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Management and Operations Management Theory

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This paper defines the four functions of management and the operations management theory. It then provides an analysis of how the functions of management the operations management.


Planning: It is an act of formulating a program for a definitive course of action. The management defines a goal and puts forward its strategies to accomplish the objectives defined.

Organizing: To divide the work force into specific groups and giving each group a specific task. Organizing also involves ensuring that a smooth flow of information and co-ordination exists between these groups. Thus the basic aim of organizing is to simply divide the work load and define the tasks while setting up deadlines in such a way that although different groups do different things but they all work together with the help of each other towards achieving the same goal which has been predefined.

Leading (Motivating): Leading or motivating is simply to influence the employee in such a way that their output for the task given is most competent. This includes communication with the work force, recognizing and dealing with the problems they might be facing and also giving them good incentive to put in their best. Incentives can include best performance awards. Further on leading also comprises of maintaining discipline within the organization.

Controlling: This includes the analysis of the rate of achievement as compared to the objectives defined. If the rate of achievement is less than the original objectives, then specific measures are taken to make certain satisfactory results by increasing the efficiency of the output by the work force. If the analysis shows a flaw in the original objectives, then they are to be corrected.


Operations management deals with all the operations within an organization. Activities that are included in operations management are quality control, logistics, evaluations, managing purchases, inventory control, product design and production control.

Operations management 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 in on the product. Releasing a product in the market should be affordable and of a better quality than what other competitors are offering. This is one of the main factors that would secure the sale of the product. Primarily the organization should work towards designing a product that would have demand in the market. Producing something that is already provided a large number of companies is generally not a very good idea. The aim should always be to provide something unique, if not then the top most quality at the cheapest rates should be provided.

In practical this is seen in the case of Japan, who in a small time frame has successfully produced low-priced yet high quality products as compared to other competitors from across the globe. [John N. Pearson, Jeffrey S. Bracker, Richard E. White]

Logistics and evaluations are yet another important face in the field of operations management. It is important to rightfully handle an operation and evaluate the progress and the errors that need to be corrected in an operation. Evaluations can range from improving the time consumed, all the way to the problems faced by the labor.

However there are some problems with operations management, one of them being the fact that everything tends to change continuously. "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 effort 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]


This section analyses the impact that the previously discussed functions of management has on the operations management.

Planning is the most important pillar of operations management. When an organization plans its goals and sets down its strategies, it then becomes easier for the managerial level to decide and distribute the work load. Without any plan of action, the organization or company would not know what it is working towards. For a manufacturing company, planning would include product design.

For work to be conducted on the principles of operations management, organizing plays an important role. Workload needs to be divided in such an efficient



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