Business Operations

BUSINESS OPERATIONSBusiness 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

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

OWNERGENERAL MANAGER

SHIFT LEADER

SHIFT LEADER

EMPLOYEE

EMPLOYEE

EMPLOYEE

EMPLOYEE

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

Centralized Decentralized

Organizing Work Teams

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 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?

Spartan Plaza Tasks for Today1. 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.

2. 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.