The Interdependence of Operations Management with Other Key Business Functions in Australia

Syllabus Topic

HSC topic: Operations

role of operations management

• interdependence with other key business functions

Operations management (OM) is central to ensuring the efficiency and effectiveness of producing goods and services. Australian businesses thrive when OM is interconnected with other functions like marketing, finance, and human resources (HR). These relationships enable companies to streamline processes, enhance customer satisfaction, and achieve sustainable growth. 

INTERDEPENDACE WITH MARKETING

The marketing function plays a critical role in providing OM with insights into consumer needs, enabling production planning and inventory management. Conversely, OM ensures that marketing campaigns are backed by reliable delivery of goods and services. For example, Qantas Airways integrates its OM and marketing teams to deliver service promises like premium in-flight experiences advertised to attract high-value customers. Without seamless OM, such marketing initiatives would fail to meet customer expectations. 

INTERDEPENDANCE WITH FINANCE

Operations management relies on finance to secure the resources needed for procurement, production, and logistics. Meanwhile, finance depends on OM to manage costs, optimize resource utilisation, and maintain profitability. Woolworths Group, one of Australia’s largest retail companies, exemplifies this relationship through its data-driven supply chain operations that minimize waste and reduce costs, supporting financial sustainability. Similarly, effective OM provides financial teams with performance metrics that influence investment decisions. 

INTERDEPENDACE WITH HUMAN RESOURCES

Human resources (HR) and OM collaborate to ensure that workforce capacity aligns with operational requirements. HR recruits, trains, and manages personnel to meet production needs, while OM provides input on staffing demands and skill requirements. For example, Rio Tinto, a leading Australian mining company, implements workforce planning initiatives that integrate HR and OM to manage operations in remote mining locations. The HR team supports OM by addressing challenges like recruitment and retention of skilled workers (Rio Tinto, 2023). 

INTERDEPENDANCE WITH TECHNOLOGY

Technology serves as a unifying thread that enhances the interdependence between OM and other business functions. Afterpay, a prominent Australian fintech, integrates OM, finance, and customer management through advanced analytics and digital platforms. This technological synergy improves service delivery and customer experience, driving business success (Afterpay, 2023). 

CONCLUSION

The interdependence of operations management with marketing, finance, and human resources is essential for Australian businesses aiming to remain competitive. Companies like Qantas, Woolworths, Rio Tinto, and Afterpay demonstrate how cross-functional collaboration supports efficiency, customer satisfaction, and innovation. Strengthening these connections is vital for organizations to align operational goals with broader business strategies. 

SOURCES

Australian Bureau of Statistics: Business operations in Australia 

BHP: Workforce planning and operations

Business Council of Australia: Operational efficiency and collaboration in Australian industries

Qantas: Qantas premium services

Rio Tinto: Workforce planning and operational excellence

Woolworths Group: Sustainability and supply chain management