In: Operations Management
9. Offshoring and outsourcing are the same thing.
True
False
10. older and larger firms sometimes develop cultural inertia, which becomes a ____________ to change.
barrier
incentive
both a and b
none of the above
11. To minimize quality risk, a ________ process for quality that is controlled should be implemented.
low-cost |
||
best-scenario |
||
specialized |
||
none of the above |
12. When outsourcing only the _____ must be considered.
total cost |
||
price of purchasing |
||
market conditions |
||
none of the above |
9. False- Outsourcing happens when an organization engages a third party agency to get some specific jobs done. Therefore, those specific jobs are not done in-house by the organization and are outsourced to a third-party agency.
Offshoring happens when an organization gets some specific jobs done in a different nation. The organization may get those jobs done through its employees, or through outsourcing.
10. barrier- Cultural inertia generally acts as a barrier to change. Let's assume that an organization has been following a 5-day working culture for the last 10 years. If the organization wishes to change the culture to a 6-day working culture, it could face a lot of resistance from its employees, as they have been following the 5-day working culture for a long time.
11. specialized- For effective quality control, specialized processes should be implemented. A specialized process would help to make sure each and every important detail or parameter is adequately checked and controlled.
12. total cost- Outsourcing is generally done by an organization to reduce its total costs. So, if an organization sees that hiring lawyers to carry out its legal work is costlier than outsourcing the work to a third-party legal agency, it would definitely choose the second option to reduce its costs, considering the quality of work remains the same across the two options.