Management and Operations of an organisation- Greenergy International Ltd.

Greenergy International Ltd is a distributor of petrol and diesel for vehicles in UK market. The company sells fuel to petrol stations and supermarkets for retail sale, and now as Inver in Ireland. This report is about its management and leadership development program. It will cover functions of manager, management theories in different situations, and the role of operations manager. Further, it will cover environmental factors that can effect operations management and its impact upon decision-making.

TASK 1

P 1: Definitions of a leader and manager

Greenergy International Ltd is a UK-based company and distributor of diesel and petrol for motor vehicles. It sells more than 20 million litres of petrol and diesel per day. The company also runs biodiesel production facilities that process waste-derived biodiesel. GlobalDiesel is among its branded products, which are sold by UK retail giant.

Importance of management and operations:

• Encourage initiatives: management encourages initiatives. Taking initiative means to do the right work at the right time without being told by the superior. Greenergy encourages its workers to take initiatives.
• Encourages innovation: innovation means generating new ideas, new technology, new products, new methods, etc. Management also encourages innovation in their organisation.
• Growth and expansion: management makes effective utilisation of available resources. It encourages and motivates the team, results in expansion and growth of the organisation.

Operation function is important because it is the base of a business. It is a business function liable for managing the process of planning, organising, controlling and coordinating.

Management: It is an activity performed by individual or group of individuals to manage and run an organisation. Management combines all together, i.e. men, material, money, methods, machines, etc. These resources are used by Geenergy to gain profits, increase sales, etc. (Laudon and Laudon, 2016).

Leadership: - Leadership is the ability of a person or a group of persons to influence and guide employees or other workers of an organization. In Greenergy, leaders are required to develop future vision and to motivate the members to achieve its goals.

Leader: A leader makes vision for an administration, through which employees feel motivated, guides them and builds team spirit. A team leader is a person who provides directions, instructions and guidance to a group of people working in an organisation for the purpose of achieving goals. There are two types of leaders, such as formal (who is formally appointed or selected to direct and control the activities) and informal (who are not formally elected). Leaders of Greenergy International Company performs the following functions, such as setting goals, creating and shaping of the organisation, guiding and directing his group, etc.

Manager: A manager is a person who is head of a company and manages a group of task. A manager is a person who is responsible for managing an organization's functions and departments. The manager of Greenergy plays a significant role by performing these functions: hiring and staffing, providing training to new employees, monitoring performances, etc.

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P 2 functions of a manager according to Henry Fayol and how a manager performs these functions using various examples

general theory of business administration named Fayolism was developed by Henri Fayol. He was an executive, author, French engineer and director. He defined five functions of management that are still relevant to organisations today.

These five functions are as follows:

Planning: planning means looking forward. According to Henry Fayol, creating a good plan of action is the toughest among the five functions (Hatchuel and Segrestin, 2018). Manager of Greenergy requires active participation that draws a proper plan regarding distributor of diesel and petrol, production of biofuel, etc. Planning is deciding about the future and means what is to be done and how, when, where and by whom is to be done.

Organizing: it is a key function of management in an organisation that cannot work properly unless it is well organised. It involves coordination of various tasks between various levels of organisation. According to manager of Greenergy Company, properly organised resources result in effective utilisation of them.

Commanding: is an essential management function. In this, function manager gives commands to its workforce so that it can produce desired production. Manager of Greenergy have integrity, honesty, communicate clearly and practice their decisions on regular basis.

Coordination: another function of management that can directly impact on productivity is coordination. Coordination is necessary for the achievement of organisational goals. The manager coordinates internally as well as externally. Internal coordination involves planning, organising, controlling and actuating within the company. External coordination is with government, public, other enterprises, politicians, etc.

Controlling: controlling ensures that everything is working according to the plan. Controlling is checking of the performances of the employees' work to see whether they are running as per plan or not. It is a continuous activity. Greenergy manager controls over various activities to earn the loyalty of existing customers and win business in the new sector.

a. Comparison of characteristics of leaders and managers

b. Comparison on the basis of their roles

P 3: Explanation of how the following theories may apply in different situations using examples

Leadership theories have been the beginning of many studies (Peaucelle, 2015). Hence, there are many leadership theories which are practiced in many organisations.

System theory: system theory is the advanced study of the abstract organisation of an event, independent of their substance, type, or scale of existence.

Contingency theory: this theory states that effective leadership also depends upon the situation in which he operates rather than its style. There is no best style to be successful leader. Leaders use various styles according to situations.

Situational theory: this theory suggests that leaders select the best course of action based on situational changes. According to situation theory, only those leaders who adopt the best strategy based on situation are successful.

M 1: Analyze and differentiate between the role of a leader and the function of a manager by effectively applying a range of theories and concepts

An individual's personal qualities make him a leader whereas an individual, through his integrity, goodness, honesty, etc. becomes a manager. A manager is followed by its junior assistance and subordinates but in leadership, a leader leads a group of people who follows him. In organizations, all managers are leaders but not all leaders are managers. A manager's concern is organisational goals but a leader's concern is group goals and manager satisfaction.

M 2: Assess the strengths and weaknesses of different approaches to situations within the work

Environment

Strengths of situational theory: this theory of leadership is known to every organisation and frequently to train leaders, it is easy to understand and apply, it shows how leaders should act to achieve effectiveness of leadership (Kim, Kim, Han, Jackson and Ployhart, 2017). It is prescriptive in nature.

Weaknesses: a leader faces pressure to constantly analyse his situation before making decision. This theory provides limited flexibility to leader to balance relationship and tasks.

D 1: Critically analyse and evaluate the different theories and approaches to leadership

• Trait theory: this theory states that leaders share some inborn personality traits. trait theory of leadership says that leaders are born, not made.
• Behavioural: in this theory, researchers see over efforts to identify their behaviour. For example, what effective leaders do, how they do their task, how they communicate, etc.
• Path goal theory: this theory of leadership explains that how organisational leaders help their subordinates to accomplish their goals.

Task 2

P 4: Different approaches to operations management

For managing firms, operation management is a significant area. It is concerned with controlling the process of production and enterprise operations in the most effective manner. Managing quality, supervising, analysing, hiring, training employees, etc. are the duties of an operation manager.

Six Sigma: this method is used to improve the functioning of operational management by removing errors and defects, decreasing cost, and saving time. Six Sigma method can keep companies from going bankrupt in these hard times. They can also take an organisation to the top level, making it industry leaders. This approach of management is used in our supermarket for improving operation management quality.

Lean production: lean production, also known as lean manufacturing, is a method for waste minimisation. Activity of reducing waste is focused in this approach of management. This approach can be applied from designing through production to distribution in business. This approach is used in our store for better performance; we engage our employees in the improvement process, which results in avoiding waste.

Total quality management refers to a continuous attempt by the management as well as the employees of an organisation to gain long-term customer loyalty and satisfaction. If there is one happy and satisfied customer (Fozer, Sziraky, Racz, Nagy, Tarjani, Toth, Haaz, Benko and Mizsey, 2017), that brings ten new customers along, whereas one disappointed customer will spread bad reviews and spoil other existing customers. Our supermarket follows this approach of operation management to maintain customer loyalty. Quality can be measured in terms of lastingness, reliableness, usage and so on.

Continuous improvement, also known as Kaizen, is a method for identifying opportunities and attempting ways to improve operations. It is a continuous effort to improve products, services, or processes.

Role of an operation manager

An operation manager is a senior person who involves overseeing the production of goods. It is the job of the operations manager to make sure that the operations in an organisation are running effectively. In managing both raw materials and personnel, operations managers play a significant role. He also plays a key role in financing, budgeting, controlling costs, etc.; they set goals and objectives in the organisation. For example, an operations manager's role includes sales forecasting and designing sales promotions. An operational manager also requires good communication skills to help the different parts of departments of an organization work together. Operation manager helps to solve problems or disagreements.

Employee management: operation manager in Heron Foods is answerable for assuring that all stores under his/her leadership are correctly staffed. The operation manager in this company is accurate in estimating the needs and assist in improving staff performances.

Cost management: cost management is another important role of operation manager. Manger review store cost inventory, sales number, expenses, inventory loss. In this way, the operation manager can create a plan to give suggestions to management to increase profit and reduce losses in stores.

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Importance of operations management

Activities such as controlling, organizing, managing, supervising, and planning come under the operation management process. The main objective of operation manager is to deliver the products on time and successfully turn the raw material into the final product.

• It involves organizing, monitoring, controlling, directing, staffing, planning, and motivating, which are its important elements. An organization is enabled to make good use of its resources, like the working class, raw materials, monetary system, and other resources. As per this statement, operations management is necessary in Heron Foods Ltd. for planning future growth, organising goods, monitoring, and motivating employees.
• Operation management is necessary to improve productivity. The ratio of input over output is called productivity. To achieve objectives and improve the overall productivity, operation management focuses on using the available resources in the best possible way.
• It is the management of various business activities that contributes to making the products match customer needs (Storey, 2016.). Operation management is the root of the organization, as it controls all the operations of the management. If the products are made according to the needs of the customers, then they could be sold at a rapid rate.
• Under this management, there is effective utilisation of resources leading to tremendous profit of the organisation. The employees efforts and the raw materials are efficiently utilised and turned into services and goods required by the organization.
• In the beginning, everyone believed that operational management was not necessary for the organisation, but later, they realised that it was actually important for organisational functioning.

In Heron Foods Ltd., the utilization of operation management is very necessary. This company uses operations management to ensure efficiency and effectiveness in the store. Utilization of resources by organizations, like human resources, shows their efficiency. The company ensures that the both tangible and intangible are not over used or wasted in the organisation, which helps in reduction of cost of production. Heron foods Ltd. makes good use of its services and product management through operation management.

Quality management is also a very important element of operations management. Heron Foods Ltd is very proactive about its food products developed for the consumer in the market place. Quality management is a continuous process of improving product quality to match customers tastes and preferences. The company, through its bench marking activities, has earned the leadership in the market. The company find its weaknesses and identifies ways in converting them into strength by using benchmarking.

P 5: Identify and assess the key outside factors that can have an effect on the operations management

Analyzing factors of environment as whole in detail is known as PESTLE. This analysis is done for the organisation to know the changes in the market, where it stands, and also where it will go in the future (Zalengera, Blanchard, Eames, Juma, Chitawo, and Gondwe, 2014). This analysis consists of factors that affect the business environment. In PESTLE, P stands for Political, E stands for economic, S for Social, T refers to Technology, L for Legal and E refers to the Environment. PESTLE analysis for Greenergy Ltd. Is as follows:

• Political factors: The political issues of a country adversely affects the operation management of an organisation. These factors include government policies, taxes, wages, etc. A government may apply a new tax or duty to Greenergy operation management, which can change the revenue-generating structure
• Economic factors: these factors involve changes in gross domestic product, inflation rates, interest rates, imports and exports, etc. Fluctuation in these factors affect the performance of operation management, which directly affects the company's management. For example, if the inflation rate rises, it will result in rise in prices of the fuel in Greenergy.
• Social: social factors such as lifestyles, religion, population growth, cultural trends, etc has great impact on company's operation management. Greenergy studies these factors for better understanding of the market and its customers.
• Technological factors: changes in technology greatly affects a company's operation management. Therefore, PESTLE analysis is done on these factors too to know and be aware of technological changes (Biancamaria, Lettenmaier and Pavelsky, 2016). Also, these factors are analysed to know about customers reaction to new trends in technology.
• Legal factors analysis: there are some legal rules and regulations that directly influence the operation management of Greenergy. These factors include legal laws that affect the smooth working of the business.
• Environmental: these factors includes all ecological, geographical, global, climate, etc. changes in these environmental factors mainly affect the agricultural business, farming, tourism, etc.

SWOT analysis that affects the operation management:

• S for Strengths: : these are positive qualities that allow any organisation to accomplish its mission. Strengths are the capabilities of the company, which includes their capabilities, human resources, customer goodwill, etc.
• W for Weaknesses:  weaknesses are those internal factors that are unable the organisation to achieve its objectives. Weaknesses in Greenergy may relate to resources, machines, development facilitates, etc.
• O for Opportunities: these are external factors provided by the government in which any organisation operates. Organizations take advantage from conditions that arise due to environmental changes and take it as an opportunity for them.
• T stands for Threats. Threats are outside factors which are uncontrollable. For example, increase in competition, technology changes resulting in price changes, reduced profit, etc.

P 6: Impact of these factors upon your decision-making

These external and internal factors in the organisation affect directly to the decision-making process, both positively and negatively. Both PESTLE and SWOT analysis facilitate decision-making in Heron Foods Ltd. It allows us to understand the business environment through which we can predict future threats and make proper planning to turn it into an opportunity (Miller, Hewlett-Packard Development, 2016). It encourages decision-making through strategic planning. It enables us to predict future and take action to avoid future risk and its impact. It allows an organisation to know its opportunities and utilise them effectively.

These factors are crucial for our Heron Foods store to know and understand the environment better and to help them to make effective strategic decisions. The PESTLE analysis is the best way of thinking strategically.

Conclusion

Through this report, we concluded that both leadership and management are two different concerns in an organisation. Leaders lead a group people, whereas a manager controls the activities of the organisation. Further, we concluded that there are five key functions of management by Henry Fayol, which are planning, organising, commanding, coordinating and controlling. And lastly, we concluded the impact of PESTLE and SWOT analysis on the operation management in an organisation.

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