SHIELA MAY A.
CASPILLAN
MBA 305 Operational Management
Reflection (Report V)
1.10 THE STRATEGIC ROLES
OF OPERATIONS
From the report that has been discussed a while ago, first, we learned that, tax policy is a powerful tool that
shapes economic activity, income distribution, and government capabilities. Governments must balance
fairness, economic growth, and revenue generation when designing tax policies. Effective tax policies
ensure sufficient funding for public services while promoting economic stability and reducing inequality.
However, the ideal balance differs depending on a country’s unique economic, political, and social
circumstances. Secondly, trade restrictions and reforms are powerful tools that can shape economic
development and international relations. While trade restrictions are often used to protect domestic
industries or address political objectives, trade reforms promote economic growth, efficiency, and global
integration. Third, tariffs remain a powerful tool in international trade policy, capable of protecting
industries, generating revenue, and regulating trade imbalances. Balancing the use of tariffs with the benefits
of free trade is key to fostering sustainable economic growth. Another, political stability is a vital component
of a functioning society, impacting economic performance, social cohesion, and the overall quality of life for
citizens. Addressing the factors that contribute to stability and mitigating challenges is essential for fostering
a peaceful and prosperous environment.
In addition to the knowledge that the reporter has taught us, the legal environment is a critical factor
influencing business operations, individual rights, and societal order. Understanding the complexities of the
legal framework is essential for effective decision-making, compliance, and risk management. By navigating
the legal environment effectively, businesses can enhance their operations, protect their interests, and
contribute positively to society. One more thing, when it comes to the laws, common law is a foundational
aspect of many legal systems around the world, characterized by its reliance on judicial precedents and the
dynamic nature of its evolution. Understanding common law principles is crucial for legal professionals,
businesses, and individuals navigating the legal landscape in common law jurisdictions. Its adaptability and
focus on precedent contribute to a legal system that aims to balance consistency with the need for evolution
in response to changing societal values. Civil law systems provide a structured and systematic approach to
law, emphasizing written statutes and codification. This legal framework promotes clarity, accessibility, and
stability, making it easier for individuals and businesses to navigate their legal obligations. Understanding
civil law principles is essential for legal practitioners, businesses, and individuals operating within
jurisdictions that follow this legal tradition. Copyright law plays a crucial role in protecting the rights of
creators and encouraging innovation by providing incentives for the production of original works. Fraud law
serves to protect individuals and organizations from deceitful practices that can result in significant harm.
Discrimination law plays a vital role in promoting equality and protecting individuals from unfair treatment
based on protected characteristics. Health and safety law is crucial in protecting the well-being of employees
and ensuring safe working conditions.
.1.12 THE TREND:
INFORMATION AND NON MA
NUFACTURING SYSTEMS
An increasingly significant
trend in the Indian economy is
the gradual shift of productive
effort from
manufacturing (industrial) to
service and information
based products. With this,
the demand for
communication and
information based product is
gradually restructuring the
society. Traditional ways of
doing things are being
replaced by efficient methods.
Computers play a major role in
this transition along
with fiber optics, microwaves,
lasers and other
communication technologies.
Following characteristics can
be considered for
distinguishing Manufacturing
Operations with
Service Operations:
1. Tangible/Intangible nature of
output
2. Production and
consumption3. Nature of work
(job)
4. Degree of customer contact
5. Customer participation in
conversion
6. Measurement of
performance
7. Quality of output
8. Inventory accumulated.
Manufacturing is characterized
by tangible outputs (products).
Consumption of outputs at
overtime.
Jobs useless labour and
more equipment, little
customer contact, no
customer participation in
the
conversion process (in
production). Sophisticated
methods for measuring
production activities and
resource consumption as
product are made.
Service is characterized by
intangible outputs. In addition,
it possess a potential for high
variability in
quality of output. Production
and consumption occurs
simultaneously. Jobs use more
labour and less
equipment, direct consumer
contact, frequent customer
participation in the
conversion process.
Elementary methods for
measuring conversion
activities and resource
consumption are used.
1.13 PRODUCTIVITY
Productivity is defined in terms
of utilization of resources, like
material and labour. In simple
terms,
productivity is the ratio of
output to input. For example,
productivity of labour can be
measured as units
produced per labour hour
worked. Productivity is closely
inked with quality, technology
and profitability.
Hence, there is a strong stress
on productivity improvement in
competitive business
environment.
Productivity can be improved
by (a) controlling inputs, (b)
improving process so that the
same input
yields higher output, and (c) by
improvement of technology.
These aspects are discussed in
more detail in
the lesson on Productivity
Management.
Productivity can be measured
at firm level, at industry level,
at national level and at
international level.
1.13.1 Modern Dynamic
Concept of Productivity
Productivity can be treated
as a multidimensional
phenomenon. The modern
dynamic concept of
productivity looks at
productivity as what may be
called “productivity flywheel”.
The productivity is
energized by competition.
Competition leads to higher
productivity, higher
productivity results in better
value for customers, this
results in higher share of
market for the organization,
which results in still
keener competition.
Productivity thus forms a cycle,
relating to design and products
to satisfy customer
needs, leading to improved
quality of life, higher
competition i.e. need for
having still hi
