the impact of Operations Management On Organizational Culture

7/25/2019 the impact of Operations Management On Organizational Culture

1/10

CHAPTER ONE

INTRODUCTION

1.1 Operations Management

According to Michael Hammerin 1993[22]Operations management is an

area of managementconcerned with overseeing, designing, and

controlling the process of production and redesigning business

operationsin the production of goodsor services. It involves the

responsibility of ensuring that business operations are ecientin

terms of using as few resources as needed, and eectivein terms of

meeting customer requirements. It is concerned with managing the

process that converts inputs (in the forms of raw materials, labor,

and energy) into outputs (in the form of goods andor services). !he

relationship of operations management to senior managementin

commercial conte"ts can be compared to the relationship of line

ocersto highest#level senior ocers in military science. !he

highest#level ocers shape the strategyand revise it over time,

while the line ocers ma$e tacticaldecisions in support of carrying

out the strategy. In business as in military aairs, the boundaries

between levels are not always distinct% tactical information

dynamically informs strategy, and individual people often move

between roles over time.

&ccording to the 'nited tates epartment of *ducation, operations

management is the +eld concerned with managing and directing thephysical andor technical functions of a +rm or organiation,
https://en.wikipedia.org/wiki/Michael_Martin_Hammerhttps://en.wikipedia.org/wiki/Michael_Martin_Hammerhttps://en.wikipedia.org/wiki/Managementhttps://en.wikipedia.org/wiki/Production_(economics)https://en.wikipedia.org/wiki/Business_operationshttps://en.wikipedia.org/wiki/Business_operationshttps://en.wikipedia.org/wiki/Good_(economics)https://en.wikipedia.org/wiki/Service_(economics)https://en.wikipedia.org/wiki/Businesshttps://en.wikipedia.org/wiki/Efficiencyhttps://en.wikipedia.org/wiki/Effectivenesshttps://en.wikipedia.org/wiki/Raw_materialhttps://en.wikipedia.org/wiki/Manual_labourhttps://en.wikipedia.org/wiki/Energyhttps://en.wikipedia.org/wiki/Senior_managementhttps://en.wikipedia.org/wiki/Line_officerhttps://en.wikipedia.org/wiki/Line_officerhttps://en.wikipedia.org/wiki/Military_sciencehttps://en.wikipedia.org/wiki/Strategyhttps://en.wikipedia.org/wiki/Military_tacticshttps://en.wikipedia.org/wiki/Managementhttps://en.wikipedia.org/wiki/Production_(economics)https://en.wikipedia.org/wiki/Business_operationshttps://en.wikipedia.org/wiki/Business_operationshttps://en.wikipedia.org/wiki/Good_(economics)https://en.wikipedia.org/wiki/Service_(economics)https://en.wikipedia.org/wiki/Businesshttps://en.wikipedia.org/wiki/Efficiencyhttps://en.wikipedia.org/wiki/Effectivenesshttps://en.wikipedia.org/wiki/Raw_materialhttps://en.wikipedia.org/wiki/Manual_labourhttps://en.wikipedia.org/wiki/Energyhttps://en.wikipedia.org/wiki/Senior_managementhttps://en.wikipedia.org/wiki/Line_officerhttps://en.wikipedia.org/wiki/Line_officerhttps://en.wikipedia.org/wiki/Military_sciencehttps://en.wikipedia.org/wiki/Strategyhttps://en.wikipedia.org/wiki/Military_tacticshttps://en.wikipedia.org/wiki/Michael_Martin_Hammer


2/10

particularly those relating to development, production, and

manufacturing. Operations management programs typically include

instruction in principles of general management, manufacturing and

production systems, factory management, equipment maintenancemanagement, production control, industrial labor relations and

s$illed trades supervision, strategic manufacturing policy, systems

analysis, productivity analysis and cost control, and materials

planning. -anagement, including operations management, is li$e

engineering in that it blends art with applied science. eople s$ills,

creativity, rational analysis, and $nowledge of technology are all

required for success

Operations -anagement deals with the design and management of

products, processes, services and supply chains. It considers the

acquisition, development, and utiliation of resources that +rms

need to deliver the goods and services their clients want.

&ccording to. &. /renand &. 0. 1edeian, !he purvey of O- ranges

from strategic to tactical and operational levels. 2epresentative

strategic issues include determining the sie and location of

manufacturing plants, deciding the structure of service or

telecommunications networ$s, and designing technology supply

chains. !actical issues include plant layout and structure, pro3ect

management methods, and equipment selection and replacement.

Operational issues include production scheduling and control,

inventory management, quality control and inspection, trac and

materials handling, and equipment maintenance policies.

&ccording to -I! loan chool of -anagement. Operationsmanagement (O-) is the business function responsible for
https://en.wikipedia.org/wiki/D._A._Wrenhttps://en.wikipedia.org/wiki/D._A._Wrenhttps://en.wikipedia.org/wiki/A._G._Bedeianhttps://en.wikipedia.org/wiki/D._A._Wrenhttps://en.wikipedia.org/wiki/A._G._Bedeian


3/10

managing the process of creation of goods and services. It involves

planning, organiing, coordinating, and controlling all the resources

needed to produce a company4s goods and services. 1ecause

operations management is a management function, it involvesmanaging people, equipment, technology, information, and all the

other resources needed in the production of goods and services.

Operations management is the central core function of every

company. !his is true regardless of the sie of the company, the

industry it is in, whether it is manufacturing or service, or is for#

pro+t or not#for#pro+t.

5onsider a pharmaceutical company such as -erc$. !he mar$eting

function of -erc$ is responsible for promoting new pharmaceuticals

to target customers and bringing customer feedbac$ to the

organiation. -ar$eting is essentially the window to customers. !he

+nance function of -erc$ ma$es sure that they have needed capital

for dierent processes including 26. 7owever, it is the operations

function that plans and coordinates all the resources needed to

design, produce, and deliver the various pharmaceuticals to

hospitals, pharmacies, and other locations where needed. /ithout

operations, there would be no products to sell to customers.

Organizational Culture

Organiational culture encompasses values and behaviors that

8contribute to the unique social and psychological environment of

an organiation.8 &ccording to 9eedle (:;;) wrote


4/10

that organiational culture is a set of shared assumptions that guide

what happens in organiations by de+ning appropriate behavior for

various situations.?@AIt is also the pattern of such collective

behaviors and assumptions that are taught to new organiationalmembers as a way of perceiving and, even, thin$ing and feeling.

!hus, organiational culture aects the way people and groups

interact with each other, with clients, and with sta$eholders. In

addition, organiational culture may aect how much employees

identify with an organiation.

chein(BCC:), eal and Dennedy (:;;;), and Dotter(BCC:)

advanced the idea that organiations often have very diering

cultures as well as subcultures. &lthough a company may have its

8own unique culture8, in larger organiations there are sometimes

co#e"isting or conEicting subcultures because each subculture is

lin$ed to a dierent management team.

1ernard 2osauer (:;B:), in =!hree 1ell 5urvesF 1usiness 5ulture

ecoded= described his methods for helping organiation leaders

better understand what culture is, whether it could be measured

and how it might be improved. 'sing Dennedy and eal=s de+nition

of culture (=the way things are done around here=), 2osauer further

de+ned culture as an =emergence=#an e"tremely comple" and often

immeasurable state, resulting the combination of relatively few

ingredients. Grom an organiations standpoint 2osauer argues the

ingredients are =employee (the people who get things done), the

wor$ (the things that actually get done), and the customer (the

consumer of the provision.
https://en.wikipedia.org/wiki/Organizational_culture#cite_note-3https://en.wikipedia.org/wiki/Edgar_Scheinhttps://en.wikipedia.org/wiki/John_Kotterhttps://en.wikipedia.org/wiki/Organizational_culture#cite_note-3https://en.wikipedia.org/wiki/Edgar_Scheinhttps://en.wikipedia.org/wiki/John_Kotter


5/10

Organiational culture is a system of shared assumptions, values,

and beliefs, which governs how people behave in organiations.

!hese shared values have a strong inEuence on the people in the

organiation and dictate how they dress, act, and perform their 3obs.*very organiation develops and maintains a unique culture, which

provides guidelines and boundaries for the behavior of the members

of the organiation. Het=s e"plore what elements ma$e up an

organiation=s culture.

Organiational culture is composed of seven characteristics that

range in priority from high to low. *very organiation has a distinct

value for each of these characteristics, which, when combined,

de+nes the organiation=s unique culture. -embers of organiations

ma$e 3udgments on the value their organiation places on these

characteristics, and then ad3ust their behavior to match this

perceived set of values. Het=s e"amine each of these seven

characteristics.

Innovation (2is$ Orientation) # 5ompanies with cultures that place a

high value on innovation encourage their employees to ta$e ris$s

and innovate in the performance of their 3obs. 5ompanies with

cultures that place a low value on innovation e"pect their

employees to do their 3obs the same way that they have been

trained to do them, without loo$ing for ways to improve their

performance. &ttention to etail (recision Orientation) # !his

characteristic of organiational culture dictates the degree to which

employees are e"pected to be accurate in their wor$. & culture that

places a high value on attention to detail e"pects their employees to

perform their wor$ with precision. & culture that places a low value

on this characteristic does not.


6/10

*mphasis on Outcome (&chievement Orientation) # 5ompanies that

focus on results, but not on how the results are achieved, place a

high emphasis on this value of organiational culture. & companythat instructs its sales force to do whatever it ta$es to get sales

orders has a culture that places a high value on the emphasis on

outcome characteristic.

*mphasis on eople (Gairness Orientation) # 5ompanies that place a

high value on this characteristic of organiational culture place a

great deal of importance on how their decisions will aect the

people in their organiations. Gor these companies, it is important to

treat their employees with respect and dignity.

!eamwor$ (5ollaboration Orientation) # 5ompanies that organie

wor$ activities around teams instead of individuals place a high

value on this characteristic of organiational culture. eople who

wor$ for these types of companies tend to have a positive

relationship with their cowor$ers and managers.

&ggressiveness (5ompetitive Orientation) # !his characteristic of

organiational culture dictates whether group members aree"pected to be assertive or easygoing when dealing with companies

they compete with in the mar$etplace. 5ompanies with an

aggressive culture place a high value on competitiveness and

outperforming the competition at all costs.


7/10

tability (2ule Orientation) # & company whose culture places a high

value on stability are rule#oriented, predictable, and bureaucratic in

nature. !hese types of companies typically provide consistent and

predictable levels of output and operate best in non#changingmar$et conditions

1.2 Problem Statement

espite the rich body of literature dealing with Operations

-anagement most of the previous studies focus on the

performance of Operations -anagement only (:;B -I! loan

chool of -anagement). 7owever, the performance of Operations

management (O-) is the business function responsible for

managing the process of creation of goods and services. It involves

planning, organiing, coordinating, and controlling all the resources

needed to produce a company4s goods and services. 1ecause

operations management is a management function, it involves

managing people, equipment, technology, information, and all the

other resources needed in the production of goods and services.

Operations management is the central core function of every

company. !his is true regardless of the sie of the company, the

industry it is in, whether it is manufacturing or service, or is for#

pro+t or not#for#pro+t.

Grom reviewing previous literature, the author is not aware of any

study that attempts to e"amine the relationship between

Organiational culture , and Operations -anagement, and

particularly, there is no study attempt to e"amine the eect of

Organiational culture on Operations -anagement in !rade

5ompanies at Jemen. &ccordingly, it is necessary to conduct such

research for increasing the awareness of Organiational culture .

7ence, this study attempts to e"amine the eect Operations


8/10

-anagement on Organiational culture in !rade 5ompanies at

Jemen.

1.3 Research Questions

In attempting to e"amine the impact of Operations -anagement on

Organiational culture, this study aims to answer the following

questions.

i. oes Organiational culture aect Operations -anagementKii. Is there any relationship between Operations -anagement and

Organiational cultureK

1.4 Research Obecti!es

!his study aims to e"amine the impact of Operations -anagement

on Organiational culture in !rade 5ompanies at Jemen. and

speci+cally achieving the following ob3ectives.

i. !o e"amine the eect of Organiational 5ulture on Operations

-anagement.ii. !o determine the relationship between Operations -anagement

and Organiational culture.

1." Research Contribution

!he contribution of this study consists of theoretical and practical

perspectives. !his study contributes to the body of $nowledge fromthe theoretical point of view due to some reasons. !his study

provides a framewor$ to $nowledge base by developing a model for

Operations -anagement and Organiational culture. in !rade

5ompanies, and e"amining whether Organiational culture have

signi+cant or non#signi+cant relationships with Operations

-anagement. In addition, this study investigates the eect of


5ompanies at Jemen..


9/10

In addition, this study contributes to the practical aspects through

dierent ways. this study is signi+cant in the +eld of

Organiational culture as characteristics to it and the e"tent of itsimpact. it attempts to provide some information about the !rade

5ompanies in Jemen under Organiational culture. In addition this

study is signi+cant in order to help the Jemeni 0overnment in

developing the appropriate conditions in the form of certain policies

for the Operations -anagement

1.# $imitations o% the Stu&'

!he scope of this research was limited to e"amining the impact of of


5ompanies at Jemen. !his study focused on !rade 5ompanies and

the impact for Operations management in areas of mar$eting.

The targeted respondents were the employees who are working with Trade Companies

in ana!a "the capital o# $emen%. The decision was made to only solicit responses

#rom Trade Companies employees since this research was concerned with the

&rgani'ational c(lt(re that ha)e relationship with &perations management within the

Trade Companies sector. *espondents were largely selected #rom $emeni managers

and employees o# these companies.

1.( )e%inition o% Terms

The #ollowing de#initions descri+e the key terms that are adopted #or this st(dy,

i.Or*ani+ational culture

Organiational culture encompasses values and behaviors that

8contribute to the unique social and psychological environment

of an organiation.8 &ccording to 9eedle (:;;


10/10

history, product, mar$et, technology, and strategy, type of

employees, management style, and national culture.

ii. O,erations mana*ement

&ccording L :;B -I! loan chool of -anagement.

Operations management (O-) is the business function

responsible for managing the process of creation of goods and

services. It involves planning, organiing, coordinating, and

controlling all the resources needed to produce a company4s

goods and services. 1ecause operations management is a

management function, it involves managing people,

equipment, technology, information, and all the other resources

needed in the production of goods and services. Operations

management is the central core function of every company.

!his is true regardless of the sie of the company, the industry

it is in, whether it is manufacturing or service, or is for#pro+t or

not#for#pro+t.

1.- Research Or*ani+in*

Chapter 1 disc(sses on the introd(ction o# the st(dy

Chapter 2 disc(sses the literat(re re)iew

Chapter 3 disc(sses research methodology

Chapter - details the data analysis

Chapter is de)oted to the disc(ssion and concl(sion

Documents

the impact of Operations Management On Organizational Culture