In your own words, explain the challenges of an Operations Manager. You may make reference to a manager and/or organisation that you know.
ORGANISATION AND MANAGEMENT [MGT 1111]
Contents PAGE Introduction
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Globalisation
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Customer Satisfaction and Resource Productivity
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Workforce and Social Trends
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Economic and Environmental
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Technology
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Politics, Corporate Governance and Ethics
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Conclusion
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Bibliography
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1 Challenges of an Operations Manager Introduction “Operations Management” is the management of a system which provides goods or services to or for a customer, and involves the design, planning and control of the system” [Neville D. Harris]. Operations Management includes both production management and service management. According to Slack [1983], Operations Management “generally has responsibility for the vast majority of the organisation’s resources”. As a middle manager, the Operations Manager is responsible for the work of first-line managers and sometimes for that of operating employees as well.
Mr. J. A. Boulaki, Operations Manager of Bioculture [Mauritius] Ltd, a company which manages “La Vanille Crocodile Park” and a world leader in the supply of animals for biomedical research, explains that his responsibilities in the above-named company entail putting in place all logistics, i.e. manpower and equipment resources, for all departments in their farm to cater for its smooth and efficient running.
Mr. Boulaki acknowledges the fact that nowadays, organisations are faced with frequent changes. Organisations are subject to more ups and downs in their day-to-day activities. As such, the work of the Operations Manager is becoming more and more challenging in view of the various factors that will be explained further.
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2 Challenges of an Operations Manager Globalisation It is said that the world is gradually becoming a global village. Geographical barriers or frontiers are being eliminated with communications technology and the rapid pace of innovation in the transportation industry. Globalisation is increasingly becoming a challenge for businesses, and in turn, for Operations Managers. Globalisation does not only imply that a local firm faces competition from abroad, but also means that the former goes international [Multinational].
It is acknowledged that in the first case, with competition from abroad, a firm would have to remain competitive by providing good quality products or services at low prices. The Operations Manager would definitely be concerned with this as he would have to engage in the four functions of planning, organising, leading and controlling to ensure that the product or service remains competitive on the market. Moreover, there would be a demand for the Operations Manager’s creative skills as innovation is a key factor for the success of the business in this highly competitive world.
As for the second case whereby more and more companies are doing business in other countries, the Operations Manager will need to have greater knowledge of international business and different cultures. Products or services need to be adapted to suit the demand in such countries. Again, this would be a challenge for the Operations Manager as it would require his creative skills.
The Operations Manager of Bioculture [Mauritius] Limited, however, says “We do not, in our field, suffer much from the effects of globalisation as our product and target market are very specialised�. That does say quite a lot about the uniqueness of a product to be able to remain competitive on the world market, with in mind the impact of globalisation.
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3 Challenges of an Operations Manager Customer Satisfaction and Resource Productivity Customer satisfaction is, without any qualm, a crucial factor for the existence and growth of a business. Together with the Marketing Department, the Operations Manager should work so as to achieve one of the firm’s mission statement: increasing market share. How will the firm attain this goal, if not by trying hard to satisfy its clientele to the maximum?
It is a fact that low cost and high quality are key attributes that a good or service needs to possess. To satisfy customers and remain competitive on the market, a firm must be able to supply the right quantity of a good or service at high quality, at a low price, and at the right time. However, it should be acknowledged that there exists a trade-off between cost, quantity, quality and time. It is the responsibility and a challenge for the Operations Manager to ensure that this trade-off is minimised.
It is also important to underline the key concept of quality. The Operations Manager needs to make sure that the product or service is to the standard required by the customer. Thus, the Operations Manager will have to engage in Total Quality Management and the extent to which he is able to meet the standard required by the customer will definitely be a challenge for him. For instance, Mr. Boulaki explains that high quality of product is demanded by the World Biomedical Research Industry and further adds that “a major challenge is the inability of local suppliers to meet up to our high level expectations in terms of product and service quality. Very poor customer service oriented suppliers in Mauritius is one of the hurdles we constantly have to face in our operations�.
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4 Challenges of an Operations Manager Workforce and Social Trends Changing society values, cultures and interests have a great impact on the work of Operations Managers. As Mr. Boulaki states, some people still do not accept the fact that Bioculture [Mauritius] Limited provides animals for Biomedical Research. Since some of the managers have to deal directly with operating employees, they have to take into account social trends. The managers also have to bear in mind the demographic changes [ageing population] while planning, organising, leading and controlling. Hence, these changes represent a challenge for the Operations Manager since he must be able to cope with them. The manager must also to his utmost level prevent culture clashes and sex inequalities in order to maintain a friendly working environment.
The technological aspect should also be kept in mind with the workforce. With an ageing population, some workers might resist such changes in an organisation. Therefore, it would be a challenge for the Operations Manager to provide the necessary training and to motivate his subordinates in accepting such changes. Better still, it is a challenge for the Operations Manager to induce the workers in Total Quality Management, that is, always producing the right thing at the first time with zero defects.
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5 Challenges of an Operations Manager Economic and Environmental
The dramatic change in the economic landscape also affects the work of the Operations Manager. Economic variables such as inflation, unemployment, interest rates, exchange rates, economic growth or recession not only have an impact on the price of raw materials but also on the price of the finished product. For instance, in the case of inflation, the Operations Manager is torn apart between two extremes: one, the high price of raw materials, and second, he will have to be producing at a low cost. Trade barriers and restrictionist policies are also an important consideration when trading internationally.
Natural calamities such as cyclones and droughts and other unforeseen events also affects the price of certain raw materials and again, the skills of the Operations Manager as a resource allocator and negotiator will be put into value.
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6 Challenges of an Operations Manager Technology
Computers are widely being used in businesses nowadays. Nearly all departments are being computerised and part of the work previously done by personnel is being done by computers in recent times. However, it should be acknowledged that trained personnel are still required to make the computers perform the tasks that are expected. Recent developments in production such as the Computer Aided Design, which makes modifications to the machines or tools possible once the design has been made, and the Computer Integrated Manufacture which involves the use of industrial robots that can perform certain operations, are becoming increasingly challenging for the Operations Manager. The Operations Manager will have to adapt his skills in view of the recent developments that have been taking place in production.
It is also important to underline that with advances in technology, products are becoming obsolete over time. Therefore, the Operations Manager has to constantly keep pace with new technology to ensure that the firm does not lag behind with regards to the product being unique, quality ensured and “avant-gardes�. Furthermore, it is expected that the Operations Manager will have to face and cope with an integration of business needs, people needs and technology as more and more people will opt for home-based working with the use of multimedia.
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7 Challenges of an Operations Manager Politics, Corporate Governance and Ethics
The ethics genie is out of the bottle and its operational principles are proving difficult to control. [Regan Scott]. Ethics are standards of conduct and moral judgement differentiating right from wrong [Bartol 1997]. Ethics are routed in honourable and honest business practice. Basic human and social rights need to be considered by the Operations Manager. This includes fair labour relations and a mix of minimum labour standards and best practice.
The Operations Manager needs also to keep in mind that it is not ethical to pollute the environment even if this helps him to reduce the costs of production. Public standards need to be considered by the Operations Manager. The Operations Manager of Bioculture [Mauritius] Limited, here points out that “We integrally adhere to the principles of good governance and specially ethical issues including strict concerns for animal welfare issues and staff welfare. Strict environment protection policy is also amongst our main concerns�.
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8 Challenges of an Operations Manager Conclusion As a conclusion, it can be said that the Operations Manager faces many challenges in this everchanging world and these are in the form of: globalisation, customer satisfaction and resource productivity, workforce and social trends, economic and environmental issues, technology, and corporate governance, as discussed above.
[1570 words]
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9 Challenges of an Operations Manager Bibliography 1. Regan Scott 2004, Corporate Governance and Social Responsibility: Building the links, Union Network International [UNI], Switzerland 2. Bartol et al 1996, Management A Pacific Rim Focus, McGraw-Hill Book Company, Sydney 3. Stephen P. Robbins 2005, Management, Prentice Hall International 4. Stephen P. Robbins 2002, Organisational Behaviour, Prentice Hall of India Private Limited, New Delhi 5. Neville D. Harris, Service Operations Management
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