What is encompassed under Governance in Operations Management?

Governance in Operations Management primarily refers to the framework, practices, and processes that ensure the effective management of an organization’s operations. This includes the critical operating decisions made by management, which are essential for aligning operational strategies with the overall goals of the organization. These decisions encompass resource allocation, strategic planning, process optimization, and compliance with regulations, which all fall under governance as they directly impact the efficiency and effectiveness of operations.

While employee satisfaction and workplace culture, monitoring global supply chain trends, and customer relationship management are important factors in overall business performance, they do not strictly define governance in the context of operations management. Governance is more focused on the decision-making processes and policies that guide operational management and ensure that the organization adheres to sound practices and standards. This ultimately enables businesses to maintain control over their operational activities, make informed decisions, and achieve sustainable success.