CH. 17 Class Discussion MANAGING OPERATIONS AND STAFFING

Managing Operations  Think back to your Job Dislike Project  Where there Dislikes for Company Rules, Regulations, and Policies?  Where employees unhappy with store hours?  Where there any Safety concerns?  How You establish your Business Operations can go a long way towards satisfied employees!

Managing Operations  What’s the time frame for Operational Plans?  Day to Day!  They Help to complete what other type of plans  Tactical  If you’re an Entrepreneur you may have to make all these decisions on your own!

Managing Operations  Policies  Creates Routine! Simplifies the Day to Day activities  A guideline for daily business operations  There to support business goals and objectives  Can be flexible when needed  Examples??

Managing Operations  Rules  Standard set to guide behavior and actions  No room for interpretation  What Rules where there in the Employee Staffing project?  Breaks for the amount of time worked  Full time employees work 40 hours

Managing Operations  Common Rules/Regs./Policies  Hours of Operation  Credit  Return/Rework  Delivery  Customer Service  Safety

Managing Operations  Hours of Operations  Are you able to deliver your product to the customer when they want it?  Hours should be suited to the customers  What Businesses should be open 24/7?  What Businesses should have more traditional hours?

Managing Operations  Credit  Arrangement for deferred payments of goods or services  Promise to pay later  Can increase sales, but can also ties up money  Bank Cards – Less Risk – Fees – Visa or MasterCard  Charge Accounts – Finance Charge – Costs – Store Cards  Installment Plan – Down Payment – Costs – Payment Plan  Financing – Get $ Quickly – Inconvenience – Credit Check

Managing Operations  Return and Rework  Return – Reason for when and how a product can be returned  No Questions asked  In 30 Days  With Receipt  Rework – Conditions when a product will be redone  Product was not made correctly  Business or Consumer specifications

Managing Operations  Delivery  Time Frame  Costs to Consumer  Costs to Business  Customer Service  Won’t come back if unhappy & Will tell others!  “Customer is Always Right”  Other: Service, Restrooms, Environment, Greetings, Response Time

Managing Operations  Safety  Employee and Customer  Prevent Lawsuits  Training or Employees  Signage

Staffing and Company Policies  What is your Organizational Structure  Create an Organizational Chart  Displays the jobs in your business and how they're related  Helps to delegate responsibility, authority, and work

Staffing and Company Policies  Line Organizations  May start with only 2 levels, however as your business grows, so too will your Line Org. Chart  Owner – Makes Decisions that affect the whole company  Mid. Management – Implements Decisions  Supervisor (1 st Line Manager) - Supervises Employee Activities  Employees – Carry out the plans  Your business may require Line Org. Charts for the different departments or segments of your business

Staffing and Company Policies  Staff  This Does NOT Mean All Employees  Refers To Managers And Others Who Provide Supports And Advice To Line Managers  Others Include – Accounting / Legal Services / Training and Development  Adding Staff to your Business creates – Line and Staff Organization

Staffing and Company Policies  Project Organizations  Organizations brought together fro Special projects  Typically Experts from Varying Aspects of the Company  Work on projects as Needed or Until the Project is Done  Employees may report to Line Managers and/or Staff Managers

Staffing and Company Policies  Once you’ve Identified the positions in your Organization you need to develop Job Descriptions  Describes Objectives of the Job and It’s Duties/Responsibilities  “Other Duties as Needed”  Job Specifications  Details the Abilities / Skills / Educational Level / & Experience Needed by the Employee to do the Job

Staffing and Company Policies  Personnel Policies  Employee Standards – Employees make up the company’s face, voice, and reputation  Hiring Policies  Type of Employee depends on Type of Business  Professional and Positive characteristics are Universal  Also includes Employee Training and Development

Staffing and Company Policies  Personnel Policies (Cont.)  Recruiting Employees  Want Ads, Online Sites, Colleges, Job Fairs  Screening Employees  Application and Resume  Eliminate those that Don’t Fit Requirements  Interviews- Get to Know Applicant  Tests – Make Sure they Relate to the Job

Staffing and Company Policies  Personnel Policies (Cont.)  Conducting Interviews 1.Define What You’re Looking for (Prior to Interview) 2.Conduct in Private (Doesn’t Mean Alone) 3.Treat Applicant with Respect 4.Background ?’s First, Then get more Specific 5.Encourage the Applicant to talk – Be an Active Listener

Staffing and Company Policies  Personnel Policies (Cont.)  Conducting Interviews 6.Confirm Key Observations 7.Provide Opportunity for Questions 8.Observe how Applicants Conduct Themselves 9.Observe what the Applicant Brings to the Table 10.Obtain Enough Information to make a Decision

Staffing and Company Policies  In order to Attract Employees and to keep them you must:  Offer a completive Wage and Benefits  Pay  Wages – By the Hour / Salary – Fixed Pay  Commission – Pay per Unit or by Sale  Review Competitors and Industry for Trends and Standards

Staffing and Company Policies  Benefits (Typically only for Fulltime Employees)  Required By Law  Employer Social Security Contribution  Unemployment Compensation  Worker’s Compensation  Optional  Vacations / Sick Days / Health and Life Insurance / Flextime / Pensions (Retirement) / Child Care

Staffing and Company Policies  Training And Development  New Employee Training = More Efficient Employees  As Business Grows You May Need To Hire A Specialist In Training  Ongoing Or Re-training  Training Of New Procedures Or Policies  Re-training Of Basics  Personnel Records  What Needs to be Kept by Law Vs. Your own Files