Explain how a lack of understanding of a global supplier's culture and ethical behavior could cost buying organization money.
Answer(s): A
Organizational culture is made up of behaviors, traits, values and beliefs and these differ signifi- cantly across the globe. Gestures that may be positive in one country can be highly offensive in another. This culture could mean; for example, individualistic/collectivistic, masculine/feminine, uncertainty avoidance, power distance, Time perspective, indulgence/restraint.When negotiating and forming contracts within the extended supply chain, it is important that the culture of the suppliers is understood to be compatible with the buying organization or else their might be loss of reputation, time, money material and equipment. Also, being not aware of what is an acceptable ethically behavior in global sourcing can cost a buying organization. In some countries, bribery and kickbacks are a standard part of doing business. If procurement professional is not aware of the fact that some countries methods of doing business involves or expect kickbacks, for example, this could be costly to the organization and cancel out any savings that had originally been seen.Cost of poor quality and rework: if the product or service quality is poor the organization may not satisfy it customers and this can lead to a loss of reputation in the market. For example, a residential building construction company contracting a supplier that supply would require home owners to reinstall a new door within three months. The organization would spend more funds in carrying out rework.More administrative cost in contract management: an organization will have to manage it sup-pliers and the contracts to ensure they are delivering what they were contracted to do. A poor con-tract management is a waste in the process of delivery that can lead to loss of money. Also, to cor-rect this would cost the organizations administrative cost.Refer to the question column for response
What is depreciation and deterioration?
When an organization want to purchase an asset, it considers the depreciation and deterioration in the whole life of the asset and how it will be manage. Depreciation is the reduction in value of a tangible and a fixed asset over time. The purpose of calculating the depreciation of the asset is to give the organization a fair and current view of what the asset is worth at a particular time. Depreciation is a way of converting the cost of an asset into an expense over a period of time. Depreciation is a permanent feature listed against an asset throughout its life time and it based on wear and tear, reduction in performance and reduction in value.Deterioration is the process of something becoming lower in quality or performance. The longer the asset can last without deteriorating the better value the asset represents.Refer to the question column for response
Explain how influencing, can relate to corruption within procurement.
Influencing is the capacity to be able to change behavior or opinions, either consciously or subconsciously.As outlined by Yukl and falbets work from 1990 influencing can relate to corruption within pro- curement in these six ways.1)A party can be assertive (forceful, directive, using deadlines),2) Ingratiating i.e. using charm and flattery.3) Exchange-Trading favors,4) Upward appeal (requesting input for senior management not only that influencing can come as5) Coalition; team members uniting for support.5) Rational persuasion, i.e. bringing in logic and facts for clarification.
Which type of power is most likely to be used in corruption?
The abuse of power within the supply chain can be linked to corruption. If individuals with seniority favor one supplier over another, they can exercise their power to award the contract to whoever they wish. According to CIPS code of conduct, this is not acceptable. According to French and Raven, there are five types of power (Legitimate power, Reward, Expert, Referent and Coercive), and these powers can most likely be used in corruption.
What are the 3Ps in the triple bottom line.
Trying to measure how sustainable an organization was use to be challenging undertaking. However, during the 1990s, a concept brought up by American John Elkington change the way sustainability was measured. This framework is known as the triple bottom line (TBL) and measures sustainability in relation to organizational performance and investment against the 3Ps (1) Profits (2) People (3) Planet. For example;Profit: A packaging manufacturer reinvesting its profits in State- of-the-art recycling machinery for it wasted cardboard.People: A large privately owned call centre donate its end of life computers to a local youth clubs and social groups to help gain internet cases.Planet: A driving instructors using only hybrid vehicles to teach her learners, thus to reducing Co2 emission.
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