Management Function Planning

1. Management FunctionPlanning Dr. John P. Abraham UTPA

2. Planning • Provides direction • Cooperation and teamwork • Reduces impact of change • Forces to anticipate change • Minimizes waste and redundancy • Coordination among managers • Sets standards to facilitate control • Strategic planning for long term • Tactical planning for short term

3. Strategic Planning • strategic planning determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not. • The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular product, service or program.

4. Management by Objectives • Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources • It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization.

5. Management by objectives • All levels makes objectives • Provides for specific personal performance • Identify an employee’s key job tasks • Establish specific objectives • Allow employee to actively participate • Prioritize • Build a feedback mechanism • MBO not as popular as once

6. Planning stages • Mission and objectives • Analyze environment • Analyze organizations resources • Identify opportunities and threats (SWOT –strengths weakness, opportunities and threats) • Identify strengths and weakness of organization. • Formulate strategies • Implement, evaluate and adjust

7. SWOT Strengths • What is your strongest business asset? • Do you consider your team strong? Why? • What do you offer that makes you stand out from the rest? • What unique resources do you have? • Do you have any specific marketing expertise? • Do you have a broad customer base? • Additional strengths

8. SWOT Weaknesses • What can be improved? In what areas do your competitors have the edge? What necessary expertise / manpower do you currently lack? Do you have cash flow problems? Are you relying primarily on just a few clients or customers? Additional weaknesses

9. SWOT Opportunities • What trends do you see in your industry? • What trends do you foresee? • What trends might impact your industry? • What external changes present interesting opportunities? • What have you seen in the news recently that might present an opportunity? • Additional opportunities

10. SWOT Threats • What obstacles do you face? • What is the competition doing that you're not? • What challenges can be turned into opportunities? • Are external economic forces affecting your bottom line? • Additional threats

11. Decision Making process • Identification of decision criteria • Allocation of weights to criteria • Development of alternatives • Analysis of alternatives • Selection of an alternative • Implementation and evaluation

12. Decision Making Models • Mathematical model • Differential calculus • Statistical Model

13. Example • Customer service might improve with number of employees up to a point. Then the service might actually decrease. • We can graph this on x, y. Example equation, y= 14X – 1/2X2 • We can calculate the optimum number of employees needed.

14. Example car buying decision • Price weight 10 • Interior comfort 8 • Durability 5 • Repair record 5 • Performance 3 • Handling 2 • Trade-in value 3 • Use this on variety of cars available • Think: How do we make decision on stem cell research? • CS – expert system, neural networks

15. Decision Making Techniques • Payoff Matrices • is a concept in game theory which shows what payoff each player will receive at the outcome of the game. The payoff for each player will of course depend on the combined actions of all players. • Based on uncertainly and pessimist an optimist view of the manager • Decision Trees • Involves a progression of decisions • Brake-Even Analysis • A point at which revenue is sufficient cover costs. • Ratio Analysis • Current ratio – current assets divided by its current liabilities. • P/E ratio • Etc. • Queuing theory • Determine how many teller stations to have

16. Decision tree example

17. MANAGEMENT FUNCTION • ORGANIZING

18. Organizing •  24So Moses hearkened to the voice of his father in law, and did all that he had said. •  25And Moses chose able men out of all Israel, and made them heads over the people, rulers of thousands, rulers of hundreds, rulers of fifties, and rulers of tens. •  26And they judged the people at all seasons: the hard causes they brought unto Moses, but every small matter they judged themselves. • Exodus 18

19. Organization structure • Formal organization chart represents the division of activities within the firm (who reports to whome).

20. Types of departmentalization • Functional • Engineering, accounting, IT • Products • Hardware, software, footware • Customer • Wholesale, retail, government • Geographic • North, south • Process • Testing, payment

21. Elements of organization structure • Work specialization • Specialized training • Chain of command • Unity of command – only one manager • Span of control • How many employees con a manager direct effectively? 6 • Authority (rights given or taken) & Responsibility • Centralized vs decentralized authority

22. Line and Staff Relationship • Deals with authority from previous slide • Line are those that are directly concerned with attaining product or service. • Production, sales and finance • Staff exist to help make the line activities more effective. • HR, purchasing, IT, safety • Not usually subject to line authority • Line-staff friction

23. Beware of informal organization • Sociogram • Movie- last castle

24. Building Power • Power is the total amount of influence that an individual has to influence behavior of people. Some of it comes from formal authority given by line. • Knowledge, skill • Respect others • Build power relationships • Control important information • Gain seniority • Build power in stages

25. Staffing and HR • HR practices are governed by laws. • Equal pay act 1963 • Civil rights act titile VII (race, color, relion, national origin or sex) 1964 • Vocational rehabilitation act (physical or mental disabilities) 1973 • Privacy Act 1974 • Pregnancy (Title VII) 1978 • No Mandatory age for retirement 1978 • Immigration Reform –don’t hire illegals 1986 • Polygraph limitation – 1988 • Disabilities act (accommodate) 1990 • Family and Medical Leave act 1993

26. Employment Planning • Assessing current human resources • Job analysis • Job description • Job specifications (minimum qualification) • Future human resources needs • Revenues, expansion • Developing a program to meet these needs

27. Recruitment and Selection • Internal search • Advertisement • Employee referrals • Employment agencies • School placement • Temp services • Employee leasing and Independent contractors

28. Downsizing • Firing • Layoffs • Attrition • Transfers • Reduced workweeks • Early retirements

29. Employee Selection Process • Problem to avoid: Hired can’t do the job and not-hired was capable. • What was the prediction of success based on? • Test? Interview? References? Education? • Written tests are good. • Oral tests are also good. • Interview alone is probably not good

30. Interviewing skills • Review job description and job specifications before interviewing. • Prepare a structured set of questions and ask all applicants. • Review written application and resume before the interview • At the start of interview give a brief preview of topics discussed. • Find out how much the applicant know about the position and the company in general • Let the applicant know what is the next step • Write down the evaluation immediately upon conclusion of the interview

31. Orientation, Training and Development • Orientation • Job, department, company, environment • Objectives, history, rules, procedures • Training • Job rotation, classroom training, simulation • Train about sexual harassment • Development • Performance evaluation and development for additional resposibilites • Pay increases • Counseling, discipline

32. Other Aspects of Organizing • Spiritual Organization (Southwest air, HP) • Strong sense of purpose, focus on individual development, trust and openness, employee empowerment, toleration of employee expression. • Manage change, stress & innovation

33. Hiring and firing • The following slides are taken from a presentation given by Carlos Herrera

34. Hiring Process

35. The Hiring Process • Title IV of the Civil Rights Act of 1964 • The Nation’s employment non-discrimination law. • Employers cannot discriminate based on race, sex, religion, or national origin. • Amended to add age discrimination, pregnancy, or pregnancy-related medical conditions, and disabilities. • –Section 702 • Has specific wording that allows religious nonprofit employers to discriminated based on religion.

36. Exempt and Non-Exempt Employees • The federal Fair Labor and Standards Act (FLSA), (29 USC §201 et seq.) establishes the federal minimum wage and a 40-hour workweek with time-and-a-half pay for overtime work for employees. • An “exempt” employee is one that is exempt from the overtime requirements. • Executive, professional, and administrative employees can qualify as “exempt”. • The Dept. of Labor looks at duties, not titles of individuals when determining whether they are properly classified as “exempt” from overtime or not.

37. The Hiring Process • •Exempt and Non-Exempt Employees • To qualify as an "EXECUTIVE" exempt person, the individual must: 1)manage an enterprise, department, or subdivision as a primary duty; 2)direct the work of at least two full-time employees; 3)have authority to hire and fire or to make recommendations on hiring and firing; and 4)be paid a minimum of $455 per week.

38. The Hiring Process • Exempt and Non-Exempt Employees • To qualify as an "ADMINISTRATIVE" exempt person, the individual must: • either be responsible for office work directly related to management or general operations or be responsible for work directly related to academic instruction or training at a school; • regularly exercise discretion and individual judgment in matters of significance, as opposed to merely following procedures, and have authority to make important decisions; • regularly assist an owner or executive, or perform work that requires special training or experience under only general supervision; and • be paid a minimum of $455 per week, or if employed on a yearly basis, a minimum salary of $23,660.

39. The Hiring Process • •Exempt and Non-Exempt Employees • To qualify as a "PROFESSIONAL" exempt person, the individual must: • have knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction and study, or have talent in a recognized field of artistic endeavor; • the work must require the consistent exercise of discretion and judgment in its performance; and • the work must be predominantly intellectual and varied in character, not routine physical, mental, manual, or mechanical work.

40. Exempt and Non-Exempt Employees • Teachers • Usually fit under the ―Professional Category‖. • There is a subcategory under this exemption for teachers • It does not require a college degree to qualify. • Teachers serving in nursery schools and up through the college level automatically qualify for the professional exemption category whether or not they earn $455 per each week employed. • A teacher qualifies for the overtime exemption by virtue of the position alone

41. The Hiring Process • •Exempt and Non-Exempt Employees • Special Cautions • People mistakenly believe that if a person is placed on a salary, they become an “exempt” employee. • Wrong! Exempt employees are defined as “exempt” by what they do, not by how they are paid. • Secretaries or Administrative Assistants usually are not “exempt”. • Teacher aides in preschool or K-12 schools do not qualify for “exempt” status.

42. The Hiring Process • •Title VII of the Civil Rights Act of 1964 • Applies to employers with 15 or more employees. • It requires that employers not discriminate in employment decisions on the basis of race, color, religion, sex, and national origin. • Title VII also prohibits employers from providing fringe benefits on a discriminatory basis. • Section 702 -exception for religious employers.

43. The Hiring Process • The Age Discrimination in Employment Act of 1967 (ADEA) • Applies to employers with 20 or more employees. • Under ADEA employers must guard against making any employment decisions that unfairly impact employees age 40 and over. • The Pregnancy Discrimination Act of 1978 • It makes it clear that Title VII treats discrimination against a woman because of pregnancy, childbirth, or a pregnancy related medical conditionas unlawful sex discrimination.

44. The Hiring Process • The Americans with Disabilities Act (ADA) • Job application procedures, interviewing, hiring, advancement, discharge, compensation, training, and other terms and conditions and privileges of employment are covered under this law. • Employers who have employed 15 or more full-and part-time employees for at least 20 weeks in the current or preceding year are subject to the ADA. • Requires employers to provide reasonable accommodations so that disabled job applicants may qualify for employment, or current employees that may become disabled may continue employment, if they can perform the essential functions of the jobs.

45. The Hiring Process • Preparing Effective Job Descriptions • Everyone on staff needs an effective job description. • Sets the standards and goals that each employee must endeavor to meet. • Should be used as the primary focus of evaluations. • Job descriptions should be uniform • Spiritual and Educational Job Requirements • Essential Job Functions • Additional Job Responsibilities • Physical Job Requirements

46. The Hiring Process • Preparing Effective Job Descriptions • Should include: • Hired by • Responsible to • Supervises • Evaluated by • There should be a statement as to exempt or non-exempt status • Job descriptions should be signed as a part of the contract. • Should be discussed as a part of the interview process.

47. The Hiring Process • The Application Process • Unless you can defend a question on your application on the basis that it is “job related”, it is best not to use it. • Again, you can ask religious questions but you must be able to demonstrate that they are job-related. • You should have different applications for different types of employees. • Administrator, Teacher, Support Staff, Volunteer applications are all in the Personnel Resources. • Use a two part application. • Part I –General questions and testimony • Part II –More sensitive questions regarding lifestyle and morality.

48. The Hiring Process • Conducting Background Checks • Because of the increase in litigation in the areas of alleged discrimination and wrongful termination, most attorneys today counsel clients to release only the verification and dates of employment for previous employees. • If you provide them with copies of a filled out Authorization to Release Reference Information form, they will be more inclined to cooperate with your request. • With each request that you mail out, include a copy of that release form previously signed by the applicant.

49. Interviewing Applicants • When asking a person to answer a question on an employment application or in an oral interview—it must be job related. • You should have a prepared list of questions that you ask every person. • Stay away from ―rabbit trails‖ during the oral interview. • Stick with the script! • How a question is worded will make a significant difference in how an applicant may view the question and favorably respond.

50. The Hiring Process • Interviewing Applicants • Think about whether there are any ways that answers to those questions could be used inappropriately to screen out or discriminate against applicants. • Reword the questions to give them a better ―job-related‖ context. • Remember, in oral interviews you need to be just a professional as in the written application process. • Don’t make a mistake here. • Have your interview questions written out in advance.