The Role and Significance of Operations Management in Business

This essay examines the significance of operations management in various organizations, emphasizing its role in planning, organizing, and supervising processes to enhance profitability. It highlights the multi-disciplinary nature of operations management, integrating marketing and finance to optimize resource utilization and maximize output. The essay explores the blend of logistics and supply chain management, underscoring the importance of global trends and cost-effectiveness. It discusses the diverse disciplines involved, including management, factory maintenance, and strategic planning. The essay also emphasizes the impact of globalization on operations, including global sourcing, production, and supply chain management. It concludes by stressing the importance of operations management in achieving company objectives, improving employee productivity, and enhancing organizational goodwill. The essay references multiple sources to support its arguments.

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Yes! I agree with this statement because as argued by Badarudin Mat Isa. and Anuar Alias
(2014) “operations management involves a process of planning, organizing, and supervising,
therefore making significant improvements for higher profitability”. Irrespective of the type
of organization, whether a company operating solely for profit, government agency or non-
profit company, the necessary accustoming in daily life operations is supporting the
company’s strategic goal, and are foregoing by measure as well as in-depth analysis. In an
organization, operation management is multi-disciplinary, together with marketing and
finance. It makes sure that the labour and material are used most efficiently and effectively,
taking care of the maximization of output.
In other words, operation management can be understood as a blend combination
of logistics as well as supply chain. In both these areas, operation management has a firm
foundation. For instance, in operation management, understanding global trends for meeting
the demands of the clients is quite critical. According to Corrêa (2012) in case of logistics, a
considered and careful usage of resources and cost-effectiveness significantly has become
essential in a time where resources can be scarce, and expectations of the customer have
skyrocketed.
Moreover, the requirement of operation management is familiar with a variety of disciplines,
by tradition incorporating management, factory maintenance and equipment, and general
administration. The Smartsheet (2020) states that the operation manager must know about the
strategic policies, essential planning of resources, production, and system of manufacturing as
well as their analysis. Also, principles of cost control and production are of significance.
The UKEssays.com (2020) have mentioned that the foremost objective of any operation is
using the available resources productively. A translation of high productivity takes place into
higher profit and lower costs for any given price. Thus, operations are a functioning system
transforming input into the higher-value output. The ratio of the output value achieved to the
used inputs is for expressing productivity, i.e., a measure of the efficient use of resources.
The economic output value in any operation should be more than the input value in operation.
The resources used include storage space or land, labour, materials, financial resources,
energy, and water. The UKEssays.com (2020) on the globalization of operation has stated
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Productivity=Output/Input

that we find the forces of globalization, such as a reduction in barriers of trade, feasible
means of communication, and international transportation. The saturation of the market in the
home market and rapidly growing opportunities globally, wage differential have led to an
expansion in operation globally. The globalization of operation includes global sourcing of
inputs, production of services and goods, product transportation, production of services and
goods, management of supply chain globally.
I believe operation management is enormously significant in any organization;
therefore, apart from discussing the concept of operation management, it is equally important
to consider its importance. The Blog.mitsde.com (2020) on operation management highlights
that helps in achieving the company's objectives; it improves the employees' productivity
together with the organizational presence and the goodwill of the company. It helps the
manager to become more capable of utilizing resources. Last but not least, it helps improve
the employees' motivation.
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References
Badarudin Mat Isa. and Anuar Alias. (2014). Journey to management of organisation
operation. Batu Pahat: Penerbit UTHM.
Blog.mitsde.com. (2020). Importance of operations management. [online] Available at:
http://blog.mitsde.com/importance-of-operations-management/ [Accessed 22 Jan. 2020].
Corrêa, H. (2012). Crossing Borders: Trends in Operations and Global Supply Chain
Management. Brazilian Journal of Operations & Production Management, 9(2), pp.27-38.
Smartsheet. (2020). Everything You Need to Know About Material Requirements Planning
(MRP) | Smartsheet. [online] Available at: https://www.smartsheet.com/guide-to-material-
requirements-planning [Accessed 22 Jan. 2020].
UKEssays.com. (2020). Effects of Globalisation on Operations Management. [online]
Available at: https://www.ukessays.com/essays/business/effect-of-operations-management-
in-a-globalised-environment-business-essay.php [Accessed 22 Jan. 2020].
UKEssays.com. (2020). Objectives Of Operations Management Management Essay. [online]
Available at: https://www.ukessays.com/essays/management/objectives-of-operations-
management-management-essay.php [Accessed 22 Jan. 2020].
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