Uploaded by Quintin Fronda Jr.

Briefly describe the term operations management

1. Briefly describe the term operations management. Identify the three major
functional areas of business organizations and briefly describe how they
Operations Management is function of the business in managing the
process of producing goods and services. The resources needed by the company
includes planning, organizing and controlling to create efficiency within it.
Operations management is also a practice of administrating the business in
achieving its high level of effectiveness. Moreover, the three major functional areas
of business organization are the operations, marketing and finance. They are
chained with each other to complement the necessity of the entire process. For
example, production creates a product and services needed by the consumer, in
order to supply them, marketing creates demand for it. It is the strategy on how the
product or services be sold to the consumers. After it was demanded, financing
goes after it. It means tracking the wellness of the organization is necessary to see
its needs. This is what we call system providing a systematic flow of the business
into a successful operationalization.
2. List five important differences between goods production and service
Goods production and service operations are important part of the business for
they have similarities and they are interrelated to each other. Good production
means the framework to produce a tangible product in which man, man and
machine works together. While service operation means the intangible products
offered to deliver experiences for customer’s satisfaction. The following are the five
important differences:
a. Goods are tangible while services are intangible.
b. Goods are produced before they are consumed, while in case of
services production and consumption happen at the same time.
c. Goods can be stored in inventory while services cannot be stored
for later use.
d. Quality assurance in goods is objective and is measurable, while the
same for services is very subjective.
e. Most manufactured goods can be patented while most services
cannot be patented and hence can be easily copied.
3. Why are services important? Why is manufacturing important? What are
non-manufactured goods?
Services provides important role in the economy of one’s country. It is the
component of manufacturing in order to install and maintain equipment to the pure
services industries like hospitality industries, educational institutions and hospitals.
It also adds psychological value to the work provided by the institution or
organization for the customer’s satisfaction. In addition to this, it helps to control
the labor cost and performances into competitive advantages. Hence,
manufacturing is also important for providing steps in the process from raw
materials into a furnished product. It forms the backbone of the economy in making
the flow of supply chain stable and healthy for the consumption of households. It
also supplies the needs of the service industries proportionally in the supply chain
so that they could offer their services continuously. Moreover, manufacturing also
gives opportunity for the people to get job and engines the growth of the economy
to underpin industrial relations, trading, exportation and innovations. While none
manufactured goods are the goods that are not produced in a factory. The best
examples are the agricultural products for it grows without the intervention of
humans such as grains, vegetables, root crops, poultry products and etc.
4. Why do people do things that are unethical?
There are different factors why people unethically do things. If we look to it deeply,
we can perceive several psychological reasons why they choose to do it. It is called
psychological traps that distorts perception of right and good. Basically, we are
expecting that every man has their goodness in their heart but in the other side of
their life they have unethical choices. Below are the different factors:
a. Environmental or cultural factors – people do thing unethically because of
the pressures to achieve unrealistic objectives, perception of unfair
treatment, lack of focus on ethics and compliance, misguided loyalty and
poor example of leadership to them.
b. Personal factor – personal situations also lead to a misconduct. Their
behavior makes unethical choices such as self-interest, personal gain,
ambition, and greediness because of their needs, opportunity and
c. Misguided loyalty – people lie because they think they need it to become
loyal to the institution they are in.
Modified True or False
1. True
2. False
3. True
4. True
5. True
6. True
7. Ture
8. False
9. False
10. True
Why is it important for the various functional areas of a business organization to
Collaboration defines as an act of working together to produce specific
achievements for a common purpose in achieving its benefits. In business, the
collaboration of the functional areas is interdependent. They are connected to each other
performing different roles for a common goal in an organization or business. It is like a
wheel of a car, to make it moving, four wheels must be put on properly in order carry the
whole body and accelerate into its way. In this illustration, business function areas lifting
up the business together as one through their different functions to move and to reach
their objectives and goals. With this, higher production will be attained. It also gives
management clear direction on his role by allocating the resources proportionally
including the operations, marketing, financing, and accounting. Thus, what are the roles
of these functional areas of business on collaboration?
These functional areas are separated in terms of their roles to operate the business
in its areas of expertise. Perhaps, efficiency and effectiveness in its primary aiming as a
In the illustration I mentioned above, in order to move a car, we need the driver,
driver is the management in a business. He has several roles to make the business run
to its goals. Management must plan by setting long and short-term goals, he also
organizes the operations in the most efficient way, control the activities to ensure it is on
track in order to achieve its goals, and lead the people or team to develop a new process
and product. Another functional area is the operations. In a car, it is the auto parts that
helps it to move. In business, the operations convert the inputs into product. It must need
to meet the quantity and quality of the product or services they offered. Another function
is to market, it identifies the consumers’ needs where they design the product and
services for them. it also promotes their goods for the satisfaction of the customers
through different strategies to attract them and afford it. It is like the good looks of the car,
in order to make it appealing to the people, it must clean, new, and attractive. Lastly, the
finance. Finance is the obtainment of the company’s fund. Financial manager assures the
financial accounting, coat allocation and control, planning and budgeting and the cashflow. Manager also ensures capital for the production process.
This work force of each functional areas of business organization provides strong
connection in maintaining the good performance of the organization or company. Their
function unites the team into a harmonious way of achieving their goals.