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Production vs Operations management

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The primary objective of production and operations management is to effectively manage and utilize those resources of the firm that are essential for the production of goods and services. Production management refers to the management of activities related to the production of goods.

On the other hand, operations management is a step ahead of production management, or it can be said that the production management is a part of the operations management. Operations Management, as the name suggests is the administration of business operations, by the managers of the organization.

The difference between production and operations management is very thin and blurred, which is simplified in this article in a detailed manner.

Content: Production Management Vs Operations Management

Comparison Chart

Basis for Comparison

Production Management

Operations Management

Meaning

Production Management connotes the administration of the range of activities belonging to the creation of products.

Operations Management refers to the part of management concerned with the production and delivery of goods and services.

Decision Making

Related to the aspects of production.

Related to the regular business activities.

Found in

Enterprises where production is undertaken.

Banks, Hospitals, Companies including production companies, Agencies etc.

Objectives

To produce right quality goods in right quantity at right time and at least cost.

To utilize resources, to the extent possible so as to satisfy customer wants.

Definition of Production Management

When the principles of management are applied to the production function of the organisation, it is known as production management. It is a process of planning, scheduling, supervising and controlling the activities involved in the production of goods and services, i.e. the transformation of various resources into the value-added product, in an efficient manner.

In this process, the decision regarding the quality, quantity, price, packaging, design, etc. are taken by the production manager, so as to ensure that the output produced confirms the specifications.

Definition of Operations Management

Operations Management implies the management of day to day business activities, so as to ensure smoothness and effectiveness of operations in the organization. It involves administration of production, manufacturing and provision of services in an organisation.

Operations Management is that branch of management, that deals with designing, implementing and controlling the production process, i.e. converting inputs into the output, using resources, in order to provide desired goods and services to customers while adhering to the policies stated by the management of the organisation.

Operations Management is all about the optimum utilization of company's resources, i.e. the resources must be utilized as much as possible, by minimizing the loss, wastage and underutilization.

Key Differences Between Production and Operation Management

The difference between production and operation management, are presented hereunder:

1. Production Management can be defined as the administration of the set of activities concerning the creation of goods or transformation of raw material into finished goods. Conversely, Operations Management is used to mean that branch of management which deals with the administration both production of goods and provision of services to the customers.

2. In production management, the manager has to make decisions regarding the design, quality, quantity and cost of the product manufactured by the department. On the contrary, the scope of operations management is larger in comparison to the production management wherein the operations manager looks after the product design, quality, quantity, process design, location, manpower required, storing, maintenance, logistics, inventory management, waste management, etc.

3. Production Management can only be found in the firms where production of goods is undertaken. Unlike, one can find operations management in every organization, i.e. manufacturing concerns, service-oriented firms, banks, hospitals, agencies, etc.

4. The basic objective of production management is to provide the right quality goods in the right quantity at right time and best price. In contrast, operations management aims at making the best possible use of organization's resources, in order to fulfil the customer's wants.

Conclusion

Production and Operations Management are so closely intertwined, that it is quite difficult to differentiate the two. Production management covers administer all the activities which are involved in the process of production. On the other hand, operations management entails all the activities involved in the production of goods and delivery of services such as material management, quality management, maintenance management, process management, process design, product design and so on.

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Difference Between Production and Operations Management (with Comparison Chart) - Key Differences

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The main difference between production and operations management is that while production management is concerned with the management of activities related to production of goods, whereas operations management is related to the management of both production of goods and provision of services.

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power vs control

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Power and authority are separate but related concepts. A manager in an organization has authority if he or she has the right to direct the activities of others and expect them to respond with appropriate actions to attain organizational purposes. A uthority most often comes from the duties and responsibilities delegated to a position holder in a bureaucratic structure. A company president can order a product design change, for instance, or a police officer has the authority to arrest an offender of the law.

Power is the possession of authority, control, or influence by which a person influences the actions of others, either by direct authority or by some other, more intangible means. A prime source of power is the possession of knowledge. A person with knowledge is oftentimes able to use that knowledge to directly or indirectly influence the actions of others. The authority of knowledge is often independent of levels or positions. Power can reinforce authority, and authority is one of the primary sources of power.

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What is the difference between power and authority in an organization? - eXtension

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Power and authority are separate but related concepts. A manager in an organization has authority if he or she has the right to direct the activities of others and expect them to respond with appropriate actions to attain organizational purposes. A uthority most often comes from the duties and responsibilities delegated to a position holder in a bureaucratic structure.

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Enterprise values and mission

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Importance of the decision making process

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Manager or a Leader

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Leadership

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The important difference between managing and Leading!

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Leading and managing are seen as nearly identical, interchangeable words by most people. Even people who should and must know the huge difference often don't. That's why I write about the difference several times each year.

The difference between managing and leading is more, way, way, way, way more, than mere semantics. The difference in mindset between someone who attempts to manage people and someone who actually leads people is gigantic.

The people who are managed feel that difference everyday. It feels as if they are a cog in the wheel, a bit player with little or no opportunity to grow into something more. You may be able to force the compliance of a managed human being but you will never earn their commitment. Only a leader can earn the commitment of an emotional being.

Managing is mostly about stuff. We manage budgets, plans, inventories, buildings, etc. All the "stuff" has one thing in common, they are not emotional.

Leadership is about people. It's about people and only people. All people have something in common too; they are most certainly emotional.

That's what makes leading much more challenging than managing.

Unless of course you're trying to manage people. Now that's a challenge! It's a challenge because people basically refuse to be managed. They fight being managed every step of the way. Even if they don't know why "it" doesn't feel right they instinctively know being managed causes them some level of emotional distress.

To the people who still believe that the difference between managing and leading is mostly semantics I would tell you that the vast majority of "people problems" or "personnel issues" that you experience on an ongoing basis are attributable to that belief.

If you think of the people you're supposed to be leading as nothing more than human capital or an asset much like your printers or computers then you should expect them to fail you when you most need them....just like your printer or computer.

Authentic Leaders understand the difference between what gets managed and who gets led. Authentic Servant Leaders understand better than anyone that people who are led commit to the leader and their vision. They understand that people who are led will outperform people who are managed every single day.

People who are managed may, just may, help you maintain a stable organization. People who are led will commit to helping you grow your organization beyond your wildest dreams. People who are managed cause problems, people who are led solve them.

People who are managed are cared about, people who are led are cared for and if you don't understand the difference then you are likely having a hard time actually leading your people.

Your computer, or anything else you might manage, will never know what you think of it and that's okay because it doesn't need to. The people you lead absolutely must know what you think of them and if you don't tell them and back it up by showing them they will almost certainly believe you don't think much of them at all. It's an emotional response that Authentic Servant Leaders understand very well.

If you have the audacity to call yourself a leader then you must, absolutely must must must, understand the clear difference between what you manage and who you lead. Without that basic understanding you will be very likely attempt the impossible task of managing people.

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The Vast Difference Between Managing and Leading

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Leading and managing are seen as nearly identical, interchangeable words by most people. Even people who should and must know the huge difference often don't. That's why I write about the difference several times each year. The difference between managing and leading is more, way, way, way, way more, than mere semantics.

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what it takes to be a great manager!

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I recently spoke to Jill Geisler, who is the author of Work Happy: What Great Bosses Know. Her companion "Great Bosses" podcasts on iTunesU have been downloaded 8 million times - and counting. Jill heads the leadership and management faculty of the Poynter Institute. She teaches, writes and consults on critical issues for leaders and counts among her clients The Boston Globe, CNN, and the Washington Post. In recognition of her lifetime contributions to journalism, the University of Wisconsin honored her with its "Distinguished Service to Journalism" award, the Wisconsin Broadcasters Association named her to its Broadcast Hall of Fame, and the National Academy of Television Arts and Sciences inducted her into its prestigious Silver Circle.

In this interview, Jill talks about what it takes to be a happy manager despite the poor economy, how social media can create a happier work environment, and more.
What does it take be a happy manager in a bad economy?
It takes three things: strategic thinking, emotional intelligence and a passion for helping people do their best work, even in the face of diminished resources.

When managers think strategically, they are able to look at bigger picture goals and determine what of the many demands on their time they will make a priority.

With emotional intelligence, they can help their teams recover from setbacks and frustration while using targeted feedback to encourage their progress. (Remember, feedback is a renewable resource that costs managers nothing and pays great dividends.)

And that passion? It transforms them from yesterday's parental-type supervisors into what I believe today's best bosses must be: agents. Employees want to work for someone who approaches them as an agent would: "Sign on with me and I'll help you get to where you want to go. I'll be honest about your strengths and weaknesses. I'll guide you so you'll build a track record that serves you well here or wherever life takes you."
How can social media help build a happier work environment?
Social media is a game changer for internal relationships among colleagues and external relationships with customers. Some organizations view social media, first and foremost, as risk that must be managed. But it's wiser to think of social media as an invitation to creative communication. To instant feedback and problem solving. To putting a human face on people who once were only titles and offices. To building collaboration and relationships. The biggest risk is regulating it so tightly that people can't or won't engage.
What do you recommend for younger leaders as they develop their skills?
Don't worry about your age. Too many of the new managers I coach fear that have a neon sign over their heads that flashes "Untested-Green-Inexperienced."

But the word "new" has other meanings, including "Fresh-Innovative-Improved."

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How To Be A Great Manager That Employees Want To Work With

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Jill Geisler I recently spoke to Jill Geisler, who is the author of Work Happy: What Great Bosses Know. Her companion "Great Bosses" podcasts on iTunesU have been downloaded 8 million times - and counting. Jill heads the leadership and management faculty of the Poynter Institute.

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motivational strategies

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Importance of performance appraisal

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Measuring the performance of an employee has evolved over the years. What was once a simple checklist has now become a very sophisticated process. Productivity is a major concern in a highly competitive world marketplace, and work must produce good results. Performance appraisals should, therefore, be taken seriously and conducted efficiently so that an employee better understands expectations, and where he or she needs to improve. There are best practices to generate effective performance review sessions. Below are some of the most important ones that merit attention.

Develop the Appraisal Instrument/Method

This is a critical first step which is essential to the entire process. Companies that borrow appraisal tools from other establishments run the risk of a bad appraisal that is more confusing than constructive. A bad performance system can be time consuming and do more harm than good, so focus on finding a tool that is a good fit for your organization.

Upper management must assume the responsibility for making it clear how important performance appraisals are. No, this is not just an annual event, but a means to guarantee productivity and solid performance. Indeed, it is a sensible idea to include all conducted performance appraisal sessions as a performance objective for any supervisor. Performance appraisal training should be mandatory for all managers and supervisors. Human resources must train managers on how to perform an effective performance appraisal, with the appraisal tool as part of the training sessions.

Understandable, And Achievable, Performance Objectives

Every employee's performance objectives . This will help an employee understand that his or her performance is part of the overall success of the organization. Achievable benchmarks are important, and must support the overall corporate objectives Key Performance Indicators (KPIs) carefully explained.

The performance appraisal is almost always followed by a formal sit-down meeting and is the final act of year-round performance management. A supervisor or manager has opportunities throughout the year for informal feedback sessions with the employee, letting this person know how to achieve expectations and where improvements ought to happen. The intent of the on-going communication is to avoid any surprises when the performance appraisal session itself begins. A subordinate should have a fairly good idea what is going on in the appraisal by the time of the meeting. That is possible only if the manager has openly communicated about performance during the entire year.

Prior Preparation Ought to Include Employee Input

A solid best practice is to provide the employee a battery of questions one or two weeks before the review. The employee has a chance to note what success happened in the past year, and where this person feels there were problems. The employee input gives a manager a better understanding of past events from the employee's standpoint. While it may not change the overall decisions about performance, the information may allow for some modifications that are more consistent with what truly happened.

Schedule the Meeting and Do Not Delay It

There are still horror stories of people not getting an annual performance review. This is a problem for management because it denies needed feedback to an employee. The performance appraisal may be a chore for some managers, but it is a necessary one . A performance review needs to be scheduled , and the employee notified as soon as possible. It is up to the manager to make sure sufficient time is scheduled, and a quiet space is available. On average, a performance appraisal will take anywhere from 30 to 60 minutes.

Subordinate Input Must Be Encouraged in the Meeting

A good performance appraisal is going to be a two-way street. The manager must allow for the employee to respond to observations and give a personal point of view. It is quite possible that a negative reaction from the employee may happen but remember the purpose is only about encouraging and guiding the employee.

The Halo Effect is a term often mentioned in behavior management literature. When it comes to the performance appraisal, this phenomenon happens when recent events have a predominant influence on the appraisal. It can be positive or negative, depending on what has been happening in the last couple of weeks. The Halo Effect isn't honest or fair, even if the evaluation is positive overall. An objective performance appraisal is important, and that means looking at the good and the bad. The manager should review the entire year. You can avoid the halo effect by moving to a continuous feedback culture that embraces in the moment feedback.

A good way to document the employee's behavior during the year is to note critical incidents . These are occurrences which influenced performance. It can be a goal achieved or a project which failed. Documenting critical incidents does not have to be just the responsibility of the supervisor. The employee can be asked as part of the prior preparation to list some critical incidents which he or she believes are important. Such sharing of information makes for a complete assessment of performance.

Include Positive along with Any Constructive Feedback

Employees often compare a performance appraisal with a trip to the dentist. It is never anything pleasant, and it is sometimes painful. Unfortunately, there are managers who still believe in pointing out all the shortcomings and failures. It is an open invitation for a highly talented employee to find a job elsewhere, and no organization wants that to happen. This is not the correct way to give feedback. It is possible that the overall performance is not acceptable but if you intend to keep them employed focus instead on a path to growth. Every person has strengths that can be utilized and developed. It's commonly recognized that it's easier to build on strengths than to focus on weaknesses. Performance reviews are about encouraging an employee to do more positive work and not demotivating them.

Take Advantage of a Coaching Opportunity.

You can add value to a performance appraisal by the type of information shared with the employee. It is possible that a person who is highly skilled does not understand certain aspects of the work environment for the task at hand. The performance appraisal gives the manager an opportunity to be a better coach, pointing out ways in which improvements are easy to make. This is commonly called a development plan and lays out areas for the employee to focus on, so they can grow and move up the ladder.
The Instrument Matters
Much of this discussion has been about how to conduct a performance appraisal appropriately. It is important to revisit the first best practice mentioned above. The appraisal instrument will influence the overall success of any review. It must be something that adequately measures performance regarding company expectations and objectives.

There's a lot of discussion about the best performance appraisal methods, and innovations in performance evaluation are ongoing in academia and among management behavior consultants. Management should be careful that the appraisal system best fits the organization. But there are performance appraisal systems from which to choose, which use best design practices.

Types Of Reviews:

Self-Evaluation. We have touched on this with the concept of an employee evaluating personal performance before the formal session. This type can also be used on a more frequent basis to get feedback from an employee as to what they are working on, how they are feeling and what challenges may be standing in their way to high-performance.

Management by Objectives. This is a standard used by many organizations. It will require establishing clear objectives that are easy to measure and basing the employee's performance based on progress.

Weighted Checklist. This is a process where the manager is given a checklist with yes or no questions to answer. Each answer has a value given to it, and the final evaluation is the sum of all the questions, with a numerical range given to Excellent, Good, Average, and Poor performance respectively.

360° Feedback. It is perhaps the most comprehensive form of performance appraisal. A number of sources will be asked to provide opinions about the performance of the individual. The group can include peers, customers, and other managers. It all depends on whom the organization wants to include. This is a system that is considered excellent for development purposes because it provides a full view of those they work with.

Employee Reviews Supervisor: Management's purpose is to motivate, organize and lead the employees under them. Research has shown that the best way to rate their performance is by asking their employees a standard set of questions like "do I know what is expected of me?" and "does my manager care about me personally?" Managers should be rated not based on how their supervisor perceives them but how they are equipping and leading those whom they serve.

How Much Is Enough? An annual review is no longer enough, it suffers from the Halo effect and doesn't provide any sort of timely feedback. You can certainly do a yearly review in addition to check-ins. The gold standard is anytime feedback, allowing managers and employees to share feedback with each other in the moment. These same organizations have moved away from compensation determined by competencies and instead moved towards objective based compensation. In this, you are paid more if you accomplish more. There is no one size fits all, all organizations have different cultures and different needs. It's worth looking at all the options and considering what your organization would most benefit from.

Using a tool like DeepTalent allows you to automate all these processes and move to a more employee positive performance culture. Performance evaluations are an excellent means of letting an employee know where he or she stands. The review is also an opportunity to go over ways to improve already satisfactory performance. It can include discussing training opportunities and looking at prospective career paths. The performance appraisals data is a valuable tool for upper management. The results can give a strong indication of the success in achieving objectives, or the deficiencies that are preventing desired results from happening. It is possible that an organization will change its objectives considering what the performance appraisals uncover. Deciding on the right design of the appraisal process, and how a manager will conduct the appraisal will result in the kind of information both the employee and the organization needs to know.

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Measuring the performance of an employee has evolved over the years. What was once a simple checklist has now become a very sophisticated process. Productivity is a major concern in a highly competitive world marketplace, and work must produce good results. Performance appraisals should, therefore, be taken seriously and conducted ...

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importance practice has on emotional intelagence

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Emotional Intelligence Group Activity | EQ Training

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Boost your employees' IQ with EQ! TeamBonding's lively and informative workshop will examine key personal EI competencies as well as critical EI relationship skills for success.

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streamlined recruitment and selection process can save resources of time and money and reduce employee turnover!

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Human resources and teamwork can be a company's most important asset

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Culture! Jim knight started at Hard Rock in orlando as a server - he has made a career as a motivational speaker on the culture and brand of a company! Jim was a classmate Osceola High School, Kissimmee Florida class of 1985 and everytime I read about corporate culture I think of him!

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Jim Knight - Build a Culture that Rocks!

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IMPORTANCE OF ACCOUNTABILITY

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DIMENSIONING- VERTICAL AND HORIZONTAL

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Corporate Culture! always think of Jim Knight, went to high school with him and have followed his career and his message of corporate culture for years!

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concept of strategic planning

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management concepts

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Importance of decision-making

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Management process

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Communication is essential to good management.

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The conversation took place years ago, but I still remember it well.

I was a young manager then and felt management was plenty difficult. I was attending an in-house management seminar on "employee attitudes" - a precursor to employee engagement. During a break the HR executive who had organized the seminar and I were talking - she was far more experienced than I, and I was eager to pick her brain about some of the challenges of management.

"Well, you don't have to worry too much," she said to me. "You're a good manager." Her comment surprised me. At that stage of my career I was still learning to deal more directly with conflict and performance-related issues, and didn't feel at all competent at it. "Why do you say that?" I asked - not fishing for a compliment so much as curious to understand what she considered the elements of good management. To this day, decades later, I still remember her five-word answer.

"You talk to your people," she said.

When I asked her what exactly she meant by that, she added: "I've seen how you relate to them - you communicate with them, you have some idea what's going on with them."

"You mean a lot of managers don't?" I asked.

"You'd be surprised," she said.

It was only much later that I came to understand her comments more fully. I realized: Over the years I never met a manager who wasn't a good communicator. It's a foundational management skill. But of course, you might say, that's just common sense. Indeed it is. But as I often say: When it comes to management, just because something is common sense doesn't mean it's commonly practiced.

Don't just take it from me - there's a nice concise description from an article last year in Harvard Business Review that gets at the core importance of basic nuts-and-bolts everyday communication. The piece is titled What Great Managers Do To Engage Employees, by James Harter and Amy Adkins.

Extensive Gallup research, they write, finds "that engagement is highest among employees who have some form (face-to-face, phone, or digital) of daily communication with their managers. Managers who use a combination of face-to-face, phone, and electronic communication are the most successful in engaging employees. And when employees attempt to contact their manager, engaged employees report their manager returns their calls or messages within 24 hours."

In short, nothing fancy, just reliable normal communication. Be available to talk and provide guidance when needed, and return messages efficiently and respectfully.

In the inherently stressful world of employee-manager relations, small things make a big difference. Over the years I learned that simple communication one can count on goes a long way to building manager-employee rapport. And rapport builds trust... trust builds engagement... and engagement yields productivity.

If as a manager you really don't like communicating with your people, you're probably in the wrong business.

As that HR executive first opened my eyes to years ago, the best managers - always - communicate.

* * *
Victor is author of The Type B Manager: Leading Successfully in a Type A World.

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The Best Managers - Always - Communicate

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The conversation took place years ago, but I still remember it well. I was a young manager then and felt management was plenty difficult. I was attending an in-house management seminar on "employee attitudes" - a precursor to employee engagement.

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Good managers need to make good decisions

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DECISION MAKING

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7 Steps to Improve Your Decision-Making Process

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Are you confident in your decision-making skills? If not, here's some help. Let's focus on these 7 steps to help you sharpen your decision-making prowess:

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MULTINATIONAL COMPANIES

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GLOBALIZATION!

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Transnational management

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Crossing boarders comes with problems to solve

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companies moving into underdeveloped countries have to come up with new ways to manage and promote from within.

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Social Responsibility!

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DIVERSITY

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Management is responsible on multiple levels

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Unethical Business Practices ruin the business enviroment

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Diversity gives different points of view

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stakeholders must trust

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good managers empower their employees

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Habits and skills of a successful manager

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henery fayoli'[s 14 principles of management.jpg

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Good managers are good Listeners!