Download Lect-18 managing the business

Lecture 18
Managing the Business
Dr. Hatem Elaydi
ECOM 5368 Engineering
Management
(Entrepreneurship & ework)
Islamic University of Gaza
Nov 7, 2016
Organizing management function
 “ad-hoc” basis, does not work to operate successful
business. Methodical and systematic approach is
needed.
 Four management functions fundamental to a well
managed business:
 Planning
 Organizing
 Directing
 Controlling.
Planning
 Planning is laying out a future course of action.
 Entrepreneur needs a continual flow of information
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about expected sales, finances required, personnel or
staff required, etc.
Profits are planned
Production is planned
Planning is on-going process throughout the life of the
business.
Areas for planning operations: marketing plan, financial
plan, human resources plan, and production plan..
ECOM 5368, Dr. H Elaydi, Fall2016
Marketing Plan
Answer the following questions:
 Who are the costumers for the product or service?
 What incomes do the potential costumers have?
 What are their needs?
 Are the products/services competitively priced?
 How well I persuade the costumer to buy?
 How well I use advertising, public relation, sales promotion
and personal selling?
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Financial Planning & Human resource
planning
Financial Plan
 Financial plan is essential especially if money will be borrowed.
 Planning for all expenses and revenues is necessary to arrive at the
planned profit levels.
Human resource plan
 It is essential to plan for employees.
 How many employees are required? Where do you find them?
 How do you select them? Do they need training?
 What is the most efficient way to communicate with them?
 How do you maintain good morale?
 How will you manage your employees?
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Production plan
 The secret of production is obtaining the maximum amount of
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finished products from the least amount of material or labor.
Is there a better way of doing things?
Can I produce the quantities required?
Can I maintain high quality?
Will I subcontract or produce everything myself?
How much raw material is required?
How many products must I produce and keep in stock?
What is the best machinery and equipment?
What is the best location?
ECOM 5368, Dr. H Elaydi, Fall2016
Organizing
 Organizing sets out the different jobs or positions in the
organization and shows the relationship between the different
positions.
 A venture must have order; everyone has to know their role
and play it
 . Organizing involves: responsibility, authority, accountability,
span of control, and organizational structure.
 Responsibility is the obligation of each employee to perform
. the duties assign to them.
.
 Employees who do not accept responsibility to their position
• will not last long on the job.
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Organizing …
 Authority is the superior’s right to give orders or instructions to
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an employee.
Authority comes with responsibility of a job.
Accountability: If you delegate responsibility to an employee
and the employee accepts it in return for wages, you have the
right to expect work from this employee; he should be
accountable to you.
Employees should be accountable to one person (one boss).
Span of control relates to the number of people which one
person effectively supervise. (No more than 8 people at time)
Organizational structure. The relationships between
employees are drawn on an organizational chart.
ECOM 5368, Dr. H Elaydi, Fall2016
Directing
 Directing is the job of simulating the organization to undertake
the work required to implement the plans.
 Directing required skills in motivating, communicating,
counselling, and disciplining.
 Directing focuses on bringing out the best in all employees to
keep them happy and fulfilled.
Motivation: there many ways such as: praise, recognition, more
responsibility, job satisfaction, taking an interest in people.
 Do not use negative motivation; it leads to unhappy employees
causing low morale and low output.
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Directing …
 Leadership is an ability to stimulate or initiate action in
your employee.
 A leader is a guide.
 Good leadership ensures cooperation and efforts of your
employee
 Communication is sending and receiving messages.
 Good managers have strong communication skills
 It includes: words, gestures, signals, listening, empathizing
and clarifying.
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Controlling
 Constantly comparing the plans to the actual
performance of operation.
 The most common control methods focus on:
 Sales
 Production
 Control of personnel
 Purchases and inventory
 profit
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Developing Job Description
Dr. Hatem Elaydi
Develop job description
It itemizes:
 what duties and responsibilities of the individual are
 Who the individual reports to
 What other people the individual will supervise
 Specifics examples of the type of work to be performed.
 Assessment of the educational level required, training
required, amount and type of work experience, level of
mastery of skills.
 Use task analysis worksheet, work force analysis
worksheet
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Develop Job description
 General statement of duties
 Examples of work performed
 Material, tools and equipment used
 Supervision required
 Supervises
 Required training and experience
 Other requirements
 Application for employment
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Forms of Compensation
Dr. Hatem Elaydi
Introduction
 How much do I need to pay?
 The salary must be fair and competitive.
 How much can you afford to pay?
 How much the employee is making compare to
others?
 Overpaying
 Underpaying
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Employee motivators
 Social status
 Attractive workplace
 Personal development and growth
 Worthwhile activity
 Personal power and influence
 Power in one’s own affairs
 Good supervision
 Treatment as an individual
 Sense of accomplishment
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Salary or wage plans
 Salary
 Piece work
 Commission
 Combination (salary + commission)
 Bonus
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Selecting and Hiring Staff
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Criteria for hiring staff
 Required skills
 Amount of training
 Interpersonal skills
 Amount of experience
 Salary range required
 do skills meet requirement
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Sources of employees
 Public media
 Schools
 Employment office
 Employment agencies
 Friends and relatives
 Organizations for special groups
 Government program agencies
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On-Job Training
Dr. Hatem Elaydi
Training employees
 On-the-job method
 Off-site class training
 On-site classes
 Classes during off hours
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On-the-job training steps
 Prepare
 Present
 Try out
 Follow up
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Motivate
Understand
Participate
Apply
Managing Stress
Dr. Hatem Elaydi
Possible stress symptoms
 Headaches
 Low self-esteem
 Backaches
 Unhappiness
 Ulcers
 Lack of motivation
 Asthma
 Relationships that do not
 Sleep disorder
work
 Eating disorder
 Substance abuse
 Joint pain
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Signs of stress overload
 Irritability ( uncontrollable anger)
 Insomnia (too tired, to worried, too keyed up, trouble
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staying or fall sleep).
Fatigue (tired, weary, dizzy, have aches and pains)
Intestinal disturbances diarrhoea, constipation, stomach
pains, nausea, vomiting)
Weight change
Respiration problem (shortness or rapid breathing)
Heart irregularity
Psychological upsets (sorry for yourself, bored, traped).
ECOM 5368, Dr. H Elaydi, Fall2016
Managing stress
 Begin the day with positive picture of yourself
 Exercise a little every day
 Shower after exercise
 Eat well-balanced breakfast
 When you are tense at work, close you eyes and imagine
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something lovely
Practice deep and slow breathing
Close your door and stretch (isometrics)
Learn to think pleasant thoughts
Avoid negative emotions (anger and hostility)
Walk daily and focus on your surroundings.
ECOM 5368, Dr. H Elaydi, Fall2016
Managing stress …
 Play sport
 Develop gentle approach to life
 Smile
 Fantasize
 Listen to Quran to relax (music)
 Study something simple (language)
 See a movie
 Talk to family and friends
 Yoga
 Have childlike fun
 Try screaming
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