Business Operations

1. Business Operations Business Management

2. 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.

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

4. 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.

5. You need action plans for… • Safety & security • Policies & procedures • Organizational charts / work teams • Quality control • …among other things

6. Safety & Security

7. 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.

8. 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.

9. Policies & Procedures

10. 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.

11. Organizational Charts

12. 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

13. Types of Organizational Charts

14. 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 Owner General Manager Shift Leader Shift Leader Employee Employee Employee Employee

15. 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

17. 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

19. Making Decisions for a Business Centralized Decentralized • 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

20. Organizing Work Teams

21. Organizing Work Teams • Organizing employees to work in groups toward a well-defined goal • Ad hocteams 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

22. Quality Control

23. 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.

24. 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.

25. Questions?

26. Spartan Plaza Tasks for Today • Continue writing / revising the Operational Plan section of your business plan according to the Business Plan Guide. Focus on determining your standards for quality control in the “Quality Measures and Safety” part of the Operational Plan. • Continue writing / revising the Organizational Plan section of your business plan. Research at least 2 examples of policies and procedures manuals from companies in your industry. Use these as a guide to help you develop the “Labor, Staffing, and Training” part of the Organizational Plan.