Operations Management: What Is It and Why Does It Matter?

Operations management executes backend business functions by overseeing manufacturing, inventory, and quality control to prepare products for the market. At a glance, here's what you need to know about this impactful field:

• Operations management professionals earn higher-than-average salaries, often between $110,000 and $130,000 when additional compensation is included.

• Numerous careers exist in the field, including operations research analysts, business operations managers, and purchasing managers.

• You'll likely need a degree, relevant work experience, and the right skills to enter the field, but there are many paths toward the profession regardless of your educational background.

Efficient operations enable businesses to thrive and succeed. Below, you'll learn more about operations management, its importance, and how to enter this career field. Afterward, if you want to start building job-relevant skills today, consider enrolling in the University of Illinois Urbana-Champaign's Operations Management: Organization and Analysis course.

What is operations management?

Operations management is the administration of business structure, practices, and processes to enhance efficiency and maximize profit. It refers to the management of functions that a business needs to run effectively day-to-day, including:

• Overseeing multiple departments and providing goals

• Overseeing and streamlining processes

• Balancing revenue and costs

• Developing strategic plans

• Production, logistics, and supply chain

Why is operations management important?

Operations are the foundation of a business, including how it deals with supply chain and logistics. Profits rely on lean, efficient operations. Poor business operations can threaten a business’s survival, so processes must be optimized, the right staff needs to be employed, and physical locations must be strategic, ethical, and safe.

Watch this video from the Wharton School's Introduction to Operations Management course.

Career paths in operations management

A career in operations management can come in many forms, from general business operations roles to more niche, specialized options. Explore four operations management careers below, along with the total salary (base pay and additional compensation) you can expect to earn in each.

1. Operations research analyst

Median total salary: $133,000 [6]

Job outlook: 21 percent growth from 2024 to 2034 (much faster than average) [7]

Job description: Operations research analysts help companies make important decisions about cost-effectiveness, staff resources, supply chain, and product placement through high-level statistical analysis and mathematical modeling, data mining, and optimization techniques. 

Education: A bachelor’s degree or higher 

Operations research analysts are in demand. Start learning the basic skills needed for this career:

2. Business operations manager

Median total salary (US): $123,00 [1]

Job outlook: 4 percent growth from 2024 to 2034 [2] 

Job description: A business operations manager makes data-informed strategic plans to improve operations. 

Education: Business operations managers typically have a bachelor’s degree in business administration, finance, or management. A master's or doctoral degree in a business-related subject is typical for more senior positions. 

Read more: What Is an Operations Manager?

3. Purchasing manager

Median total salary (US): $113,00 [3]

Job outlook: 5 percent growth from 2024 to 2034 [4]

Job description: A purchasing manager buys products, goods, and services for resale by their company. Their job is to secure the best and highest quality products at the lowest price to sell and make a profit. A purchasing manager will likely have buyers or purchasing agents they manage or oversee. 

Education: Typically a bachelor’s degree and relevant experience. 

4. Materials manager

Median total salary: $130,000 [5]

Job outlook: 5 percent decline from 2022 to 2032 [4]

Job description: A materials manager is responsible for procuring, storing, and distributing a company's inventory and stock. They research prices, monitor stock levels, and negotiate prices and contracts. 

Education: Materials managers (or procurement managers) typically have a bachelor's degree in a relevant subject, such as logistics or business administration, and work experience in the field. 

How to join operations management

The guide below offers steps to follow to start your career in operations management, including on-the-job experience, education, and professional certifications to consider to help you stand out.

1. Consider a bachelor’s degree.

Jobs in operations management typically require a bachelor's degree in a business-related subject such as business management or business administration. These programs focus on relevant subjects like finance, business management, economics, business communications, and logistics. Another option is a bachelor's degree in an industry, such as economics, finance, or the law. 

2. Gain relevant professional experience.

Working in operations management typically requires about five years of relevant work experience. Get your start in an entry-level position (such as an operations assistant) or gain work experience as a buyer. Later, you can take on more senior responsibilities to build your management skills.

3. Consider pursuing a graduate degree.

In high-level roles, operations management professionals often have master's degrees or, more specifically, a Master of Business Administration (MBA) degree. MBAs focus on leadership, finance, management, and marketing, and you can opt to drill into operations with elective classes in logistics and operations. 

Build your operations management skills on Coursera

Operations management professionals are vital to ensuring that organizations operate as efficiently as possible. Build the skills you need to join this impactful profession on Coursera today. Whether you want to develop a new skill, get comfortable with an in-demand technology, or advance your abilities, keep growing with a Coursera Plus subscription. You’ll get access to over 10,000 flexible courses. 

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