Design of P/OM Systems - There are only two approaches that P/OM can use:
- The functional field approach
- The systems approach
- It is vital to contrast the systems approach with the functional field approach as described in the following slides.
- P/OM function is performed with minimum reference to other parts of the business—such as marketing and finance.
- The functional field approach concentrates on the specific tasks that must be done to make the product or deliver the service.
- Analyze only one function because it contains the core of the problem. For example, consider only marketing situations; or only finance issues; or only P/OM problems, etc.
- One functional field does not share information or power with another functional field.
- This approach is tactical, not strategic.
- Many marginal firms use the functional field approach because of human nature. Teamwork requires caring and takes effort.
- Traditional organization charts epitomize the drawing of boundaries that are not supposed to be crossed.
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