BUSINESS OPERATIONS Business Management

Today’s Objectives  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.

…now what? How do you know if you are on track with your mission & vision statements and your company goals? You set your goals..

Action Plan  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…  Safety & security  Policies & procedures  Organizational charts / work teams  Quality control  …among other things

Safety & Security

Workplace Safety & Security  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  Safety and security are ensured by:  Providing training for employees – can be formal or informal  Conducting regular inspections of equipment and work areas  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  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

 An organizational chart includes all employees, their working relationships, and occupational roles.  Depicts the structure of an organization  Includes direct lines of authority & responsibility

Types of Organizational Charts

Line Organization  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 O WNER G ENERAL M ANAGER S HIFT L EADER E MPLOYEE

Line-and-Staff Organization  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  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  Rely on one individual to make decisions and provide direction for the company  Common with small businesses  Several employees responsible for making business decisions and running the business  Rely on a team environment at different levels in the business CentralizedDecentralized

Organizing Work Teams

 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 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  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?