Theoretical approaches to the definition of the concept of operational management

Julia Karpenko
PhD in Economics, Associate Professor of Management of Organizations Department, Odessa National Economic University, Ukraine, e-mail: uliauliavk@gmail.com, ORCID ID: https://orcid.org/0000-0002-1144-3910

Anzhelika Pienova
Postgraduate Student of Management of Organizations Department, Odessa National Economic University, Ukraine, e-mail: a_penova2015@ukr.net, ORCID ID: https://orcid.org/0000-0002-0696-6442

Cite this article:

Karpenko, Ju., Pienova, A. (2020). Theoretical approaches to the definition of the concept of operational management [Teoretychni pidkhody do vyznachennia poniattia operatsiinoho menedzhmentu], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3-4 (74-75), pp. 88–98.

Abstract

The article considers the author’s interpretations regarding the definition of the essence of operational management concept. The purpose of article is to systematize the existing definitions of «operational management» and clarify the essence of this concept. The research methods of comparison, grouping, induction and deduction, analysis and synthesis were used in the research. According to the study results, different opinions of researchers on the relationship between the concepts of operational and production management have been studied and found that these concepts are not interchangeable. Based on the analysis of the author’s interpretations of the essence of operational management, three scientific approaches are identified, which were presented in the scientific developments of a number of researchers, namely: an emphasis on the production systems management, an emphasis on operations management and an emphasis on resource allocation. The relationship between key concepts of operational management such as «operation», «operational strategy», «operating system», «operational function» is established. It was revealed that the operation is the primary indivisible link of the operating system, and the operational function should be considered as a set of operations, the result of which is the manufacture of goods or provision of services, supplied by the enterprise to the external environment. It is determined that operational decisions related to management concern the formation of operational strategy, as well as the development and ensuring the functioning of the operating system. According to the results of definitions systematization and analysis of the basic concepts of operational management, the interpretation of its essence is generalized. It is proposed to consider the operational management as an activity of operations management, which is the basis of the operating system of any enterprise and provides for its provision of the necessary resources and transform them into goods or services to achieve established corporate goals.

Keywords

operations; operational management; production; operations management; operational function; operating system; operational strategy.

JEL classification: L230; M110; DOI: https://doi.org/10.33987/vsed.3-4(74-75).2020.88-98

UD classification: 005.7

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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