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Operation And Management Ethics

Submitted by mdurante on August 27, 2006

Category: Technology
Words: 1267 | Pages: 6
Views: 264
Popularity Rank: 27,974
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Abstract
In this paper I will define Operational Management and discuss an ethical decision made by operational managers in my organization.
Operational Management
Our text defines Operational management “as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.” (Chase, et. al, 2006). Operations Management involves the management of the entire system that produces a good or delivers a product. It involves making processes efficient and effective. Efficient and effective processes allow organizations to increase quality and reduce price while maintaining or improving profit margins. One of the toughest decisions to be made is which portions of the operation are best served by outsourcing.
One of the ethical dilemmas facing managers today is whether to use outsourcing to reduce the costs of producing products. Outsourcing can range from moving manufacturing of products to other countries to replacing white collar professional jobs with foreign labor, or to leave the labor in place and just outsource some internal administrative services. The reasoning behind this is the same no matter which use is selected. Those reasons are usually using lower cost labor to reduce the costs of products or services overall. The ethical issues are apparent and currently a hot topic in the news. The first issue it that it takes jobs away from American workers in an already strained economy. Economists contend that it will be good for the economy in the long run, but in the short term it helps to diminish the number of consumers that buy the products or services. Another ethical issue is that the workers performing the cheaper labor or services do not have the same working conditions and the countries they live in have little or no rules governing these conditions. Considering this it will be impossible for U.S. workers to compete with foreign labor. Another concern is national...

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