Chapter One Flashcards
Three functions all organizations perform:
Marketing
Production/operations
Finance/accounting
Operations management
Activities that relate to the creation of goods and services through the transformation of inpuTs to outputs
A global network of operations and activities that supply. Firm with goods and services
Supply chain
Why OM?
Related to all other functions–how people organize themselves for productive enterprise
How goods and services are produced
Understand what operations managers do
Costly part of organizations
Management should assume more responsibility for:
Matching employees right job
Providing proper training
Provide proper work methods and tools
Establish legitimate incentives for work accomplished
Services define
Economic activities that typically produce intangible product such as education, entertainment, lodging, government, financial health services
Service sector
Segment of economy that includes trade, financials, lodging, education, medical and other professional services
Productivity
Ratio of outputs to inputs
Goods or services divided by labor or capital or management
Single factor productivity
Indicates the ratio of one resource to goods and services produced
Multifactor productivity
Ratio of many or all resources (inputs) to the goods and services produced
What are three productivity variables critical to improvement?
Labor
Capital
Management
Knowledge society
A society which much if the labor force has migrated from manual work to work based on knowledge
Stakeholders
Those with vested interest in an organization including customers, distributors, suppliers, owners, lenders, employees, and community members
