CHAPTER ONE
INTRODUCTION
1.1 Opera Operations tions Management Management According to Michael Hammer in in 1993[22] 1993[22] Operations management is an
area area of management concer concerned ned with with overse overseein eing, g, design designing ing,, and cont contrrollin olling g the the proc proces ess s of production and redes redesign igning ing business operations in the the prod produc ucti tion on of goods goods or or services services.. It invo involv lves es the the respons responsibility ibility of ensuring ensuring that business operation operations s are ecient ecient in in terms of using as few resources as needed, and eective eective in in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of raw materials, materials, labor labor,, and energy energy)) into outputs (in the form of goods andor services). !he relat relation ionshi ship p of operat operation ions s manage managemen mentt to senio seniorr mana manageme gement nt in in commer commercia ciall conte conte"ts "ts can be compar compared ed to the relat relation ionshi ship p of line ocers to high highes est# t#le leve vell seni senior or oce ocers rs in mil milita itary ry sci scienc ence e. !he highest#lev highest#level el ocers ocers shape the strategy and and revise evise it over over time time,, while the line ocers ma$e tactical tactical decisions decisions in support of carrying out the strategy. In business as in military aairs, the boundaries betw betwee een n
leve levels ls
are are
not not
alwa always ys
dist distin inct ct%%
tact tactic ical al
info inforrmatio ation n
dynami dynamical cally ly inform informs s strate strategy, gy, and indivi individua duall people people often often move move between roles over time. &ccording to the 'nited tates epartment of *ducation, operations management is the +eld concerned with managing and directing the phys physic ical al and andor or tech techni nica call func functi tion ons s of a +rm +rm or orga organi nia ati tion on,,
particularly
those
relating
to
development,
production,
and
manufacturing. Operations management programs typically include instruction in principles of general management, manufacturing and production systems, factory management, equipment maintenance management, production control, industrial labor relations and s$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 $nowledge of technology are all required for success
Operations -anagement deals with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utiliation of resources that +rms need to deliver the goods and services their clients want.
&ccording to . &. /ren and &. 0. 1edeian, !he purvey of O- ranges from strategic to tactical and operational levels. 2epresentative strategic issues include determining the sie and location of manufacturing
plants,
deciding
the
structure
of
service
or
telecommunications networ$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
management
-I! (O-)
loan is
chool
the
of
business
-anagement. function
Operations
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.
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$es sure that they have needed capital for dierent processes including 26. 7owever, it is the operations function that plans and coordinates all the resources needed to design, produce, and deliver the various pharmaceuticals to hospitals, pharmacies, and other locations where needed. /ithout operations, there would be no products to sell to customers.
Organizational Culture
Organiational culture encompasses values and behaviors that 8contribute to the unique social and psychological environment of an organiation.8 &ccording to 9eedle (:;;<), organiational culture represents
the
collective
values,
beliefs
and
principles
of
organiational members and is a product of such factors as history, product, mar$et, technology, and strategy, type of employees, management style, and national culture. 5ulture includes the organiation=s vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits. 2avasi and chult (:;;>) wrote
that organiational culture is a set of shared assumptions that guide what happens in organiations by de+ning appropriate behavior for various situations.?@A It is also the pattern of such collective behaviors and assumptions that are taught to new organiational members 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. <hough 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.
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.
*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. & company that 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$ers and managers.
&ggressiveness (5ompetitive Orientation) # !his characteristic of organiational
culture
dictates
whether
group
members
are
e"pected to be assertive or easygoing when dealing with companies they compete
with in the
mar$etplace. 5ompanies with an
aggressive culture place a high value on competitiveness and outperforming the competition at all costs.
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#changing mar$et conditions
1.2
Problem Statement
espite
the
rich
-anagement
body of literature
most
of
the
dealing
previous
studies
performance of Operations -anagement
with
Operations
focus
on
the
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
Organiational
to
culture ,
e"amine and
the
Operations
relationship
between
-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
-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. ii.
oes Organiational culture aect Operations -anagementK 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
ii.
-anagement. !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 $nowledge from the theoretical point of view due to some reasons. !his study provides a framewor$ 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 Organiational
culture
5ompanies at Jemen..
on
Operations
-anagement
in
!rade
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 its impact. 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.#
$imitations o% the Stu&'
!he scope of this research was limited to e"amining the impact of of Organiational
culture
on
Operations
-anagement
in
!rade
5ompanies at Jemen. !his study focused on !rade 5ompanies and the impact for Operations management in areas of mar$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 $emeni managers and employees o# these companies. 1.(
)e%inition o% Terms
The #ollowing de#initions descri+e the key terms that are adopted #or this st(dy, i.Or*ani+ational culture
Organiational culture encompasses values and behaviors that 8contribute to the unique social and psychological environment of an organiation.8 &ccording to 9eedle (:;;<), organiational culture represents the collective values, beliefs and principles of organiational members and is a product of such factors as
history, product, mar$et, technology, and strategy, type of employees, management style, and national culture. ii.
O,erations mana*ement
&ccording
L
Operations
:;B
-I!
management
loan (O-)
chool is
the
of
-anagement.
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
