ETHICS IN OPERATIONS AND TECHNOLOGY

Overview of Production and Operations Management

Basically POM concerns itself with conversion process of inputs into
outputs. Some companies make only components or simple products
and the processing time is short and some products take a longer time.
Input

Conversion Process

Output

Feedback

Inputs are Land, Labor, Capital, Machines, Equipment, Raw

materials and Management
Labor and Management are human beings having feelings,
emotions, likes, dislikes, religious sentiments and high-low education,
different cultural and economic backgrounds. All of them come to
work in an organization and achieve the organization objectives. To
achieve this goal they utilize other resources like plant, machinery,
tools, materials and various services.
POM is the main function of any organization as it brings out the
product in the desired quality and quantity, which in turn is the
objective of the organization.
Ethical Issues in POM
POM is a vast area covering activities like location and layout,
purchase, storage, production processes, inspection, storage, inventory
control, plant maintenance and trial testing of the final product etc.
Multiple functions and different types and category of manpower is put
into service. A combination of all this should ideally work and achieve

100% efficiency. But wherever economic decisions are involved and

officials are taking decisions, there is always scope for unethical
practices. Some of the ethical issues that crop up are:
1. A site for the location is chosen based on overall business
advantages. However in reality all these advantages could
be foregone.
2. Selection of plant and machines, where either the equipment
could be of sub-standard or else there could be a substantial
amount of bribe paid.
3. Maintenance of Plant and Machinery especially where
AMC is concerned.
4. Laxity in final testing of the product or passing without
testing.
5. Industrial espionage.
Working Conditions
The working conditions refer to a whole set of facilities and provisions
that aid the workers to do a quality job as per the limitations of time,
costs and quantity specified. The main responsibility towards this is
with the top management. The secondary responsibility is with the
workers who should ensure better upkeep of facilities provided o them.
An employer has to adopt fair practice of providing good environment
with some of the activities:
Plant layout to have adequate space for movement of men and
materials.
Separate wash areas for men and women.

 Working shifts should be of 8 hrs duration with relief for lunch

and dinner. OT payments for work beyond 8 hrs.
Emergency medical facility.
Prompt payments of wages on specified dates.
Work area to be free from pollution and other health hazards.
Employer employee relations should be cordial.
Norms and rules of statutory rules and regulations to be followed
strictly.
Worker Safety
Employees safety from injuries, accidents, fatigue and monotony is the
primary responsibility of the management. Prevention is better than
cure is the essence of safety measures to be adopted by managements.
This is more important in hazardous work places like mines, chemical
factories, steel plants, foundries, rolling mills, thermal plants etc.
Industrial health hazards
Bruises cuts, burns etc
Electric shocks, loss of limbs
Suffocation, lung problems, caused by inhaling poisonous gasses
like chlorine, CO, CO2.
Chemicals, pesticides, solvents can damage external and internal
parts of the body
Loss of eyes, hands, legs etc.

Many companies in India especially small and medium scale industries

do not take adequate steps to take adequate precautions. Some of the
steps are:
Free flow of natural light and air
Drinking water and waste disposal
Provide guard covers to moving parts of machines with adequate
warnings.
Warning boards to be kept for electrical, heavy machines cranes
and motors
Employees should wear safety masks, helmets, gloves and
aprons.
First aid facilities and training on first aid.
Companies to meet medical expenses of injured persons.
Quality Aspects
The POM department has a major role to play in quality care of
products. By quality it is meant quality standard as per specification in
general and as per customer expectations in general. Quality is very
closely linked to other aspects like reliability, service aspects and safety
aspects.
Quality Reliability Should be consistent
Service Aspects Should be easy to maintain
Safety Aspects should be safe to handle.

Environment and Ethics at Work Place

Sometimes many employers tend to waiver and indulge in wrong or
unfair practices in work, intentionally or unintentionally. These
constitute a part of ethical misdemeanors:
Taking home office stationery
Taking home gifts given by customers, dealers or outsiders
Making a coterie of same caste people and encouraging the same
group and neglecting others.
Display of excessive interest in lady colleagues.
Frequent leave taking by youngsters
Deliberately hiding or delaying information for personal gains.
Indulge in slander, gossip and diversionary topics thus loosing
seriousness in the job.
Worker Rights
There are some basic rights which needs to be exercised by
organizations irrespective of whether there is a trade union or not:
Safety
Wages/ Salaries
Harassment: There are different types:
Excess working hours

 No rest in between
No facilities to reduce pain and strain
Sexual harassment
Facilities: drinking water, canteen, rest rooms etc.
Quality of Materials
Materials constitute a major portion of the finished product. The role of
materials in product formation starts from the raw materials,
consumables, bought outs, imports; sub contracting, packaging and
ends with finished products dispatch. If input quality is good then the
output would obviously be good.
The end product quality is directly related to raw material quality,
processing accuracies, damage free handling, transport and safe storage
during processes and of the finished product.
Technology and Ethics
The advance of technology has now become both a problem as well as
a solution. Some of the issues related to technology are as follows:
Using spy cameras to photograph corrupt cases
Explosives used in mines are being used to blast trains etc
Guns used by the army are now being used by terrorists
Computers and IT related unethical practices are on the rise:
Hacking sites for personal use
Embezzling funds from banks
Access to hidden information
Altering/ destroying computer data
Reading messages meant for others

 Software piracy.