Operations and Production Management

Operations and Production Management (OPM) is the discipline that focuses on designing, managing, and improving the processes that produce goods and deliver services. It ensures that an organization’s resources — people, materials, equipment, and technology — are used efficiently and effectively to meet customer demands, maintain quality, and achieve strategic goals.

Why So Much of Life Runs Through Organizations (and How That Helps You)

~ Manuel Castañón-Puga

Picture your day. Classes, a part-time job, a club meeting, maybe a shift at the cafe. Notice a pattern? Almost everything happens inside a group with rules, roles, and someone setting direction. Herbert A. Simon suggests that if a visitor from Mars looked at Earth, they’d see big “green” zones of organizations connected by thin “red” market lines—and they’d probably call this an “organizational economy,” not just a market one. The label matters because it changes what we pay attention to in real life: most people are employees, not owners, and the big question becomes how groups actually get people to work toward shared goals. 

Simon argues that classic theories love markets and contracts, but the real action is inside firms—schools, startups, nonprofits, public agencies—where people coordinate every hour. One reason firms exist is the employment deal: you agree to take direction now for tasks that can’t be fully predicted or negotiated in advance. That’s an “incomplete” contract, and it’s efficient when the future is messy. Day to day, you’re not micromanaged; you work within a “zone of acceptance” where lots of choices are fine to you but important to your boss—like which customer email to answer first or which drink to prep next—so orders can focus on results, principles, or constraints instead of step-by-step instructions. That’s why initiative matters: good work isn’t just “follow every rule,” it’s spotting decisions and moving things forward. 

So why do people try hard if a contract can’t spell everything out or pay for every extra effort? Money and promotions help, but they’re not enough on their own. Simon points to identification—the feeling of “we”—as a powerful everyday engine. When we’re taught and encouraged to care about the team, we take real pride in its wins and act for the group, not just ourselves. He links this to a broader human trait he calls “docility,” meaning teachability and responsiveness to social norms, which makes loyalty and cooperation common—even when they’re not instantly “selfish.” For you, that’s practical: choose teams where the “we” is clear, learn the local goals fast, and use simple scoreboards (quality, safety, service) to guide choices when no one is watching. That mix—some rewards, strong identity, and clear cues—explains why many organizations work surprisingly well. 

There’s one more everyday superpower of organizations: coordination. Think of “rules of the road,” or the registrar that turns campus chaos into a class schedule—standards that let everyone predict each other and get on with it. Beyond rules, groups also balance things by quantities, not just prices: low bin of cups? The system reorders; suppliers schedule production; the whole chain adjusts. Put together—authority used to set clear goals, a shared “we” that motivates effort, and simple coordination tools—organizations can specialize deeply and still run smoothly. That’s why Simon says modern economies are best seen as organizational economies, and why learning to navigate teams is a life skill as useful as any class.

Referencia:
Simon, H. A. (1991). Organizations and Markets. Journal of Economic Perspectives, 5(2), 25–44. https://doi.org/10.1257/jep.5.2.25

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How Bali’s Water Temples Teach Smart Teamwork

~ Manuel Castañón-Puga

Picture your dorm’s shared kitchen. If everyone cooks at 7 p.m., the stove line explodes and dinner’s late. If nobody cleans at the same time, pests show up. The fix is simple: agree on a rhythm—stagger the cooking, sync the clean-up. Lansing and Kremer describe a real-world version of this on Bali’s terraced rice fields, where farmers face two opposite problems at once: sharing limited water and keeping crop pests down. Their solution is to coordinate when fields are wet or fallow so pests lose their home, without making every farm demand water on the same day. That balance—neither “everyone goes solo” nor “everyone moves in lockstep”—is the heart of the story. 

According to Lansing and Kremer, Bali’s farmers use “water temple” networks to plan planting like a neighborhood schedule. These temples aren’t just spiritual sites; they’re meeting points where farmer groups set calendars. One example follows two systems on the same river. Downstream subaks planted together and even delayed their start by two weeks compared with their upstream neighbors so the heaviest water demand didn’t hit at once. Pests stayed minimal that season, harvests were solid, and the shared water—though tight—stretched further because the peak didn’t collide. Think of it as staggering shower times in a crowded house so the hot water lasts. 

To see how much coordination matters, Lansing and Kremer built a computer model of two rivers, mapping 172 farmer associations and simulating rain, river flow, crop stages, water stress, and pest growth. When they compared the model with real harvests, it matched well. Then they tested different ways of coordinating. If every group planted alone, pests soared; if everyone planted the same day, water stress spiked. The sweet spot—highest yields—looked like the actual temple network scale in between. In short: the right-sized team plan beats both free-for-all and one-size-fits-all. 

Here’s the coolest part for everyday life: when the researchers let groups “copy the best neighbor” year after year, coordinated clusters popped up on their own and average yields climbed. Those networks also bounced back faster from shocks like droughts or pest bursts—because a good rhythm makes the whole system tougher, not just one farm. The authors warn that random, every-group-for-itself changes (like chasing the newest crop without syncing with neighbors) keep results uneven across the region. The takeaway for your team, club, or flatmates is simple: set a shared cadence, borrow what works nearby, and plan breaks on purpose. That’s how you get more done with less stress—and recover quicker when life throws curveballs.

Reference:
Lansing, J. S., & Kremer, J. N. (1993). Emergent Properties of Balinese Water Temple Networks: Coadaptation on a Rugged Fitness Landscape. American Anthropologist, 95(1), 97–114. https://doi.org/10.1525/aa.1993.95.1.02a00050

Privacy Notice & Disclaimer:
This blog provides simplified educational science content, created with the assistance of both humans and AI. It may omit technical details, is provided “as is,” and does not collect personal data beyond basic anonymous analytics. For full details, please see our Privacy Notice and Disclaimer. Read About This Blog & Attribution Note for AI-Generated Content to know more about this blog project.