In this assignment, the appreciation of the role leaders plays in the operations function of an organisational environment is discussed. Demonstrating an understanding of the relation between leadership and management, the proper coordination between the two for the effective decision making and proceedings of the business. Ways in which leaders can make benefits by the application of operations management. It also discusses the different factors of the business environment like competitors, customers, economic issues, political and legal factors affecting business is explained in the context of the business world. Lastly, the operations management and its application on business will be evaluated and analyzed for the successful working of a business organization.
P4- Explain the key approaches top operation management and the role that leaders and management play.
Often the work of leaders and management are considered indistinguishable but there lies a fine gap between both of the departments. Managers are mainly considered to set the rules and objectives while leaders are known to implement those set of rules within the organization to achieve to set target and objectives. (Simiyu,2015)
In case of Tillsonburg District Memorial Hospital (TDMH), the major work of top operation management is to provide a right direction to the organization to increase its productivity and market rate and to provide better services to its patients.
The role of management in the TDMH is to manage the whole organization in an apt, well organized and a fair manner. This can be attained by properly managing the human resource department, Finance department and other departments which somehow helps in smooth running of the business. In the past so many years, TDMH never faced finance deficit condition because of the proper team under the management.
The role of leaders in TDMH is to ensure that all the patients are kept at the first priority and no other thing should come before them. In TDMH, leaders understand that there are flaws and weakness in every department. They make systematic planning to weed out the shortcomings by making a proper blueprint for the meticulous running of the different hierarchy.
P5- Explain the importance and values of operations management in achieving business objectives.
Operation management is the very foundation of any organization. The main goal of operations is to design, organize and implement various resources needed by Tillsonburg District Memorial Hospital for the effortless running of the business. The major values of operational management of TDMH believe in providing ultimate customer satisfaction. (Majukwa & Haddud, 2016). For proving better services to the customer’s various changes are made in TDMH where the entire cynosure is patient for the entire team. The needs of the patients are considered to be the first priority and the entire organization tends to fulfil that. The whole organization is bifurcated into different department so that work can be divided so that TDMH can easily achieve its goals and targets. The front line team is considered to be at the top because they are nearest to the patients and are entirely responsible for the decision making. At the base, they have senior executives. Senior executive and executive leaders sum up to Leadership Council which coordinates the different departments of the hospital by supporting decision making and taking up the charge of all the teams and try to resolve if they face any issue or problem.
M3- Evaluate how leaders and managers can improve the efficiencies of operational management to successfully meet business objectives.
This can be done by increasing team participation. As team participation in TDMH has turned out to be very effective. Leaders and managers should focus more on optimizing the website of TDMH and make it user-friendly so that it is accessible to any layman. This can be achieved by appointing proper and skilled SEO (Khraim,2015). They should also work on improving customer services to meet business objectives.
They can also introduce a plan of incentives and other perks to the employees and other staffs so that they can be motivated in reaching the targets and even working hard after achieving the desired targets and goals.
P6. Assess the factors within the business environment that impact upon operational management and decision-making by leaders and managers.
- According to Iedunote, (2017), Decision making by leaders and managers in business environment must be highly specific and actions need to be measured precisely. There is a number of factors that define the final decision. The general environment comprises of factors like:
- Economic conditions: It includes measures like interest rates, inflation, tax.
- Technological conditions: Modern world is getting evolved each day so the decision made, must be adaptable with the latest technologies.
- Socio-cultural conditions: These factors define the demand for the product and services as different cultures have different tastes.
- Political-legal boundaries.
- Global factors: The globalization is in the roots of business, factors like trade, global acceptance of the product and services.
- These factors come under the external environment that governs the decision by leaders and managers. The external environment consists the different factors such as
- Competitors: The quality of product or service and the price determining factor is competitors.
- Suppliers: The demand and supply depend upon the suppliers.
- Customer: “The customer is the king.” This saying is very true in the business market and the priority while any decision is customers.Strategic regulators.
- Business partners: the sync between the business partners defines the success of the business.
Now the internal environment of the business also plays a keen role in the decision-making process. These comprise of:
- Board of directors.
- Employees: the most important asset of the organization. If their energy is applied in a positive manner the organization is bound to achieve success.
- Organizational structure.
All these factors influence decision making as the proper coordination between internal and external factors must be understood by the leader. Any decision taken affects the organization, therefore, the leader is bound to analyze the factors and accordingly decide.
M4. Analyse how these different factors affect the business environment and the wider community.
The factors affect the business environment and the wider community in the following manner(Gleeson, 2018)
Mission: The mission should be clear before taking any decision. Mission gives ideas, direction and purpose to the organization.
Communication: Problem when discussed between a number of minds, the most effective solution is easily achieved. Effective communication leads to better decision making. (Gleeson,2018.)
Political-legal boundaries: Business laws vary from country to country. The political and legal boundaries play a significant role in the decision of a firm.
Problems: the type of problem always defines the strategy to resolve it. If the problem is structured then the decision is taken according to the policies and action plan of the organization. Whereas, when the non-programmed problem arises, new action plans are made.
D2. Critically evaluate the application of operations management and factors that impact on the wider business environment.
Operations management is basically a department or strategic process that is focused to increase the profitability of the business. It is concerned with planning, organizing and mentoring the production processes in a effective way i.e minimum input and maximum customer satisfaction.the process has effective principles that includes direct tie-ups with the customer, rapid improvement, unified purpose, investing in HR, maintaining equipment etc. operations management application in any business will improve the profitability and strategies of business to meet the goals and objectives easily. The lean and agile manufacturing is a recent trend in operations management that is highly effective in reaching the latest challenges in the competitive business world. (Cleverism, 2016.)
Fig. operations management.
(Source: praqtise, 2016.)
Various key features about TDMH were being discussed which has helped it to be awarded four-year accreditation with distinction by the Canadian Council on Health Facilities Accreditation and received the Health Care Quality Team Award sponsored by the Canadian College of Health Service Executives and 3M Health Care.
Opting of decentralization in decision making and other planning over centralization is also being discussed and how it has benefited in achieving the set of targets and goals by imbibing a sense of responsibility in each and every individual which is directly or indirectly related to TDMH.
Iedunote, 2017. Internal and External Environment Factors that Influences Organizational Decision Making.[Online] Iedunote. Available at: https://iedunote.com/organizational-environment-elements [Accesed on:19 Feb. 19]
Chron, 2018. Internal and external factors that affect an organization.[Online].chron. Available at:https://smallbusiness.chron.com/internal-external-factors-affect-organization-16641.html [Accesed on:19feb.19]
Cleverism, 2016. Operations management.[Online] Cleverism.Available at: https://www.cleverism.com/operations-management-definition-principles-activities-trends/ [Accesed on: 19 Feb. 19]
Praqtise, 2016. Career options after MBA in Operations Management.[Online] praqtise.Available at: http://blog.praqtise.com/wp-content/uploads/2016/11/operations_management.jpg [Accesed on: 19 feb.19]