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External Resource Management - Essay Example

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1. Is there any justification for Dr. Spiller having circumvented normal purchasing procedures, selecting the supplier and approving for this equipment? Based on how Rose Silver reacted to Dr. Spiller’s request, there is certainly wrong about what he would want to happen as far as their current normal purchasing procedures are concerned…
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External Resource Management
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Download file to see previous pages These are some of the points that Silver would want to emphasise to Dr. Spiller. However, these could be hardly understood on Dr. Spiller’s part because he is justifying his points as well. The centralisation procedure may be slow to react to local user’s needs and also may be remote from local user or internal customer. Dr. Spiller may have important specifications of an X-ray processor that he found can only be provided by New Age and he can certainly use this as important justification. On the other hand, in a decentralized purchasing activity, Dr. Spiller can actually enjoy the benefits of addressing the local needs of their department and as user of the newly X-ray processor. Their problems may be easily responded at better quality as well. Regarding this issue, it is therefore clear that Rose Silver is only trying to do its part for the good of the company. Dr. Spiller on the other hand is trying to do its part based on what he believes is right for their patient care. They both have essential points to stand on. However, this would matter depending on the generalised process that should be involved in purchasing activity. The first step is basically sourcing. In this stage, the purchasing department receives requisition and asks or solicits quotations. The next step involves authority and ethics. At this point the purchasing department has to negotiate with suppliers and then place its order. Finally, logistics and payment ensures that the supplies are received and payments are made. Based on the above procedure, Dr. Spiller cannot actually justify his concern with Rose Silver. This is due to the fact that Dr. Spiller’s concerns with their patients are not in line with Silver’s main functions. What is only in line with Dr. Spiller’s concerns with Silver’s role in the company is the issue about receiving requisitions and asking for quotations and supplier’s negotiation. 2. What risks or ethical problems could potentially arise from his approach? In the absence of quotations or requisitions, Dr. Spiller could potentially face problems about dishonesty and untrustworthiness. The main point of having quotations and requisitions is to ensure transparency in the actual purchasing process. This is also to ensure that the right prices and quality standards are obtained. Dr. Spiller needs to understand that when there is money involved, the role of Silver is to provide transparent accounting system in order to justify the actual purchasing experience if it is in line with the organisation’s prevailing purchasing standard. In the absence of this, Dr. Spiller is most likely to be confronted with substantial ethical subjects including fraud as aftermath of the main issues like dishonesty and untrustworthiness. If he would push forward to his stand, Dr. Spiller may potentially be showing disrespect to Silver. Silver is a legitimate authority in the purchasing activity. It is not the concern of Silver to approve Dr. Spiller’s request because there is a process involved. This process requires that everything should undergo specific approval of an authority. On the other hand, Dr. Spiller does not have much authority involved in the actual purchasing process except however for his specifications and technical know-how of the equipment. However, the final authority of the purchasing process ...Download file to see next pagesRead More
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