CPP Review - 2006
Business Principals & Practices
John Hewitt, CPP, CIPM
Senior Security Manager
Trammell Crow Company
214-438-8861
5/23/06
Sections
Business Principals & Practices
A)
B)
C)
D)
E)
F)
G)
H)
Basic Principals, Definitions, and Concepts
Behavioral Theories
Basics of Human Behavior
Finances
Budget for Loss Prevention
Planning, Management, Evaluation
Communication
Personnel Management
John Hewitt, CPP, CIPM
Terms
Business Principals & Practices
•
•
•
•
•
Span of Control
Unity of Command
Chain of Command
Functional Authority
Staff Functions
John Hewitt, CPP, CIPM
Business Principals & Practices
“Span of control” is a management
term which refers to the number of
personnel over which one can
effectively supervise
John Hewitt, CPP, CIPM
Business Principals & Practices
When security managers exercise authority
delegated by a senior executive to whom they
report, such authority is known as “functional”
authority
John Hewitt, CPP, CIPM
Business Principals & Practices
The number in of personnel which on can
effectivley supervise:
IDEAL: 1 supervisor to 3 employees
GOOD: 1 supervisor to 6 employees
ACCEPTABLE: 1 supervisor to 12 employees
John Hewitt, CPP, CIPM
Business Principals & Practices
“Unity of command” is a management concept
which means that an employee should have
only one immediate superior to whom the
employee should report
John Hewitt, CPP, CIPM
Business Principals & Practices
The security manager should have the
necessary authority to carry out
responsibilities. To accomplish this, the
security manager should occupy a position
where the manager reports directly to a vicepresident or higher
John Hewitt, CPP, CIPM
Business Principals & Practices
Chain of Command is the path
along which authority flows
John Hewitt, CPP, CIPM
Business Principals & Practices
When security managers exercise authority
delegated by a senior executive to whom they
report, such authority is known as “functional”
authority
John Hewitt, CPP, CIPM
Business Principals & Practices
In the organizational structure of proprietary firms, security
may provide both line and staff functions
a. When advising senior executives, the
security manager performs “staff”duties
b. In security operations, the security manager carries out
“line” duties
As a general rule, “line” duties are considered to be
operational in nature and “staff” duties are of a support nature
John Hewitt, CPP, CIPM
Business Principals & Practices
Behavioral Theories
John Hewitt, CPP, CIPM
Business Principals & Practices
Maslow
Herzberg
McGregor
Argyris
John Hewitt, CPP, CIPM
Business Principals & Practices
Dr. Abraham Maslow developed a five-step process
which describes man’s behavior in terms of the
needs he experiences. These needs are:
– Food and shelter (basic needs)
– Safety - such as security, protection and avoidance of
harm and risk
– To belong
– Ego status - receiving some special recognition
– Self-actualization, such as being given assignments which
are challenging
John Hewitt, CPP, CIPM
Business Principals & Practices
• Frederick Herzberg’s “Motivation-Hygene
Theory” - defined two independent categories
of needs - hygene factors and motivators.
• Hygene Factors - salary, fringe benefits,
security (Civil Service), rules and regulations
and supervision.
• Motivators - Challenging assignment,
increased responsibility, recognition for work
and individual growth
John Hewitt, CPP, CIPM
Business Principals & Practices
The “Theory X” management theory holds
that the average employee has little
ambition, dislikes work and must be
coerced, controlled and directed to achieve
organizational objectives - Douglas
McGregor
John Hewitt, CPP, CIPM
Business Principals & Practices
The “Theory Y” management theory holds that
the average employee does not dislike work, is
self-directed, is creative and imaginative,
accepts responsibility and is committed to
achieving organizational needs and objectives
Douglas McGregor
John Hewitt, CPP, CIPM
Business Principals & Practices
Theory X and Theory Y
were
developed by
Douglas McGregor
John Hewitt, CPP, CIPM
Business Principals & Practices
Those in management who believe the
behavioral assumption of “Theory X” take an
autocratic approach to get work done.
Whereas “Theory Y” encourages managers to
support and encourage employees in efforts
to higher achievement
John Hewitt, CPP, CIPM
Business Principals & Practices
Immaturity / Maturity Theory of Chris Agryis
From passive to active
From dependence to independence
From restricted patterns to diversified behavior
From lack of self awareness to control
John Hewitt, CPP, CIPM
Business Principals & Practices
The three main theories of organizational
behavior are:
a. Autocratic theory
b. Custodial theory
c. Supportive theory
John Hewitt, CPP, CIPM
Business Principals & Practices
The “autocratic theory” holds that
management is all-powerful and employees
are obligated to follow orders without
question
John Hewitt, CPP, CIPM
Business Principals & Practices
The “custodial theory” holds that the aim of the
company is to make the employee happy and
contented through economic benefits and thus they
will be positively adjusted to their work. This theory
does not motivate employees to produce to their
full capacity
John Hewitt, CPP, CIPM
Business Principals & Practices
The “supportive theory” holds that through
good leadership, management will provide a
climate where employees will take on added
responsibilities and thus make greater
contributions to the growth of the company.
Leadership: “We rather than they”
John Hewitt, CPP, CIPM
Finances
Business Principals & Practices
A “budget” is a plan stated in financial terms. It
sets forth in dollars the necessary allocation
of funds to achieve the plan.
John Hewitt, CPP, CIPM
Business Principals & Practices
Zero based budgeting requires that
the benefits from an activity be
weighed against the benefits to be
lost if the planned activity is carried
out at a lesser level or not done at all.
John Hewitt, CPP, CIPM
Business Principals & Practices
• Line item budgets - each item is listed by
separate line
• Program budgets - funds are allocated by
specific activity
• Capital budgets - used for infrequently
purchased high dollar items
John Hewitt, CPP, CIPM
Business Principals & Practices
• Budgeting approaches can be bottom up and
top down or top down and bottom up.
• Top down and bottom up is preferred by
some because senior management initiates the
process by establishing acceptable expenditure
limits and guidelines prior to detailed planning
by middle or operating management
John Hewitt, CPP, CIPM
Business Principals & Practices
Carry budget out in three dimensions:
– The operation/project must unfold as
planned
– The operation/project must take place
when planned
– It will not exceed the planned costs.
John Hewitt, CPP, CIPM
Business Principals & Practices
M.B.O.
Management by objective (MBO) is
a systematic way of achieving agreed
to goals set ahead of time
John Hewitt, CPP, CIPM
Business Principals & Practices
Budgets are normally prepared annually or
biannually.
John Hewitt, CPP, CIPM
Communications
Business Principals & Practices
• The art of effective communication is the most
important skill for successful management.
• When a job is done poorly, it is usually because the
manager failed to communicate clearly.
John Hewitt, CPP, CIPM
Business Principals & Practices
A) Communication should be in writing whenever
possible
B) Open Communication depends on willingness to
listen, and respond.
C) All employees should be free to communicate with
the security director.
D) When a job is done poorly, it is usually because the
manager failed to communicate clearly.
John Hewitt, CPP, CIPM
Personnel Management
Business Principals & Practices
Discipline:
A) Discipline should be as positive as possible
B) Constructive discipline is the training which
develops disciplined conduct and corrects, molds the
employee.
C) Any punishment connected with discipline should be
a means to an end. (Not Personal).
D) All employees require constructive discipline
John Hewitt, CPP, CIPM
Personnel Management
Business Principals & Practices
Promotions:
A) Object: Select the best qualified canadidates
B) Primary qualification factors:
1. The employees performance record in present job
2. Anticipated/expected preformance in new job
C) Educational achievements
D) Disqualifiers are valid for one time only
John Hewitt, CPP, CIPM
Business Principals & Practices
Test
Random Sample Questions
John Hewitt, CPP, CIPM
Business Principals & Practices
1.
One supervisor can effectively control only a
limited number of people and that limit should not be
exceeded. This principle is called:
•
•
•
•
a.
b.
c.
d.
Unity of command
Supervisory limits
Span of control
Line of discipline
John Hewitt, CPP, CIPM
Business Principals & Practices
1.
One supervisor can effectively control only a
limited number of people and that limit should not be
exceeded. This principle is called:
•
•
•
•
a.
b.
c.
d.
Unity of command
Supervisory limits
Span of control
Line of discipline
John Hewitt, CPP, CIPM
Business Principals & Practices
2.
An important principle of organization is that an
employee should be under the direct control of one and only
one immediate supervisor. This principle is :
•
•
•
•
a.
b.
c.
d.
Unity of command
Supervisory limits
Span of control
Line of discipline
John Hewitt, CPP, CIPM
Business Principals & Practices
2.
An important principle of organization is that an
employee should be under the direct control of one and only
one immediate supervisor. This principle is :
•
•
•
•
a.
b.
c.
d.
Unity of command
Supervisory limits
Span of control
Line of discipline
John Hewitt, CPP, CIPM
Business Principals & Practices
3. From an organizational standpoint, the
head of security should report to:
•
•
•
•
a.
b.
c.
d.
Superintendent of buildings
Manager of buildings and grounds
Head housekeeper
A vice-president or higher
John Hewitt, CPP, CIPM
Business Principals & Practices
3. From an organizational standpoint, the
head of security should report to:
•
•
•
•
a.
b.
c.
d.
Superintendent of buildings
Manager of buildings and grounds
Head housekeeper
A vice-president or higher
John Hewitt, CPP, CIPM
Business Principals & Practices
4.
The most conspicuous role of the security
department in any organization is that of:
•
•
•
•
a.
b.
c.
d.
Educational services
Management services
Special services
Protective services
John Hewitt, CPP, CIPM
Business Principals & Practices
4.
The most conspicuous role of the security
department in any organization is that of:
•
•
•
•
a.
b.
c.
d.
Educational services
Management services
Special services
Protective services
John Hewitt, CPP, CIPM
Business Principals & Practices
5.
Training sessions consisting of a security awareness
program for new employees should be conducted by:
•
•
•
•
a.
b.
c.
d.
Special training officers
Security personnel
Consultants skilled in training
Member of management
John Hewitt, CPP, CIPM
Business Principals & Practices
5.
Training sessions consisting of a security awareness
program for new employees should be conducted by:
•
•
•
•
a.
b.
c.
d.
Special training officers
Security personnel
Consultants skilled in training
Member of management
John Hewitt, CPP, CIPM
Business Principals & Practices
7. Perhaps the most common shortcoming in the security
industry is:
• a. Lack of support by top management
• b. Failure to properly prepare and equip
new supervisors with tools to discharge
their important responsibilities
(supervisor training)
• c. Lack of planning
• d. Lack of monetary resources
John Hewitt, CPP, CIPM
Business Principals & Practices
6. Perhaps the most common shortcoming in the security
industry is:
• a. Lack of support by top management
• b. Failure to properly prepare and equip
new supervisors with tools to discharge
their important responsibilities
(supervisor training)
• c. Lack of planning
• d. Lack of monetary resources
John Hewitt, CPP, CIPM
Business Principals & Practices
7. As a rule, which department of the company
administers the recruiting activity?
•
•
•
•
a.
b.
c.
d.
The security department
Administrative department
Personnel department
Internal affairs
John Hewitt, CPP, CIPM
Business Principals & Practices
7. As a rule, which department of the company
administers the recruiting activity?
•
•
•
•
a.
b.
c.
d.
The security department
Administrative department
Personnel department
Internal affairs
John Hewitt, CPP, CIPM
Business Principals & Practices
8.
•
•
•
•
In non-entry level recruiting, the
recommended technique is:
a.
b.
c.
d.
“Blind ad”
Open advertisement in newspaper
Advertisement in trade journal
By word of mouth on selective basis
John Hewitt, CPP, CIPM
Business Principals & Practices
8.
•
•
•
•
In non-entry level recruiting, the
recommended technique is:
a.
b.
c.
d.
“Blind ad”
Open advertisement in newspaper
Advertisement in trade journal
By word of mouth on selective basis
John Hewitt, CPP, CIPM
Business Principals & Practices
9.
Every applicant’s first interview
should be with:
•
•
•
•
The security manager director
The security supervisor
A security line employee
A personnel interviewer
a.
b.
c.
d.
John Hewitt, CPP, CIPM
Business Principals & Practices
9.
Every applicant’s first interview
should be with:
•
•
•
•
The security manager director
The security supervisor
A security line employee
A personnel interviewer
a.
b.
c.
d.
John Hewitt, CPP, CIPM
Business Principals & Practices
10.
The heart of personnel selection is:
•
•
•
•
Polygraph test
Review of application
Interview
Background investigation
a.
b.
c.
d.
John Hewitt, CPP, CIPM
Business Principals & Practices
10.
The heart of personnel selection is:
•
•
•
•
Polygraph test
Review of application
Interview
Background investigation
a.
b.
c.
d.
John Hewitt, CPP, CIPM
Business Principals & Practices
11.
Which of the following is not recommended policy
with regard to security manuals?
• a. It must be updated on a regular basis
• b. Employees should not be allowed to have
possession of it
• c. The manual should be put in the hands
of all regular security personnel
• d. It should include procedural instructions for
specific incidents
John Hewitt, CPP, CIPM
Business Principals & Practices
11.
Which of the following is not recommended policy
with regard to security manuals?
• a. It must be updated on a regular basis
• b. Employees should not be allowed to have
possession of it
• c. The manual should be put in the hands
of all regular security personnel
• d. It should include procedural instructions for
specific incidents
John Hewitt, CPP, CIPM
Business Principals & Practices
12.
Among classical theories of human behavior in the
work environment, one emphasizes negative aspects of
employee behavior which is known as:
•
•
•
•
a.
b.
c.
d.
The autocrat theory
The custodial theory
The supportive theory
McGregor’s “Theory X”
John Hewitt, CPP, CIPM
Business Principals & Practices
12.
Among classical theories of human behavior in the
work environment, one emphasizes negative aspects of
employee behavior which is known as:
•
•
•
•
a.
b.
c.
d.
The autocrat theory
The custodial theory
The supportive theory
McGregor’s “Theory X”
John Hewitt, CPP, CIPM
Business Principals & Practices
13.
Among classical theories of human behavior in the work
environment is one which suggests that employees do not inherently
dislike work and will actually seek responsibility and better
performance if encouraged to do so. It is known as:
•
•
•
•
a.
b.
c.
d.
McGregor’s “Theory Y”
McGregor’s “Theory X”
The supportive theory
The motivation theory
John Hewitt, CPP, CIPM
Business Principals & Practices
13.
Among classical theories of human behavior in the work
environment is one which suggests that employees do not inherently
dislike work and will actually seek responsibility and better
performance if encouraged to do so. It is known as:
•
•
•
•
a.
b.
c.
d.
McGregor’s “Theory Y”
McGregor’s “Theory X”
The supportive theory
The motivation theory
John Hewitt, CPP, CIPM
Business Principals & Practices
14.
Dr. Frederick Herzberg developed a position that
motivation comes from work itself, not from those factors
such as salary and job security. This theory is known as:
•
•
•
•
a.
b.
c.
d.
The supportive theory
The work motivation theory
The custodial theory
McGregor’s “Theory X”
John Hewitt, CPP, CIPM
Business Principals & Practices
14.
Dr. Frederick Herzberg developed a position that
motivation comes from work itself, not from those factors
such as salary and job security. This theory is known as:
•
•
•
•
a.
b.
c.
d.
The supportive theory
The work motivation theory
The custodial theory
McGregor’s “Theory X”
John Hewitt, CPP, CIPM
Business Principals & Practices
This presentation was designed to be used in accordance
with other study materials and was not intended to be used
solely as a study guide. This presentation does not contain
all material from the “Business Principals and Practices”
section of the CPP Study Guide© . The presentation was
intended to give you the “Golden Nuggets” which will
assist you with taking the CPP Exam. Thanks, John
Hewitt, CPP - 5/23/ 2006.
John Hewitt, CPP, CIPM
Business Principals & Practices
Facts from CPP Study Guide 12th edition © 2005
James Bomba, CPP
Phillip Deming, CPP
Questions / Tests – CPP Study Guide 12th edition
Presentation - John Hewitt, CPP
2006 CPP Study Group – Dallas, TX
Thanks to: Southwest Airlines, Vance Toler.
John Hewitt, CPP, CIPM
Business Principals & Practices
John Hewitt, CPP, CIPM