Operations Management and Factors Affecting Productivity

This has also led to many firms resisting the change facing unfavorable environment of operation both in the internal environment as well as the external environment of the firm (AlShathry, 2016). According to AlShathry, the term productivity can be used to define the effectiveness of an organization in using its resources to generate wealth. This term productivity can also be used in the production industry to show case competitiveness and comparison between firms in terms of the production levels, quality and many other likeable aspects (AlShathry, 2016). According to Argyris, the productivity of a firm will illustrate the relationship between an organizations input and its output levels (Argyris, 2017). This therefore implies that an organizations productivity index will refer to a measure of resources that are consumed (includes both good & services) in the production activities to the relative amount or value of materials that are produced on completion.

A good illustration of this case will be the S. Arabian countries that have adopted new information technology practices which aid in fast and agile production activities. Basing on the article “Business process management: a maturity assessment of Saudi Arabian organizations” it is quite clear that different factors affect production such as human skills, labor costs, governmental regulations, technicality of the production process, quality of the produce as well as capital requirement all affect the productivity of many Saudi Arabian firms. One of the key factors highlighted in the article is the discord therein between the modern methods of process management such as the Business process management among others. This has been caused by a lack of understanding in regards to BPM which has left many organizations being immature on the use of different business process management activities.

Managerial and personnel inadequacy factor were also found to be a key factor affecting these firms (Bourne & Aldossari, 2016). This is due to the fact that personnel factors have a direct relationship with the productivity of the firm. Issues such as proper job allocation, incentives, proper wage policies, job security among other employee based factors have a direct relationship with the success of production goals. In the case of managerial requirement, it is worth noting that the management of a firm rests on the shoulders of the management. Without the right managerial skills many firms in the Saudi Arabian region will continue to be affected negatively as managers are tasked with the key role of ensuring all factors of production are arranged systematically to work with each other for the success of the firm.