Function of Operation Management-Karl David Construction Ltd

TASK 1

P1 Differentiate the role of leader and function of the manager in the organisation

MANAGER

A manager is an individual who manages the organisation's management and for that, they perform various functions such as planning, organising, staffing, directing and controlling (Belbin, 2010). They get the authority from the organisation to hire or fire any employee and to make work done. At every level of organisation, there are many managers such as top level managers, general managers, functional manager etc.

Role of manager in the organisation

• Planning : Manager plan the operation and functions of the organisation in such a way that it support in the accomplishment of desired objective.
• Resource allocation : It the duty of manager to allocate the resources of business to various department according to their need so that they does not face difficulty in the completion of task in effective manner. Resources are land, labour, machine, funds and many other things.

Characteristic of a manager

• Confident : Manager of the concerned organisation should be confident about their skill and idea otherwise their subordinates does not follow them.
• Discipline : Manager of Karl Davison Construction should behave properly in the organisation so that the employees does not behave inappropriately in the work premises and develop a care free environment.

LEADER

A leader is the person who guide followers for the achievement of business objective (Chen and et. al., 2011). They perform multiple duties in the firm such as motivating the juniors,developing a team , innovation and create a trust among the shareholders regarding their working. A leader by their personality influence their employees to achieve the business goal.

Characteristic of leader

• Positive attitude : Leader of Karl Davison construction should show positive attitude to their employees in the adverse situation so that when the staff face any challenge, they can come up with better solution to overcome it.
• Good communication skills : Respective business leader should contain good communication skill in their personality (Chen and et. al., 2010) . It is the leader duty to communicate the work and information to the employee transferred by top authority so that employees able to perform their task effectively.

Role of leader in the organisation

• Create a link between organisation goal and individual goal : A leader by his capability and trait reconcile the personal goals of the employees with the organisation goal. When the employees see that their goals are put an equal importance with the business goal than they become more dedicated and passionate towards the achievement of desired vision.
• Represent : Leader of Karl Davison Construction should be active and attentive in the meeting and conferences so that they can represent the company to the outside people.

Comparison between leader and manager on the basis of the following attribute:

Compare manager and leader on the basis of their function and role:

Karl Davison construction is facing the problem because there managing director of the organisation is performing functions of both a leader's and manager's. Due to performing multiple activity in the organisation which created confusion for the employee to follow the actual leader or manager or the managing director. Karl Davison mainly performing the role of the leader in the Karl David Construction Ltd. A successful business owner can be both manager and leader at the same time to direct their team towards the achievement of their vision. This is essential for Karl David Construction Ltd to make modification in the existing framework and leadership style in regard of reaching standard outcome.

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TASK 2

P2 How the role of leader and function of manager is different on the basis of the situationP3 Different styles of leadership

Leader is the most important part of the organisation as they are responsible to guide the individual in the right direction. Generally, small organisation leaders have one leadership style in their kit but the great leaders have two or three leadership style in their kit which they use according to their situation and the employees. There is a description of the three leadership style which was generally adopted in the business. According to this case study it is known that Karl Davison dominate their employees they should adopt situational leadership in their working. They need to modify their leadership according to the employee so that there is no increase in the labour turoner.

Situational Leadership Theory – Also known as situational leadership model that was made while study the organisational behaviour of the management. The Principle of this particular leadership model is there is no single style of leadership which can be called best. There are 4 different styles of situational leadership which are directing, selling, participating and observing. The leadership style varies according to the group or individual that is being lead. Also the style may vary as per the task that needs to be accomplished. However, the situational leadership have some advantages and disadvantages.

Advantages-

• This style recognizes the need for flexibility in the role of leadership.
• Emphasising the relationship between the managers and employees, it helps the team to feel motivated and deliver better results(Lindström and et. al., 2015).

Disadvantages-

• It may not feel natural to some of the rigid or task oriented leaders because of lack of flexibility.
• It does not focuses on long term goals due to being to much involved in immediate situations.

System leadership-  It is approach which can be used by the leader and the management in order to optimise a business and to create high performance in complexity and uncertainty. This theory helps the leaders in an organisation to manage and create a work environment for people at all levels in order work up to their full potential. The leaders adapt the external changes without changing the system of an organisation at once. It uses various tools to study human behaviour to generate models of leadership, organisational strategy, etc. It helps the leaders to work on complex external problems.

Advantages

• It helps the leaders to stay updated with the external changes which can further be implemented on the internal affairs.
• Systematic leadership helps in attaining long term goals.

Disadvantages

• This style also leads to complexity which further hampers the productivity of the team.
• It is a lengthy process, hence, the benefits cannot be achieved on a short span.

Contingency leadership- The contingency theory of leadership states that leaders cannot work effectively in all the situations. However, they will give the best results when being put in the condition that suites their style (LisiA, 2010). Else, such mismatched situation causes stress and anxiety which can lead them to conduct wrong decisions resulting in poor outcomes. The contingency model was introduced by Fred Fiedler in which he further discussed about LPC Scale which means Least Preferred Co worker. This scale measures the score of a person that is least preferred to be worked with. The strength and weaknesses of the respective theory are

Advantages-

• It helps in reducing the expectations from leaders and focuses on matching their ability to the tasks.
• It is supported by many studies and have well defined methods to evaluate the situations.

Disadvantages-

• It doesn't help the leaders to grow professionally as they don't come out of their comfort zone.
• The LPC scale is not widely acceptable because of the rigid nature of its practice.

Management by Objectives: It is a process of defining certain goals within an organisation which the managers or leaders can convey to the organisation members, followed by how to achieve those objectives in sequence (Nakamura and Yamane, 2015). It allows leaders to concentrate on one work at a time which results in increase in the productivity of the organisation team. Karl Davison can apply this method by defining the specific objectives for the business and then planning it to convey to the leaders to do the needful.

In the scenario it was stated that Karl Davison is dominating his manager and the employer to achieve their business vision which create the high turnover in the organisation. Karl should motivate their employee to perform work effectively in the organisation and they does not need to interfere in the working of the manager. Karl Davidson should learn that how the employees should be managed at the work force. Manager of respective organisation have to perform multiple duties at a time because their firm are not in the capacity to hire different individual for undertaking various kinds of work. They should understand their role effectively and take the help of the organisation authority in it so that the managing director does not get involve in business activity.

TASK 3

P4 Present the key approaches to operation management

Operation management is basically related to planning, organising and supervising in reference to the production, manufacturing or the services. Operation management is the part of management which deals in designing and controlling the process of production and other business operation of an organisation (Nakayama, 2012). The main aim of operation management is to successful turn input into output in a proper manner.

There are various approaches in the operation management which Karl David Construction Ltd can use in order to effectively manage their business operations are described as follows :

Six sigma : It is a data driven approach which is used in the organisation in order to improve the quality of the product by measuring the defects in the process and eliminate it to zero. It was founded by Motorola in 1984 in order to reduce the product defects which are happen due to using electronic manufacturing devices. It was adopted in the organisation so that team effort is made in the right direction for the fulfilment of task so that performance get improved. It is beneficial for the business who use statistics, financial data and project reports in order to improve their performance and functionality (Neck and Manz, 2010). The role of manager of Karl David Construction Ltd in the six sigma is to make such strategies which do optimum utilisation of resources in the appropriate manner

This Approach can have a positive and negative impact on the organisation.

• Positive- The business manager apply six sigma in their working in order to remove the wastage and get effective product. Leader of concerned business apply six sigma in their business in order to gave correct direction to team efforts and work for the betterment of the organisation.
• Negative- This approach is mostly applied on big companies. Therefore, the process and application of this theory on the respective construction company can be critical.

Total quality management : It is important to the organisation so that the employees can excel in the features of the commodity and the service demanded by the customer. TQM focus on the continuous improvement of the quality and services offered by the organisation so that customer retain with them for the longer period of time (Pinkerton, 2011). Due to this method, business able to provide qualitative product and services to satisfy their customers needs and demands. It is an approach through which business able to make big improvement in the quality at all stages of production. Through using it, management achieve long term success by satisfying their customer.Karl David Construction Ltd's leader supervise the activities of the team so that it remain in the coordination with the quality standards of the organisation. 

• Positive- Role of Karl David Construction Ltd in the total quality management is to formulate the strategies and policies in the system which can bring improvement in the production.
• Negative- As this approach focuses on the total quality of the product, the loop hole of this management theory is it is not time bounded, hence the deadlines are not achieved. Also, it can increase the cost of the respective company to improve the quality of the final product.

Just in time : It refer to the process under which material is supplied from the vendor only when there is a need of production. It is a management technique in which material is produced only when there is demand in the market. Due to presence of just-in-time, business organisation will be able to eliminate the wastage of the inventory in the organisation. Manager is accountable to motivate their employees to think about the quality and than production (Takeuchi, 2010). Under this, material is purchased in small lots and sizes so that there is low level of inventory and scrap and also the downfall in the inspection cost. It is the manufacturing process under which right quality and quantity in produced at a appropriate time.The manager of Karl David Construction Ltd provide the guidelines through which production department able to improve their productivity and store inventory in limit on a daily basis. Manager should train their employees in the preparation and interpretation of the process of control change. The Karl David Construction Ltd leader evaluate the performance of their employee in order to know the time gap involved in the production process. When the time involved is known in the production than the material is transferred only when the product is demanded by the customer.

• Positive-  By the proper use of just-in-time, Karl David Construction Ltd can improve their quality, productivity and efficiency and bring downfall in the cost and wastage
• Negative- As the material is produced and purchased in small lots, this can complicate the operations of the respective company as it may lead it time gaps between the production precess, resulting in lowering down the pace of the process.

P5 Illustrate the importance of operation management in getting effective performance

By the help of operation management, Karl David Construction Ltd will be able to control the operations involved in providing the finished good to the customer (Davidson and Olsen, 2013). Below is the list of the advantages which the Karl David Construction Ltd get in their business are as follows :

IMPORTANCE OF OPERATION MANAGEMENT

• Improves the Productivity- Operation management helps in improving the overall productivity of the company as it focuses on using the available resources in the most efficient way to achieve the desired results. When the productivity of the respective business get increase than they will be able to achieve their objectives within time.
• Needs of Customers- It focuses on making the products meet the expectations of clients. It controls all the management operations and make sure delivery of services on time in order to fulfil the demands of the customer as per the market trends to raise the sales more rapidly (John,2018). When the concerned business able to provide the product according to customer needs and wants, they will able to conquer large market share.
• Optimum Utilization of Resources- It assures that all the resources of the company including raw material, labour, money and other resources are utilised to the full potential. This will result in increase the total revenue of the company. However, another factor which the management team will attain is lowering down the cost of the company. With the optimum utilisation of the resources, Karl David construction Ltd can use their money and resources to more important things of the organisation.
• Quality Improvement- As being under observation and proper guidance of the operational team, the quality of the products also improves. Apart from the improvement of the product quality, it also helps in maintaining the customers services. With the quality improvement business able to attract the large number of customer which helps in achieving desired result.
• Inventory Management- It helps in preventing the disposal of the products which results in lesser wastage of the raw material. As a result, the inventory management of the company are well balanced. When the Karl David construction Ltd management team perform their actions effectively then there is less wastage of the inventory in the business premises.
• Increases Brand Value- When the operation management would be effective, the internal process of the team would run more efficiently. This will lead to increase in the quality of product and services. And with better services, the brand value of the concerned company will increase.
• Teamwork- Such management ensures that there is a good coordination among the different sectors of the company like finance, marketing, production, etc. and also among the team members and the team members. This leads to unity and better understanding among the internal management. When all the department of Karl David construction Ltd work together than business able to provide a effective product to customer which help in achieving desired objective.

The external factor that affect the company can be competition, technology, social, government and many more (Pohl,2013). However, these factors cannot be controlled by any company. Therefore, the only solution to this situation is coping up with them. To understand the external factor more, an example is quoted here.

Technology- The technology is a type of element which changes continuously. Hence, it is really tough to catch up that speed. It has a positive impact as well as a negative impact on the company.

• Pros- By adapting the technology in the business process, organisation can help them achieving various advancement in the process. The labour cost can be decreased by introducing various machines. It also helps in keeping up to date with the market.
• Cons- The technology is an ever changing factor which is the why it is very difficult to catch up and adapt it every time. For example, introducing new machinery will also need a certain training to the employees and will also result in increase in electricity bills.

TASK 4

P6 Impact of external business environment on operational management and decision of leader and manager

Internal factors are those which can controlled by authorities in order to maintain their position whereas external factors are not in the control firm need to cope with them in order to survive in the external environment. If the concerned business want to achieve growth and success they should understand the external factors and their impact on the business so that the can convert it into their favour. Here is a description of various external factors which affect the operation management and the decision making of leaders and the managers.

Supplier : Supplier is the most important part of the organisation due to them business able to provide the product and services to their customer. If the supplier of construction company is not provide the raw material such as brick, cement, steel, concrete etc. on the time than business not able to deliver their services to the customer. When vendors provide product on the high price than manager and leader have to make several changes in their policies, decision and strategies and working way which they earlier decide so that it does not charged on the customer. If the authorities not able to make changes than they have the great chance to loose the efficient customer.

If the suppliers provide materials on high rates, it will lead to increase the cost of the concerned company. Hence, the construction organisation will have to look for new suppliers which will lead to change in the decision-making of the company.

Government rules and regulation : If there is a any sudden changes in the government rules and regulation in respect to a product which is providing by Karl David construction Ltd than it will create a direct impact on the operation management. There are many rules made by the government in regarding to protection of environment so that no one can harm. In construction enterprise, government has implied act of using the organic material which does not harm the society (Rao,2012). This law create a big effect on the business, manager and leader have to make changes in the product which they earlier used and the material at their warehouse is wastage. Karl David Construction Ltd should keep an eye on the various rules and regulation imposed by the government so that it can't damage their reputation and work activities in the external environment.

Application of operation management have wider impact on the community and environment as it increase the productivity and the quality of the product which is acceptable by the customer. Through this business able to deliver good and services on time and the utilisation their resources effectively. Karl David construction Ltd take advantage of different management operations by balancing their inventory and other organisational processes.

If the government change rules and regulations which are involved in the business process such as minimum wage rate, taxation, etc. It disturbs the future planning of the company.

CONCLUSION

From the above report, it is concluded that business should focus on their activities from raw material to the finished good. It justify that leader and manager are the main part in the success and development of the organisation. Along with this it was analyse that the manager and leader have perform different duties and responsibilities in order to achieve the desired result. Moreover, report illustrate different approaches and leadership theories which management can use in order to improve their overall productivity and performance. TQM, Six sigma and JIT are the approaches which business uses in order to improve the profitability and competitiveness. Furthermore, it describe the external environment which make impact on the decision making of the leader and manager which can't be controlled by any business.

REFERENCES

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• Chen, X. and et. al., 2010. DECOR: DEClarative network management and OpeRation. ACM SIGCOMM Computer Communication Review. 40(1). pp.61-66.
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