Key Concepts in Operations and Organizational Behavior

The Role of Production in Operations Management

Production is the transformation of resources into both goods and services. It is one of the most vital responsibilities in operations management because it is a key factor in determining a company’s competitiveness and profitability. Companies that can produce similar goods or services with fewer resources have a distinct advantage over their competitors.

Example: The Toyota Production System is world-renowned for its ability to continually improve productivity and quality.

Understanding Maslow's Hierarchy of Needs

In 1943, psychologist Abraham Maslow hypothesized that behavior is determined by a variety of needs, which he organized into categories arranged in a hierarchy. The most basic needs are at the bottom, while the more advanced are toward the top.

• Physiological needs: Basic requirements for survival—such as food, clothing, and shelter—fall into this category. These must be satisfied before a person can consider higher-level needs.
• Safety needs: Security requirements such as health insurance and pension plans.
• Social needs: The need to give and receive love and to feel a sense of belonging.
• Esteem needs: The need for a sense of self-worth and integrity.
• Self-actualization: The need to become everything one can be.

Maslow’s hierarchy remains a convenient and logical tool for classifying human needs and understanding motivation.

Implementing Diversity Initiatives in Business

Diversity initiatives are programs and policies that help companies support diverse workforces and markets. Examples include contracting with more suppliers owned by women and minorities, targeting a more diverse customer base, and supporting the needs and interests of a diverse workforce.

Example: IBM established executive-led task forces to represent women, Asian Americans, African Americans, Hispanic Americans, Native Americans, people with disabilities, and individuals who are gay, lesbian, bisexual, and transgender. As the company puts it, "Our diversity is a competitive advantage and consciously building diverse teams helps us drive the best results for our clients."