On reviewing the case of UPS in detail, it can be seen that the company is making small profits per year. Apparently, the company is unable to counter the challenges faced by it due to environmental degrading and social irresponsibility. The company still relies on the old techniques of packaging (paper) and trucks using the fossil fuels (diesel). The paper packaging is the major contributor to environmental pollution as it causes significant deforestation. The use of fossil fuel like diesel is also degrading for the environment and companies around the globe are shifting towards alternate sources of fuels.
Apart from above mentioned factors the company is lacking in the management of its human resources as it is stated in the case study about multiple strikes by the workers. Establishing a healthy working environment is also essential for the company as it has the direct impact on the output of the enterprise. There are reports of working accidents in the company resulting in the reduced working hours. The organizational culture promoted by the management of the company is one of the causes of such inefficiencies in this case. The owner of the company relied heavily on bringing customer utmost satisfaction while neglecting the workplace environment.
Apparently, the company is required to focus more on the operational management in addition to its reputed customer services. The issues of corporate social responsibility and environmental issues should be addressed to maximize the profits of the company in a challenging market environment.
Problem Statement: Company is suffering from environmental issues, workplace accidents, and HR problems resulting in inefficient financial progress.
Why is it happening?
Inefficient Operations Management, Lack of Interest in Providing Healthy and Progressive Environment to the Employees.
Why is company adopting such policy?
Since its establishment the company is more focused on meeting the requirements of the customers. The owner and management ignore the needs of the employees and changing trends of environment and corporate social responsibility.
Why is the company not adopting innovative ways?
The Company is following old methodology and lack in providing crucial element of employee motivation which is necessary for innovation.
Why the Industry Dynamics Changed?
Increased concern on degrading environment of the planet. The workplace dynamics have changed due to improvement in educational status of employees.
Why?
00Problem Statement: Company is suffering from environmental issues, workplace accidents, and HR problems resulting in inefficient financial progress.
Why is it happening?
Inefficient Operations Management, Lack of Interest in Providing Healthy and Progressive Environment to the Employees.
Why is company adopting such policy?
Since its establishment the company is more focused on meeting the requirements of the customers. The owner and management ignore the needs of the employees and changing trends of environment and corporate social responsibility.
Why is the company not adopting innovative ways?
The Company is following old methodology and lack in providing crucial element of employee motivation which is necessary for innovation.
Why the Industry Dynamics Changed?
Increased concern on degrading environment of the planet. The workplace dynamics have changed due to improvement in educational status of employees.
Why?
Action: The Company should focus more on providing the efficient working environment for its workers. Moreover, the company also need to concentrate more on the changing environmental concerns and concepts of corporate social responsibility.
c. Causal Loop Diagram
One of the significant problem faced by the UPS is the poor financial performance, and the major causes of this inefficient performance are the lack of adoption of the advanced and innovative technologies and changing social corporate responsibility dynamics in todays complex market (Dalton, 2011). These variables can be selected for the causal loop diagram to be presented in this paper. The company can quickly adopt cost-efficient fuels for its transportation thus reducing the costs of operations and addressing environmental concerns raised by the current transport network. This loop is a concrete commitment. Also, in the push to amplify benefits, UPS indicates social duty to its representatives by lessening business related mischances. Strikingly, less lost harm time guarantees that the organization works on a last number of delegates, which brings about numerous conveyances. This converts into high benefits (Goldratt, & Cox, 2014). Mostly, infrequent strikes among its workers frequently prompt to poor execution prompting to low pay. Hence, this structures an adjusting loop (Tip, 2011). On, the organization brings about high expenses while executing new advances among its drivers. Be that as it may, it recuperates these costs through expanded productivity in the conveyance of bundles through electronic forms. Moreover, bundle following frameworks guarantee that there is the insignificant loss of item. Hence, this loop delivers an adjusting impact. Concerning the connection between social duty and innovation, preparing workers on innovation prompt to both individual and vacation development in the business. This delivers a constructive outcome (Tip, 2011). Also, new advancements give UPS reusing forms that limit item transfer that would contaminate the earth. This loop makes a beneficial outcome. Finally, having a perfect situation guarantees consistency concerning wellbeing that demonstrates the social duty UPS has to the neighborhood groups. Apparently, the causal loop graph works towards interfacing money related detailing with natural and social revealing in an innovatively propelling business condition.
Environmental Concerns
Corporate Social Responsibility
Adoption of Innovative Technology
Employee Motivation and HR issues
Reducing Workplace Accidents and Improving Productivity of Workers
Increased Financial Performance
Environmental Concerns
Corporate Social Responsibility
Adoption of Innovative Technology
Employee Motivation and HR issues
Reducing Workplace Accidents and Improving Productivity of Workers
Increased Financial Performance
Conclusion
This paper briefly reviews the case of an organization UPS and the problems faced by the organization and the causes of them. The company was facing problems having basis in inefficient operations management. According to this paper, the main problems lied in the lack of interest by the management in the use of advanced technologies, changing trends in the organizational structure and corporate social responsibility. It is derived from casual loop diagrams and 5 Whys technique that the company should exert more efforts on motivating its employees, adopting innovative technologies addressing the environmental concerns, installing healthy and safe environment for its workers, and gain its financial goals. In todays complex market environment it is necessary to address the issues of employees along with the advanced customer services.
References
Dalton, M. A. (2009). What's Constraining Your Innovation?. Research-Technology Management, 52(5), 52-64.
Goldratt, E. & Cox, J. (2014). The Goal: A Process of Ongoing Improvement. (4th ed.). Great Barrington, MA: North River Press.
Tip, T. (2011). Guidelines for drawing causal loop diagrams. Systems Thinker, 22(1).
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