Final answer:
Operations management incorporates both system design and planning/control decisions. This includes the overall infrastructure of operations, as well as daily and strategic operational activities and decisions.
Step-by-step explanation:
Operations management indeed involves both system design and planning/control decisions. The process encompasses a broad range of activities designed to plan, direct, and coordinate all the resources needed to produce a company's goods and services. It tackles system design which includes decisions that relate to the overall setup of the business operations such as plant location, physical layout, and product design. Furthermore, it deals with planning and control decisions which are concerned with the day-to-day operation of the system including inventory management, quality control, workforce scheduling, and more strategic, long-term processes such as capacity planning.
Management theories, such as McGregor's Theory X and Theory Y, also influence how operations are structured and controlled, encompassing a range of managerial styles from autocratic to participative leadership. Furthermore, in terms of governance, effective co-management or alternative governance models can play a significant role in the operations management context.