SCENARIO 1-5 Sheena Black, Manager of Operations at New Age Manufacturing and Manufacturing

question 25

Multiple Choice

SCENARIO 1-5
Sheena Black, manager of operations at New Age Manufacturing and Services Inc., is facing new and different challenges in attempting to maintain the company’s manufacturing operations profitably, while at the same time keeping costs down and employees satisfied with their jobs. Over the years, Sheena has developed a somewhat different style of leadership in that she has become a “walk-about” manager—observing and assisting employees and other managers as necessary. She has also adopted a series of contingency plans to provide for problem solving for unforeseen circumstances which have a tendency to occur at inopportune times.
Sheena Black is keenly aware that overall organizational function and her ability to provide leadership and effective decision making is dependent upon understanding the various disciplines that have contributed to the field of organizational behaviour. She knows that the next several years will require some major changes, not only in the technology used by the company but also in the establishment of programs and initiatives to assist other managers and employees in overcoming workplace challenges. Sheena has identified the following priorities she will need to address:
1) empowering employees to enable them to assume greater responsibility and share decision making;
2) facilitating an improved climate of quality and excellence to challenge competitors in the marketplace;
3) developing a new style of leadership and management that will value diversity and respect individuals in a supportive type of environment; and carefully examining the working conditions and devising strategies to create better job satisfaction and keep employee loyalty.
Sheena is also aware that training must become a major focus so that employees can develop new skills and managers can learn new ways of dealing with the problems of combining technology and human effort.


-Referring to SCENARIO 1-5,William Smith,Sheena's boss,suggested that Sheena needs to examine the whole process of employee turnover and the resultant effects and costs being realized by the company.Upon careful examination of the financial records in her department,Sheena noted that the following factor stood out as a major cost:

• A)design and development of new evaluation forms.
• B)orientation programs for new employees.
• C)incentives to new employees by the HR department.
• D)recruitment,selection,and training of new employees.
• E)socializing of new employees by existing employees.

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Definitions:

Opportunity Cost

Opportunity cost is the cost of foregoing the next best alternative when making a decision, representing the benefits that could have been gained by choosing the alternative option.

Opportunity Cost

The expense associated with not choosing the second-best option when deciding.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Point E

typically used in the context of graphs, it can represent a specific equilibrium point or any designated point of interest.