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Ethical and socially responsible management is an important part of an operations management system - VCE - SSCE Business Management - Question 5 - 2010 - Paper 1
Question 5
Ethical and socially responsible management is an important part of an operations management system. Identify and describe two operations management strategies. Disc... show full transcript
Worked Solution & Example Answer:Ethical and socially responsible management is an important part of an operations management system - VCE - SSCE Business Management - Question 5 - 2010 - Paper 1
Step 1
Identify and describe two operations management strategies
Answer
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Facilities Design and Layout: This strategy involves designing spaces that are environmentally friendly. Companies can implement sustainable practices by using eco-friendly materials and energy-efficient designs. By optimizing the layout, organizations can minimize waste and enhance productivity.
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Management of Quality: This strategy focuses on maintaining high-quality standards across all products and services. Techniques such as Total Quality Management (TQM) can be employed, where organizations continuously improve their processes and products. This ensures that customer expectations are met consistently.
Step 2
Discuss the benefits to an organisation of adopting an ethical and socially responsible approach to management in these areas
Answer
Adopting an ethical and socially responsible approach offers numerous benefits to an organization:
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Enhanced Reputation: Companies known for ethical practices attract more customers and retain existing ones. A positive reputation can lead to increased sales and customer loyalty.
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Attracting Talent: Organizations that prioritize ethical practices often find it easier to attract and retain top talent. Employees prefer to work for companies that share their values, which can lead to a more motivated and engaged workforce.
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Risk Mitigation: By employing ethical management strategies, organizations can reduce the risk of legal issues and regulatory fines. Proactively addressing social responsibility can shield the company from potential crises.
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Long-term Sustainability: Ethical practices lead to sustainable business operations that focus on long-term success rather than short-term gains. This aligns the company with broader societal goals, contributing to a stable operating environment.