This paper examines operations management theory and its relationship to the four core functions of management: planning, organizing, leading, and controlling. It begins by defining operations management and highlighting key activities such as quality control, logistics, inventory control, and production design. Drawing on scholarly sources, the paper explores how each management function influences and reinforces effective operations management. It argues that without a solid foundation in these four functions, an organization's operations will suffer, and that integrating them leads to improved productivity, quality control, and long-term competitiveness.
Operations management deals with all the operations within an organization. Activities included in operations management are quality control, logistics, evaluations, managing purchases, inventory control, product design, and production control. It is simply defined as "the design, operation and improvement of the internal and external systems, resources and technologies that create product and service combinations in any type of organization" (Robert H. Lowson, p. 5).
It is important for an organization to concentrate on its product. Releasing a product in the market should be affordable and of better quality than what competitors are offering. This is one of the main factors that would secure the sale of a product. Primarily, the organization should work towards designing a product for which there is genuine market demand. Producing something already offered by a large number of companies is generally not a good idea. The aim should always be to provide something unique; if not, then the highest quality at the cheapest rates should be offered.
In practice, this is seen in the case of Japan, which in a short time frame successfully produced low-priced yet high-quality products compared to competitors from across the globe (John N. Pearson, Jeffrey S. Bracker, Richard E. White).
Logistics and evaluations are yet another important facet of operations management. It is important to rightfully handle an operation and evaluate both the progress made and the errors that need to be corrected. Evaluations can range from improving the time consumed all the way to addressing problems faced by labor.
However, there are challenges within operations management, chief among them being the fact that conditions tend to change continuously. As one scholar notes: "There are many reasons for this, but they all boil down to the four basic programmatic variables of scope, schedule, resources, and cost. When viewed in the present, it is widely recognized that a change in any one of these variables (and they are variables) will have a corresponding effect on the other three. The entire concept of production and operations management through program management and control is essentially directed at the identification, tracking, understanding, and mastery of these variables and their interactions as they occur" (Michael E. Thorn, p. 4).
Operations management is important because it has an impact on the four functions of management. The following section defines those four functions before examining how operations management affects each of them.
Planning is the act of formulating a program for a definitive course of action. Management defines a goal and puts forward strategies to accomplish the objectives defined.
Organizing involves dividing the workforce into specific groups and assigning each group a specific task. Organizing also involves ensuring that a smooth flow of information and coordination exists between these groups. The basic aim of organizing is to divide the workload and define tasks while setting deadlines, so that although different groups perform different functions, they all work together toward the same predefined goal.
Leading (Motivating) is the process of influencing employees in such a way that their output on a given task is as competent as possible. This includes communicating with the workforce, recognizing and addressing the problems they may face, and providing strong incentives — such as best-performance awards — to encourage their best efforts. Leading also encompasses maintaining discipline within the organization.
Controlling includes the analysis of the rate of achievement compared to the objectives defined. If the rate of achievement falls short of the original objectives, specific measures are taken to ensure satisfactory results by increasing the efficiency of workforce output. If analysis reveals a flaw in the original objectives themselves, those objectives are corrected accordingly.
"How each function shapes operational effectiveness"
The functions of management and operations management go hand in hand. If an organization does not base its rudimentary structure on the basic principles or functions of management, its operations management will suffer a blow. As demonstrated above, it is highly important for any organization — whether manufacturing or non-manufacturing — to act upon the functions of management. A plan, its mode of action, its execution, and its analysis are all important components for an organization. Their impacts on operations management are positive and effective. Consequently, one cannot deny the need for implementing these functions of management in order to achieve successful operations management and, by extension, a successful organization.
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