February 12, 2013
Dr. Rosamaria Murillo
Functional Areas of Business: Operations and Project Management There are several functional areas that compose a business. These areas frequently, if not constantly, interact with one another to ensure that the organization succeeds. This paper will summarize two of these functional areas: Operations and Project Management. We will also review the roles of managers who oversee these areas. The original concept of operations management dates back to the 1930s when businesses focused on economic efficiency in manufacturing. Soon after, psychologist and sociologists began to observe and evaluate human behavior in the workplace. In addition, economists, mathematicians, and computer socialists contributed newer, more sophisticated analytical approaches (Kumar & Suresh, 2009). The term ”operations” was adopted as the service sector of the economy became more prominent.
A more modern definition would state that operations is the functional area of a business that oversees, designs, controls the process of production, and redesigns business operations in the production of goods and services. It ensures that business operations are efficient, using as few resources as possible, and effective in terms of meeting customer requirements and satisfaction. Simply put, it manages the processes that convert inputs into outputs. Effective operations management balances out quality, customer demand, employee development, profit, and environmental considerations. Most organizations concern themselves with improving the efficiency and effectiveness of processes. Therefore, operations management includes substantial system of checks, balances, and evaluation that examines, analyzes, and measures these internal systems. Ultimately, the nature of how operations management functions in an organization depends very much on the...