Role of management in a plant operation


Problem: The role of management in a plant operation for a publicly held company is a balancing act. There are three groups that must be satisfied, and each is constantly demanding attention.

The three groups are as follows:

  • Customers
  • Employees
  • Shareholders

Normally, the customer is always right. Should the shareholders be ignored for the sake of the customer? If emphasis is placed on the customers, what about the employees? For example, if wages increase, it will minimize the return to the shareholders.

Expand on the needs of each group (customers, employees, and shareholders).

Explain why this causes a tension between the groups.

In your opinion, which group should take priority, and why? Explain the rationale behind your answer.

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