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E-book Production and Operation Management
An organization consists mainly of four functional subsystems, viz. marketing, production, finance and human resource management. The marketing function of an organization aims to promote its products among customers which help it to obtain sales orders. This, in turn, is communicated to the production subsystem which is concerned with the management of physical resources for production of an item or provision of services. This means that the
available facilities also need to be managed to meet the current market requirements. To manufacture the product as per the specifications, the production function needs to organize its resources (raw material, equipments labor and working capacity) according to predetermined production plans. The finance function provides authorization and to control to all other subsystems to utilize money more effectively through a well defined finance plan. The human resource management function plans and provides manpower to all other subsystems of the organization by proper recruitment and training programs. It also monitors the performance of the employees by proper motivation for targeted results.
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