Managing
Operations and
Staffing
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Chapter 17
Managing Operations and Staffing
Managing Operations
and Staffing
17.1
Managing Operations
17.2
Staffing and Company Policies
2
Managing Operations and Staffing
17.1
Explain the significance of operational plans.
Describe the purpose of operating policies, rules,
and regulations.
Section 17.1 Managing Operations
3
Managing Operations and Staffing
17.1
Establishing and implementing policies and rules
allow your operation to run smoothly.
Section 17.1 Managing Operations
4
Managing Operations and Staffing
17.1
policy
rule
credit
character
Section 17.1 Managing Operations
capacity
capital
return policy
rework policy
5
Managing Operations and Staffing
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.
Section 17.1 Managing Operations
6
Managing Operations and Staffing
Operating Policies, Rules,
and Regulations
Having a policy on how to
deal with a recurring
situation helps simplify
day-to-day management.
Section 17.1 Managing Operations
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
7
Managing Operations and Staffing
Operating Policies, Rules,
and Regulations
In contrast to a policy, a
rule leaves no room for
interpretation.
Section 17.1 Managing Operations
rule a standard set
forth to guide behavior
and actions; a rule tells
employees exactly what
they should and should
not do
8
Managing Operations and Staffing
Operating Policies, Rules,
and Regulations
Most policy statements cover these issues:
hours of operation
credit
return and rework
delivery
customer service
employee and customer safety
Section 17.1 Managing Operations
9
Managing Operations and Staffing
Credit Policies
A business that offers
credit may encourage
sales, but offering credit
also ties up money.
Section 17.1 Managing Operations
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
10
Managing Operations and Staffing
Credit Policies
There are four major credit plans:
bank credit cards
charge accounts
installment plans
financing
Section 17.1 Managing Operations
11
Three Cs of Credit
Businesses that extend
consumer credit use the three
Cs of credit to determine
whether to extend credit to
customers.
C
Character
C
Capacity
C
Capital
Section 17.1 Managing Operations
12
Managing Operations and Staffing
Credit Policies
Credit bureaus give higher
credit ratings to people
who have good character.
Section 17.1 Managing Operations
character a person’s
reputation for honest
dealings, such as that of
a borrower of money
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Managing Operations and Staffing
Credit Policies
Applicants for credit must
document their capacity
by stating income and
expenses when filling out
credit application forms.
Section 17.1 Managing Operations
capacity a borrower’s
ability to repay a debt as
judged by lenders
14
Managing Operations and Staffing
Credit Policies
A lender is more likely to
extend credit to individuals
or businesses with
substantial capital than to
those with modest means.
Section 17.1 Managing Operations
capital the overall
assets of an individual or
a business
15
Managing Operations and Staffing
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.
Section 17.1 Managing Operations
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
16
Managing Operations and Staffing
Delivery Policies
Delivery policies are part of you place strategy.
Section 17.1 Managing Operations
17
Managing Operations and Staffing
Customer Service Policies
Common customer service policies include:
complaint handling
product servicing
customer courtesy
shopping climate
Section 17.1 Managing Operations
restroom access
response time
warranties
18
Managing Operations and Staffing
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.
Section 17.1 Managing Operations
19
Managing Operations and Staffing
17.1
1. Explain the significance of operational plans.
Operational plans govern day-to-day business
operations. Operational plans allow a business
to run smoothly.
Section 17.1 Managing Operations
20
Managing Operations and Staffing
17.1
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.
Section 17.1 Managing Operations
21
Managing Operations and Staffing
17.2
Explain the staffing process.
Determine the need for additional policies.
Section 17.2 Staffing and Company Policies
22
Managing Operations and Staffing
17.2
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.
Section 17.2 Staffing and Company Policies
23
Managing Operations and Staffing
17.2
line organization
staff
line-and-staff organization
project organizations
job description
job specification
résumé
Section 17.2 Staffing and Company Policies
recruit
wages
salary
benefits
piece rate
commission
24
Managing Operations and Staffing
Staffing Your Operation
You make staffing decisions based on how many
and what kinds of employees you need.
Section 17.2 Staffing and Company Policies
25
Managing Operations and Staffing
Staffing Your Operation
To determine your specific staffing needs, you
need to assemble four types of documents:
organization chart
job descriptions
job specifications
résumés
Section 17.2 Staffing and Company Policies
26
Managing Operations and Staffing
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.
Section 17.2 Staffing and Company Policies
27
Managing Operations and Staffing
Types of Organization
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
Section 17.2 Staffing and Company Policies
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.
28
Managing Operations and Staffing
Types of Organization
As your business grows,
you must hire staff.
Section 17.2 Staffing and Company Policies
staff the managers and
others who provide
support and advice to line
managers, such as
accounting, legal, and
training activities
29
Managing Operations and Staffing
Types of Organization
A line-and-staff
organization is another
common form of business
organization.
Section 17.2 Staffing and Company Policies
line-and-staff
organization a form of
business organization that
incorporates staff into line
organization
30
Managing Operations and Staffing
Types of Organization
Project organizations
supplement the line and
line-and-staff structures.
Section 17.2 Staffing and Company Policies
project organizations
temporary organizations
brought together from
different parts of a
business for a special
project
31
Managing Operations and Staffing
Job Descriptions and
Job Specifications
For each position in your
organization chart, you
need to write a job
description and an
accompanying job
specification.
Section 17.2 Staffing and Company Policies
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
32
Managing Operations and Staffing
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.
Section 17.2 Staffing and Company Policies
résumé a summary of
academic and work
history, skills, and
experience of a
prospective employee
33
Managing Operations and Staffing
Personnel Policies
Businesses must establish policies to oversee :
employee standards
recruiting and screening
pay and benefits
training and development
personnel record keeping
Section 17.2 Staffing and Company Policies
34
Managing Operations and Staffing
Personnel Policies
When staffing, you can use
school and college
placement offices, union
hiring halls, and word of
mouth to recruit new
employees.
Section 17.2 Staffing and Company Policies
recruit to bring in
prospective employees;
businesses use classified
ads, employment
agencies, and other
placement offices to find
potential employees
35
Managing Operations and Staffing
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
Section 17.2 Staffing and Company Policies
36
Managing Operations and Staffing
Personnel Policies
Competitive employee
benefits are also
necessary to attract and
keep good employees you.
Section 17.2 Staffing and Company Policies
benefits extra
compensation that
workers receive on a job,
such as paid vacation and
sick days, flextime, and
child care
37
Managing Operations and Staffing
Personnel Policies
Another way to pay
employees is based on
productivity, either by a
piece rate or with a
commission.
Section 17.2 Staffing and Company Policies
piece rate a means of
compensation based on
an amount per unit
produced
commission a means
of compensation based of
percentage of sales
38
Managing Operations and Staffing
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.
Section 17.2 Staffing and Company Policies
39
Managing Operations and Staffing
17.2
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.
Section 17.2 Staffing and Company Policies
40
Managing Operations and Staffing
17.2
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
Section 17.2 Staffing and Company Policies
41
Managing Operations and Staffing
Web Design Basics
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.
Section 17.2 Staffing and Company Policies
42
Managing Operations and Staffing
Tech Terms
hot 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
Section 17.2 Staffing and Company Policies
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Managing Operations and Staffing
Tech Terms
table
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
Section 17.2 Staffing and Company Policies
44
End of
Managing
Operations and
Staffing
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