Operational Management Today's Business Environment Thesis

Pages: 7 (1944 words)  ·  Style: APA  ·  Bibliography Sources: 5  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Management

¶ … Operational Management

Today's business environment is an extremely complex one, characterized by numerous features, including the growing forces of globalization which allow entrepreneurs to internationally expand their operations and benefit from a global market, but also from global resources, including commodities, capitals, technology or labor force. Another important characteristic of the modern business community is the focus placed on the satisfaction of the customers through the delivery of high quality products and services at competitive prices. Managers develop and implement a wide series of strategic courses of action in order to ensure that they satisfy the customer, but in the same time operate in an efficient and effective manner that increases their chances for maximized profits.

Buy full Download Microsoft Word File paper
for $19.77
The academic community has also focused on supporting economic agents reach their established desiderates. This endeavor has taken the form of the development of various theoretical concepts that help entrepreneurs better comprehend, adjust and answer to environmental threats, as well as maximize their core competencies in a way that allows them to seize the opportunities presented by the micro and macro environments. To name but a few of these concepts, one could pin point the SWOT (strengths-opportunities-weaknesses-threats) analysis, the PEST (political-economic-socio-cultural-technological) analysis, interactive marketing or operational management. The aim of this paper is to analyze the concept of operational management, one which can address two of the most stringent issues identified in the first lines -- operational efficiency and profitability on the one hand, and customer satisfaction through the delivery of high quality products and services on the other hand.

2. Defining the Concept of Operational Management

Thesis on Operational Management Today's Business Environment Is an Assignment

Operational management is often an implicit concept that is applied by managers without at times even being aware of it. Numerous players in the business and academic communities take operational management as a given and grant it little actual consideration. It is present in an efficient allocation of resources, in a production and delivery of high quality products and services or in ensuring efficient communications at all organizational levels. Operational management can be implemented through a series of complex process or it can simply be based on common sense judgments. Given this multitude of applications, the specialized literature has often neglected to offer a universal definition of the concept. Still, some sources do offer a clearer meaning of operational management.

Carter McNamara (2009) for instance offers the most simplistic definition by arguing that "operations management focuses on carefully managing the processes to produce and distribute products and services." He further explains that these processes are developed by large size corporations with increased access to resources and that smaller size entities limit themselves at implementing the strategic courses of action in operational management that have proved valid to the larger operators.

Richard Stylves (2008) looks at the issue of operational management from a totally opposite angle -- natural disasters and calamities. He takes the example of the Katrina hurricane and argues that better operations management could have saved more lives and led to a less damaging outcome. He states that operational managers possess certain skills that could offer more efficient disaster relief. Otherwise put, he recognizes the benefits of operational management not only for the economic agent, but also for the public. Translated into a business formulation, Richard Stylves defines the concept as "the part of the business world that focuses on the "process" a firm uses to provide a product or service to the consumer. At its most basic, it is the transformation process that takes raw materials, labor, and capital and turns them into final products or services, adding value for the customer. The goal of OM is to produce a product or a service in the most efficient way."

The third perspective on analyzing operational management is offered by the Department for Business Enterprise and Regulatory Reform (2009) and sees that the primary aim of operations management is to ensure continuity. This is an integrate part of the business continuity management process and argues that the sustained performance and connections ought to be present at all organizational levels.

3. Applications of Operational Management

As it has already been mentioned before, operational management has complex applications at all levels of organizational activities. According to BERR (Business Enterprise and Regulatory Reform), the main role of operational management is to ensure a sustained continuity of all processes across the entire organization. This is achieved through six types of operations: reviews, change management, education and awareness, training, testing and finally, assurance.

The need for reviews is given by the rapid pace at which changes occur within the micro and macro environments of companies. Managers employ the techniques of operational management to ensure that their deliverables (such as products, services or organizational goals) are adjusted to the emergent modifications and can be efficiently achieved within the given resource constraints. The reviewing operations occur at four stages -- business processes; potential effects of system failure for the reviewed processes; the risk, threats and weaknesses for the overall entity and finally, the measures of recovery in case the risks materialize for a specific process and/or the organization as a whole.

The second application of operational management as identified by BERR is the change management, which is necessary to ensure that contingency plans are properly and efficiently developed so that they allow the company to respond to the challenges in the environment and still reach its objectives. Education and awareness within operational management ensures that all staff members are familiar with their responsibilities and the role they play within the entity. This action will additionally increase the company's ability to integrate change and achieve its established desiderates. Fourth, training in operations management is required to ensure that all organizational employees operate at increased levels of performance and support the economic agent in reaching its goals (however all staff members are theoretically supposed to benefit from these training programs, the most emphasis is being placed on the Information Technology team, which is in charge of efficiently handling technological processes). Finally, the last two applications of operations management according to the Department for Business Enterprise and Regulatory Reform are those of testing and assurance. Testing is required to ensure that the systems used are functioning at the required parameters; as a secondary benefit, testing will also force employees to remain alert and highly capable to complete their responsibilities. The last application of operations management is to ensure that the processes developed are in accordance with the overall goals of the organization and the managerial teams. The process is often integrated in activities of internal and external audit and can reassure the company and its stakeholders of the efficiency and profitability levels registered.

Another application of operational management is that of creating and maintaining an environment that fosters efficient communications between all levels of the entity. This application is explicable through the simple argument that "efficient communication is crucial to the success of their [managers] jobs" (Ebojo, 2009). The aim of operations management is to create structures that allow team members to efficiently interact and share information. An important aspect of communication that has to be remembered is that of the emotional element, often combined with body language. It is rather difficult to integrate these sensitive elements within operational management, but they are often discussed in training programs.

Operations management is also in charge of ensuring that the managers send out a clear message to the employees. This message has to be well constructed, in accordance with the organizational goals, as well as properly delivered and understood by all staff members. It is often helpful if the communication system is a flexible one as this method further increases operational efficiency and allows the teaching of operational management to be implemented with superior levels of quality and maximized results. Melanie Ebojo identifies various applications of the process of operational management, some similar to those retrieved from BERR. Still, an interesting element she introduces revolves around decision making -- a pivotal process in the organizational activities. She points out how some decisions are made only to be later on overthrown. With the aid of operations management however, organizational leaders can make the better decision in the incipient stages of the dilemma and can better enforce it, to further increase efficiency and profitability.

It has been just established that proper communication at all organizational levels is crucial. Nonetheless, just like in the case of training programs, emphasis is being placed on the IT teams. Chris Koch (2009) argues that operations management can create an environment that fosters efficient communications between the IT and marketing departments, which offers the combined benefits of increased operational efficiency, but also better satisfied customers. The relationship between the marketing and IT departments is generally a poor one, with most of the blame being put on limited financial resources. Koch believes however that while money does play an important part, the relationship is generally poor due to lack of proper communication. The techniques of operational management come to resolve this dilemma by encouraging… [END OF PREVIEW] . . . READ MORE

Two Ordering Options:

Which Option Should I Choose?
1.  Buy full paper (7 pages)Download Microsoft Word File

Download the perfectly formatted MS Word file!

- or -

2.  Write a NEW paper for me!✍🏻

We'll follow your exact instructions!
Chat with the writer 24/7.

Current Global Economy Deterioration Presents Challenges and Opportunities for the Strategic Human Resource Management Essay

Impact of Big Data on Business Strategy Term Paper

HRM Outline Human Resource Management an Analysis Thesis

Nike in Today's Increased Globalization Term Paper

Business Proposal in Ghana Business Proposal

View 200+ other related papers  >>

How to Cite "Operational Management Today's Business Environment" Thesis in a Bibliography:

APA Style

Operational Management Today's Business Environment.  (2009, April 23).  Retrieved September 21, 2020, from https://www.essaytown.com/subjects/paper/operational-management-today-business/6101

MLA Format

"Operational Management Today's Business Environment."  23 April 2009.  Web.  21 September 2020. <https://www.essaytown.com/subjects/paper/operational-management-today-business/6101>.

Chicago Style

"Operational Management Today's Business Environment."  Essaytown.com.  April 23, 2009.  Accessed September 21, 2020.