Tescoplc.com, 2016). Currently, they have almost 6902 number of stores in all over the world with the revenue of 54.433 billion euro. They are currently operating different types of stores such as the supermarket, superstore and the hyper store. They have market capitalisation of almost the 18.1 billion euro in the market and they are listed in the primary listing in the London stock exchange.
2) Explaining of own department including the role of operations:
Here the selected department is the operation department. The main function of the operation departments of Tesco is to include the design and the management of the products, processes and the services. Along with that, operation departments of Tesco are also associated with the evaluation and the allocation of the resources so they can supply their products to the customers form their stores. Along with that, the operation departments improve the process of the supply chain by shaping their internal functions. The operation team of the Tesco is also associated with performing the quality assurance (Hickson et al. 2013). The personnel associated with the operation check the quality of the food as well as the non-food items. As Tesco is liable to provide the fresh food items to the customers, so it is important for their operation team to check the freshness of the food items. Along with that, the operation department also improve the organisational process to manage the employee, flow of information. As Tesco has huge number of employees and have stores in different locations, so this process improvement can help them to achieve competitive advantage.
3) Discussing the background of the management team:
The management of the Tesco also involve the operation so they can understand the efficiency of the operation and implement change if it is required in the operation so they can ensure effective level of products and services to the customers. The operation management of the Tesco mainly include the three level managers. Here the first level managers are assigned to maintain the bottom level operation in the management hierarchy and evaluate that the sub-ordinates working with effectiveness in the operation department or not. The main function of the first level managers mainly include the budgeting of the operation, track the sub-ordinates, assigning tasks to the employees, measuring the discipline in the operation departments, convey the problem regarding the operation management to the upper level managers of operation. The main task related to the mid-level managers in the Tesco are working with both the lower level managers and the upper level managers so the operation related tasks can be effectively maintained in the Tesco (Hill and Hill, 2012). The main task regarding the mid-level managers in the Tesco are interpreting the policies and implemented that, providing training and encouraging the employees so a better productivity can be achieved, instructing the lower level managers and ensuring the smooth functioning of the operation departments. On the other hand, the top level managers of the operation department of Tesco is associated with offering the direction to the organisation and setting the organisational goals and making plan to attain the goal.
4) Strength and weaknesses of manager/leader approaches:
The main strength of the managers or the leaders of the operation departments of Tesco are very much effective to create effective teamwork in the organisation. The managers follow the effective leadership strategy so they can motivate their employees to achieve their organisational goals. On the other hand, the managers and leaders are very much effective to resolve the organisational problem and they are effective to resolve different workplace related conflict with their different effective strategy (Connell and Slatyer, 2014). However, in order to show that strength, managers forgot to develop themselves, they are not efficient to develop their own skills so most of the tome the sub-ordinates are facing problems regarding different operational aspects in the Tesco. On the other hand, the operation managers of Tesco are not effective to manage the performances.
5) Three specific roles ad duties of the management in Tesco:
Management of Tesco are generally associated with the managing different workplace related tasks, the management of Tesco are generally associated with leading, administrating and delegating the tasks. The management of the Tesco have the capability to lead their employees and they have the capability to set the vision of the organisation. The management of Tesco are effective to involve their employee to achieve their vision so they can achieve the competitive advantage. Along with that, the management look after the day-to-day activity of the organisation and the employees so they can identify different issues at the initial level. Most of the operation of the Tesco mainly includes different types of the financial and reporting requirements because they are associated with the sales of the product or sales so continuous monitoring help the management to evaluate their actual profit level. The management of the Tesco are also checking that all of the requirements of the operation departments are addressed on the time or not (Connell and Slatyer, 2014). Other task of the management is to delegate the workload with effectiveness and monitoring the progress so the job can be effectively done. Along with that, the management are also liable to assess the actual capability of the employees so that they can provide them the appropriate tasks according to their capabilities.
6) Real occasion in applying role of management:
Sometimes different stores of the Tesco face huge pressure, especially during the time of the seasonal sales. In the time of the seasonal sales, emergency situation are created but the effective and appropriate skills of the managers helps the employees to handle the huge pressure of that time. In that time, the management of the Tesco can apply the theory of the Fredrick Taylors they can improve the productivity of the organisation (Kohonen, 2012). By applying the scientific management theory Tesco can optimise the way by which they performs their tasks. They mainly simplify the tasks by segregating the job responsibility among different personnel associated with the customer services so the competitive advantage can be achieved. By applying the general administration theory on the working of the Tesco, they find a rationale way so they can design the organisational work with effectiveness. By applying the general administration theory in the emergency situation, they facilitate a clear division of the labour, delegating the power among different professional and provide some authorities to the administrator so they can handle the extra pressure of that time.
7) Theory of leadership styles:
Tesco is one of the retail based organisation so here the base level employees provide the services to the customers. Therefore, implementing the effective leadership style is important. In order to align the employees with the organisational objective, the managers of Tesco mainly follow the participative leadership’s style so it can motivate the employees to do task (Lucas, 2013). The participative leadership style involves the employees in the decision making process that helps the organisation to achieve the better level of productivity and helps the organisation to achieve the competitive advantage. In order to main the sustainability, Tesco sometimes implement the change which always generates huge resistance from the employee. However, the successful implementation of the participative leadership styles helps them to manage the change with the effectiveness.
8) Type of transformation processes in Tesco:
There are several transformation processes that are mainly followed in the Tesco. Among different transformation process, Tesco mainly follow the shifting of the fresh food from the supplier to the store, storing or accommodating those raw materials in the inventory of the Tesco. In this case, in the first transformation process, the process is the transporting the fresh and frozen food to the warehouse of the Tesco (Aspinall et al. 2012). Here the input is sending goods to the warehouse of Tesco, whereas the output is the receiving those goods at the Tesco. On the other hand, in case of the second transformation process, the process is associated with storing the fresh food that is received at the warehouse of the Tesco. Here the input is the transporting products to the premises of Tesco and the output is service customers the fresh and good quality food.
9) The impact of two adjustments for Capacity Management on Tesco:
Capacity management is important in the Tesco in order to ensure that the IT resources of the Tesco can meet the present and the future requirements of the Tesco. In order to manage the capacity in the Tesco, it is important for the management of the Tesco to effectively manage the supply and demand of the organization with the organizational objective (Biggs and Smith, 2013). This adjustment will help their organization to reduce the quantity of the wastes in their organization and they will be able to reduce the operational costs of their organization. On the other hand, interacting between the producer and customers will help them to provide more effective products to the customers. This process will also help the manufacturer to understand the actual need of the customers so they can make the product that can help them to satisfy the customers. As Tesco receives products from the supplier and supply it to the customers then they must act as the bridge so the manufacturer can understand the actual need of customers so that the customer can get the product according to their needs.
10) Providing two operational recommendations:
As the front line employees are associated with contacting the employees, so it is important for the management of the organization to increase the efficiency of the organization. It is important for the organization to provide the effective level of training to the employee so they can get more knowledge how they can convince the customers and manage different organizational operation (Bardram, 2014). Along with that, the management also arranges the proper incentives and remuneration structure for those employees so they can be motivated towards their work and provide the effective level of productivity to the organization.
The above section concluded the fact that, in order to achieve the successful operation it is important for the organisation to satisfy the employees of the organisation who are associated with communicating the employees. Those employees need to be satisfied because it will help them to provide the fullest possible effort to the organisation that will increase the organisational productivity. Therefore, in order to encourage the employees, it is important for the organisation to hire effective leaders who must motivate the employees with different strategies so they can achieve the organisational objectives.