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The role of knowledge in operation mamagement - Essay Example

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In order to understand the relationship between operations management it would be necessary to refer to the role of operations management, as a critical business function. According to Barnes (2008) operations management refers to the management ‘of activities that produce the goods and/ or delivered the services required by customers’ (Barnes 2008, p.24). It is explained that operations management can cover an extended area of the business, being related to the management of organizational assets, the management of staff and the management of costs, at the level that the above business functions are involved in the development of a firm’s daily operations (Barnes 2008, p.24). At the same time, operations management can be quite complex incorporating a high range of activities, depending on a firm’s structure and its goals (Loader 2007). Brown et al. (2012) explain that operations management is usually divided into four major categories, represented by ‘4Ps’ (Brown et al. 2012, p.5), a term used for representing the words: ‘Policies, Practices, Processes and Performance’ (Brown et al. 2012, p.5). ...
of operations management in the following way: by acquiring the knowledge required for understanding the market trends and challenges, an organization can develop its aims and objectives so that they are feasible (Brown et al. 2012, p.5). For example, before the establishment of a particular organization it is necessary for its founders to develop a market research in order to check which

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market area has more prospects. Also, through the market research, the founders of an organization could decide on the content of their organization’s goals, both in the short and the long term. At the next level, an extensive research would be developed so that the strategies for achieving these goals are retrieved (Brown et al. 2012, p.5). These strategies would be designed and applied, after evaluating the conditions in the internal and the external organizational environment. The information retrieved through appropriate research would have a critical role in the development of the above task. For example, the SWOT analysis and the PESTLE analysis, are strategic tools that help towards the introduction of effective business strategies using information retrieved through research, both in the internal and the external organizational environment (Brown et al. 2012, p.5). At the next level, Policies are necessary in order to identify the Practices that would help towards the realization of business strategies (Brown et al. 2012, p.5). Practices can incorporate a variety of elements, such as ‘technology, procedures and skills’ (Brown et al. 2012, p.5). In other words, Processes, as part of operations management is usually incorporated in Practices. The people involved in the identification of technology required for the development of business operations need to be aware of the
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Summary

The role of knowledge in Operations Management The success of business operations is highly depended on the organizational environment, meaning both the internal and the external environment of each organization. Usually, different approaches are used by firms for securing the effectiveness of their operations…
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