CBMEC 1

Operations Management

It is the administration of business practices to create the highest level of efficiency possible within an organization. It involves managing resources such as people, equipment, technology, and information to produce and deliver products or services.

Functions of Management

refers to the core responsibilities that managers perform to ensure that an organization runs smoothly and efficiently

Planning

Setting goals and deciding how to achieve them.

Organizing

Arranging resources and tasks to implement the plan.

Staffing

It is the process of hiring and placing the right people in the right jobs to help an organization succeed

Manpower planning

Estimating manpower needs, assigning right people.

Recruitment, Selection, Placement

Finding, hiring, retaining qualified employees.

Training and development

Enhancing skills and knowledge.

Renumeration

Fair and attractive compensation, employee satisfaction.

Performance appraisal

Feedback, support, corrective action.

Directing

It is the process of guiding, motivating, and supervising employers to help them work effectively and achieve the organization's goals

Supervision

Overseeing work of subordinates.

Motivation

Inspiring employees through incentives.

Leadership

Guiding and influencing subordinates

Communication

Sharing information and building understanding

Controlling

means watching and checking the work to make sure everything is done correctly. If there is a problem or mistake, it is fixed so the work turns out well.

Classical approach

This approach emphasizes centralized authority, labor specialization, and incentives to enhance productivity and profitability. Its key advantage is the division of work, allowing employees to focus on specific tasks, thereby increasing efficiency and expertise

Human relation approach

This approach integrates employees into a work environment that fosters motivation and cooperation. It recognizes employees as individuals with needs, promoting a positive workplace culture that enhances job satisfaction and productivity.

System approach

This perspective applies to various business domains and focuses on analyzing the interactions within a system. It highlights the importance of coordination among departments

Contingency approach

Also known as the situational approach, it acknowledges that organizations are unique and face different challenges, requiring tailored management strategies.

Operations manager

• This person oversee operational activities at every level of an organization.

• Their duties include hiring and training employees and managing quality assurance program

• An operation manager also strategizes process improvements to ensure everyone completes their tasks on schedule

Applicants with degree in business ad, business management or accounting

Who qualifies as Operations manager?

project management, delegation, flexibility, and business finance

Skills required for operations manager

Product design

involves creating a product that is matched to the end consumer

Forecasting

a process estimating the future based on the analysis of past and present data.

Supply chain management

oversees the entire journey of a product, from raw materials to final delivery

Delivery management

involves overseeing the transportation of finished goods between locations, focusing on optimizing last-mile delivery for businesses.

Organizational abilities, Coordination, People skills, Tech-savvy

Ideal Skills of an Operations Manager

Service

act of providing assistance, comfort, and memorable experiences to guests. It is the foundation of customer satisfaction and loyalty, making it the “heart” that keeps the industry alive.

Intangibility

You can’t touch or see it before you experience it.

Inseparability

The service happens while you’re experiencing it, usually with the person performing it.

Heterogeneity

The quality of service can change depending on the person, place, time, or situation.

Perishability

You can’t store or save the service for later.

Ownership

Remains with the service provider.

Service matrix

It is a framework that shows different levels and types of service based on quality and efficiency

Labor intensive

Refers to a process or industry that requires a large amount of labor to produce its gooods or services.

Customization

Refers to the need and ability to alter the service to please the individual customer’s particular preferences.

Customization service

Any service that’s tailored to the needs of individual customers

Customers

They test the quality of service of a firm at every encounter.

Quality management

It involves deciding on quality standards and implementing a method of assurance on performance level of the staff and the facilities.

Quality

It has emerged as a major competitive element in service company strategies.

Reliability, Assurance, Tangibles, Empathy, Responsiveness

What are the five star of quality service?

Reliability

a. Performing consistently over time. 

b. Being trustworthy and fulfilling promises.

Assurance

 a. Staff must show expertise, courtesy, and inspire customer trust.

 b. Use tools like checklists, standards, documentation, and audits to ensure service quality.

Tangibles

a. Since hospitality services are mostly intangible, it’s important to have some physical proof to make the service feel more real to customers. 

b. This includes things like how the building looks, how clean the place is, and how the staff present themselves.

Empathy

In customer service, it means showing genuine care and understanding, even when the problem can’t be fully resolved

Responsiveness

a. It is about being willing to help and providing quick service. 

b. It also includes how well a company handles unexpected or unusual situations in a timely manner.

Product Attributed Approach

It is the characteristics of a product that describe its features and influence customers to buy. It matter because they inform the buyer extensively about the product. The more descriptive they are, the better they perform in terms of increasing buys.

Customer-Oriented Approach

It is a business approach in which a company solves for the customer first. It's all about focusing on helping customers meet their goals.

Technical quality and Functional quality

According to Gronroos, a service can be broken down into two components, namely (TWO DIMENSIONS OF QUALITY)

Service provider

It is the starting point to know how quality is judged by customers and what are perceptual processes of this judgment towards the quality of service experienced.

Technical quality

refers to what is delivered whereas functional refers to how it was delivered, and both develop customers' perceived service quality

Functional quality

 refers on how the customer receives the service; the expressive nature of the service delivery

reliability, tangibility, credibility, responsiveness, communication, security, competence, access, empathy, courtesy

10 dimensions of Service Quality

1. Word of Mouth Communication 2. Personal Needs and Preferences 3. Experience 4. External Communication

There are four key factors that can influence the customer's expectations, which may help customers in shaping their expectations of a service:

Service gaps

refers to the difference between planned or expected service and the actual service delivered. It occurs when there is a mismatch between service specifications and actual performance, or when customers’ expectations differ from what they perceive they received

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Example of Service Gap Marketing