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Managing Operations and Staffing


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Managing Operations and Staffing Managing Operations and Staffing

2

Chapter 17

Managing Operations Managing Operations and Staffingand Staffing

Managing OperationsManaging Operations

Staffing and Company PoliciesStaffing and Company Policies

17.1

17.2


3

Explain the significance of operational plans.

Describe the purpose of operating policies, rules, and regulations.

Section 17.1 Managing Operations

17.1


4

Establishing and implementing policies and rules allow your operation to run smoothly.


17.1


5

policy

rule

credit

character


17.1

capacity

capital

return policy

rework policy


6

Implementing Operational Plans

The goal of first-line management is to put operational plans into action.

As your business grows, you may have to delegate some responsibilities to employees.



7

Operating Policies, Rules, and Regulations

Having a policy on how to deal with a recurring situation helps simplify day-to-day management.

policy a statement of goals, purposes, and principles that serves as a guideline for daily business operations and supports the company’s goals and objectives



8


In contrast to a policy, a rule leaves no room for interpretation.

rule a standard set forth to guide behavior and actions; a rule tells employees exactly what they should and should not do



9


Most policy statements cover these issues:


hours of operation

credit

return and rework

delivery

customer service

employee and customer safety


10

Credit Policies

A business that offers credit may encourage sales, but offering credit also ties up money.

credit an arrangement for deferred payment for goods and services; credit allows a business or individual to obtain products in exchange for a promise to pay later



11

Credit Policies

There are four major credit plans:


bank credit cards

charge accounts

installment plans

financing

Three Cs of Credit

Section 17.1 Managing Operations 12

Businesses that extend consumer credit use the three Cs of credit to determine whether to extend credit to customers.

C

C

C

Character

Capacity

Capital


13

Credit Policies

Credit bureaus give higher credit ratings to people who have good character.

character a person’s reputation for honest dealings, such as that of a borrower of money



14

Credit Policies

Applicants for credit must document their capacity by stating income and expenses when filling out credit application forms.

capacity a borrower’s ability to repay a debt as judged by lenders



15

Credit Policies

A lender is more likely to extend credit to individuals or businesses with substantial capital than to those with modest means.

capital the overall assets of an individual or a business



16

Return and Rework Policies

When you choose to have a return policy or a rework policy, your business is guaranteeing the quality of the goods or services you sell or provide.

return policy a policy that establishes the conditions under which items that have been ordered, shipped, or delivered may be returned


rework policy a policy that establishes conditions under which items will be reworked, that is doing something again because it was not done right the first time


17

Delivery Policies

Delivery policies are part of your place strategy.



18

Customer Service Policies

Common customer service policies include:


complaint handling

product servicing

customer courtesy

shopping climate

restroom access

response time

warranties


19

Customer Service Policies

Businesses can take two basic precautions to reduce liability and ensure the safety of their customers and employees:


1. Train employees in safety and emergency procedures.

2. Reinforce training with well-placed signs in the workplace.


20

1. Explain the significance of operational plans.


Operational plans govern day-to-day business operations. Operational plans allow a business to run smoothly.

17.1


21

2. Describe the purpose of operating policies, rules, and regulations.


Policies are general statements about how you intend to run the business. They eliminate having to make the same decisions repeatedly. Rules and regulations are standards set to guide behavior. They let employees and customers know exactly what they should and should not do.

17.1


22

Explain the staffing process.

Determine the need for additional policies.

Section 17.2 Staffing and Company Policies

17.2


23

Staffing determines who carries out the work of your company and how your company is perceived.

Consequently, staffing policies and decisions have a direct bearing on the success of your company.


17.2


24

line organization

staff

line-and-staff organization

project organizations

job description

job specification

résumé


17.2

recruit

wages

salary

benefits

piece rate

commission


25

Staffing Your Operation

You make staffing decisions based on how many and what kinds of employees you need.



26

Staffing Your Operation

To determine your specific staffing needs, you need to assemble four types of documents:


organization chart

job descriptions

job specifications

résumés


27

Types of Organization

The easiest way to begin staffing your business is to design an organization chart that includes all the jobs in your business and their relationships.

This structure should help delegate responsibility, authority, and workflow.



28


In a line organization, top management makes the decisions that affect the entire company; middle management implements the decisions; supervisory, or first-line, management supervises the activities of employees; and employees carry out the plans made by top and middle management

line organization a form of business organization where managers are responsible for accomplishing the main objectives of the business and are in the direct chain of command.



29


As your business grows, you must hire staff.

staff the managers and others who provide support and advice to line managers, such as accounting, legal, and training activities



30


A line-and-staff organization is another common form of business organization.

line-and-staff organization a form of business organization that incorporates staff into line organization



31


Project organizations supplement the line and line-and-staff structures.

project organizations temporary organizations brought together from different parts of a business for a special project



32

Job Descriptions and Job Specifications

For each position in your organization chart, you need to write a job description and an accompanying job specification.

job description a statement that describes the objectives of a job and its duties and responsibilities


job specification a document that details the abilities, skills, educational level, and experience needed by an employee to perform a job


33

Job Descriptions and Job Specifications

To identify staffing needs in a start-up business, examine the résumé of each employee to recognize gaps in your company’s staffing.

résumé a summary of academic and work history, skills, and experience of a prospective employee



34

Personnel Policies

Businesses must establish policies to oversee :


employee standards

recruiting and screening

pay and benefits

training and development

personnel record keeping


35

Personnel Policies

When staffing, you can use school and college placement offices, union hiring halls, and word of mouth to recruit new employees.

recruit to bring in prospective employees; businesses use classified ads, employment agencies, and other placement offices to find potential employees



36

Personnel Policies

To attract and keep good employees you must offer competitive wages or salary.

wages an amount of money an employee receives for every hour he or she works


salary an amount of pay an employee receives for each week, month, or year the employee works


37

Personnel Policies

Competitive employee benefits are also necessary to attract and keep good employees you.

benefits extra compensation that workers receive on a job, such as paid vacation and sick days, flextime, and child care



38

Personnel Policies

Another way to pay employees is based on productivity, either by a piece rate or with a commission.

piece rate a means of compensation based on an amount per unit produced


commission a means of compensation based of percentage of sales


39

Personnel Policies

To make sure that you do not overlook any important policies and rules for your operation:


1. Make a list of operational rules and policies that apply to your business.

2. Find out about competitors’ policies.

3. Get feedback from potential customers.


40

1. Explain the staffing process.


The staffing process involves designing an organizational structure; writing job descriptions and job specifications; developing and implementing policies about employee standards; recruiting, screening, hiring, and training employees; and establishing pay and benefit plans; and maintaining personnel records.

17.2


41

2. Determine the need for additional policies.


Determining the need for and developing additional policies involves (1) reviewing operational processes, (2) reviewing competitors’ policies, and (3) getting feedback from potential customers

17.2


42Section 17.2 Staffing and Company Policies 42

If you are starting a business on a limited budget, you may need to design and build your own Web site to do business on the Internet.

To build your own site, you will need to learn how to code Web pages in HTML or use WYSIWYG software.

Web Design Basics



Tech Termshot spot

a clickable hyperlink on a Web page; a division of an image map

image map

a graphic image on a Web page that is used for navigation



Tech Termstable

a data structure that is used to organize Web-page elements spatially, making it possible to easily create complex page layouts

WYSIWYG

an acronym that stands for “What You See Is What You Get;” the software used by Web authors that enables them to design Web pages visually, without having to learn HTML



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