2. Managing Operations and Staffing
Chapter 17
Managing Operations and Staffing
Managing Operations
17.1
17.2
Staffing and Company Policies

3. Explain the significance of operational plans.
17.1
Explain the significance of operational plans.
Describe the purpose of operating policies, rules, and regulations.
Section 17.1 Managing Operations

4. 17.1
Establishing and implementing policies and rules allow your operation to run smoothly.
Section 17.1 Managing Operations

5. policy rule credit character capacity capital return policy
17.1
policy
rule
credit
character
capacity
capital
return policy
rework policy
Section 17.1 Managing Operations

6. 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

7. Operating Policies, Rules, and Regulations
Having a policy on how to deal with a recurring situation helps simplify day-to-day management.
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
Section 17.1 Managing Operations

8. Operating Policies, Rules, and Regulations
In contrast to a policy, a rule leaves no room for interpretation.
rule a standard set forth to guide behavior and actions; a rule tells employees exactly what they should and should not do
Section 17.1 Managing Operations

9. 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

10. Credit Policies
A business that offers credit may encourage sales, but offering credit also ties up money.
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
Section 17.1 Managing Operations

11. Credit Policies There are four major credit plans: bank credit cards
charge accounts
installment plans
financing
Section 17.1 Managing Operations

12. Character C Capacity C Capital C Three Cs of Credit
Businesses that extend consumer credit use the three Cs of credit to determine whether to extend credit to customers.
Character C
Capacity C
Capital C
Section 17.1 Managing Operations 12

13. Credit Policies
Credit bureaus give higher credit ratings to people who have good character.
character a person’s reputation for honest dealings, such as that of a borrower of money
Section 17.1 Managing Operations

14. Credit Policies
Applicants for credit must document their capacity by stating income and expenses when filling out credit application forms.
capacity a borrower’s ability to repay a debt as judged by lenders
Section 17.1 Managing Operations

15. Credit Policies
A lender is more likely to extend credit to individuals or businesses with substantial capital than to those with modest means.
capital the overall assets of an individual or a business
Section 17.1 Managing Operations

16. 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.
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
Section 17.1 Managing Operations

17. Delivery Policies Delivery policies are part of your place strategy.
Section 17.1 Managing Operations

18. Customer Service Policies
Common customer service policies include:
complaint handling
product servicing
customer courtesy
shopping climate
restroom access
response time
warranties
Section 17.1 Managing Operations

19. Customer Service Policies
Businesses can take two basic precautions to reduce liability and ensure the safety of their customers and employees:
Train employees in safety and emergency procedures.
Reinforce training with well-placed signs in the workplace.
Section 17.1 Managing Operations

20. Explain the significance of operational plans.
17.1
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

21. Describe the purpose of operating policies, rules, and regulations.
17.1
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

22. Explain the staffing process.
17.2
Explain the staffing process.
Determine the need for additional policies.
Section 17.2 Staffing and Company Policies

23. 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

24. line-and-staff organization project organizations job description
17.2
line organization
staff
line-and-staff organization
project organizations
job description
job specification
résumé
recruit
wages
salary
benefits
piece rate
commission
Section 17.2 Staffing and Company Policies

25. 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

26. 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

27. 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

28. 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
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.
Section 17.2 Staffing and Company Policies

29. Types of Organization As your business grows, you must hire staff.
staff the managers and others who provide support and advice to line managers, such as accounting, legal, and training activities
Section 17.2 Staffing and Company Policies

30. Types of Organization
A line-and-staff organization is another common form of business organization.
line-and-staff organization a form of business organization that incorporates staff into line organization
Section 17.2 Staffing and Company Policies

31. Types of Organization
Project organizations supplement the line and line-and-staff structures.
project organizations temporary organizations brought together from different parts of a business for a special project
Section 17.2 Staffing and Company Policies

32. Job Descriptions and Job Specifications
For each position in your organization chart, you need to write a job description and an accompanying job specification.
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
Section 17.2 Staffing and Company Policies

33. 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.
résumé a summary of academic and work history, skills, and experience of a prospective employee
Section 17.2 Staffing and Company Policies

34. 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

35. Personnel Policies
When staffing, you can use school and college placement offices, union hiring halls, and word of mouth to recruit new employees.
recruit to bring in prospective employees; businesses use classified ads, employment agencies, and other placement offices to find potential employees
Section 17.2 Staffing and Company Policies

36. 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

37. Personnel Policies
Competitive employee benefits are also necessary to attract and keep good employees you.
benefits extra compensation that workers receive on a job, such as paid vacation and sick days, flextime, and child care
Section 17.2 Staffing and Company Policies

38. Personnel Policies
Another way to pay employees is based on productivity, either by a piece rate or with a commission.
piece rate a means of compensation based on an amount per unit produced
commission a means of compensation based of percentage of sales
Section 17.2 Staffing and Company Policies

39. Personnel Policies
To make sure that you do not overlook any important policies and rules for your operation:
Make a list of operational rules and policies that apply to your business.
Find out about competitors’ policies.
Get feedback from potential customers.
Section 17.2 Staffing and Company Policies

40. Explain the staffing process.
17.2
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

41. Determine the need for additional policies.
17.2
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

42. 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

43. 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 43

44. 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

45. End of