Management and Operations

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Executive Summary

This report has been divided into two parts to demonstrate comparison between role of leaders
and managers in an organisation. First part of the report has included the comparison between
characteristics and responses of leaders and manager by using theories and models. Various
situations have been used to demonstrate responses in context of Network Rail. Second part of
the report has included the approaches of operation management in organisational context.
Importance of operation management and strategies to improve efficiency has also been
mentioned. Factors affecting wider business environment has also been given.

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 Table of Contents
1. Introduction..................................................................................................................................4

3. Application of the role of a leader and the functions of a manager in given contexts................8

4. The role leaders and managers play in the operations functions of an organisation.................11

5. Relationship between leadership and management in a contemporary business environment. 14

6. Summary and conclusion...........................................................................................................16

7. References..................................................................................................................................17

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1. Introduction
Leaders and managers are key people in an organisation that look after the operations. There are
different roles of managers and leaders that help businesses surviving through positive and
negative situations. Managers have decision-making power to manage operations and leaders
inspire people to accept those decisions and perform for the growth and development of
business. It is important for businesses to focus on managerial and leadership qualities of its
employees to find solutions for critical issues and enhance overall performance of business.
Therefore, training programs and activities are performed to develop these skills in employees.
This report will include the comparison between roles and characteristics of leaders and
managers. It will also highlight the role of manager and leader in different situational context.

Network Rail has been selected as the reference for organisational context. It is an arm’s length
public body of Department of transport in UK and it looks after the railway infrastructure in
country (networkrail.co.uk, 2020).

2. Difference between the role of a leader and the function of a manager

Differentiate between the role of a leader and the role of a manager

Role of Leader and Manager

Basis Leader Manager

Definition A leader can be defined as any
person who uses social
influence to maximise efforts
of other people for achieving
goals (Kruse, 2020).
Role  There are multiple
roles of leader such as
motivating employees,
guiding them to
perform better and
offer help in case of
issues.
 Leaders also look after
A manager can be defined as a
person who is responsible for
part of a company in terms of
planning, managing,
monitoring and decision-
making
(marketbusinessnews.com,
2020).
 On the other hand,
manager’s role is more
defined and organised.
They look after
planning, execution
and evaluation of
performance to achieve
organisational goals.

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 the team goals and  Managers are also
employee responsible for
performance. They external functions such
integrate the personal as marketing, product
and professional goals offering and
of employees to stakeholder
enhance performance. management.
 Communication is also  Their roles include
a crucial part of allocation of resources
leader’s role, as they and target to functional
are medium of units for efficient
communication performance.
between employees  Role of manager
and management includes the organising
(Deval et al., 2017). process of all
 Leaders through operations of business
promoting as per the goals and
coordination and objectives.
teamwork resolve
conflicts and critical
issues of teams.
Responsibilities  Responsibilities of  Responsibilities of
leaders are limited to managers on the other
teams or functional hand are diverse, as
units however; they they look after various
look after personal and functions and matters
professional needs of of business.
their followers.  They are responsible
 Leaders are for effective
responsible for performance of all the
maintain positive work operations as per set
environment by time and budget
motivating and guiding allocated for each
employees to avoid function.
conflicts and
confusions.
Table 1: Differences

Similarities

There are few similarities in the roles of leaders and managers, as they are part of organisation
and follow same values and beliefs followed by business. Objectives of both managers and
leaders are to achieve goals effectively. Managers can play the role of leader to guide people for
increasing engagement and productivity of workforce. Another similarity is to use their skills of

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problem solving, communication and adaptability to solve operational issues for consistent
performance of business.

Differentiate between the characteristics of a leader and the characteristics of a manager

Characteristics of Leader and Manager

Basis Leader Manager

Scope Scope of leaders is limited Scope of managers is wider, as
compared managers. Leaders they look after multiple
work for the teams or functions and employees in an
functional units to maintain organisation. They are
the coordination and involved in various operations
motivation among team and liable for proper
members. Their scope is functioning of business. Their
confined to small groups of scope also gives them liberty
people who follow the idea of to manage external affairs of
their leaders. business such as suppliers,
investors and competitors.
Approach Approaches of leaders are On the contrary, managers use
more flexible and informal, as more formal and rigid
they use various leadership approach to implement
styles as per the situation. policies and changes on wider
They also help other people in context. They communicate
finding solutions for with employees on mass level
individual or personal issues and guide them about the new
(Răducan, 2016). Friendly and rules, policies and goals of
supportive approaches help business.
leaders in gaining respect and
acceptance among team
members.
Skills Essential skills of leaders Essential skills of managers
include emotional intelligence, include time management,
social skills, curiosity, organising, decision-making,
communication and delegation and
adaptability. communication.
Table 2: Differences

Similarities

Major similarity between characteristics of leaders and managers are their skills such as
communication skills, problem-solving skills and ability to face challenges and mitigate losses.
Both of them use different approaches with same motives to enhance performance and

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productivity. Risks taking are also a part of characters of managers and leaders. Management
skills are also found in characteristics of both. These similarities sometimes create a manager
with great leadership quality.

Apply theories of leadership/management to differentiate between the role of a leader and

the functions of a manager.

Role of leader

Role of a leader can be described through trait theory of leadership. Theory describes the
behaviour, thought and emotion of leaders that contributes to habitual patterns. As per the theory,
personality traits of a leader are different from followers. For instance, leaders are self-
motivated, creative, emotionally intelligent and confident people that have ability to influence
actions and thoughts of other people. These traits help leaders in performing better and achieving
goals by inspiring other people (Lee, 2018). The theory focuses on heritable attributes of leaders
that help them in helping others through their skills and traits. Leaders at Network Rail also use
their leadership traits to execute various functions related to team performance and goals. They
also use their skills and traits to resolve team issues and conflicts during operations.

Role of manager

Role of manager is defined through bureaucracy theory of management, as the theory states
about organised and formal approaches in a defined hierarchy. Managers also follow formal
approach to get things done in organised way. Theory also describes the reporting hierarchy and
line of authority (Beetham, 2018). Managers have higher roles and responsibility in hierarchy
and their actions are aligned with the organisational goals and objectives. Network Rail also
gives power and responsibility to managers to plan and organise the operations for optimum
utilisation of resources and quality in performance. Managers play crucial role in making
decisions about allocation and delegation of work responsibility and resources.

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3. Application of the role of a leader and the functions of a manager in given contexts
Provide examples of how the role of a leader and the functions of a manager apply in
different situation.

There are different situations arise in business during daily operations and manager, leaders
respond differently in these situations. Some situational contexts are mentioned below:

Stable Situations: These are favourable situations for businesses and there are no changes in
internal and external business environment. It also shows the effectiveness of managerial and
leadership approaches used in business (Ivanov, 2018). Managers at Network Rail aim to keep
situation stable and favourable through their strategies and actions. They do not make
unnecessary changes in operations during stable situations. Leaders at organisation also continue
with their current approaches with any changes. They focus on keep teams motivated to maintain
stability.

Slow to moderate situations: These are situations that can be handled with small changes and
improvements in process. These situations also contribute to improvements that help in avoiding
major risks and uncertainties in future. Network Rail managers use pro-active approach to deal
with these changes. Timely evaluations and regular improvements are helpful in gaining stability
in process. Leaders also demonstrate flexible approach and perform as per situational
requirements. For instance, they guide employees to adapt with changes to improve performance
and achieve stability.

Fast changing situation: These are adverse situations and major changes occur in internal and
external business environment. Critical decisions and transformational changes are made to
survive through these situations (Grigsby, 2016). Managers at Network Rail play crucial role
during these situations, as they focus on finding immediate solution to maintain consistency and
stability. Leaders on the other hand, manage the workforce to avoid resistance and conflicts
during major changes. They focus on finding ways to inspire employees to stay positive and
motivated during adverse situations.

Discuss the models/theories of leadership/management with particular emphasis on

a) Situational leadership. b) Systems leadership. c) Contingency leadership.

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Application of theories and models in different situations:

Stable Situation: Stable situations are favourable for businesses and it is crucial to maintain such
situations for longer period to maintain consistency and positive work environment in
organisation. Situational theory of leadership states that an effective leader evaluates the
situation first and then responds accordingly. It is an effective way of understanding issues and
finding solutions as per need of situation (Thompson and Glasø, 2018). Different approach can
be used for changing situations. It also helps in analysing situation on wider context and framing
strategies to manage stability.

Slow to moderate situation: These are slow changing situations where small changes are made
to avoid uncertainties. Leaders and managers at organisation due to technological development,
increasing competition and globalisation, commonly face these situations. System leadership
theory describes the inter relationship between various functional units that affects overall
organisational performance. Managers and leaders can focus on coordination between teams and
departments to make necessary changes to regain operational stability.

Fast changing situation: It is a chaotic situation for businesses where multiple changes occur at
once and affects the operational consistency. Managers can use contingency approach to adopt
relevant management style considering the situation. This approach also helps leaders to identify
ways to manage operations as per the situational context (Tsolka, 2018). It is a dynamic
approach and strategies, plans of managers depend on the current situation in business.

Explain the strengths and weaknesses of each model applied

Stable situation: Approaches and styles of managers vary as per situations and changes in
business. Strengths of situational theory in stable situations help in identifying the need for
flexibility. It also helps leaders and managers to become more aware about the ways to achieve
stability through their actions. On the other hand, weakness this approach includes focus on
short-term results instead of long run solutions. This approach is ineffective in task-oriented
work environment where situations changes with completion of each task.

Slow to moderate situation: Moderate situations require regular focus of managers on

operations. It also requires awareness of leaders about regular improvements. Strength of system

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theory is its focus on results. It helps managers in effective and systematic planning for making
improvements (Tokody and Flammini, 2017). It is helpful in managing control throughout the
process. However, weakness of this approach includes inability to differentiate between
functions and departments. Solutions found through this approach are not applicable in practical
situations. For instance, coordination cannot help in solving external changes.

Fast changing situation: Adverse situations demands effective solutions in less time. It can
create conflicts and chaos in internal work environment. Strength of contingency approach
helps managers to react as per situation. It helps in finding new ways of handling changes. On
the contrary, weakness of this approach includes its reactive nature. Hence, it is difficult to
mitigate damages before occurrence of changes. It is also complex to use this approach in critical
situations.

4. The role leaders and managers play in the operations functions of an organisation.
Explain the approaches to operations management

Some of the key approaches of operation management are mentioned below:

Total Quality Management (TQM)

It is an approach of organisations to maintain quality in products by implementing quality

measures at each operational level to exceed customer expectations. Each member in hierarchy
such as managers, leaders and employees are responsible for maintaining quality in their
performance (Nasim, 2018). Overall emphasis of this approach is to eliminate defects and errors
from product to achieve quality. Managers at National Rail can use this approach to maintain
efficiency and operational quality. Similarly, leaders can motivate employees to follow quality
standards in their work to improve overall quality of teams and functional units. It would help
organisation in offering greater quality in their services and meeting customers’ requirements in
terms of quality and safety.

Just in Time (JIT)

This approach is used to maintain inventories by controlling wastage during storing and moving
inventory items. It is an effective way of maintaining consistency without piling up inventories

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and incurring additional cost (Hirano, 2016). National Rail can also use this approach to manage
inventory items as per needs of business. Managers can contact suppliers for timely delivery of
material at the time of need in operations. Leaders can guide warehouse and operation staff to
maintain track of usage and requirements of inventory in business. This approach would help in
controlling cost of operations without compromising consistency and quality in operations.

Lean

This approach includes the process of running business with motive to offer greater customer
satisfaction by optimum utilisation of resources. Purpose of this approach is to improve quality
and eliminate waste from the business. It is a continuous process and consistent efforts are
required for effectively following lean approach. Managers at National Rail can adopt this
approach in function by using fewer resources with greater efficiency. It would save cost and
enhance productivity without making major changes. Leaders can help in promoting optimum
use of available resources and reducing wastages from operations.

Explain the advantages of operations management with respect to organisational goals

Following are the importance and value of operation management in achieving business
objectives:

Product Quality: Operation management enable managers to improve quality in products and
operations through focusing on operational efficiency and proper utilisation of available
resources. Organising and monitoring operations on regular basis helps in enhancing quality and
creating positive work environment for business (Reid and Sanders, 2019). National Rail can
ensure quality in work through improving each operation and managing it to meet the needs of
customers. Organisation can make strategies and integrate quality with its values and goals to
promote the importance of quality in operations.

Customer Satisfaction: Competitive markets have increased the requirements and expectations
of customer in terms of quality, variety and prices. Hence, customer satisfaction has become a
crucial goal of businesses to create loyal customer and established name. Operational efficiency
ensures greater quality in services and products. National Rail can also offer greater satisfaction

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to public through consistent and quality operations. It would help in creating name and market
space for business in longer run.

Increased revenue: Most of the businesses run with a motive to earn profit and various ways to
enhance profits and revenues are introduced to control cost and increase margins. Operation
management helps in focusing on optimum utilisation of resources, proper usage and storing of
inventories and reducing wastage during operations (Heizer, 2016). All these functions help in
reducing cost of operation through regular efforts without affecting quality and supply of product
and services. National Rail looks after railway infrastructure that requires huge cost hence;
managing operations properly can help in controlling cost to increase revenues.

Waste reduction: Various wastes are created during the operations in a business such as waste of
material during transit and storage, waste of funds on unnecessary operations and waste of effort
and time due to conflicts and chaos. These wastes can be reduced by adopting operation
management approaches in business. National Rail can also ensure less waste during the
operation through making changes in operations and implementing strategies to efficient use of
resources. For instance, TQM can help in ensuring quality in operations without creating waste.

Explain the improvement strategies for operations management and the strengths and
weaknesses of each approach

Following are the strategies to improve operational management:

Customer Driven Strategy: One way to improve operational efficiency is to focus on key
requirements for business. Creating products and services as customer requirements and market
demands is a significant factor to improve efficiency in business. Strength of this process is that
it eliminates unnecessary activities and keeps the focus on managers and leaders on right things.
It helps in using innovation and creativity to meet customer requirements with available
resources and current operational process (Gunasekaran, 2017). Weakness of this strategy
includes more focus on external factors compared to internal factors such as capacity, skills and
culture.

Developing core competencies: This strategy includes enhancing quality of workforce by hiring
skilled and qualified staff and providing training to existing staff for updating their skills. It is

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crucial for businesses to have expertise and specialised knowledge to manage uncertainties and
adopt innovation. Strength of this strategy includes updated workforce that can help in achieving
operational success more efficiently. High cost on skill development and hiring processes is a
weakness of this strategy. It also needs time and efforts to create core competencies in business.

Product and service development: This is core function of any business and it requires use of
new ideas and innovation in operations. Regular changes and improvements are done based on
trends and demands in markets (Peinado et al., 2018). Defined goals and innovative approach are
strengths of this strategy. Operations can be performed without delays and confusions. On the
other hand, one of the weaknesses of this strategy is inconsistency. This strategy requires regular
monitoring and modifications in process.

Development of competitive priorities: These strategies include market analysis, defining core
process, corporate strategy and needs analysis. Competitive priorities are created by considering
operational capabilities, costs and quality required to create a product or service to offer in
competitive markets. Integration of quality and cost in operation is strength of this strategy. It
helps in setting priorities and performs as per the prioritised goals. On the contrary, weakness of
this strategy ignores the values, beliefs and social responsibilities of business while selecting
priorities.

5. Relationship between leadership and management in a contemporary business

environment
Examine factors in the business environment that affects operations management and how
they influence the decisions of managers and leaders.

Following are the factors within business environment that influences upon operational
management:

Sustainability: This factor is related to long-term growth and development of business. Its
benefits include the strategies to use resources sustainably to meet current needs of business
without affecting the future availability of resources. Operational management is affected by this
approach, as use of resources efficiently and creating less waste during operations is part of
operation management technique. Demerits of this factor include lack of attention on current

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issues. National Rail also follows the sustainable approach in using power and fuel in
operations. It also works on eliminating wastage during the business operations. These
approaches helps organisation in preparing for future operational success.

Corporate Social Responsibility (CSR): These are responsibilities of business towards society,
stakeholders and environment. Business operations influence the interest of stakeholders and
society in terms of returns and products. For instance, an organisation is responsible to serve
society by offering products and services, creating employment opportunities and helping
underprivileged section by charity and donations. Benefit of this factor is that it creates positive
image of business in market. Limitation of this approach includes suitable for large business as it
requires cost and efforts to perform CSR activities. National Rail also includes CSR priorities
such as safety and wellbeing, environmental protection, energy, employee and community
(networkrail.co.uk, 2020). Company is continuously working to create a safer and reliable
railway with greater efficiency.

Stakeholders: There are the people that use the services of business or have an interest in growth
and success of business. Employees, managers, competitors, suppliers and customers are key
stakeholders in a business. Therefore, operations are planned and managed according to
requirements and interests of these people for the benefits of business. National Rail also takes
care of needs of its stakeholders and manages operations to maintain profits and quality in
business. Operations are designed to meet the operational efficiency without affecting interest of
any stakeholder. Limitation for this factor is that conflicts may occur between stakeholders.

Intrapreneurship: It is a modern concept based on the idea of entrepreneurship in which

managers and leaders are given power to use new and innovative ideas to improve operational
efficiency of a particular department or product (Burkholder et al., 2016). Its benefits help in
finding new ways to mange operational efficiency. National Rail can use this concept to
implement new ways to manage quality and efficiency in business operations. It would also
motivate managers to use their creativity and skills to enhance productivity and performance of
business. Limitation of this factor includes focus on small operational area.

Explain the impact of the factors on the wider business environment of the organisation.

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Business is influenced by many factors such as people, environment and approaches. These
factors affect the operations, values and beliefs followed businesses. For instance, some
businesses focus on less chemicals and fuels in business to promote environment protection.
Some organisations aim at creating more employment opportunities and enhancing living
standards in society. Sustainability is a factor that is increasing the need for managing
operational efficiency to reduce waste of resources. It is helping organisations in preparing for
future business environment. CSR is another factor that is creating a need for considering
requirements of society, nature and people to create positive impact of business on society. This
concept have encouraged businesses to add social issues and legal compliances in their strategies
to create positive work environment.

Stakeholders are also a crucial factor, as consistency and efficiency of business depends on
people working for organisation and people for whom business is functioning. Transparency,
equality and respect are followed with the operations to maintain stakeholder requirements in
business. Lastly, intrapreneurship is an innovative approach used in businesses to find solution
for operational issues. Technological developments and changing trends in markets have led to
the emergence of this new approach (Gawke et al., 2017). Business can achieve sustainable
growth through these new ideas and approaches.

6. Summary and conclusion

Thus, it can be depicted from the report that leaders and managers have different roles and
characteristics with some similarities. It is also seen that response of mangers and leaders are
different various organisational situations. Theories such as situational, system and contingency
theory has been used to show response in different situations with their strengths and
weaknesses. Approaches of operational management such as TQM, JIT and lean have been
explained in organisational context. It can be seen that operation management in enhancing
product quality, customer satisfaction and revenues. Strategies to improve operational efficiency
such as developing core competency, competitive priorities and customer-focused strategies have
been explained. Lastly, factors such as stakeholders, sustainability and intrapreneurship affect the
operations in wider business environment.

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Gawke, J.C., Gorgievski, M.J. and Bakker, A.B., 2017. Employee intrapreneurship and work
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Mazzarol, T. and Reboud, S., 2020. Operations Management. In Small Business
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Nasim, K., 2018. Role of internal and external organizational factors in TQM
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networkrail.co.uk 2020. Our history - Network Rail  Available at:

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