An operation manager whose job is to manage the process of converting inputs (land, labor, capital and management) uses the following three approaches:
- Classical
- Behavioral
- Modeling
Classical Management has contributed to scientific management and process orientation theories. The basis of scientific management is a focus on economic efficiency at the production core of the organization. Economic efficiency refers the ratio of outputs to inputs. Management is concerned with labor efficiency. The school of process management views management as a continuous process of planning, Organizing and controlling.
- Planning includes all activities that establish a course of action. These activities guide future decision making,
- Organizing includes all activities that establish a structure of tasks and authority,
- Controlling includes all activities that ensure that actual performance is in accordance with planned performance.
Behavioral Management is one of the primary theories of management emphasizing human relations and behavioral sciences. Human relations phenomenon recognized by behavioral scientists that people are complex and have needs and that the subordinate-supervisor relationship directly affect productivity. Behavioral science explores how human behavior is affected by leadership, motivation, Communication, interpersonal relationships and attitude change.
Modeling Management is concerned with decision making and systems theory and mathematical modeling of these theories. The decision making orientation considers making decisions to be the central purpose of management. System theory stresses the importance of studying organizations from a “total system” point of view. According to this, identifying subsystem relationships, predicting effects of changes in the system, properly implementing system change are all part of managing the total organization. With its foundations in operations research and management science, mathematical modeling focuses on creating mathematical representation of management problems and organizations. For a particular problem, the variables are expressed mathematically, and the model is used to demonstrate different outcomes that would result from the various possible managerial choices.
To study the Operation Management the following three approaches are created for the frame work for managing operations:
- Planning: The operation manager defines the objectives for the operations subsystem of the organization and the policies, programs and procedures for achieving the objectives. This stage includes clarifying the role and focus of operations in the organizational overall strategy. It also involves planning, facilities designing and using the conversion process.
- Organizing: Operation managers establish a structure of roles and flow of information within the operation subsystem. They determine the activities required to achieve the operation’s subsystem’s goals and assign responsibility authority for carrying them out.
- Controlling: To ensure that the plans for the operations subsystem are accomplished, the operation manager must also exercise control by measuring actual output and comparing them to planned output. Controlling costs, quality and schedules is at the very heart of operations management.
Beside planning, organizing and controlling the various activities of the operation subsystem, the Operation manager is also concerned with the following two approaches;
- Behavior: Operation managers are concerned with how their efforts to plan organize and control effect human behavior. They also want to know how the behavior of subordinates can affect management’s planning, organizing and controlling actions. In operations we are interested in the behavior of managers as well especially their decision making behavior
- Models: As operation manager plans, organizes and controls the conversion process, he encounters many Problems and must make many decisions. They can frequently simplify these difficulties by using models.