Operational Management: a systemic view

The Five Functions of Operational Management

Fayol identified the following key functions:

Planning

Planning is the starting point of operational management. It involves defining clear objectives and strategies to achieve them, anticipating challenges and the resources needed.

Practical Examples:

• Define production volumes for a quarter.

• Create a maintenance plan for production facilities.

Importance: An effective plan reduces uncertainty and guides the entire organization toward shared goals.

Organizing

Organizing involves structuring resources (human, material, and financial) to implement the defined plans. This includes defining roles, responsibilities, and operational workflows.

Practical Examples:

• Assign specific tasks to production teams.

• Establish standard procedures for material procurement.

Importance: A well-defined structure facilitates collaboration and operational efficiency.

Commanding

The commanding function involves leading and motivating employees to perform activities necessary for achieving the goals.

Practical Examples:

• Provide clear instructions to operational teams.

• Motivate employees with recognition for achieved results.

Importance: An effective leader keeps motivation high and ensures that activities are carried out consistently with the plans.

Coordinating

Coordinating aims to synchronize activities across different departments or teams to ensure a smooth workflow and the achievement of business objectives.

Practical Examples:

• Coordinate production with the logistics team to meet delivery deadlines.

• Organize cross-functional meetings to resolve operational issues.

Importance: Good coordination eliminates inefficiencies and reduces conflicts between departments.

Controlling

The controlling function involves monitoring performance against objectives, identifying deviations, and taking corrective actions.

Practical Examples:

• Analyze production waste and implement solutions to reduce it.

• Monitor operational costs to ensure budget compliance.

Importance: Control ensures that the organization stays aligned with strategic and operational objectives.

Applications in Modern Operational Management

Fayol’s functions, although formulated over a century ago, remain fundamental in contemporary operational management:

• Automation and Technology: Planning and control benefit from digital tools such as ERP systems and performance monitoring software.

• Flexible Leadership: Command adapts to team needs, integrating motivation and individual support.

• Integrated Management: Coordination is enhanced through real-time communication and collaborative platforms.

Conclusion

The operational management functions theorized by Henri Fayol provide a comprehensive framework for optimizing resources and processes, keeping the organization efficient and competitive.

Applying these functions doesn't mean following them rigidly but adapting them to modern challenges, integrating them with technological tools and people-centered leadership. Planning, organizing, commanding, coordinating, and controlling are not just activities but the pillars that support business success.