The Use of Operations Management Procedures in Order to Increase Organizations Competitiveness under the Conditions of Growing Pressures of Globalization

By Horvathova, Petra | Global Business and Management Research: An International Journal, January 2010 | Go to article overview

The Use of Operations Management Procedures in Order to Increase Organizations Competitiveness under the Conditions of Growing Pressures of Globalization


Horvathova, Petra, Global Business and Management Research: An International Journal


Introduction

The use of operations management procedures in the current very competitive environment and under the conditions of growing pressures of business environment globalization is one of indivisible instruments for the success of the organization.

These dynamic days, methods and procedures of this discipline react appropriately to every change occurring both in the external and internal environment of the organization and thus they foster the reaching of required objectives of business enterprise, which is the maximization of market value, competitiveness maintaining or increasing, profitability, or, possibly, just a simple survival of the organization (Hruzova, 1999).

The main activity of any organization is such activity that, in concurrence with financial, marketing, personnel and other activities of the organization, results in the transformation of a certain input into the output with a higher value (Tomek, Vavrova, 2000). It is the operation activity that is considered precisely such basic activity being the core of all organizations whether they are manufacturing or providing services, engaged in both public and private sector, aimed at earning profit or without profit. And it is operations management that deals with managing operation activities. If this activity is not performed effectively and efficiently then a hope that the organization will be effective (it will provide required products or services of good quality) and efficient (it will provide products or services with costs as low as possible) as a whole is very small. Only such organizations that are able to meet the above-stated requirements have got the best positions on the market and can be successful in fighting with competition.

What is the Essence of Operations Management?

The main field which operations management is concentrated on is managing the sources directly taking share in product manufacturing or providing a service by the organization. Sources are usually represented by people, materials, technologies and information. They are combined together by a number of processes in order to be used for acquiring an organization primary service or a product.

Operations management can be then understood as a transformation process in which inputs (resources) are by means of this process transformed into outputs (products or services). There are two categories of inputs. Resources such as information and materials, the state of which changes as a consequence of the process of conversion are called transformed resources. On the contrary, inputs such as employees, equipment and buildings that help the transformation process but their state does not change as a consequence of the conversion process are called transforming resources (Slack et al., 2004). The process of transformation includes a draft of operations system, planning and control, and improvement activities that are necessary for production and providing of goods and services to customers. Products and services are outputs the purpose of which is to satisfy customers' requirements and operation, and to achieve strategic business objectives so that the organization would be continuously able to compete on the market.

Achieving of all set objectives in the organization including competitiveness maintaining and increasing by the application of principles, theories and methodologies of operations management is based on the implementation of efficient and effective transformation process, specifically by the utilization of determined methods of transformation. Operations management as a transformation process is depicted in the following figure.

[FIGURE 1 OMITTED]

What are Operations Managers' Roles and Tasks?

It can be said that practically all managers are operations managers, because it is assumed that almost all activities within any organization are productive activities (Galloway et al. …

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