Module-2-Ethical-Issues-in-Operations-ManagementT-W.pdf

Operations Management Module 2 (LEC) ETHICAL ISSUES IN OPERATIONS MANAGEMENT DR. AURA MARIE B. NOVESTERAS, PIE, ASEAN ENGR.  Learning Outcomes At the end of this module, you should be able to: 1. Importance of business ethics 2. Identify the ethica...

Operations Management Module 2 (LEC) ETHICAL ISSUES IN OPERATIONS MANAGEMENT DR. AURA MARIE B. NOVESTERAS, PIE, ASEAN ENGR.  Learning Outcomes At the end of this module, you should be able to: 1. Importance of business ethics 2. Identify the ethical issues in management. 3. Determine the ethical problems faced by managers 4. Ethical Issues in Various Areas of Management Ethical Issues Business ethics, defined Corporations and in terms of the social, businesses have communal, and developed a lot of environmental responsibilities of Business systems and codes of conduct to business professionals, requires managers to Ethics incorporate ethical think beyond the issues into their bottom line when decision-making making business-related process. decisions. Recitation: Loyalty: How can an employee show his loyalty to his company? Business Ethics  Importance of Business Ethics 1. To retain the public image of the business. Provide personalized customer experiences. Build trust with your customers. Implement a customer feedback loop. Send a company newsletter. Offer unique services. Start a customer retention program.  Importance of Business Ethics 2. To take business operations seriously and direct towards missions.  Importance of Business Ethics 3. To reduce leadership and decision-making dilemmas. Conflicts in the workplace can be distracting, frustrating, and challenging to deal with. Conflicts can arise from personality clashes, team dynamics, or disagreements on project goals 5 Common Types of Conflicts in the Workplace  5 Common Types of Conflicts in the Workplace 1. Leadership Conflicts- when there is disagreement about how to lead the team. This may involve disputes about the leader’s authority, decision- making power, or strategy.  Leadership Conflicts Example Two managers from different departments have differing opinions on how to approach a cross-functional project. Manager A believes in a more collaborative and inclusive approach, while Manager B prefers a top-down, authoritative decision-making style. The conflict arises as they struggle to find a common ground and prioritize their respective teams’ interests. A leadership conflict can be challenging to resolve, but with discussion and negotiation, it is possible to work through it and move forward as a team. It takes commitment and dedication from all team members/managers to succeed effectively.  5 Common Types of Conflicts in the Workplace 2. Work Style Conflicts - when employees have different expectations about how the employees should work. Conflict could arise from cultural differences, personality clashes, and other views about the job. (Task, Relationship, managerial style) 5 Common Types of Conflicts in the Workplace 3. Creative Conflicts - when different team members have additional ideas or goals, as they involve creativity and innovation and often lead to tension and conflict between team members.  Creative Conflicts Conflicts Example A team of designers is working on a new product concept, and they have differing opinions on the overall design direction. Designer A advocates for a minimalist and sleek design, while Designer B believes a more vibrant and innovative approach would be better. This creative conflict can lead to passionate debates and differences in vision, making it challenging to reach a consensus on the final design.  5 Common Types of Conflicts in the Workplace 4. Personality Conflicts - occurs when two or more people have different personalities, which leads to differences in communication styles and work preferences.  Personality Conflicts Conflicts Example Two colleagues with vastly different personalities find it difficult to work together effectively. Employee A is introverted, prefers working independently, and is detail- oriented. On the other hand, Employee B is extroverted, enjoys collaboration, and focuses on the bigger picture. Their contrasting personalities may lead to misunderstandings, communication issues, and clashes in decision-making, affecting team dynamics and productivity.  5 Common Types of Conflicts in the Workplace 5 Task-Based Conflicts- happens when different groups of workers are assigned tasks that conflict with each other. such as different expectations or goals, conflicting work schedules, and insufficient communication  Importance of Business Ethics 4. To inculcate fundamental and moral change. feelings of enthusiasm and loyalty that a person or group has about a task or job.  Importance of Business Ethics 5. To retain the public image of the business. A strong brand image can create credibility and customer loyalty for your company.  Example of Brand Disaster Brand disasters are events that cause customers to no longer trust you Number Fever 349 1 million The Pepsi 349 saga begins in 1984, when PepsiCo Inc. introduced a promotional campaign in order to increase its market share against its bitter rival, Coca-Cola at the time. 1. To retain the public image of the business. Changing 349 to 134 349 number fever PEPSI limit the cost to 6M  Importance of Business Ethics 2. To take business operations seriously and direct them towards missions. ✓ Production ✓Service 1. Production ❑ Receiving raw materials ❑ Storing them in a safe and secure environment ❑ Supervising the movement of material in the whole plant ❑ Ensuring that the employees produce the right quality ❑ Scheduling orders ❑ Maintaining the established quality standards ❑ Negotiating with suppliers and the customers ❑ Packaging the product ❑ Distributing the products ❑ Ensuring proper health and safety for the workers in the work environment ❑ Assessing the standard time values used in the manufacturing process ❑ Initiating employee suggestion schemes ❑ Taking decisions on operational and quality issues 2. Service ❑ Receiving incoming calls and mails ❑ Storing the documents of relevance ❑ Prioritizing the jobs according to their performance ❑ Motivating quality performers among staff and giving direction to the staff ❑ Negotiating with the suppliers ❑ Dealing with inquiries ❑ Taking decisions on the policies that have to be implemented ❑ Ensuring the health and safety of the workers ❑ Maintaining computers and office equipment ❑ Taking decisions regarding operational issues ❑ Ensuring quality management  Ethical Problems Faced by Managers 1. Conflict of interest -when an individual's personal interests – family, friendships, financial, or social factors – could compromise his or her judgment, decisions, or actions in the workplace 2. Managing people -the process of training, motivating and directing employees to optimize workplace productivity and promote professional growth. 3. Work Force Diversity - similarities and differences among employees in terms of age, cultural background, physical abilities and disabilities, race, religion, gender, and sexual orientation  Ethical Problems Faced by Managers 4. Effective Communication -the process of exchanging ideas, thoughts, opinions, and knowledge with clarity and purpose 5. Managing ethical conduct-the practice of being honest and virtuous 6. Workplace safety issues - It represents a culmination of policies, behaviors, and precautions that work to limit hazards, accidents in workplace 7. Legal Liability - held legally responsible for injuring or financially harming another party, This judgment can result in fines, penalties, or other payments  Give example of Ethical Issues 1. Ethical issues in finance 2. Ethical issues in Human Resources 3. Ethical issues in marketing 4. Ethical issues in research 5. Ethical issues in production Ethical Issues in HRM Ethical Issues in Marketing  Ethical Issues in Production ✓Misuse of the personal information ✓ Dengvaxia Vaccine ✓Software Piracy ✓Manufacture of fake products/parts/medicine ✓The use of mercury in mining  Ethical Issues in Production ✓Alcohol: to drink or not to drink (18 years) ✓The production of tobacco raises a number of ethical issues, including its contribution to deforestation and climate change ✓Clean air act 8749- a comprehensive air quality management policy and program which aims to achieve and maintain healthy air for all Filipinos.  Ethical Issues in Production Animals are put under intense pain during the various experiments conducted on them. This is highly unethical, and to conclude, it is very fair to say that experiments should never be conducted on animals. Ethical Issues in Production  Seatwork No.2 Ethical Issue in Operations Management 1. Follow the given format 2. Staple your paper  Seatwork No.2 Ethical Issue in Operations Management If you are the operations manager, give your decision and opinion on the following ethical issues: I. Health, safety, and Environment 1. Mercury is a toxic substance used in mining. It is used to separate gold from ore. Although mercury is a naturally occurring element, it is highly toxic to humans, animals, and the environment when not handled properly. Exposure to mercury can damage the nervous system, kidneys, liver, and immune system. Breathing mercury vapors can harm the nervous system, lungs, and kidneys. Mercury vapors can pass easily from the lungs to the bloodstream. As operations manager will you allow your workers to use mercury in mining? Or do you have an alternative plan not to expose your worker during mining? 1. Identify the issue. 2. Outline your opinion on why mercury was used in mining 3. What are the ethical arguments in using mercury in the small-scale mining industry in terms of health and safety of people and environmental issues? 4. What are your plans or decision with the situation to solve the issue?  Seatwork No.2 Ethical Issue in Operations Management 2. The use of dolomite in the rehabilitation of Manila Bay covers lots of controversies because the inhalation of the particles of dolomite may cause respiratory problems. According to research Dolomite contains a high amount of heavy metals such as aluminum, lead, and mercury, which would contribute to the pollution and acidity of Manila and would create a less habitable space for marine species. With this site the ethical issues in terms of the following: 1. Health and safety 2. Environment 3. Ecosystem 4. Corruption Create a table on different ethical issues. Cite the negative effects it gives and write your opinion on how to resolve these issues Ethical Issues Negative effects Solution 1. Cyber Crime 2. Data privacy 3. Toxic substance in food and drugs 4. Violation in quality standards 5. Manufacture of fake drugs  Seatwork No.2 Ethical Issue in Operations Management Tylenol received a major setback in 1992 when it was found out that Tylenol tablets had been laced with Cyanide. The publicity about the nationwide capsule caused a nationwide panic. As an impact, J&J suffered a loss of $1.24 billion due to the depreciation of the company’s brand value. What are the ethical issues involved in Tylenol in terms of the following: 1. Health and safety of the end user. 2. Violation in quality standards used in the manufacturing process 3. Impact on the public image and reputation in the food and drug industry  Activity No.2 Ethical Issue in Operations Management These are the common 1. Discrimination ethical issues encountered by the 2. Harassment organization. Outline your 3. Conflict of interest discussion of the given example 4. Misuse of confidential below: information 1. Give an example 5. Unethical Financial Practices 2. Provide at least 3 reasons why 6. Exploitation of workers it happened in an organization 7. Bribery and Corruption 3. Give adverse effects on the 8. Environmental impacts organization and people or 9. Unsafe working conditions stakeholders 10. Lack of transparency 4. Give you a solution and explain