Issues and Trend in Operations Management

Issues and Trends in Operations Management

By Peter Lorenz S. Salmon

        Operations Management have evolved throughout the years which greatly contributed to the efficiency and effectiveness of an organization. As the new period emerges, the field of Operations Management needs to continually monitor and anticipate potential developments in its relevant areas. Some of the issues and trends are discussed briefly below.

A. Latest Issues in Operations Management (Podyal, Pradhan and Bhandari, 2011)

1. Globalization

The introduction of the network in transportation, communication, and economic interdependency has tied the people of the world together and causing the globe to shrink. Any quality product or service produced in one part of a country can easily reach all parts of the world without any restriction or barriers. Especially, multinational companies are global players in business not only to survive but also to run proper business operation. Globalization brings the concept of keen competition among the entrepreneurs of the world. Therefore, present managers have to work by considering the global perspective. They must be innovative and adjustable according to the changing environment.

2. Development of Environmentalism

Environmental issues are major issues in management these days. These issues involve deforestation, global warming, depletion of ozone layer, toxic waste, and pollution of land, air, and water. But, these matters draw the attention of different social, business and political institutions. The mainstream of politicians and social activists around the world have picked up the environmental banners. The green movement has spread in Europe, North America and other parts of the world to maintain the environmental ecology. Therefore, the present managers have the challenge to develop creative ways to make a profit without harming the environment in the process of production.

3. Workforce Diversity

Workforce diversity is an increasing trend in the organization because of change in population dimension. There are several dimensions of diversification; however, the important ones are age, gender, ethnicity. The overall age of the workforce is increasing. Similarly, more women are also getting involved in the workplace. The diversification in the workforce can affect an organization differently. From one angle, it can be the source of cost advantage, the source of resource acquisition, marketing, creativity, problem solving and system of flexibility. From another angle, it could be a source of conflict in an organization.

4. Knowledge Management

In this competitive environment, knowledge has become power. The society expects new ideas, new things, and creativity in product or service from any organization. To fulfill such social expectations, the manager has to accumulate knowledge and ideas from all members involved in the organization. A model manager must be flexible to manage knowledge and should also consider the situational factor.

B. Recent Trends in Operations Management

1. Computer-Aided Design and Manufacturing (CAD/CAM)