Reference no: EM131858335 , Length: 2500 Words

Introduction

The aim of this unit is to help students understand the difference between the function of a manager and the role of a leader. Students will consider the characteristics, behaviours and traits which support effective management and leadership. In addition, this unit will introduce the concept of operations as both a function and a process which all organisations must adopt to conduct business. Students will be introduced to contemporary and historical theories and concepts which will support their learning for this unit. On successful completion of this unit students will have developed sufficient knowledge and understanding of how management and operations make a positive, efficient and effective contribution to an organisation at a junior level. This could be in the role of a team leader or managing a specific aspect of an operation function and/or process. Underpinning all aspects of the content for this unit you will consider topics under two broad headings: management and operations.

By the end of this unit students will be able to:
LO1. Differentiate between the role of a leader and the function of a manager.
LO2. Apply the role of a leader and the function of manager in given contexts.
LO3. Demonstrate an appreciation of the role leaders and managers play in the Operations function of an organisation.
LO4. Demonstrate an understanding of the relationship between leadership and management in a contemporary business environment.

BP and the Deepwater Horizon Disaster of 2010

When he woke up on Tuesday, April 20, 2010, Mike Williams already knew the standard procedure for jumping from a 33,000 ton oil rig: "Reach your hand around your life jacket, grab your ear, take one step off, look straight ahead, and fall."1 This would prove to be important knowledge later that night when an emergency announcement was issued over the rig's PA system.

Williams was the chief electronics technician for Transocean, a U.S.-owned, Switzerland-based oil industry support company that specialized in deep water drilling equipment. The company's $560 million Deepwater Horizon rig was in the Gulf of Mexico working on the Macondo well. British Petroleum (BP) held the rights to explore the well and had leased the rig, along with its crew, from Transocean. Of the 126 people aboard the Deepwater Horizon, 79 were from Transocean, seven were from BP, and the rest were from other firms including Anadarko, Halliburton, and M-1 Swaco, a subsidiary of Schlumberger.

Managing electronics on the Deepwater Horizon had inured Williams to emergency alarms. Gas levels had been running high enough to prohibit any "hot" work such as welding or wiring that could cause sparks. Normally, the alarm system would have gone off with gas levels as high as they were. However, the alarms had been disabled in order to prevent false alarms from waking people in the middle of the night. But the emergency announcement that came over the PA system on the night of April 20 was clearly no false alarm.

Moments after the announcement, Williams was jolted by a nearby thud and a hissing sound, followed by the revving of one of the rig's engines. Before he knew it, there were two explosions forcing him and other crew members to abandon ship by jumping into the partially flaming ocean. Of the 126 workers on board the Deepwater Horizon, 17 were injured, including Williams, and 11 were killed.

The rig burned for 36 hours, combusting the 700,000 gallons of oil that were on board, leaving a trail of smoke over 30 miles long. The Deepwater Horizon sank on April 22, taking with it the top pipe of the well and parts of the system that were supposed to prevent blowouts from occurring.

As of 2010, the Deepwater Horizon disaster was the largest marine oil spill ever to occur in U.S. waters. By the time the well was capped on July 15, 2010, nearly five million barrels of oil (205.8 million gallons) had spilled into the Gulf of Mexico. Federal science and engineering teams revised their estimates on the rate of oil flow several times, and in August they concluded that between April 20 and July 15, 53,000-62,000 barrels per day spilled into the Gulf, an amount that was equivalent to a spill the size of the 1989 Exxon Valdez every four to five days. Before the Deepwater Horizon disaster, the Exxon Valdez held the record for the largest spill in U.S. waters.

It was surprising to many analysts how such a disaster could happen, particularly involving a company like BP, which publicly prided itself on its commitment to safety. It did seem clear that, in an effort to close up the Macondo well, several key decisions were made, each involving multiple stakeholders and trade-offs of time, money, safety, and risk mitigation. The public debate began immediately on whether the result of these decisions indicated operational or management problems on the rig, and whether these problems were endemic to the oil industry, or resided within BP itself. To help answer these questions, several task forces were formed to investigate the root causes of the disaster and who among the various players involved with the Macondo well bore responsibility for the disaster and for its resolution.

ASSIGNMENT REQUIREMENT:

LO1 & LO2 (Task 1) - Report

You are the Human Resource Manager for the organisation above or any organisation of your choice and have been asked by the CEO to investigate the impact of leaders and managers on the operations of that company.

You will need to produce a report for the senior leadership team that includes the following:

1. An introduction to the organisation and management structure.

2. Definition and roles of both managers and leaders, highlighting the differences between management and leadership.

3. The different roles of management and leadership in application to different organisational situations, supported by theories and concepts.

4. How theories such as ‘chaos theory' and ‘management by objectives' apply to the organisation and how these have supported growth and sustainable performance.

5. Conclusions on how managers and leaders have made an impact on the organisation and recommendations for future improvements.)

P1. Define and compare the different roles and characteristics of a leader and a manager.

P2. Examine examples of how the role of a leader and the function of a manager apply in different situational contexts.

P3. Apply different theories and models of approach, including situational leadership, systems leadership and contingency.

LO3 & LO4 (Task 2)

Since reporting on the role of management and leadership within the organisation of your choice as the HR Manager, the CEO and founder have now asked you to feedback on best approaches and practices with regards to operations management. This will take the form of a 15-minute presentation to the leadership team that will address how the leadership and management team can improve overall operations within the company.

To assist with this you will need to investigate external business factors that impact upon operational management and the decisions the management team makes. The presentation slides should cover the following areas:

1. An introduction to the key operations of the organisation.

2. Details of each of the key operational functions, identifying the roles and responsibilities of managers in the key operational functions.

3. Explanation of the key operational approaches to operations management and their value.

4. An evaluation of the impact of external business environment factors that affect decision-making by leaders and managers.

5. How operational efficiencies can be improved to successfully meet business objectives using appropriate management and leadership approaches.

6. Conclusions and supported recommendations for future improvements to be taken by the organisation.)

P4. Explain the key approaches to operations management and the role that leaders and managers play.

P5. Explain the importance and value of operations management in achieving business objectives.

P6. Assess the factors within the business environment that impact upon operational management and decision-making by leaders and managers.