All Flashcards
8 Ethics and Corporate Excellence
Critical Areas that Facilitate Excellence
Business Process Reengineering
Growth-Sustainable Development
Core-Competence
Resource Utilization
E-Commerce
CRM (Customer Relationship Management)
Social Consciousness
Business Ethics
Enumerate the 4 Corporate Excellence - Areas
Excellence through Manufacturing
Excellence through Marketing Mix
Excellence through HRM
Excellence through Information
Benefits of Business Ethics
Employee Commitment
Customer Satisfaction
Investor Loyalty
Profits
Ways for Achieving Corporate Excellence
1.Corporate Mission Statement
2. Code of Ethics
3. Organizational Culture
4. Total Quality Management (TQM)
An organization culture to satisfy totally the customer needs and desires through an integrated system of tools, techniques and training.
TOTAL QUALITY MANAGEMENT
What is TOTAL QUALITY MANAGEMENT
• a corporate management strategy.
• emphasizes total quality.
Features of TQM
TQM is a pragmatic long-term systems approach.
TQM is initiated and driven by top management.
TQM aims at bringing about a Total Cultural Change in every facet of the organization.
TQM interlinks and integrates the various subsystems of the organization.
Benefits of TQM
(Tangible Gains)
Better Product Quality
Productivity Improvement
Reduced Quality Cost
Increased Market
Reduced Employee Grievances
what are the Intangible Gains
Effective Teamwork
• Increased Market
• Reduced Employee Grievances
• Enhancement of Job Interest
• Improvement in human relations and work area moral
• Customer satisfaction
• Improved communication
• Enhanced problem-solving capacity
• Improved corporate health and character of company
• Better company image
Three Aspects of TQM efforts and give their examples
Internal Service Quality
Example: The quality of an airline service plays an important role in establishing a successful airline.
• ACCURATE PROCESS = QUALITY PRODUCT
Problem-solving tools
Example: modifications to flight schedules, changes to agreements and disruptions of plans, crew scheduling
• Problem solving soft wares or optimization soft wares such as NEOS guide, CARMEN RAVE
Total Involvement of all personnel
Example: From the operators onwards right up to the CEO
• involves all members of the company to ensure all parts act with the same methods, culture and values and this helps to give a unified image
TQM MINDSET
1.Customer Orientation
2. Process Orientation
3. People Orientation
COSTS OF UNETHICAL PRACTICES
LOSS OF TRUST
Less effective teamwork
Loss of Confidentiality
Censored communication
Loss of self-esteem
Lack of commitment
Declining loyalty
Resignation
LOSS OF ONE’S GOOD NAME
What are the STAKEHOLDERS?
Customers, shareholders, employees, suppliers, govemment agencies, communities
- have a “stake’ or claim in some aspect of a company’s products, operations, markets, industry and outcomes.
STAKEHOLDER THEORY
Normative Approach
- Affirms that stakeholders have legitimate stakes in corporate activities
Descriptive Approach
- Focuses on the firm’s behavior and usually addresses how decisions and strategies are made for stakeholder relationships, Instrumental Approach
- describes what happens if a firm behaves in a particular way.
2 TYPES OF STAKEHOLDERS
1.Primary Stakeholders
Those whose continued association and resources are absolutely necessary for a firm’s survival.
- Secondary Stakeholders
Do not typically engage directly in transactions with a company; therefore not essential to its survival.
3 examples of BUSINESS STRUCTURES PHILIPPINES:
- Sole Proprietorship
• Owned by a single individual who has full control and authority over the business - Partnership
• Can be formed by two (2) or more individuals who agree to do business together for profit - Corporation
• Stock Corporation
• Non-stock Corporation
