Product development in an organization
Product development in an organization can be a very lengthy and complex process. The process involves multiple attempts in efforts to realize product redesigning and improvement. Whether a company produces goods or provides services, it should furnish customers with high-quality products. Product and service provision has become very competitive, and the quality of the products available will determine customer preference. To compete with other firms fairly, a company must convert its resources into goods and services in the most efficient ways possible (Skripak et al., 2016, 202). Operations management is the tool to be used by the organizations to direct the transformation process of resources and product ideas into quality goods and services. Operations Managers (OMs) carry the mandate in any given organization. The OMs are involved in the day to day planning, organizing, and controlling the systems responsible for producing goods and services. OM plays a vital role in the service industry to ensure quality service provision. This essay focuses on the role of Operations Management in the service industry with reference to the Citizens Bank, NA Rhode Island. The essay looks at the types of operations management activities performed at the bank and types of services offered with specific examples and factors contributing to its productivity.
OM Activities Performed at The Citizens Bank, NA Rhode Island
The OM at The Citizens Bank, NA Rhode Island, carries out the administrative and accounting duties. He manages the bank’s operations team to ensure the effective delivery of quality financial services to the clients. The main OM activities performed at the bank include identifying operational risks, assessing the identified operational risks, Risk mapping, conducting self-risk assessments, and monitoring the operational risks. Risk management in the banking sector is very dynamic. There is a need to have resilient banking systems that help prevent bank panics and contagions to the real economy (Tian, 2017:4). Therefore, risk financing, risk analysis, and risk control are a continuous process at the bank to ensure survival. The OM identifies the inherent risks in all the bank products, activities and services, systems, and processes and assesses them. According to Epetimehin and Fatoki, effective risk identification and assessment should bear in mind both the internal and external factors that could adversely affect the organization’s objectives (Epetimehin & Fatoki, 2015:6).
After assessing the potential risk events, the OM at the bank moves further to assess the bank’s vulnerability to the identified risk events. An effective risk assessment process allows the bank to effectively understand its risk profile and effectively target the available risk management resources. The bank’s main tools in risk assessment include self-risk assessment, risk mapping, analysis of key risk indicators, monitoring of operational risks, and exercising control of the operational risks. In a self-risk assessment, the OM of the bank conducts workshops where the operational environment’s strengths and weaknesses can be discussed at length. In risk mapping, the bank comes up with the subsequent management actions by prioritizing the risks to its significance.
The OM at The Citizens Bank also carries an assessment of the key risk indicators, which can be statistics or metrics, and provide insights about its risk position. Examples of such risk indicators can include staff turnover rates, the frequency and severity of errors, and the number of failed traders. An effective monitoring process by the OM department is necessary to ensure adequate management of the bank’s operational risks. The bank has implemented a process that regularly monitors the operational risk profiles and even provides early warning of any increased risk or potential future risk. In conclusion, risk mitigation is another essential tool to be put in place by the OM department. The department should come up with several interventions of various risks. Such mitigation includes insurance, especially for losses that might arise due to natural disasters to avoid disruption of normal business. The department can also roll pout strong internal auditing procedures to identify losses emanating from internal factors like a fraud among employers and product flaws. It is advisable for banks to continuously review their risk limitations and laid down control strategies to periodically adjust their operational risk profiles accordingly by using appropriate strategies (Epetimehin & Fatoki, 2015:8).
Factors that Contribute to Productivity of the OM Department
In their efforts to create a platform for the highest level of efficiency in the financial institutions, several factors can enhance their productivity. As discussed earlier, OM involves the conversion of resources, both human and natural, into meaningful goods and services in more efficient ways, which can guarantee profit maximization. The productivity of this department is, therefore, closely associated with employee performance. Being a service industry, the employees’ performance in different departments will influence the road map to the4 success of the bank. Employee performance is influenced by job stress, motivation, and the nature of communication in the organization.
Job stress emanates from working environments, which pose a risk to the welfare of the employees. In some cases, organizations might impose unrealistic targets and goals for the employees to achieve a certain work level within given timelines. Such demands might exceed the capability of the workers hence inviting job stress. While in the planning and coordination processes, the OM should ensure that realistic goals and targets are given to employees to enhance their productivity. For instance, realistic targets for new accounts should be given to the bank tellers. Job motivation enhanced productivity. When employees of an organization perceive that the management is fully supporting their job-related efforts, they are likely to be well motivated and even improve their productivity. The management’s internal climate should also be positive to boost the attitudes and behaviors of the workers (Diamantidis & Chatzoglou, 2018:173).To achieve the bank’s crucial goals, the OM department should come up with a clear strategy on how to motivate the workers.