Business Unit 2

TOP MANAGEMENT

highest level of management- president and other executives

PERT chart

program evaluation and review technique- method for analyzing the tasks involved in completing a given project- estimating the time required to complete each task and the overall project

Planning incorporates

setting organization goals developing strategies to reach those goals determining resources needed setting precise standards

Plans

the ordered sequences of strategies an organization uses to achieve each objective- have time element

entrepreneur originates from french word entreprendre which means...and in business context it means..

to undertake to start a business

Apprentice programs

training programs involving a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft. may involve classroom time

Off the job training

training that occurs away from the workplace and consists of internal or external programs to develop a variety of skills or to foster personal development

Controlling- 5 steps

1. Establishing clear performance standards 2. Monitoring and recording actual performance 3. Comparing results against plans and standards 4. Communicating results and deviations to the employees involved 5. Taking corrective action when needed and providing positive feedback

6 steps of performance appraisal

1. Establishing standards that performance will be measured by 2. Communicate standards to employees as expectations 3. Evaluate performance of employees 4. Discuss results with employees 5. take corrective action to change performance or revise standards 6. use results to make decisions

6 reasons why people take the entrepreneurial challenge

1. New idea-driven by belief that they can produce a better product or current product at lower cost 2. Independence- don't enjoy working for someone else 3. Challenge- thrive on overcoming challenges 4. Family pattern-grew up in families who have started their own business 5. Profit- it can be profitable- upside not found in employment 6. Immigration- lack education and skills- may start their own business

SWOT analysis

Analyzes an organizations strengths, weaknesses, opportunities and threat Strengths and weaknesses are things within control of your organization opportunities and threats are outside your control and things you have to fund information about to act on

Benchmarking

Comparing an organization's practices, processes and products against the world's best

Sample outline fo a business plan

Cover Letter Executive Summary Company Background Management Team Financial Plan Capital Required Marketing Plan Location Analysis Manufacturing Plan Appendix

Organization chart

a visual device that shows relationship among people and divides organizations work to show who is accountable for completion of specific work and shows who reports to whom

Bureaucracy

an organization with many layers of managers who set rules and regulations and oversee all decisions

Assembly layout process layout modular layout fixed-position layout

assembly- workers do a few tasks at a time- linear process- similar equipment and functions are grouped together modular- teams of workers combine to produce more complex units of the final product fixed-position- workers congregate around the product to be completed - large projects

Manager needs to know how strengths.. weaknesses.. opportunities.. threats

..can be used and capitalized .. can be improved .. be exploited .. be mitigated

Leadership styles

1. Autocratic: involves making managerial decisions without consulting others 2. Participative style: consists of managers and employees working together to make decisions 3. Free-rein style- involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives

GANTT charts

Bar graph showing production managers what projects are being worked on and what stage they are in at any given time

Common training and development programs

Employee Orientation On-the-job Training Apprentice Programs Off-the-job Training Online Training Vestibule Training Job Simulation

Decertification

Process by which workers can take way union's right to represent them

Strikes

when workers collectively refuse to go to work when there is no contract in place Strikebreakers- scabs or replacement workers that do the work for those on strike Restrictions: some jobs are essential and members are not allowed to strike

Four organizational models

1. line organizations 2. line and staff organizations 3. matrix style organizations 4. Self-managed teams

Management training programs

On-the-job coaching. Understudy positions. Job rotation. Off-the-job courses and training.

Quality costs

Prevention costs to ensure quality related problems do not occur Appraisal costs to inspect products for faults. Internal failure costs to rework products or scrap work in progress because of faults External failure costs are when the customer find the fault. These are the highest costs.

Retiring employees and losing employees

Retiring Employees In addition to layoffs, another tool used to downsize companies is to offer early retirement benefits to entice older (and more expensive) workers to retire. Losing Employees Learning about their reasons for leaving can be invaluable in preventing the loss of other good people in the future.

Sources of funds for small business

Supplier credit Personal savings most used Retained earnings Business credit cards Personal loans, credit cards, lines of credit Leasing Loans from friends and relatives Government lending agencies Angel investment

Core competencies

Those functions that an organization can do as well or better than any other organization in the world

Expectancy theory

Victor vroom's theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome

Training development

all attempts to improve productivity by increasing an employee's ability to perform. Training focuses on short term skills whereas development focuses on long- term abilities 3 steps of training and development programs 1. Assessing the needs of the organization and the skills of the employees to determine training needs 2. Designing training activities to meet the identified needs 3. Evaluating the effectiveness of the training

Middle management

includes general managers, division managers and branch managers who are responsible for tactical planning and controlling

Form utility

the value producers add to material in creation of finished goods

3. Leading (5)

1. Guiding and motivating employees to work 2. giving assignments 3. explaining routines 4. clarifying policies 5. performance feedback

Compensating employees

Compensation is one of the main marketing tools that companies use to attract (and retain) qualified employees, and it is one of the largest operating costs for many organizations Fringe benefits: benefits that provide additional compensation to employees i.e. sick leave, vacation play, pension plans

employer business

meets one of the business establishment criteria and maintains payroll of at least one person

Restructuring

re-disigning an organization so that it can more effectively and efficiently serve it customers Invert the organizational chart so that the front line staff are at the top and management layers below assist and support

6 attributes of an entrepreneur

1. Self directed 2. determined 3. action orientated 4. highly energetic 5. tolerant of uncertainty-take calculated risks 6. able to learn quickly

Intrapreneurs and their purpose

Creative people who work as entrepreneurs within corporation Use a company's existing resources- human, financial and physical to launch new products to generate new profits

Major uses of performance appraisals

Identify training needs Use as a promotion tool Recognize workers' achievements Evaluate hiring process Judge effectiveness of orientation process Use as a basis for terminating workers

Web based business- Affiliate marketing

Internet-based marketing strategy in which a business rewards individuals for each visitor or customer the affiliate send to website

Disadvantages of union

Promotion/pay are usually determined by seniority; older employees get more pay sometimes regardless of skill. Negotiated compensation usually leads to higher production costs, reduced competitiveness. Members may not be agree with all of the union's decisions

Motivation in the future

To sustain competitive advantage in the global marketplace, a company's workforce must be engaged in continual improvement and innovation Managers will not be able to use any one formula for all employees. Rather, they will have to get to know each worker personally and tailor the motivational effort to the individual.

Production management

all the activities that managers do to help their firm create goods As a result of the change in importance from manufacturing to services, the term production often has been replaced by operations to reflect both goods and services production**

Equity theory

employees try to maintain equity between inputs and outputs compared to others in similar positions

supervisory management

managers who are directly responsible for supervising workers and evaluating their daily performance

Business establishment

must meet at least one of criteria: Has a least one paid employee, annual sales revenue of 30,000 or is incorporated has filed a federal corporate income tax return at least once in the past three years

Elements of a managerial role

position--authority-- responsibility-- accountability ** need accountability for responsibility

Motivation

the drive to satisfy a need from within

Lean manufacturing

the production of goods using less of everything compared to mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. company becomes lean by continuously increasing its capacity to produce high-quality goods while decreasing its need for resources

Online training

training programs in which employees attend class via internet Allows employees to proceed at their own pace and to "test out" as they gain knowledge.

International organization for standardization (IOS)

worldwide federation of national standards bodies from over 140 countries that set the global measures for the quality of individual products ISO is a non-governmental organization established to: Promote the development of world standards to facilitate the international exchange of goods and services.

Alternative ways to departmentalize

1. by product 2. by function 3. by customer group 4. By geographic location 5. by process

Terminating employees

Downsizing and restructuring, global competition, and shifts in technology have human resources managers struggling to manage layoffs and firings

Just in time inventory

JIT- a production process in which a minimum of inventory is kept on the premises and parts, supplies and other needs are delivered just in time to go on the assembly line To work effectively, however, the process requires excellent coordination with carefully selected suppliers. JIT becomes more difficult when suppliers are farther away. Shipments may also be delayed due to poor weather, worker strikes, penalties can be applied.

Canada manufacturing goods and services

Rely on our natural resources- oil, gas hydroelectricity, one of the largest producers of forest products in the world- wood, furniture, paper More a company adds values to resources the better it is fro economy i.e. cut trees make lumbar then ship them

Hawthrone effect

The tendency for people to behave differently when they know they're being studied

Crisis planning

reacting to sudden changes in the environment

Centralized authority vs decentralized authority

when decision making authority is maintained at the top level of management at the company's headquarters when decision making authority is delegated to lower-level managers and eomplyees who are more familiar with local conditions than headquarters management could be

Financing your business Venture Capitalist Angel investors

- Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses - Private individuals who invest their own money in potentially hot new companies before they go public. Angel investors usually target their support (generally $20,000 to $500,000) to pre-start-up and early-stage companies.

Four ways Entrepreneurial ventures differ from small business

1. A punt of wealth creation- successful entrepreneur can create substantial growth in the millions 2. Speed of wealth creation- although small business can generate millions over time, entrepreneurs wealth often comes rapid 3. Risk- very high risk for entrepreneurial venture 4. Innovation- innovation beyond what a small business may exhibit. Gives competitive advantage that results in wealth creation

reasons for emergence of female entrepreneurs

1. Financial need 2. Lack of promotion opportunities 3. women returning to workforce 4. families and personal responsibilities 5. Public awareness of women in business 6. Part time occupations 7. higher rate of success- better than men

Challenges of home based businesses (5)

1. Getting new customers- no signs or storefront 2. Managing time- self discipline to use time wisely 3. Keep work and family task separate- distractions i.e. laundry 4. Abiding by city ordinances- government restricts types of businesses allowed in certain parts of the community and who much traffic it can attract 5. Managing risk-review home owners insurance policy since not all policies cover business related claims

Job orientated motivational techniques

1. Job Enrichment/Redesign - Skill Variety - Task Identity/Significance - Autonomy - Feedback 2. Job Simplification 3. Job Enlargement 4. Job Rotation

Managing a small business 5 functions of business in a small business setting

1. Panning your business 2. Financing your business 3. Knowing your customers 4. managing your employees 5. keeping records

Maslow's hierarchy of needs

1. Physiological- basic needs for survival- eating, drinking, shelter 2. Safety- need to feel secure at work and home 3. Social- need to feel loved, accepted and part of the group 4. esteem- need for recognition and acknowledgement from others 5. Self- Actualization-need to develop to your fullest potential

Determining HR needs: 5 steps (PPJJAAE)

1. Preparing a human resource inventory of the organization's employees- include ages, names, education, skills 2. Preparing job analysis- study what is done by employees who hold various job titles includes two important statements: 1. Job description: what the job does for the company 2. Job specification- what the person who holds the job must have as a skill set 3. Assessing future human resources demand- forecast organization's requirements and train people ahead of time to ensure trained people are available 4. Assessing future human resource supply- changes in labour force- getting older, retiring, graduates 5. Establishing a strategic plan - Addressing recruitment, selection, training and development

Manufacturing process

1. Process manufacturing: that part of the production process that physically or chemically changes materials. 2.Assembly process: that part of the production process that puts together components. 3. Continuous process: a production process in which long production runs turn out finished goods over time. 4. Intermittent process: a production process in which the production run is short and the machines are changed frequently to make different products

Herzberg's motivating factors (clustered around job content)

1. Sense of achievement 2. Earned recognition 3. Interest in the work itself 4. Opportunity for growth 5. Opportunity for advancement

4 ways to get into your first business venture

1. Start your own company (learn form others and get some experience) 2. Buy an existing business 3. Buy a franchise unit 4. Inherit or take over a family business

* Leaders must

1. communicate a vision and rally others around that vision 2. Establish corporate values and demonstrate they are valued 3. Promote corporate ethics, through action and policy 4. Embrace transformational change, leaders show confidence which allows people to assimilate change 5. stress accountability and responsibility in all directions

7 steps of decision making

1. define the situation 2. describe and collect needed information 3. develop alternatives 4. develop agreement among those individuals 5. decide which alternative is best 6. do what is indicated 7. determine whether the decision was a good one and follow up

keys for expectancy theory

1. determine rewards most valued by employees 2. Evaluate the performance level you seek 3. Make performance level attainable 4. Make reward valuable to employee

Advantages and disadvantages of departmentalization

1. employees can develop in depth skills and progress within department 2. Economies of scale can be achieved 3. Employees can coordinate work within the function, and top management can easily direct and control various department activities disadvantages- 1. Lack of communication among the different departments. 2. Individual employees may begin to identify with their department and its goals rather than with the goals of the organization as a whole. 3. The company's response to external changes may be too slow. 4. People may not be trained to take broad-based senior managerial responsibilities. 5.Group-Think - people in the same department tend to think alike.

5 step to selecting employees

1. obtain complete application form - ensures no details are omitted which were left off resume 2. Conduction initial and follow up interviews 3. Giving employment tests- skills test (job related) 4. Background checks- social media 5. Establishing trial periods

8 causes of small business failures

1. underpricing or overpricing goods or services 2. underestimating how much time it will take to build a market 3. Attempting to do too much business with too little capital 4. starting with too much capital and being careless with it 5. Going into business with little or no experience 6. not allowing for setbacks and unexpected expenses 7. extending credit too freely 8. Failing to keep accurate records

Principles of management

Begins with planning determining what work needs to be done and dividing up tasks

Variables to consider in span of control (CCFFGNP)

Capabilities of Manager Capabilities of Subordinates Geographically Close Functional Similarity Need for Coordination Planning Demands Functional Complexity *if subordinates need more help then small span of control

Hiring conditions

Closed shop: all new hiring must be done from the union's membership Union shop: employer is free to hire who it chooses, once hired the person must then join the union within a short period Agency shop: new employee is not required to join the union but must pay union dues 4. Open shop: employees are free to join or not join the union and pay or not pay union dues

Key criterion for measurement

Customer satisfaction must be measured for both external customer( buyer and dealers) and the internal customer ( individuals within the firm that receive services from other individuals)

Line organization

Direct report from customer to CEO Disadvantages Inflexible Few Specialists for Advice Long Line of Communication Difficult to Handle Complex Decisions Advantages Clear Authority and Responsibility Easy to Understand One Supervisor per Employee

Departmentalization

Dividing an organization into separate units- traditional way to departmentalize is by function functional structure- grouping workers into departments based on similar skills, expertise

Enterprise resource planning

ERP- newest version of MRP computer application that enables multiple firms to manage all their operations (finance, human resources) on the basis of a single integrated set of corporate data

Formal organization and informal organization

Formal- structure that details lines of responsibility, authority and position- informal- system of relationships and lines of authority that develops spontaneously as employees meet and form power centres - the human side of the organization examples of informal group norms Do your job, but don't produce more than the rest of the group. Don't tell off-colour jokes or use profane language among group members. Listen to the boss and use his/her expertise, but don't trust him/her.

Resources

General term that incorporates human resources, natural resources and financial resources

Planning: Goals and objectives

Goals- broad, long term accomplishments an organization wishes to attain- measurable objectives Objectives- specific, short-term statements detailing how to achieve the organization's goals SWOT- strength, weaknesses opportunity and threats- planing tool to measure organization

Disputes after the agreement Grievance

Grievance: a procedure laid down in the contract for resolving differences of Interpretation. Unresolved grievances can go to: Arbitration: independent, outside party to rule on grievances Mediation: the same as arbitration, but the mediator has no power to impose a ruling upon the parties

Managing Employees

Hiring, training and motivating employees is critical difficult to find good qualified help when you offer less money and fewer benefits More risk and less security for employees than established companies

Goal setting Theory

Idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback and facilitated by organizational condition

Lockouts and Back to work legislation

Lockouts - when the employer refuses to have employees work until they agree to a contract. Back to work legislation - to serve the public good the government orders the dispute resolved.

Supply chain management Logistics Supply chain

Logistics: those activities that focus on getting the right amount of the right products or services to the right place at the right time at the lowest possible cost. supply chain- the sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users.

Fayol's principles of organization

Management principles Organizations were designed so that no person had more than one boss, lines of authority were clear and everyone knew whom they were to report to

Theory Y

Manager has more positive assumptions about their workers 1. most people like work 2. naturally work towards goals 3. seek responsibility 4. Imaginative, creative, clever 5. Motivated by empowerment

The Hawthorne effect

Mayo and colleagues tested the degree of lighting associated with optimum performance -discovered lighting was not the factor that improved performance - believed that human or psychological factors caused increases in workers performance

Advantages of joining a union

Members are generally better protected when disputes arise Better negotiating power as a group rather than as an individual Can often receive higher wages and better benefit coverage (e.g., pension plan, supplemental health care, and dental plan)

Challenges to recruiting

Policies that demand internal promotion; union contracts, low wages. Legal guidelines that surround hiring practices. Management wants people who are not only skilled but also "fit" Candidates with the necessary skills are not available, workers must be hired and then trained internally

Matrix style

Specialists from different parts of the organization are brought together to work on specific projects by still remain part of a line-and staff structure A group that has skills from different functional areas, it crosses a traditional org chart horizontally. Creates inter-organizational teamwork and cooperation Can create divided or confused loyalty

Scientific management fredrick taylor

Studying workers to find the most efficient ways of doing things and then teaching people to do those things

Span of control

The optimum number of subordinates a manager supervises

Required management skills relating to management levels

Top managers need conceptual skills and human relation skills .. relying less on technical skills whereas middle managers require a balance between the three and first line managers require lots of technical skills but fewer human relations and conceptual skills

Job simulation

Using equipment that duplicates job conditions and task so that trainees can learn skills before attempting them on the job differs from vestibule training in that the simulation attempts to duplicate the exact combination of conditions

Difference from small business and entrepreneurship

While most businesses start small, it's the intent to stay small that separates small business from entrepreneurship

Job enrichment

a motivational strategy that emphasizes motivating the worker through the job itself

Entrepreneurship

accepting the challenge of starting and running a business

Employee orientation

activity that initiates new employees to the organization, to fellow employees, to their immediate supervisors, and to the policies, practices, values, and objectives of the firm. programs include everything from informal talks to formal activities that last a day or more.

Arbitration

agreement to bring in an impartial third party to render a binding decision in the labour dispute (decision is made for you)

Organizing

allocating resources, assigning tasks, and establishing procedures preparing a structure- organization chart recruiting, selecting, training and developing creating a structure that is responsive to the cutsomers

Union

an employee organization that has the main goal of representing members in employee-management bargaining over job related issues

Incubators

centres that provide hands on management assistance, education, information and support services, financial advice for businesses

ISO 14000

collection of the best practices for managing an organization;s impact on the environment Certification in both ISO 9000 and ISO 14000 would show that a firm has a world-class management system in both quality and environmental standards. European union demanding companies be certified

brainstorming

coming up with as many solutions to a problem as possible in a short period of time

ISO 9000

common name given to quality management and assurance standards

Materials requirement planning (MRP)

computer-based operations management system that uses sales forecasts to ensure that the needed parts and materials are available at the right time and place in a specific company

quality definition

consistently producing what the customer wants while reducing errors before and after delivery to the customer

Leading

creating a vision for the organization and guiding, training, and motivating others to work effectively to achieve common goal

Flexible manufacturing

designing machines to do multiple tasks so they can produce a variety of products leads to improved productivity, but it may also result in cost savings.

Business Plan

detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition and the resources and qualifications of the owners Must be specific about goods or services they intend to offer

Webers organizational principles

father of bureaucracy Principles included: Job description written rules procedures, regulations and policies staffing/promotions based on qualifications

Economies of scope

focuses on demand side- refers to efficiencies that can be realized through product bundling and family branding i.e. needed iPod and cell phone so apple decided to join cell phone and music

Certification

formal process whereby a union is recognized by the LRB as the bargaining agent for a group of employees

Self managed teams

groups of employees from different departments who work together on a long term basis Team is given authority to make decisions some are inter firm- more than one company

Labour unions

groups of individuals working together to achieve job related goals such as higher pay, better work hours and better working conditions

Fredrick taylor

increase productivity by studying the most efficient ways of doing things and then teaching workers these methods THREE elements of his approach Time Methods rules of work Time-motion studies- tasks needed to do a job and measure the time needed to do each task

Intrinsic reward vs extrinsic

intrinsic- the good feeling you have when you have done a job well extrinsic- something given to you by someone else as recognition for good work and includes pay increases, praise and promotions

Labour relations board

is a quasi-judicial body consisting of representatives from government, labour and business It functions more informally than a court but it has the full authority of the law.

Outsourcing

letting outside companies service them by doing what they are experts at Developments in information technology are giving firms and employees more flexibility than ever before Software development, call-centre jobs, and back-office jobs have been moving to developing countries. Canadian companies are also benefiting from other countries' outsourcing, by being a top IT outsourcing destination, especially for the United States.

Planning

management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals

Organizing

management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve a common goal

Controlling

management function that involves establishing clear standards to determine whether or not an organization is progessing toward its goals, rewarding people for doing a good job and taking corrective action if not

difference between leader and manager

manager strives to produce order and stability whereas leaders embrace and manage change generally if someone is given responsibility to lead they also have responsibility to manage

THEORY X

more negative assumptions about their workers 1. average person dislikes work 2. Avoid responsibility 3. must be forced, controlled, directed or threatened to put forth effort 4. little ambition 5. Motivated by fear and money

On the job training

most fundamental type of training. Employee immediately begins his or her tasks and learns by doing or watching others and then imitates them, all within workplace

Motivators vs hygiene factors

motivators: Herzbergs theory- job factor that cause employees to be productive and give them satisfaction Hygiene- job factors that can cause dissatisfaction if missing but do no necessarily motivate employees of increased - supervision, working conditions, pay, job security

Importance of a small business

nearly all small businesses are canadian owned and managed contrasts large businesses which may be foreign owned and managed small business plays major role in maintaining Canadian identity and economic independence ( fewer than 50 employees=small business )

Quality control: quality

not an outcome- never ending process of continually improving what a company produces Quality control- should be part of the operations management planning process rather than simply an end of the line inspection

Line and staff organization

not direct lines but dotted- someone provides expertise to help someone in line i.e. human resources help people but don't give authority Line personnel Employees who are part of the chain of command that is responsible for achieving organizational goals. Staff personnel Employees who advise and assist line personnel in meeting their goals

Rotating strikes wildcat strikes boycott

on and off alternating among different plants, cities, days of week as opposed to full fledged strike. Employees still get some pay Wildcat strike - unauthorized work stoppage while labour contract is still in effect boycott- organized labour encourages both its members and the general public not to buy the products or services of a firm involved in labour dispute

Craft Union Industrial union

organization of skilled specialists in a particular craft or trade Industrial union- one that consists of unskilled and semiskilled workers in mass production industries such as automobile manufacturing and mining

Strategic planning

outlines how the company will meet its objectives and goals - process of determining major goals of organization and the policies and strategies for obtaining and using resources to achieve those goals

Market advantage over large business

people with unsatisfied wants and needs who have both the resources and willingness to buy - The ability to know their customers better and to adapt quickly to their ever-changing needs

4 functions of management

planning, organizing leading and controlling

Reinforcement theory

positive and negative reinforcers motivate a person to behave certain ways * SKinner- individuals act to receive rewards and avoid punishment

Conciliation

process by which a trade union or an employer must use the government's help in resolving their differences so they can reach a collective agreement

Human resource management

process of determining human resource needs and the recruiting, selecting, developing, motivating, evaluating, compensating and scheduling employees to achieve organization goals

Tactical planning

process of developing detailed, short term statements about what is to be done, who is to do it and how it is to be done

Selection

process of gathering information and deciding who should be hired under legal guidelines, to serve the best interest of individual and organization

Contingency planning

process of preparing alternative courses of action that may be used if the primary plans dont achieve the organizations objectives ie.- economic and competitive environments change rapidly so it is important to have alternative plans of action

Operational planning

process of setting work standards and schedules necessary to implement the company's tactical objectives focuses on specific responsibilities of supervisors, managers and individual employees

Problem solving

process of solving everyday problems that occur- less formal than decision making and calls for quicker action

Management

process used to accomplish organizational goals through planning, organizing, leading and controlling people and other resources

Collective Bargaining negotiated labour-management agreement

process whereby union management representatives negotiate a contract fro workers The negotiated labour-management agreement. Informally referred to as the labour contract, clarifies the terms and conditions and sets the tone under which management and organized labour will function over a specific period.

Operations management in service sector

productivity and quality improving by use of computers and automation Automation and robotics have eliminated labour intensive jobs in manufacturing. Service workers are also at risk of losing jobs to automation. Workers become fewer, but their skills become more valuable.

Economies of scale

result of business growth situation in which companies can reduce their production costs if they can purchase raw materials in bulk and develop specialized labour- results in average cost of goods going down as production levels increase * focuses on supply side of business

Two factors of quality

satisfying customer expectations regarding the attributes and performance of the product ensuring technical aspects of product's design and performance conform to the manufacturer's standards

Recruitment

set of activities used to obtain a sufficient number of the right people at the right time

Records and accounting

small business owners often have to do their own accounting, records and files Critical to success

Micro-enterprises micropreneurs

small business with less than 5 employees small business owner with less than 5 employees who risks starting and managing type of business that remains small many are home based businesses

Specialization Departmentalization

specialization- dividing tasks into smaller jobs departmentalization- the process of setting up individual departments to do specialized tasks

Operations management

specialized area in management that convert or transforms resources into goods and services It includes inventory management, quality control, production scheduling, follow-up services, and more.

Setting standards for controlling must be..

specific attainable and measurable ex. increase the number of times managers praise employees from 3 per week to 12 per week by the end of the quarter

Picketing

strikers and locked out workers may picket the company Workers walk around the outside of the company carrying signs to communicate that they are in dispute with the employer. The goal is to put economic and public pressure on the employer Sabotage- In extreme cases workers may damage machinery

Hierarchy

system in which one person is at the top of the organization and there is a ranked ordering from top down of managers who are responsible to that person

MBO- management by objectives

system of goal setting, implementation that involves a cycle of discussion, review and evaluation of objectives among managers, supervisors and employees

Required management skills: Technical skills human relations skills conceptual skills

technical skills: involve the ability to perform tasks in a discipline human relations- skills involve communication and motivation, enable managers to work though and with people conceptual- skills involved in the ability to picture the organization as a whole and the relationships among its various parts

Production

the creation of goods and services using the factors of production- land labour, capital entrepreneurship knowledge

Purchasing

the functional area in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods and services efficiencies and savings in this area can improve company's profitability

Supply chain management definition

the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to the customers

Chain of command

the line of authority that moves from top of hierarchy to the lowest level

Facility layout

the physical arrangements of resources including people in the production process Offices, machines, storage areas, and other needed items in the best possible position for efficient work. Enable workers to produce goods and provide services for customers at the best quality and efficiency combination.

Mediation

the use of a third party- mediator, encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the dispute

Research and development

the work directed toward the innovation, introduction and improvement of products and processes - advancements can increase their production capabilities improve productivity expand their lines of new goods and services

Maslow- hierarchy of needs

theory of motivation that places different needs in order of importance from basic to self actualization needs ** first needs met then move along to satisfy others

Vesitbule training

training done in schools where employees are taught on equipment similar to that used on the job enable employees to learn proper methods and safety procedures before assuming a specific job assignment in an organization

Unions in Canada

unions illegal until 1872 Strike leaders were beaten, jailed or shot in 2011 unions represented 30 percent of all workers in 1984 represented almost 42 percent of workers

Planning- Vision, values, mission statement

vision is an encompassing explanation of why the organization exists and where it is trying to head values- set of fundamental beliefs that guide a business in the decisions they make Mission statement is an outline of the organizations fundamental purposes

Unions history

workers originally formed to protect themselves from intolerable work conditions and unfair treatment many issues fought by unions are now part of law Workers compensation Minimum wages Vacations & holidays Pension plans