Operations management refers to the administration of business practices to create the

highest level of efficiency possible within an organization. It is concerned with converting

materials and labor into goods and services as efficiently as possible to maximize the profit of
an organization.

1. Small Business
2. Managing Employees
3. Managers
Core Responsibilities of an Operations Manager
by Jared Lewis

Related Articles
1The Role of an Operations Manager
2What Is the Relationship of Operations Management to the Overall Organizational Strategy?
3Major Objectives of an Operations Department
4The Duties & Responsibilities of a General Manager of Administration

Operations managers are essential to any large business organization. A total of 1.7 million general operations
managers were employed in the United States in 2010, according to the Bureau of Labor Statistics. These
managers earned average salaries of $113,100 per year. The core responsibilities of operations managers tend
to be similar across many industries.
Policy Formulation

Formulating policy is one of the core duties of an operations manager. Companies must operate and function
on a daily basis within a prescribed set of guidelines. These guidelines are generally established by operations
managers. These can include how different departments within the company or organization communicate and
cooperate with one another. Policies can also include disciplinary actions taken when employees break
company rules.

Planning
The planning of various company operations and activities is another major concern of the operations manager.
Operations managers tend to determine which products are bought and sold, what prices they are bought or
sold for and to whom they will be marketed, according to O*NET Online. The operations manager also helps
plan and coordinate activities between various departments such as determining what types of sales promotions
the company will engage in.

Controlling Resources

Controlling major company resources is yet a third major function of an operations manager. Operations
managers oversee the implementation of payroll policies and procedures, how much employees are paid, how
funds are allocated for benefits packages and how other funds are spent to keep the company operating
smoothly on a day-to-day basis. Operations managers regularly review financial statements to ensure that the
company is operating as efficiently and as profitably as possible.

Communication

A final core responsibility of an operations manager is communicating with other management professionals
within the organization to keep the company running smoothly, and communicating with other companies and
organizations with which the company does business. Operations managers are responsible for putting together
reports and financial statements that are essential for other top executives within the company or organization.

Operations Executive role

The Operations Executive is responsible for the part of the workplace team that directly manages
the operations and maintenance of facilities. The Operations Executive can report to various
parts of the company such as the Facilities Executive, Chief Financial Officer or Chief
Operations Officer, but usually has direct access to senior management.

The Operations Executive role includes the following tasks:

Communicating with upper management to develop strategic operations goals.

Developing strategic long-range plans to achieve strategic objectives.
Creating and managing the organizations fiscal operating and capital budget and
expenses.
Monitoring operational performance of both internal and external service providers.
Monitoring facility condition and environmental performance and recommending or
approving funding levels and spending plans.
Providing a workplace setting that is conducive to productive work.
Monitoring occupant satisfaction.
Monitoring construction and renovation projects.
Monitoring performance metrics.
Receiving and responding to approvals and notifications.
Operations:

Jobs or tasks consisting of one or more elements or subtasks, performed typically in one location.
Operations transform resource or data inputs into desired goods, services, or results, and create and
deliver value to the customers. Two or more connected operations constitute a process, and are
generally divided into four basic categories: (1) processing, (2) inspection, (3) transport, and (4)
storage.
Here are five challenges I am facing today in the distribution industry:

1. The labor pool is smaller than in previous years, especially for skilled knowledge workers.
We are having to try harder to hire good people.
2. There is less available warehouse space than in previous years. Rents are higher which
affects our choice of geographic markets we are willing to lease space in.
3. Hyper-growth requires the ability to grow strong instead of fat. Creating the right
positions at the right time has become more of a challenge at $100M+ than it was at
$25M, since there are more of those types of positions to create.
4. Changing ERP software when you are larger becomes a far more complicated project than
when you are smaller, since any change requires a multiplied effect of training due to the
wanting everyone on the same ERP at the same time.
5. Potential changes in regulations on products and surcharges on foreign import products
will require a re-evaluation of our purchasing strategies, since many of the products we
purchase from domestic suppliers are also made overseas.