week 1 Ethical Issues and Operations
Ethical Issues and Operations
Ethical behavior is a corporate issue that affects the company’s bottom line. How do ethical issues impact organizations and operations? Include an example seen in the workplace, in the news, etc. that relates to real-life situations. Your initial post should be at least 200-250 words.
Ethical Issues and Operations Strong ethics are important in all organizations. Companies strive to maintain a high degree of ethics throughout the organization. There are consistent pressures within organizations to maintain a high degree of operational efficiencies. This pressure may provide a situation where the ethics of operations employees are tested. If there are ethical breaches within an organization, the profits for the organization are impacted (Vonderembse & White, 2013).
Explanation of Business Situation Companies purchase maintenance agreements from service vendors to help resolve any issues in a predictive, cost effective manner. The company pays the vendor a certain amount of money each year and the vendor will fix or replace any defects in the system. The service personnel are measured by utilization. When a service person is working on a customer problem, the service person will identify the time spent on the service ticketing system. The service ticketing system has the ability to produce reports on the efficiencies of the service people. If the service team does not have the desired utilization, over time there will be reductions in staff to preserve efficiencies.
Possible Ethical Issues There is a possibility for service personnel to spend some more time working on a problem, or falsely entering time to maintain a high degree of utilization. If this occurs, eventually the additional time is allocated to the cost of the maintenance agreement, and the profit margin is lower than expected. The service manager will see reports on the service ticketing system and then scrutinize the time spent for maintaining the
Ethical behavior is a corporate issue that affects the company’s bottom line. How do ethical issues impact organizations and operations? Include an example seen in the workplace, in the news, etc. that relates to real-life situations. Your initial post should be at least 200-250 words.
Ethical Issues and Operations Strong ethics are important in all organizations. Companies strive to maintain a high degree of ethics throughout the organization. There are consistent pressures within organizations to maintain a high degree of operational efficiencies. This pressure may provide a situation where the ethics of operations employees are tested. If there are ethical breaches within an organization, the profits for the organization are impacted (Vonderembse & White, 2013).
Explanation of Business Situation Companies purchase maintenance agreements from service vendors to help resolve any issues in a predictive, cost effective manner. The company pays the vendor a certain amount of money each year and the vendor will fix or replace any defects in the system. The service personnel are measured by utilization. When a service person is working on a customer problem, the service person will identify the time spent on the service ticketing system. The service ticketing system has the ability to produce reports on the efficiencies of the service people. If the service team does not have the desired utilization, over time there will be reductions in staff to preserve efficiencies.
Possible Ethical Issues There is a possibility for service personnel to spend some more time working on a problem, or falsely entering time to maintain a high degree of utilization. If this occurs, eventually the additional time is allocated to the cost of the maintenance agreement, and the profit margin is lower than expected. The service manager will see reports on the service ticketing system and then scrutinize the time spent for maintaining the
References: Vonderembse, M.A. & White, G.P. (2013). Operations management. San Diego, CA: Bridgepoint Education, Inc.