MGT 3070 Chapter Notes - Chapter 3: Environmental Policy
Chapter 3: Policy and Procedure
Supply Chain
POLICY
Includes all directives both explicit and implicit, that designate the aims and ends of the
organization and the appropriate means used in their accomplishment.
Advantage:
Communicates, views and objectives of executive.
Guidance for all employees.
Consistent decision making.
Defines rules and procedures
Disadvantages:
difficult to communicate.
substitute for effective management.
Can restrict innovation and flexibility.
WHAT MAKES AN EFFECTIVE POLICY?
Relevant
Action oriented
Unambiguous
Provide enough detail
Timely
Concise
PURCHASING POLICY GUIDANCE AND DIRECTION
1. Role of purchasing
2. Conduct of purchasing
3. Social and minority business relations
4. Buyer, seller relations
5. Operational issues
ORIGIN AND SCOPE OF PURCHASING AUTHORITY
Purchasing authority to conduct business
Delegation of tasks to other departments
Where authority does not exist
OBJECTIVES OF PURCHASING
Duties and responsibilities of central purchasing
Relationship between corporate and divisional
ETHICS POLICY
Outlies aageet’s oitet to ethial ad resposile ehaviour
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Document Summary
Includes all directives both explicit and implicit, that designate the aims and ends of the organization and the appropriate means used in their accomplishment. Disadvantages: difficult to communicate. substitute for effective management. Purchasing policy guidance and direction: role of purchasing, conduct of purchasing, social and minority business relations, buyer, seller relations, operational issues. Outli(cid:374)es (cid:373)a(cid:374)age(cid:373)e(cid:374)t"s (cid:272)o(cid:373)(cid:373)it(cid:373)e(cid:374)t to ethi(cid:272)al a(cid:374)d respo(cid:374)si(cid:271)le (cid:271)ehaviour. Ensures suppliers are not pressured to pur(cid:272)hase the (cid:271)uyer"s produ(cid:272)t. Prohibit transactions with suppliers that employ former employees. Employee contracts could prohibit working with a supplier of competition for period of time after leaving position. Reporting mechanism for buyers or employees to report irregular business. Bribes, accepting late bids, owning stake in supplier. Will need to hire and train a multicultural workforce. A minority supplier is a business that is run or partially owned by an individual classified as a minority. Monitoring and controlling labour conditions, environmental compliance and quality control is a challenge.
