What you’ll learnWhat you’ll learn Explain the significance of Explain the significance of

operational plans.operational plans. Describe the purpose of operating Describe the purpose of operating

policies, rules, and regulations. policies, rules, and regulations.

Staffing and Company Policies

Why it’s importantWhy it’s important Staffing involves who does the Staffing involves who does the

work in your company and work in your company and how your company is how your company is perceived.perceived.

Staffing and Company Policies

Key TermsKey Termsstaffstaff

job descriptionjob description job specificationjob specification commissioncommission

piece ratepiece rateprofit shareprofit share

Staffing and Company Policies

I.I. STAFFING YOUR OPERATION STAFFING YOUR OPERATION

There are four steps to staffing.There are four steps to staffing.

A.A. Design an Design an organizational chartorganizational chart..

B.B. Write job descriptions. Write job descriptions.

C.C. List job List job specificationsspecifications..

D.D. Compile professional summaries. Compile professional summaries.

Staffing and Company Policies

Staffing and Company Policies

Job descriptionsJob descriptions are statements are statements describing the objectives of the describing the objectives of the job and its duties and job and its duties and responsibilities.responsibilities.

Job specificationsJob specifications spell out the spell out the abilities, skills, educational abilities, skills, educational level, and experiencelevel, and experience

Staffing and Company Policies

II.II. PERSONNEL POLICIES PERSONNEL POLICIES AND DECISONSAND DECISONSBefore searching for Before searching for employees, think about the employees, think about the kind of people you want to kind of people you want to hirehire..

Staffing and Company Policies

17.2 Staffing and Company Policies

Group Discussion

Name some characteristics of the perfect employee.

At your table groups, record your answers.

III.III. EMPLOYEE STANDARDSEMPLOYEE STANDARDS

A.A. Employees affect what Employees affect what customers customers thinkthink about about your company.your company.

B.B. Define the employee Define the employee

traitstraits you want on your you want on your personnel policy.personnel policy.

Staffing and Company Policies

IV. PAY AND BENEFITSIV. PAY AND BENEFITSA.A. Pay competitive Pay competitive wageswages and and

salaries. salaries. B.B. Offer competitive employee Offer competitive employee

benefitsbenefits..C.C. Ways to Ways to paypay employees employees

1.1. Paying based on the amount Paying based on the amount of of timetime an employee works. an employee works.

2.2. Paying based on Paying based on productivity productivity

Staffing and Company Policies

D.D. Productivity pay can be either a Productivity pay can be either a piece ratepiece rate (so much per unit produced) or a (so much per unit produced) or a commissioncommission (a percentage of sales). (a percentage of sales).

E.E. The law requires employee benefits such as The law requires employee benefits such as Social Security, unemployment Social Security, unemployment compensation, and workers compensation, and workers compensation.compensation.

Staffing and Company Policies

Staffing and Company Policies

F.F. Optional benefits include paid vacations, Optional benefits include paid vacations, paid sick leave, health and life insurance, paid sick leave, health and life insurance, flextime, pensions, and childcare.flextime, pensions, and childcare.

profit share profit share ((refers to various incentive refers to various incentive plans introduced by businesses that provide plans introduced by businesses that provide direct or indirect payments to direct or indirect payments to employees mployees that depend on company's profitability )that depend on company's profitability )

G.G. Typically benefits run between 20 to 40% Typically benefits run between 20 to 40% of salary.of salary.

V. TRAINING AND V. TRAINING AND DEVELOPMENTDEVELOPMENTYou will need to train your You will need to train your employees.employees.

Staffing and Company Policies

Policies & Procedures

Having a Having a policypolicy on how to deal on how to deal with a recurring situation helps with a recurring situation helps

simplify day-to-day management.simplify day-to-day management.

policy a statement of goals, purposes, and principles that serves as a guideline for daily business operations and supports the company’s goals and objectives.

Policies & Procedures

In contrast to a policy, a In contrast to a policy, a rulerule leaves no room for interpretation.leaves no room for interpretation.

rule rule a standard set forth to guide a standard set forth to guide behavior and actions; a rule tells behavior and actions; a rule tells employees exactly what they employees exactly what they should and should not do should and should not do

VI. PERSONNEL RECORDSVI. PERSONNEL RECORDS

A.A. Maintain and establish Maintain and establish personnel personnel filesfiles..

B.B. Files should contain contact Files should contain contact information and information and trainingtraining and and performanceperformance records. records.

Staffing and Company Policies

Staffing and Company Policies

Staffing & Company Policies

Check Your UnderstandingCheck Your Understanding

1. Identify one of the fours steps in staffing an operation.

2. What role do policies and rules play in managing operations?

3.3. Explain the difference between Explain the difference between policies and rules.policies and rules.