The Importance of Operation Management in Business

Operation management is the administration of business activities with the aim of generating an achievable level of competence in an association. It aims at transforming resources and labor to increase the profit within an organization. Various teams participating in operation management archive a higher net buy balancing costs with revenue. Operation management is relevant and interconnected to most of the business function and also includes various key performances indicators that affect operations in business as evident in a different organization such as Mark and Spencer. 

Operation management is relevant and interconnected to most of the business functions.It is the catalyst and center of the organization and oversees the variouspurposeof the business acting as a contrivance for regulatorprocesses (Meltzer, Stank & Esper 2008). It is the umbrella and connects all facets of the industry from Human Resource to project management and supply chain management to finance and facilities. Marks and Spencer company organization introduced various Human Resource initiatives that would be responsible for training the staff to ascertain that they produce quality work. It has also changed the pre-emptive role in the organization. The change in the tactical level enhanced a higher distribution of assets, training, and abilities required to encourage the employees within the various level of the organization.

Mark and Spencer, face a lot of of-ofissues that affect their business operation. Recently Mark and Spencermet problems and issues concerning the relationship between the employer and employees (Bresnen 2000). For the company to improve and rectify the point,it has to adopt a different approach to their employees. The company should incorporate some changes and principles to the organization. Some of the changes and policiesinclude changing working hours, implementing a competitive rate package, integrating employee discounts, pension schemes and introducing bonus and extras to the customers. For the Mark and Spencer to become an indeed global multi-channel retailer, it should formulate a strategy that encourages its employees to be working with international associates, customers, and suppliers.

Crucial different performance indicators affect business operations. Quality is the first is the essential first performance that organizations should focus on since most of the customers require conditionproducts and at a lower cost (Del-Rey-Chamorro 2003). Time is one of the indicators is very important since it ascertains that there is a higher rate of production and effective delivery. Organizations require safety, an essential performance, to archive their goals which rely on work arrangement and technical preparations. Financial performance is also significant to every organization because it evaluates the performance of the organization through various ways. The ways include physical standards of sales and incomes or percentage earnings on equity and resources (Del-Rey-Chamorro 2003). There are numerous examples of key performance indicators evident in Marks and Spencer Company. These include sales growth metrics, incremental sales, and working capital.

Incremental sales

Sales (sales growth)

Financial (working capital)

Enterprise Resource Planning (ERP) is the method by which an organization manages and incorporates the crucial parts of its business. Human resources, marketing, sales, planning, purchasing, and finances are some of the areas that the system focuses on (Soh, Kien&Tay-Yap 2000). However, the Enterprise Resource Planning system has its advantages and disadvantages. The benefits of the system include broad visibility into every crucial process in the different organization within the organization. It also encourages an automatic and rational workflow from one department to another to ascertain smooth conversion and rapid accomplishment of progressions (Soh, Kien&Tay-Yap 2000). The disadvantage of Enterprise Resource Planning system includes a high cost of the software, development, customization, confirmation, analysis, and application. Extra indirect costs may also occur due to the implementation of the system.

Operational management in business function is thus a complex process including different vital performances in various business operations and which is very relevant and connected to most of the business functions. Marks and Spencer is an excellent example of a company that uses operation management to run most of its business activities. Enterprise Resource Planning is also very essential to most of the companies primarily the manufacturing industries despite having some disadvantages attached to it. The organizations should use operation Management for them to succeed in their business functions.

Reference list

Bresnen, M., andMarshall, N., 2000. Partnering in construction: a critical review of issues,

Problems and dilemmas. Construction Management & Economics, 18(2), pp.229-237.

Del-Rey-Chamorro, F.M., Roy, R., van Wegen, B. and Steele, A., 2003. A framework to create

Key performance indicators for knowledge management solutions. Journal of Knowledge management, 7(2), pp.46-62.

Mentzer, J.T., Stank, T.P. and Esper, T.L., 2008. Supply chain management and its relationship

To logistics, marketing, production, and operations management. Journal of Business Logistics, 29(1), pp.31-46.

Soh, C., Kien, S.S. and Tay-Yap, J., 2000. Enterprise resource planning: cultural fits and

misfits:Is ERP a universal solution?. Communications of the ACM, 43(4), pp.47-51.