Page 344 - Business Principles and Management

Chapter 13 • Planning and Organizing

PROCEDURES
A procedure is a list of steps to be followed for performing certain work. In order
to implement the policy described in the previous paragraph, the company must
develop specific performance review procedures. For routine tasks, procedures
improve business efficiency and are of special help to employees who are learning
a new job. The procedure shown in Figure 13-3 would be a great help to a new
employee in the catalog order department of the Johnson Company. Experienced
employees can help managers design new procedures and improve old ones.

RESEARCH
To do a good job of planning, managers need a great deal of information. To
develop budgets, they need to know how money was spent in past years, what
certain tasks will cost, and how competitors are spending their money. Managers
can improve schedules if they know how long certain jobs take to complete. They

FIGURE 13-3 A flowchart can be used to show the order of steps in a
work procedure.

Start

Order
Received

Prepare
Invoice

Yes
Shipping Room
Cash Sale?
Sends Goods

Deposit
Cash
No

Halt

Yes
Shipping Room
Credit Okay? Sends Goods
No
Return Order Send Invoice to
to Customer Collection
Department

Halt
Halt

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