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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 3 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? 4 ECOM 5368, Dr. H Elaydi, Fall2016 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? 5 ECOM 5368, Dr. H Elaydi, Fall2016 Production plan The secret of production is obtaining the maximum amount of 6 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. 7 ECOM 5368, Dr. H Elaydi, Fall2016 Organizing … Authority is the superior’s right to give orders or instructions to 8 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. 9 ECOM 5368, Dr. H Elaydi, Fall2016 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. 10 ECOM 5368, Dr. H Elaydi, Fall2016 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 11 ECOM 5368, Dr. H Elaydi, Fall2016 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 13 ECOM 5368, Dr. H Elaydi, Fall2016 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 14 ECOM 5368, Dr. H Elaydi, Fall2016 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 16 ECOM 5368, Dr. H Elaydi, Fall2016 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 17 ECOM 5368, Dr. H Elaydi, Fall2016 Salary or wage plans Salary Piece work Commission Combination (salary + commission) Bonus 18 ECOM 5368, Dr. H Elaydi, Fall2016 Selecting and Hiring Staff 19 ECOM 5368, Dr. H Elaydi, Fall2016 Criteria for hiring staff Required skills Amount of training Interpersonal skills Amount of experience Salary range required do skills meet requirement 20 ECOM 5368, Dr. H Elaydi, Fall2016 Sources of employees Public media Schools Employment office Employment agencies Friends and relatives Organizations for special groups Government program agencies 21 ECOM 5368, Dr. H Elaydi, Fall2016 On-Job Training Dr. Hatem Elaydi Training employees On-the-job method Off-site class training On-site classes Classes during off hours 23 ECOM 5368, Dr. H Elaydi, Fall2016 On-the-job training steps Prepare Present Try out Follow up 24 ECOM 5368, Dr. H Elaydi, Fall2016 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 26 ECOM 5368, Dr. H Elaydi, Fall2016 Signs of stress overload Irritability ( uncontrollable anger) Insomnia (too tired, to worried, too keyed up, trouble 27 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 28 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 29 ECOM 5368, Dr. H Elaydi, Fall2016