Page 343 - Business Principles and Management

Unit 4

FIGURE 13-2 Schedules are important planning tools. A work schedule
is one example.

WORK SCHEDULE FOR JULY 23 SPECIAL ORDER DEPARTMENT

Employee Order 532 Order 533 Order 534
Shenker, M. X
Duffy, P. X
Gaston, S. X
Robinson, J. X
Kingston, C. X

(see Figure 13-2). Production managers use schedules to plan the completion
and shipment of orders. Salespeople use schedules to plan their sales calls effi-
ciently, and advertising people use schedules to make sure the ads appear at
the correct time and in the proper media. Office managers need to schedule
the preparation and printing of mailings and reports to make sure they are
completed on time.

STANDARDS

Another planning tool for managers is the use of standards. A standard is a spe-
cific measure against which something is judged. Businesses set quality stan-
dards for the products and services they produce. Managers then compare the
products against the standards to judge whether or not the quality is acceptable.
Companies also set standards for the amount of time that tasks should take. For
example, a fast-food restaurant may set a standard that customers will receive
their food within three minutes of placing their orders. If managers see that cus-
tomers are getting their food five minutes after ordering, then the service time is
not meeting company standards and is therefore not acceptable. Companies may
also set standards for the number of defective products allowed on an assembly
line or the number of calls a salesperson must make during a day.
Managers are responsible for setting realistic standards and for using those
standards to judge performance. They also must know when to revise outdated
standards. In Chapter 14, you will learn how standards are used to control work
as well as to plan.

POLICIES
As part of planning, managers frequently establish policies. Policies are guide-
lines used in making decisions regarding specific, recurring situations. A policy
is often a general rule to be followed by the entire business or by specific depart-
ments. Remember the discussion of work rules in Chapter 12? Work rules are
examples of business policies.
A broad policy may state that the performance of each employee must be
evaluated at least twice a year using the company’s performance review proce-
dures. Because of that policy, even an employee who has been with the com-
pany for 10 years must be evaluated. Policies help to reduce misunderstandings
and encourage consistent decisions for similar conditions by all managers and
employees.

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