Operations management refers to the management area that undertakes scheming and controlling production process. It also considers redesigning operations of business in production of offerings. In an organisation, both leadership and management are very important component as it assists in using the organisation resources in attaining the targets and objectives through application of different models and strategies. This project report purposes to evaluate various kinds of management and leadership skills which are practiced in the business operations of an organisation. This project report also includes the study of “Procter and Gamble” Company which is an American multi-national corporation dealing in consumer goods . It deals in a wide range of personal and consumer health products and personal care; these products are prearranged into many segments including Health Care, Grooming, Home & Fabric Care, Feminine, Family Care and Baby, Beauty. In this project report various important theories of leadership and management styles are briefly discussed and summarized in the context of “Procter & Gamble’s” business operations.
Managers: They are the individuals in an organisation who manage and control the work and also responsible for running the whole or part of a business organisation. Managers also design the work for an organisation in a position of pre-decided objectives and goals. To successfully attain the objectives and goals, the managers have to establish and develop the relevant policies and strategies for it. The managers are dispersed on different levels in an organisation to effectively manage the goals and assign duties in various organisational departments (Reuben and Timko, 2017).
Leaders: These individuals are the ones who get the task accomplished from the workers regarding the goals and objectives of the organisation. The leaders in an organisation play a vital role in motivating the workers at the workplace through their communication and leadership skills and they also make the workers perform in a way to attain the objectives in a systematic manner. The most important function of leaders is to motivate and influence the employees or workers in order to improve their performance which as an outcome increase in the productivity and efficiency of the organisation (Dragoni, et. al., 2014).
Following there are difference between the managers and leaders which are listed in the tabular form:
- A manager fits well in a systematized structure of an organisation.
- A manager is more than a leader. Hence, management is wider term.
- A manager set the goals and objectives for the organisation.
- A manager make the ideas for the improvement of the organisation.
- Leaders may also be a part of an informal group.
- It is not necessary for a leader to be a manager. Leadership is a narrow term.
- A leader persuade the goals and objectives developed or framed by the managers.
- A leader helps in actualising those ideas.
In Procter & Gamble Plc, is an American multi-national corporation dealing in a range of personal and consumer hygiene products and personal care; these products are prearranged into many segments including Health Care, Grooming, Home & Fabric Care, Feminine, Family Care and Baby, Beauty and sale these products in all over the country. The organisation management is more efficient to developed and managed the strategies and plans for their business operations which leads to maximize in the productivity. The managers of Procter & Gamble create and set the principles and standards for the employees to perform in the tasks whereas the leaders in the organisation having a leadership and communication skills that help in getting the task accomplished from the workforce while considering the established standards and principles by the managers (Formentini and Taticchi, 2016).
Following are the roles and functions of managers and leaders in the organisation:
Planning: In Procter & Gamble the essential function of managers is to prepare the plan and set objectives and goals of the organisation that complies to maximize the sales and revenues of the consumer goods in all over country. The strategies formed and prepared by Procter & Gamble regarding the goals and objectives of an organisation involve KAIZEN which contributes in enhancements which is continuous in the nature in their business process to develop more effective efficiency in their consumer goods. The role and responsibility of leaders in Procter & Gamble is to clearly communicate these goals and objectives set by company's managers to the workers and emphasis the effort of the workers in the achievement of these targets in a timely manner (Reuben and Timko, 2017).
Organizing:Procter & Gamble managers utilize and organize the resources of the organisation in an effective way that helps in fulfilling the goals and objectives. The role and responsibility of leaders is to efficiently assign the resources and inspire the workers to accomplish the task in the productivity manner without any waste (Formentini and Taticchi, 2016).
Directing: The managers of Procter & Gamble direct the assigned task to the employees and also to the team members whereas the leaders play a role of making an effective and productive team and also directs them in a proper manner.
Staffing: In staffing function, the best candidate out of the lot are recruited and selected in the organisation. Procter & Gamble recruit and select the suitable staff which is capable to perform the task in an effective manner whereas the leader’s roles and responsibilities is to motivate the employees and assign duties or jobs according to the capabilities, knowledge and skills and also communicate with them in regards to solve any problems with evaluation of their performance level (Formentini and Taticchi, 2016).
Coordinating: For getting better outcomes for the organisation, the managers of Procter & Gamble should coordinate with the functions in an appropriate manner. The functions of various departments like manufacturing, production, marketing as well as sales department also assist the organisation in producing and manufacturing the consumer goods in best quality and in reasonable prices. The leader’s role and responsibility in the organisation is to coordinate the activities in an efficient and effective manner (Reuben and Timko, 2017).
Controlling: The strategies and plans framed by managers and their execution by the leaders in the Procter & Gamble are monitored and controlled by the managers whereas the leaders authenticate the results of the employee’s performance with the planned performance as created by the managers and supervise the workers accordingly and also in systematic manner (Dragoni, et. al., 2014).
Characteristics of leader and manager
- Organization:Managers at Procter & Gamble organize each activity as well as resources of the firm in an efficient way which helps in accomplishment of tasks in a systematic way.
- Time Management:They are required to get each task accomplished within the due time and prioritizing each activity on the basis of their importance and timely accomplishment.
- Motivation: It is essential for leaders of Procter & Gamble to motivate each individual working under them to enhance their performance up to its full potential.
- Creativity: Procter & Gamble is a world renowned organization dealing in variety of innovative and diversified products. Hence, it is required for leaders to possess creativity to foster innovative practices in the firm,
Leader's roles and manager's functions turns the organisation's business operations in an appropriate and profitable direction which ensures fulfillment of goals and objectives of the organisation. There are various different types of style and traits of leadership and functions of management which assist in the appropriate working of the management functions in the organisation. Procter & Gamble is facing the problem of tough competition in the market and such situation creates problem in their business operations. To solve this problem in the organisation the managers and leaders has to prepare the strategies and plan accordingly to take competitive advantages in the market (Formentini and Taticchi, 2016).
There are various management theories which are implied with the leadership skills and help in growth and expansion of the firm's business operations. Procter & Gamble's operational department emphasizes on the efforts of leaders and combine the management theories to reduce or minimize the manufacturing costs or expenses.
Procter & Gamble applies the theories of management to solve the current problem of the organisation. The managers and leaders can plan the strategies to solve this problem in an effective manner. The leaders in Procter & Gamble utilize their trait and skills to inspire the employees or workers to accept the new innovative technology to minimize the cost and expenses and reduce the resistance of change among the workers through developing an environment of transparency with the effective skills of communication in the organisation (Reuben and Timko, 2017).
Classical management theory is applied and used in Procter & Gamble, in a way that strategies and policies developed by managers to increase organisation's productivity. The managers of an organisation has established the strategy by the name of KAIZEN which includes continuous efforts of the management and staff to enhance the business operations. Here, the participative leadership style can be used at the workplace so that the input of both the managers and workers are in the same direction to reduce the expenses and costs and also enhance the whole production system (Fairhurst and Connaughton, 2014).
Management by objective is the most important theory that mainly focuses on the mutual efforts of the employees and the managers for the completion of goals and objectives in an effective and efficient manner. The organisation managers do work with coordination with organisation's employees and they also set standards of their performances for the employees and the leaders effectively delegate duties to the workers so that they get motivated to work in an appropriate manner (Formentini and Taticchi, 2016).
Contingency theory of management mainly focuses and monitors the changes induced in the policies and strategies according business environment changes. The leaders of an organisation play a vital role in which they motivate the workers at the workplace in order to fulfil the challenges predominant the competitive environment. The Procter & Gamble Managers has to considered the main and important reasons behind the increased cost of production and applied some useful changes to overcome these problems in an appropriate manner. This theory assists the managers to make few changes in organisation's operational activities and also cut down the high prices which does not impact the whole operational activities of an organisation (Dragoni, et. al., 2014).
Situations within the organisation depicting roles of managers and leaders:
There are various changes that prevail in an organisation's life where it is necessary for leaders and managers to take action. These changes are fast as well as slow and are discussed below:
SITUATION 1 (FAST CHANGE):For instance, Procter & Gamble are planning to adopt new technology regarding production of their products in a fast way which promotes high quality. In this situation, the managers and leaders would train the existing staff regarding the use of the new technology which helps them in enhancing their familiarity and enhances their importance. They are also required to motivate the staff so that they get encouraged to work in a more advanced manner.
SITUATION 2 (SLOW CHANGE):This situation refers to a change that is least likely to occur in normal routine. For example, the firm is renewing the concept of incentives for employees. This situation requires the managers and leaders to take opinion of employees on what should be the best manner to judge their performances. Along with this, new policies must be made according to their opinions which would encourage the employees to work effectively and produce effective results.
Provide brief introduction of task
In Procter & Gamble, there are various theories that affect the management of operations in the firm. There are different forms of leadership adopted in different situations which serves the purpose as well as enhance productivity of the firm.
Situational leadership is the leadership type in which the leadership is dependent upon the capabilities and skills of the workforce which are required by organisation's leaders to complete the assigned task in an appropriate manner. In the Procter & Gamble, this kind of leadership style could affect the operations management because the leaders used the different styles of leadership which is based on situations which are incurred in an organisation during conducting business operations. The recent problem of the organization where the management is facing the problems of cost increment and other expenses in which situational leadership theory can play a main role in the following problems which are incurred in the organisation (Dinh, et. al., 2014). The advantage of this type of leadership is that it helps the leaders to give specific orders to the employees regarding specific situations which enhances the efficiency. The disadvantage could be that this could be quite difficult for few managers which could reduce the effectiveness.
Systems leadership is utilized in Procter & Gamble Plc, which helps the leader to control the workers at the workplace and also communicate the problems of the organisation and prepare the team according to the problem which faced by the organisation in the present. By using this leadership style in the business operations, it will help the organisation in the sustainable growth and development. This leadership theory helps the organisation in promotion of innovation and creativity in the business operations and always motivate the workforce to think creatively while doing a specific task (Day, et. al., 2014). The biggest advantage is that it enhances the adaptability of the firm to changes in the environment and could focus on various dimensions. However, it may delay the decision-making process and might not cater certain contingencies.
Contingency leadership theorystates that there is no such effective and useful leadership style that is useful and helpful in the organisation or to lead the employees in the right direction. By using this theory in the organisation like Procter & Gamble, it will provide benefit in two manner i.e., either it could enhance the productivity and efficiency of the workers at the workplace and secondly it motivates and maintain the strong relationship in the organisation between the employer and employees. The main aim of this theory is to maintain and enhance the sustainable development in the organisation’s business operations in an appropriate manner (Reuben and Timko, 2017). it has an advantage that it allows management to be flexible and consider opinions of employees as a prime importance. But, this leadership type could only be effective to the contingency and might not be effective in general situations that could add to the cost as well as the time of the management.
The management of an organisation is monitored and also focus on the need of sustaining the ethics, sustainability and values in the organisation to enhance and improve the relationship with the customers and other stakeholders and also provide them a complete satisfaction with the services provided by the organisation to the loyal customers. Procter & Gamble operates its business in the environment of full competition where the competitor launches the different products and services to attract the consumers and also capture the market share which impact the organisation in so many ways. The leadership and management in Procter & Gamble play an important role in the corporate social responsibility in which they fulfill all the social responsibilities framed by the government authorities in an appropriate manner (Fairhurst and Connaughton, 2014).
The various external factors that affect the organisation business environment in so many ways which are listed below:
Corporate Social Responsibility:In the corporate social responsibility the organisation do their business operations according to the social responsibility in which the Procter & Gamble operates charity operations for the poor children lived in the poor countries. The corporate social responsibility benefits to all its stakeholders whether it is inside and outside (Formentini and Taticchi, 2016).
Values: Values are the standards or principal which are framed by the organisation for its business operations. Values are considered as main factor in the organisation because the services and products are developed and changed after deeply examining the values of the general customer at a specific place. The operations management of a Procter & Gamble are considered the parameters and finalize the standards for their production process and also set the working standards for the organisation business operations (Vaiginienė, et. al., 2018).
Ethics: The organisation operates its business operations in an ethical manner. Ethical business enhances the goodwill and also reputation in the eye of stakeholders and also maximize their profits and productivity. Ethical business is defined as the business which is done by following ethics framed by the organisation. The ethical business is a good business in which the organisation follow all rules and regulations prescribed by the government authorities for the organisation in which all rules are sets in an appropriate manner. The ethical business-built trust in the customer for organisation products and services (Shin, et. al., 2015).
Both the leaders and managers of the organisation work together in an appropriate manner for the organisation and also for the customer. Managers frame the policies and strategies for the organisation growth and development whereas leaders follow these policies and strategies and create an efficient workforce to complete the tasks in an appropriate manner.
PEST Of Procter & Gamble
There are various internal as well as external factors that affect the working of the organisation as well as the decision-making of the managers and leaders. These factors are mentioned below:
Political Factors: The political environment has a major impact on the operations of the company. For instance, the Brexit in the UK has had a major impact on the firm's operations. The political instability and changes in policies regarding trade and commerce has also caused instability in the activities of the firm. The managers must make decisions regarding these factors in flexible manner which enhances their agility in case the policies change again,
Economical Factors: This refers to the external economic performance of the country affecting the overall working of the organisation. In the UK, with reduction in the value of pound, the firm is facing a backdrop in their sales as there is also reduction in the standard of living of the people. The managers must adopt flexible pricing and employment opportunities to individuals to enhance this standard as well as provide the firm with local support and enhancements in sales.
Social Factors: There has been a high demand of diversified and high quality products in the UK as well as beyond. More an more individuals as well as communities are inclining towards consumption of healthy products. This could be one of the major opportunities for P&G which specializes in sales of healthy products. They must continue to produce healthier products which contribute to the health conditions of the people.
Technological Factors: There has been an enhancement of technology witnessed recently. There has been new and effective methods of production and distribution. For instance, in the UK, the population appreciates technology and follow practices regarding good use of it. This could be a major opportunity for the firm as it could adopt latest technological methods to produce and distribute their products. Through technologies like automation and AI, it could be a breakthrough in the firm's strategy and enhancement in their profitability.
This report is concluded that the management and leadership and the role of leaders and managers are also different but they work in the same direction of the accomplishment of the targets or goals in an appropriate manner by using different styles and theories of leadership and management. This project report is prepared after seeing the decision-making process of the leaders and managers in Procter & Gamble organisation in the betterment of the sales and marketing and also operations of the organisation and bringing down the cost and maintain the quality. This project report also focuses on the various operational management theory in order to reduce the wastages and enhance the level of performance of the organisation by fulfilling the goals and objectives of Procter & Gamble.
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