Operations management is a practice that implies the control of the production of goods or services. Namely, researchers define the concept as the field correlating with organizational planning, quality control, inventory management, scheduling, and managing purchases (Wolniak, 2020). A potential critique can be exemplified as the complexity of the field, which involves multiple branches, hence, may minimize in-depth understanding of singular problems. However, the history of operations management highlights why the element is essential. According to researchers, operations management became vital during industrialization (Moynihan, 2018). However, the field further developed during the US war with Japan (Fisher, 2009). Hence, corporations were more prominently present in global markets, production increased, and the workforce grew (Piercy, 2012). As a result, it was important to implement a branch that would be able to take responsibility for managing multiple interconnected processes for a smooth organizational process.
Currently, operations management as a field has changed due to the trends which, in turn, correlate with the current practices. According to researchers, the practices include digitalization, sustainability efforts, and further globalization (Moynihan, 2018). The present trends also focus on artificial intelligence while managing organizational processes for the reduction of human errors and knowledge gaps. Hence, based on the trends and current practices that shape today’s operations management techniques, it is inevitable that the professional field has become vital within any business.
Operations managers are the individuals who are responsible for the process of production. The position implies the role of planning, scheduling, monitoring, and managing the operations within the organization. Several responsibilities and duties correlate with the position, including the control of all purchases and sales, planning potential implementation, controlling organizational elements, participation in decision-making processes, and managing inventories (Wolniak, 2020). The aforementioned responsibilities are linked to one major goal, which is increasing the productivity level. Hence, an operations manager is to possess the quality of a good leader, the ability to focus on the bigger picture, and the motivation that can be shared with the team members in regard to achieving organizational goals.
Since operations managers are to address productivity, it is essential to highlight the concept of productivity itself. Productivity is defined as the ratio between the input and the output (Harris, 2019). The difference between productivity and efficiency is the output as in one case, it is measured based on its quantity, while efficiency highlights its quality. Hence, as long the companies manage to decrease input while maximizing output, productivity increases. However, the element is much more complex than comparing profits versus spending, although this measure is one way to calculate the variable. Researchers mention that multiple organizational aspects can be implemented to determine productivity. For example, by determining the employee turnover rate, productivity can be partly identified as a high turnover correlates with a less optimized workforce and profits (Harris, 2019). Similarly, comparing labor time and produced goods can facilitate the identification of the same variable.
It is certain that operations management is crucial for every business that strives for development. The field addresses an array of organizational processes, which is why operations managers are responsible for schedules, planning, and strategic decision-making. Hence, effective operations management ultimately leads to an increase in productivity. As a result, companies manage to achieve a balance between lower inputs and higher outputs. Operations managers who possess the needed qualities, namely, are efficient leaders, planners, and decision-makers, are able to address potential productivity barriers such as high employee turnover, inefficient labor management, and high spending.
References
Fisher, M. L. (2009). Bob Hayes: Forty Years of leading operations management into Uncharted Waters. Production and Operations Management, 16(2), 159–168.
Harris, R. (2019). Defining and measuring the Productive Office. Journal of Corporate Real Estate, 21(1), 55–71.
Moynihan, G. P. (2018). Introductory chapter: Background and current trends in Operations Management. Contemporary Issues and Research in Operations Management.
Piercy, N. (2012). Business history and operations management. Business History, 54(2), 154–178.
Wolniak, R. (2020). Main functions of Operation Management. Production Engineering Archives, 26(1), 11–14.