Operation management is mainly concerned with organisation, planning and supervising business in relation to production, manufacturing or supplying of products and services to the market. It is delivery-focused which refers that operation managers by developing proper activities ensure that the organisation is successful in providing effective inputs to get proper outputs in the form of productivity and profit for the business. In this assignment, the activities related to operation management of Mark & Spencer is going to be discussed. Moreover, the differences in roles of the leaders as well as managers in the company are to be explained. The strength and weakness of theories related to leadership and management are also to be focussed on and explained. Lastly, the value and significance of the operation management and factors influencing it with respect to Mark and Spencer are also to be explained and discussed.
Mark & Spencer is one of the main British multinational retailers who have the speciality in selling clothing ranges, food products, home appliances and products and others. The headquarters of Mark & Spencer operates their business across various retail outlets and stores through operation management and it is located in Westminster, London. They are seen to follow a hierarchical management structure where Archie Norman is the nominated chairman and Steve Rowe is the CEO. The CEO of the company is involved in taking various decision for the proper management of the organisation by including the Board of Directors and chairman of Mark & Spencer who is present in the lower hierarchical position of the company regarding the way they are to work and manage (corporate.marksandspencer.com, 2018).
The Manager is referred as the individual who is responsible for administering or controlling the company or group of staffs to help in meeting the pre-determined goals as well as objectives of the company (Kacperczyk et al. 2014). The organisation to effectively meet their business objectives with success requires the manager to establish as well as develop policies along with strategies for the employees to follow to help them understand the way they need to execute their work according to the previously mentioned objectives. The managers at Mark & Spencer are distributed at each department to effectively manage tasks of different departments for running the organisation. The managers of the Mark & Spencer are also seen to be concerned towards maintaining efficiency and performance of the employees for executing tasks within the deadline by motivating them through process of employee appraisal (corporate.marksandspencer.com, 2018).
The individuals in the organisation are referred as leaders who have the authority to get the work done with the help of concerning employees of the organisation for meeting the goals of the organisation (Lovelace et al. 2018). The leaders are seen to play a vital role where they by using their effective communication and leadership skill as well as by informing the vision of the organisation to the employees develops motivation in them for providing proper work effort. The leaders in Mark & Spencer make the employees work in such as a manner so that the objectives of the organisation in successfully accomplished. The main aim of the leaders is to inspire as well as influence the employees for improving their performance at work so that the productivity and efficiency of the organisation are effectively increased in the market (Quigley and Hambrick, 2015).
The organisation by involving the role of their leaders and functions of the manager is able to develop desired direction to fulfil the goals and objectives of the organisation (Kacperczyk et al. 2014). For example, Mark & Spencer’s goal is offering quality products and services to customers for getting better returns on investment. In Mark & Spencer, the leaders and managers are already informed about the goal which has oriented them in efficiently directing the employees for fulfilling the determined gaol. It is evident as in 2017 it is being reported that proper leadership, as well as management, lead the company to collect 5.9% of increased revenue through group sales within 13 weeks by the year-end (www.independent.co.uk, 2017; www.theguardian.com, 2018). This informs that effective implementation of the skill by the leaders and managers helped Mark & Spencer for regaining their competitive advantage as well as brand image in the industry.
The leaders are seen to play the role of providing direction to establish vision and put emphasis on its significance in following it within everyone in the organisation (Balch and Shanafelt, 2018). This role is required to be implemented in situation when the employees and others in the organisation works in a haphazard manner without having information regarding what is the vision of the organisation. As mentioned by McCleskey (2014), leaders have the role to motivate employees by coaching as well as empowering staffs at each level of the organisation. This roleplay by the leader is to be implemented in a situation when the employees experience fear to tackle complex issues related to any project in their working environment. As argued by Su and Baird (2017), employees in complex situation within the workplace become demotivated because they fear that they may fail to offer productive results. This is going to show poor performance at job as the employees out of fear execute grave mistakes. For instance, the role of the leader to offer motivation and encouragement to all employees is to be presently implemented in Mark & Spencer. This is because their constant cutting down of jobs to more than 300 is making the employees feared and demotivated that they may be eliminated by the company at any time (www.theguardian.com, 2018). Thus, the leaders according to the role in this situation are required to offer assistance and motivation to the employees they would not be eliminated by them under any circumstances by appreciating and offering remuneration at work.
The role of the manager is to plan for submitting budgets, set goals, as well as operational plans and effectively, allocate resources (Castrogiovanni et al. 2016). The mentioned role is to be implemented by the managers working at Mark & Spencer when a new project is to be framed and initiated. The role is important to be implemented as without it the effective accomplishment of the determined business objectives and goals cannot be planned in a proper way to get them attained. As commented by Otley (2016), the managers have the role to monitor employee performance so that the employees can be assisted in a proper way to create solutions at work for any issues. The role is executed by the managers in any situation in the company as assuring employee performance is the key relation towards quality development and supply of product. In Mark & Spencer, the manager implements this role for monitor the employees in all situation for ensuring determined performance is attained to achieve the quality of the products according to the current trends in the industry to be delivered to the consumers.
The situational leadership is referred to style in which manager or leaders adjust their style of performing activities for fitting the level of development of the followers so that the given project or task is effectively accomplished (Thompson and Glasø, 2015). This leadership is going to positively affect Mark & Spencer as according to this theory the leaders are able to develop various activities to resolve different complex situation being experienced by the company. For instance, the leaders at Mark & Spencer while experiencing challenging situation in the market regarding consumer needs are seen to respond to the situation by developing mutual relationship with the suppliers throughout the supply chain. This is because it is going to help them develop a sustainable performance as the suppliers are going to inform them about the key needs of the consumers and they accordingly are going to make changes in their products to offer it to the consumers for their effective satisfaction. It is evident from the fact when Mark & Spencer by consulting with the suppliers understood that in the clothing market there is increased preference towards buying lingerie products. The leaders then directed the employees to execute activities in such a way so that more lingerie products are developed by the company to meet the demand. As mentioned by Meier (2016), strength of situational leadership is that it is simple to understand and offers flexibility to leaders or manager to change their activities according to situation to helps them execute tasks. The rigid rules often demoralise workforce which is able to dissuade employees to come forward with valuable information regarding the company and their work. Thus, using this style of leadership is going to help managers or leaders of Mark & Spencer to change their activities for accomplishing goals of the organisation in different situation without delay.
The situational leadership style is also seen to have the strength to establish superior relationship between employees and managers (Jain and Chaudhary, 2015). The strength is beneficial for Mark & Spencer to develop improved work experience for the employees as well as managers, in turn, assisting to build a positive environment for work. As argued by Perna (2016), the weakness of situational leadership is that it directs the managers to focus towards short-term goals rather them thinking of how the decision is going to influence the long-term goals. The limitation has the potential negatively impact on business and productivity of Mark & Spencer as their current problems may be avoided through proper solution but the long-term goals of the organisation may not to be attained to ensure proper business opportunity for the organisation. For example, Mark & Spencer (M&S) entered into a controversy when Bryan Ferry was time modelling clothes for them by showing his admiration for Nazi iconography. In this situation, the leaders of M&S published a statement that does not support such views and refused towards commenting on the issue without presenting any apology or taking further action to control any further controversy (www.telegraph.co.uk, 2007). Thus, the short-term decision to issue a statement, for the time being, may save M&S experiencing negative name in the market. However, the lack of development of any strategies to tackle any future controversy and to ignore further comments to resolve the controversy in an effective manner in long-term may not help M&S to ensure positive name or lack of backlash from the consumers and individuals in the industry. The other limitation of situational leadership is that it develops an extensive pressure on the managers or leaders of the organisation towards adaptation according to continuous change (Parveen and Tariq, 2014). This may affect Mark & Spencer in making their staffs, as well as the managers, experience increased work pressure with unable rules and norms to be followed at work.
The System leadership style offers role to the leaders in creating a work environment in the organisation in such a way so that all the employees have proper availability of resources to work in a productive manner by implementing effort according to their potentiality (Senge et al. 2015). System leadership has the strength of helping to create a uniform and impartial working environment (Boylan, 2018). For instance, Mark & Spencer operates in different countries globally and therefore applying system leadership is going to help them create a culturally diverse working environment without any form of discrimination. This is going to help them boost the employees to work with better commitment as each of their cultural values who be respected making the employees feel valued to work for the organisation. It is going to promote positive sustainable work performance within the organisation due to increased satisfaction at work for the employees. The weakness of system leadership is that it delays decision-making and do not always provide practical and effective solutions (Stuart and Wilcox, 2017). Thus, it is not effective at the present for Mark & Spencer to deal with the problem of competitiveness in the industry as quick decision is to be made for making changes and the situation demands practical and effective solutions.
The Contingency leadership requires the leaders to match their style according to the situation (Fiedler, 2015). The strength of contingency leadership theory is that it offers flexibility in management style of the leaders or managers. This is helpful for Mark & Spencer as by abiding with the theory they would be able to change activities and operation as per the changing demands of the situation. For instance, in the present situation, individuals are more oriented towards purchasing goods through e-commerce sites. Thus, the leaders at the Mark & Spencer are seen to be more concerned in creating contingency plans and have reported to increase 25% more budget for improving digital marketing activities by the company to improve their presence in the electronic media (www.marketingweek.com, 2014). It is going to create better sustainable performance for the organisation as they perform according to the demands and changes in the market. The other strength of contingency leadership is that it helps to value employees by considering their opinion in a complex situation but it has weakness of making managers be reactive and not proactive. Moreover, it is complex to be put into practice which acts as one of its weakness (De Clercq et al. 2014). This is going to negatively affect Mark & Spencer as their managers by following this theory would not be able to accomplish longer-term goals as they would remain focused on short-term goals. Thus, the manager and leaders of Mark & Spencer are recommended to use the leadership styles in a way so that they fulfil the short-term goals but do not develop confusion regarding the way to meet long-term goals. They are to make decisions in such a way that while resolving the present situation they do not forget what they have to accomplish in longer term. Moreover, they need to be proactive and not always reactive in nature.
The operation management is the management area that is mainly concerned with control as well as design of the production process and redesigning business operation to effectively produce as well as manufacture products and services in a proper (Jacobs et al. 2014). The operation management in Mark & Spencer is related to creation of highest efficiency level in the organisation with the help of proper administration of practices in business. The different approaches which are related to successful operation management in Mark & Spencer are Continuous improvement process (KAIZEN), Just-In-Time Inventory and Total Quality Management.
The Total Quality Management (TQM) is the process which is being used for bringing efficiency in manufacturing as well as production of quality services and products by the company (Akgün et al. 2014). It has the focus towards creating continuous improvement with respect to quality of services and products of the company through consideration of the changing needs and demands in relation to business of the company in the market. The TQM approach leads the managers of Mark & Spencer to have the efficiency to successfully arrange strategies to be implemented in creating continuous quality improvement for the manufacturing and production of products and services. They are to accomplish this by following the five key principles of TQM. The five main principles of TQM are customer orientation, teamwork, continuous improvement, quality in work and proper strategic approach for improvement (Honarpour et al. 2018). According to TQM, the role of the leader at Mark & Spencer is to inspire employees to work within a team and eliminate their barriers to change in executing work and manufacturing products so that the quality of the manufactured products can be improved. For instance, to maintain TQM, the managers and leaders Mark and Spencer execute on-site audits and continuous product testing to ensure the products meet the quality and all form of standard requirements to satisfy the consumer’s needs and demands (corporate.marksandspencer.com, 2018).
The Just-In-Time inventory is the strategy which is implemented to increase efficiency as well as decrease waste by ordering resources that are needed for the present production process thus helping to reduce inventory cost (Lai and Cheng, 2016). Just-In-Time inventory approach is already been implemented by Mark & Spencer for overcoming the problem experienced with increased price of products in comparison to their competitors. This is because the approach is going to help Mark & Spencer to reduce manufacturing cost of their product to create reduction in overall product price helping the final product to be offered to the consumer at lesser price than before. Therefore, the approach helps the managers working at Mark & Spencer to effectively control inventory cost as well as create improvement in product manufacturing based on the market demand on a regular and permanent basis. The word KAIZEN is related to continuous improvement which informs that product improvement is to be done on a regular basis to ensure improved organisational performance (Prashar and Antony, 2018). According to this approach, it is the role offered to the leaders of Mark & Spencer to develop analysis of employee performance within gaps for ensuring they are working in such a way so that it is leading towards the continuous improvement of the organisation. Moreover, the approach of Just-In-Time Inventory mentions the leaders of Mark & Spencer to play their role in keeping proper track of their inventory for avoiding the development of any unnecessary waste. The leaders have successfully executed this purpose by avoiding plastic packaging of food products to reduce waste as well as develop a sustainable environment (www.theguardian.com, 2017).
The importance and value of effective operation management in Mark & Spencer is that it is going to offer them establish their competitive position in the market along with fulfilling their business objective. This is because proper operation management leads to improve productivity of the organisation by helping them to resolve issues with products and improving quality of the products (Szewczak, 2016). Moreover, effective operation management leads to strategise the work in such a way so that business objectives are successfully fulfilled. The business objectives of M&S are to become a sustainable and international retailer and deliver updated products to the customers according to the trends in the market to offer them effective satisfaction from purchase (corporate.marksandspencer.com, 2018). As mentioned by Nepal and Chotiyaputta (2016), effective operation management leads the organisation to align their products in line with the requirement of the customers. This is because through it the operations in the business are properly managed by keeping in mind the needs and changing demands of the customers. Therefore, operation management is valuable and significant for Mark & Spencer as it would help them increase their customer base through improved customer satisfaction by delivering them better quality products along with increased variety as demanded. This would result Mark & Spencer to achieve increased customer satisfaction that would able them to retain their existing customers as well as attract new ones. For example, Mark & Spencer effectively align their products with the needs and demands of the consumers through proper operation management by building positive relationship with the suppliers throughout the supply chain. As argued by Albrecht and Dasigi (2016), operation management is valuable for an organisation as it leads to optimum utilisation of resources. This leads to enormous profit of the organisation as the raw materials and the employee's efforts are efficiently used to convert them into goods and services. It is valuable and significant for Mark & Spencer because it is going to help the organisation to reduce the manufacturing cost of the products, in turn, assisting them to reduce the final price of the products as the objective of business. Mark and Spencer is seen to meet the objective of providing reduced priced products by cutting down production cost and offering promotional discounts at certain time (www.bbc.com, 2016).
The operation management is seen to be effective in properly directing manufacturing of the final products from raw materials and selling them in the market (Albrecht and Dasigi, 2016). It makes the operation management a significant and valuable aspect for Mark & Spencer because it assists them to develop proper understanding regarding the way price reduction is to be done for their products during the manufacturing process and improve product quality and variety according to the demand of the customers in the market. The success of this aspect is going to help Mark & Spencer to remain in superior position than their competitors in relation to price of the product and quality. Moreover, to meet the objectives of the business the managers working at the Mark & Spencer require to use Transformational leadership style. According to Mellahi and Harris (2016), Transformational leadership indicates the leaders to develop working strategy in such as way so that they work by including employees during decision-making for making the required changes needed in the organisation for solution of the current challenging being experienced. This indicates the managers involved in the management of Mark & Spencer to work in such a ways so that their subordinates are included in making changes and decision-making for business operation of the organisation to achieve improved competitive advantage in the industry.
Many factors are involved which have an impact on controlling operation management by the organisation. As mentioned by Tai and Chuang (2014), the corporate social responsibility (CSR) is the model for business which is used by an organisation to develop social accountability for the public, their stakeholders and the environment. This influences on the organisation's operation management for making them arrange their business operations in such a way so that environmental as well as social concerns are integrated to develop products that are ethically right to be used in the society. As argued by Suliman et al. (2016), the lack of abiding by the social responsibility in operation management by the organisation leads them to experience lower brand recognition and reduced business reputation. This is because the products developed by not abiding with the corporate social responsibility are in general regarded as unethical as well as harmful to be used by individuals in the society. Mark & Spencer is seen to abide by the aspect of implementation and execution of effective CSR activities to gain better financial performance through increase of customer satisfaction by delivering better quality products and by improving brand recognition. For example, Mark & Spencer are seen to implement CSR activities in their business for raising and arranging donations for the needy such as £25m to be arranged by them for charity to help cancer patients (fundraising.co.uk, 2017). This is going to develop a positive image of them in the society that they are fighting to resolve a negative cause in the society resulting their consumer believe and get satisfied that by buying from the organisation that is also participating in resolving the cause. It is also going to build an effective value for the customers by ensuring their contribution is a potential help for the organisation to maintain proper CSR activities.
The global competition acts as a key factor in business environment to influence operation management of the organisation (Bogdanova et al. 2016). This is because global competition informs changes to be made in the business operation which is to be directed through operation management of the organisation to help them retain their competitive position in the market. As commented by Colantone and Stanig (2018), rapid expansion of advanced technologies is seen to influence operation management because it directs an organisation regarding the way to make changes in the use of their existing technologies for effective business operation to achieve improved business productivity and performance in the market. The organisation who fails to make the changes in their operation management according to technological advances is seen to lag behind in the industry due to failure to properly perform as per demand. Mark & Spencer understood this fact and they have made required technological changes and implementation according to the advanced technologies in executing operation management for their business. This is evident from their launching of e-boutique in their food store in Holland where the shoppers are able to watch live size dressed to be order directly to their home. It is effective operation management as it reduces the issues of physical space for displaying their clothes allowing the consumers to buy food as well as dresses at the same time without any issues (retail-innovation.com, 2013).
The managers, as well as leaders working at the Mark & Spencer, are recommended for understanding the values as well as cultural thoughts and preferences of the customers for effective operational management of their business. It is required as the lack of management of business without fulfilling the cultural perspectives and values of the consumers is going make them experience failure to successfully attract the target consumers. Therefore, Mark & Spencer are suggested to consider the consumers cultural and social values in managing business operation according to the country and locality of their target business.
The political turmoil due to Brexit poses challenge for Mark & Spencer (M&S) in executing effective operation management of their business. This is because it has led to create uncertainty within the market regarding the way the companies are to execute their business operations (www.express.co.uk, 2018). It is evident as the due to Brexit, M&S has suffered an 8.9% loss in sales that is going to negatively impact them to have adequate finances to effectively execute operation management of their business (www.bbc.com, 2016). However, their business operation management would be positively influenced by the UK government’s initiative to support e-commerce industry. This is because in this way they are going to get financial assistance from the UK government in managing their business operation in the e-commerce industry where they are presently expanding.
The increased economic growth in the market mentioned that there is high demand for the products in the industry (Neumark and Muz, 2016). Thus, in this respect, M&S has effective opportunity for achieving better profits by attracting more customers through successful operation management in the supermarket industry in the UK as it is still growing at 5% rate even after Brexit. The increased growth rate of the UK population and their stable economic condition informs that there is still high demand for consumer products being used in daily life in the market (www.ons.gov.uk, 2017). Thus, this means that the operation management of M&S has the duty to manage wide number of increasing customers as they deal in consumer goods which are required in daily life. However, increased VAT rate is going to led operation management of M&S to face increased financial pressure to pay increased taxes for managing their business which in turn may lead to increase the price of the products. The supermarkets in the UK are seen to be implementing upgraded technology in improving their business. M&S has also understood the fact and has implemented updated technology in executing operation management of the business. This is evident as they have been seen to have launched an e-boutique in food store on Holland where customers can order dresses by viewing life-size picture of dresses in the store (retail-innovation.com, 2013). They have extended their business in the e-commerce industry as well as implemented automatic machinery at work to serve customers within minimum time.
M&S has also taken green initiative to reduce carbon footprint in the environment. This is evident as they have developed a plan in which have vowed to reduce 80% carbon emission from the present by 2030 (corporate.marksandspencer.com, 2018). Thus, the operation management of M&S informs that they are working according to the prevailing situation in the industry providing them opportunity to experience growth. This is because the companies which work according to the prevailing needs in the industry are able to achieve better growth due to satisfaction of demanded needs of the customer and the market (Chen et al. 2015). The companies in supermarket industry require following Companies Act 2006 and other legislation to work ethically. Therefore, the operation management of the M&S requires following the laws accordingly while operating their business to avoid any form of negative legal consequences due to unethical practices. This is required to maintain proper reputation of the company.
The stakeholders of the Mark & Spencer (M&S) who are influenced by the operation management of the company are customers, employees, suppliers and others. The effective relationship between the stakeholders and M&S helps to contribute to the proper success of the organisation (corporate.marksandspencer.com, 2018).
Consumers (external stakeholders): The power interest matrix informs that the key focus of the organisation is to provide effective satisfaction to the customers because they have the power to influence the business operations of the organisation (Christensen et al. 2016). This is evident as all the focus of the business activities executed within the operation management of M&S is aimed to improve the value and satisfaction of the consumers. In order to accomplish this, the operation management of M&S is aimed at providing high-quality products and services to the consumers to develop satisfaction among them. Moreover, M&S offer advantage through loyalty cards and points to their loyal customers to develop strong and effective relationship with them for longer time (www.marksandspencer.com, 2018). As mentioned by Agnihotri (2015), customers wish to get high-quality products at lower prices. This is because it would help them to save finances. M&S by keeping the fact in mind provides high-quality products and services at lower prices as well as offer discounts and other offers to lower the prices of their goods to meet the cost-effectiveness and quality expectations regarding products by the consumers. However, in 2017, irrespective of their quality and update product offered to the customers M&S failed to develop a strong and effective relationship with the consumers. This is evident as in 2017 they reported facing 62% loss in annual profit with lower sales of their clothing products (www.theguardian.com, 2018).
Suppliers (internal stakeholders): The suppliers act as the major contributors for the effective operational management of organisations as it helps the companies to timely meet the demanded quality and quantity of products by the customers by supplying them adequate products to be stocked (Zimmer et al. 2016). Thus, M&S maintains relationship with their suppliers by keeping them informed about the strategies and requirements of the organisation so that they deliver on time the quality and quantity of products required to meet demand and supply of products and services by customers of M&S. This, in turn, leads M&S to execute effective operation management as they are able to properly design and conduct the business operations for controlling and meeting the demand and supply of products and services. M&S meets the expectations of the suppliers by allowing them to gain proper advantage in the form of profit by supplying M&S required products to meet their customer’s demands and needs. Moreover, M&S by building two-way trust and communication determines to maintain good relation with the suppliers (corporate.marksandspencer.com, 2018).
Employee (internal stakeholders): Employees are the key stakeholders who work with effort to ensure the organisation meets their objectives and maintain good relationship with customers (Navimipour and Soltani, 2016). Thus, M&S to maintain good relationships with the employees offer them timely remuneration, training and development opportunities, determined salary and others according to their expectations. It is evident as M&S offers their employees salary as per industry standards, justifiably remunerate them according to their progress with proper monitoring, provide training to improve their skills, offer flexible working hours and more (careers.marksandspencer.com, 2018). This is required to make the employees have feeling of being valued and develop trust towards the organisation, in turn, ensuring positive relationship building with the firm. It also leads employees to work with more effort for the organisation to successfully meet the determined business activities (Lam et al. 2017). The employees required job security to offer proper effort at work without the fear of getting terminated (Navimipour and Soltani, 2016). However, M&S has failed to fulfil this aspect as recently more than 300 jobs are cut down which is making employee face job insecurity at the organisation develop negative relationship with the organisation (www.theguardian.com, 2018). This is because not meet the job security of employees makes them feel being not properly valued by the organisation resulting in negative relationship between the management and the employees (Hansen and Villadsen, 2017).
The above discussion regarding operation management with respect to Mark & Spencer informs that managers at the organisation have the role to maintain consistency and effective order at work, plan budget, establish rules and policies regarding work and others. In Mark & Spencer, the leaders are allocated the role of informing and relating vision of the organisation to the employees and motivate them to work for accomplishing the goals of the organisation. Moreover, situational leadership is to be implemented at Mark & Spencer by their managers and leaders to operate management of the business operations in such a way so that the crisis faced in business is resolved with proper development of solution. The key approaches of operational management being used by the managers and leaders at of Mark & Spencer are Just-In-Time Inventory, Total Quality Management, KAIZEN and others. The operation management is valuable for Mark & Spencer to maintain proper productivity and satisfaction of the customers by resolving their business crisis being faced at the present related to quality and price of products. The factors which affect operation management are social responsibility, advanced technology, increased competition and others. The M&S maintains positive relationship with the customers as well as their suppliers and employees by providing them effective strategies and opportunity to meet their expectations while being involved with the organisation.
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