BUSINESS OPERATIONS
Business Management
Today in Business Management
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Let’s begin by putting your phones away.
Find the 3 Note Packets for Financial
Activities and review:
 The
Costs of Operations
 Financing Your Business
 Financial Statements
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Closed-note Financial Activities Quiz
Business Operations (safety!)
Next Class = Marketing
Today’s Objectives
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Identify workplace safety & security
measures.
Analyze components included in policies
& procedures manuals.
Interpret staff interrelationships
illustrated in a variety of organizational
charts.
Organize work teams.
Investigate the impact of implementing
quality control measures.
You set your goals..
…now what? How do you know if you
are on track with your mission & vision
statements and your company goals?
Action Plan
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Once goals are set, you need an action
plan.
An action plan describes how a goal
will be achieved – it is a plan of action!
Business activities should be scheduled
and assigned to achieve established
action plans.
Responsibilities should be delegated to
achieve established action plans.
You need action plans for…
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Safety & security
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Policies & procedures
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Organizational charts / work teams
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Quality control
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…among other things
Safety & Security
Workplace Safety & Security
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Owners & managers must
consider safety standards and
threats to security.
Safety includes following OSHA
regulations.
OSHA stands for occupational
safety & health administration.
Workplace Safety & Security
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Safety and security are ensured by:
 Providing
training for employees – can be
formal or informal
 Conducting regular inspections of equipment
and work areas
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Safety and security measures are put into
place to protect:
 Human
resources (your employees)
 Other assets such as property, equipment,
etc.
Policies & Procedures
Policies and Procedures Manuals
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Training employees usually includes
learning the company’s policies and
procedures.
Policies are guidelines used in making
decisions regarding specific, recurring
situations within an organization
Procedures are lists of steps to be
followed for performing certain work in
daily operations of the business.
Organizational Charts
Organizational Charts
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An organizational
chart includes all
employees, their
working
relationships, and
occupational roles.
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Depicts the
structure of an
organization
Includes direct lines
of authority &
responsibility
Types of Organizational Charts
Line Organization
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Top-management has
complete control
Chain of command is
clear and simple
Most frequently used
for small businesses
where the owner has
complete control and
distinction between
managers /
employees is clear
OWNER
GENERAL
MANAGER
SHIFT
LEADER
EMPLOYEE
EMPLOYEE
SHIFT
LEADER
EMPLOYEE
EMPLOYEE
Line-and-Staff Organization
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Combines line
organization with
staff departments that
support & advise
Multiple layers of
management
Line Positions are
directly involved in
primary activities
Staff positions
indirectly support line
functions
Matrix Organization
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Most complex
organizational
structure
Employees may be
in one manager’s
group but working
on a project for
another manager
depending on their
skills / expertise
Making Decisions for a Business
Centralized
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Rely on one
individual to make
decisions and
provide direction
for the company
Common with
small businesses
Decentralized
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Several employees
responsible for
making business
decisions and running
the business
Rely on a team
environment at
different levels in the
business
Organizing Work Teams
Organizing Work Teams
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Organizing employees to work in groups
toward a well-defined goal
Ad hoc teams may be formed to address a
specific issue at any given time
Other teams produce specific products or
parts of a product.
Dyads are teams that work as liaisons
between the customer and the supplier
Quality Control
Quality Control
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Quality control is the process of
inspecting products to ensure that
they meet the required quality
standards.
 Checking
completed products for faults
 Achieved
through inspection
 Quality
inspectors measure or test every
product, samples from each batch, or
individual samples at random.
Quality Control
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The main objective of quality control
is to ensure that the business is
achieving the standards it sets for
itself.
Perfection is not possible – there is
always some variation.
Quality control involves setting
standards for how much variation is
acceptable.
Questions?
Today’s Tasks
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Research at least 2 examples of policies &
procedures manuals from real companies
within an industry.
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Use these as a guide to CREATE YOUR OWN POLICIES
& PROCEDURES MANUAL for a “fake” business.
Determine your “standards” for quality
control of your products.
 INCLUDE A WRITTEN DESCRIPTION
Business Plan Tasks for Today
1.
Write the Operational Plan section of your
business plan according to the Business
Plan Guide.
Focus on determining your standards for quality control
in the “Quality Measures and Safety” part of the
Operational Plan.
2.
Write the Organizational Plan section of
your business plan.
Research at least 2 examples of policies and procedures
manuals from companies within your industry. Use
these as a guide to help you develop the “Labor, Staffing,
and Training” part of the Organizational Plan.