Chapter 13, 14 and 15 summary

1,207 views

Published on

Published in: Business, Career
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,207
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Chapter 13, 14 and 15 summary

  1. 1. Supervision: Managing to Achieve Results   Chapter 13   Working With Unions:Supervising Union Employees    
  2. 2. Discussion Unionization in the Verde Valley•  Is there any union activity in the Verde Valley area•  Why or why not?
  3. 3. Unions•  Although the size and power of the U.S. labor movement has changed in recent years, labor unions remain a powerful political and economic force.•  If a union exists in the workplace, manager’s roles change because both unions and management must comply with the new rules based on the union - management framework.•  Some businesses try to avoid unions altogether due to the constraints that a unionized workforce puts on an organization.
  4. 4. Governing Laws•  The National Labor Relations Act (NLRA), was enacted in 1935 during the Great Depression and was intended to minimize the disruption of interstate commerce caused by strikes.•  This law gives employees the right to join labor unions without employer interference.•  It allows employees to form labor organizations and to bargain with management about wages, hours and other working conditions.•  The National Labor Relations Board (NLRB) was created to enforce these rights.
  5. 5. Governing Laws (continued)•  Taft-Hartley Act makes it illegal for unions to force employees to join them, and it outlaws picketing and strikes under certain circumstances.•  The Taft-Hartley Act also allows the individual states the right to pass right-to-work laws, which ensure that new employees are not required to join an already established union as a condition of retaining their jobs.
  6. 6. Local Unions For supervisors, local unions are probably the most important part of the union structure.
  7. 7. Local Unions•  The union steward usually represents the first step in the grievance process should an employee or the union feel that some element of the union contract has been violated.•  Grievance procedures are normally outlined in the union contract, and they may vary from operation to operation, but they often follow a step-by-step procedure. Step 1 – Employee with the complaint meets with the supervisor and the union steward to discuss the grievance. Step 2 – If the grievance is not settled there is a conference between the union steward, the employee, and the supervisor’s boss. Step 3 – If the grievance continues to be unsettled, representatives of top management at the operation and top union officials try to settle it. Step 4 – If still unsettled, the grievance is given to a neutral third party such as an arbitrator (decision is final and binding) or mediator (suggests ways to resolve the grievance).
  8. 8. National Unions•  National unions provide their locals with legal assistance and expert advice, help them with negotiations, training of local officials, and handling grievances.•  Locals must share their dues with their national union, and they must obey its constitution and bylaws.•  Several national unions joined together to form multi-union associations as social problems began to affect them. –  The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is the most prominent multi-union association
  9. 9. Working with Unions•  Employees typically join unions because they feel that management is not being responsive to the issues they’ve raised relating to their job satisfaction.•  Most business owners and managers try to avoid unionization so that they can maintain lower labor costs and achieve greater management flexibility in the operation of their facilities.
  10. 10. Avoiding Unionization•  Perhaps the key to avoiding the unionization of your business employees is to pay your staff competitive wages and to provide a positive work climate so they have no reason to join a union.•  Other steps to create a positive work environment include: –  Design jobs that are personally satisfying to workers –  Develop plans that maximize individual opportunities and minimize the possibility for layoffs –  Qualify potential employees and carefully match the right applicant with the right job –  Establish meaningful standards to measure and evaluate performance –  Train workers and managers –  Provide ongoing training for all employees –  Evaluate and reward behavior on the basis of actual job performance
  11. 11. Organization Process•  There  is  a  well-­‐established  legal  process  that  must  take  place  in   order  for  a  union  to  organize  the  workers.    •  Employees  who  ini<ate  contact  with  the  union  will  normally  be   given  union  authoriza<on  cards  to  pass  out  to  coworkers.     –  When  signed  by  30%  of  the  employees  in  the  organiza<on,  the  union  is   authorized  to  represent  the  employees  during  nego<a<ons.   –  The  NLRB  then  sets  a  date  for  the  union  elec<on.   –  If  the  majority  of  ballots  are  cast  in  favor  of  the  union,  it  becomes  the   bargaining  agent  on  behalf  of  the  employees  and  management  is  required   to  bargain  in  good  faith  •  The  NLRA  prohibits  employers  from  retalia<ng  against   employees  who  may  be  involved  in  union  organiza<on  ac<vi<es.  
  12. 12. Union Contract•  The collective bargaining agreement, or union contract, is a legal, binding document.•  Management and the union do not necessarily have to agree on each and every term or condition included in the contract, but the law requires that each party bargain in good faith.
  13. 13. Union ContractA union contract typically contains terms and conditionsthat affect some or all of the following areas:ü  Wages, salaries and employee benefitsü  Holidays and vacationsü  Overtime pay, sick days, leaves of absence, and personal daysü  Seniority mattersü  Training and new employee orientationü  Grievance proceduresü  Disciplinary issues and probationary periods for new hiresü  Employee performance evaluations, promotions and transfersü  Union duesü  Whether new employees are required to join the union and pay dues (in a non-right-to-work-state)ü  Layoffs and other reductions in workforce
  14. 14. Union Contract•  The union will stress matters it sees as most beneficial to its members, and management will work hard to retain as much control and flexibility over business operations as possible.
  15. 15. Union Challenges•  Once a union and a collective bargaining agreement are in place, the dynamic in the workplace changes, and routines and procedures that were once commonplace may no longer be allowed.•  Managers realize that most employees in the organization will have no interest in joining a union if the organization pays competitive wages and if management works hard to provide a positive work environment.    
  16. 16. Union Challenges Failure to implement sound management and supervision practices provides the justification and the motivation for workers to be less productive, to seek the help of government regulatory agencies, or to form unions.
  17. 17. SummaryManagers of unionized operations will need to understandthe do’s and don’ts of working with unionized employees.Managers find that their roles change when theiremployees are unionized because both unions andmanagement must comply with laws and regulations thatgovern the union - management framework. Creating apositive work environment helps to ensure that employeesdo not feel the need to join unions.    
  18. 18. Supervision: Managing to Achieve Results   Chapter 14   Budgeting and Accounting Working with Numbers    
  19. 19. Budgets•  A budget is an itemized forecast of an individual’s or company’s income and expenses expected for some period in the future.•  Budgets provide the baseline of expected performance against which managers measure actual performance.
  20. 20. Budgets•  Whenever budgeted performance and actual performance disagree, or are in variance, the job of the responsible manager is to ask why, and to then fix any problems that are found.•  Depending on your organization’s size, the budgeting process may be quite simple or, alternatively, very complex. Example budgets include: –  Sales budget – estimated products or services sold in a given period –  Labor budget – salaries and wages estimated for each position –  Production budget – sales budget translated into cost of labor, material and other expenses –  Expense budget – all expenses anticipated in the budget period –  Capital budget – plan to acquire fixed assets (furniture, computers, facilities, etc.)
  21. 21. Budgeting Process•  A budget is a forecast - a commitment to the future - and is only as good as the data that go into it and the good judgment that you bring to the process.•  The wrong way to create a budget is simply to make a photocopy of the last budget and submit it as your new budget.•  There are several basic steps to developing a budget. –  Closely review your budgeting documents and instructions. –  Meet with your staff to solicit input. –  Gather data – compare previous budget to actual. –  Apply your judgment. –  Run the numbers. –  Check results and run the budget again as necessary .
  22. 22. Budget Accuracy•  The accuracy of your budget hinges on two main factors: the quality of the data and the quality of the judgment that you apply to the data.•  You can use three basic approaches to develop the data for building a budget: –  Build the data from scratch ( zero based budgeting) –  Use historical figures. –  Use the combination approach.
  23. 23. Working with Budgets•  Managers who discover how to play the budget game prosper, as do the people who work for them.•  Generally, the goal of the budget game is to build in enough extra money to actually be able to get the job done.•  You can play the budget game up front, when you develop the budget, or during the course of the budget period.•  Budget pros can use several techniques when they develop up- front budgets. –  Do some selective padding (budgets are easy to achieve) –  Tie your budget request to your organizations values. –  Create more requests than you need, and give them up as you have to. –  Shift the time frame (investing for the future) –  Be prepared.
  24. 24. Staying Within Budget•  After your new department or project starts up, you need to closely monitor your budget to make sure that you don’t exceed it.•  If your actual expenditures start to exceed your budget, you need to take quick and decisive action.•  There are several ways that experienced managers make sure they stay on budget. –  Freeze discretionary expenses –  Freeze hiring –  Postpone products and projects –  Stretch payments to suppliers –  Freeze wages and benefits contributions –  Lay off employees and close facilities
  25. 25. Basics of Accounting•  Your company’s accounting system determines how every dollar and cent that flows into and out of your organization is assigned, reported, and analyzed.•  As a manager, you must be just as familiar with accounting basics as are the employees who work in your accounting department.•  The accounting equation states that an organization’s assets are equal to its liabilities plus its owners’ equity. Assets = Liabilities + Owners Equity
  26. 26. Assets•  Assets are generally considered to be anything of value - primarily financial and economic resources - that a company owns.•  Assets include –  Cash including checking accounts, money market funds and marketable securities (stocks and bonds) –  Accounts receivable – money customers owe you –  Inventory including finished goods, raw material and work in process –  Prepaid expenses ( annual insurance premium) –  Equipment –  Real estate.
  27. 27. Assets •  Assets are divided into two major types: –  Current assets - can be converted into cash within one year, are liquid –  Fixed assets - require more than one year to convert to cash.
  28. 28. Liabilities•  Liabilities are generally considered to be debts that you owe to others - individuals, other businesses, banks, and so on - outside the company.•  The most common forms of business liabilities include –  Accounts payable – money your company owes to individuals and organizations from which it purchases goods and services –  Notes payable – portions of loans due to be paid back in one year –  Accrued expenses – miscellaneous expenses that aren’t reimbursed, (payroll, interest due to lenders) –  Bonds payable –  Mortgages payable.•  Liabilities are divided into two major types: –  Current liabilities are repaid within one year. –  Long-term liabilities are repaid in a period greater than one year.
  29. 29. Accounting•  Owners’ equity is the owners’ share of the assets of a business after all liabilities have been paid and include paid-in capital and retained earnings.•  Double-entry bookkeeping recognizes that every financial transaction results in a record of a receipt (also known as an asset) and a record of an expense (also known as a liability).•  Accountants developed financial statements to be able to measure the financial health and performance of a company.
  30. 30. Financial Statements•  Financial statements are nothing more than reports that summarize the amounts of money contained within selected accounts or groups of accounts at a selected point or period of time.•  An income statement adds all the sources of a company’s revenues and then subtracts all the sources of its expenses to determine its net income or net loss for a particular period of time. –  Revenue is the value received by a company through the sale of goods, services, and other sources such as interest, rents, royalties, and so forth. –  Expenses are all the costs of doing business and include the cost of goods sold and operating expenses.•  A balance sheet is a report that illustrates the value of a company’s assets, liabilities, and owners’ equity on a specific date.
  31. 31. Financial Statements•  Cash-flow statements show the movement of cash into and out of a business and can be developed for specific purposes. –  Simple cash-flow statement (cash in and cash out) –  Operating cash-flow statement (limits analysis of cash flow to only those items having to do with the operations of a business, not its financing) –  Priority cash-flow statement classifies cash inflows and outflows by specific groupings chosen by the manager
  32. 32. Financial  Ra)os  Financial ratios are key indicators of the performance and financialhealth of the organization.•  Current ratio – capability of a company to pay its current liabilities out of current assets Current ratio = Current assets / current liabilities•  Quick ratio – same as current but inventory is subtracted from current assets Quick ratio = (Current Assets – Inventory / Current Liabilities•  Receivables turnover ratio – indicates average time it takes to convert receivables into cash (how quickly customers are paying their bills) Receivables Turnover ratio = Net Sales / Accounts Receivable•  Debt to equity ratio – extent to which the organization depends on loans from outside creditors Debt-to equity ratio = Total Liabilities / Owners Equity•  Return on investment – capability of a company to earn profits for its owners Return on Investment = Net Income / Owners Equity
  33. 33. SummaryThe corporate budget is often the key to getting theresources you need to perform your job andaccomplish your goals. As a manager, you willneed to create budgets, be able to understandbudgets, and work with others on budgeting.  
  34. 34. Discussion Questions•  Divide into groups and develop a response for one of the following scenarios: –  You own a real estate firm. Unfortunately, the real estate market has had a downturn and the cash flow coming into the company has been severely reduced. You need to act fast to save your company. What are your options to stay within your budget? –  You are the CEO of a hospital and you receive the income statement from the previous year. After examining it, you learn that your operating expenses were higher than your revenues. What are your options for lowering operating expenses. –  You own a restaurant. Unfortunately you have seen a downturn in your business of 15% due to the sluggish economy. Your cash flow coming in is barely covering your monthly expenses. What are your options to increase your revenues and decrease your expenses?
  35. 35. Supervision: Managing to Achieve Results   Chapter 15  Using Technology: Gaining Competitive Edge and Managing Employees    
  36. 36. Technology•  Computers and telecommunications technology have taken over business.•  Before you can design and implement information technology in the most effective way, you first have to completely understand how your business works.•  Information technology can create real and dramatic competitive advantages over other businesses in your markets. –  Competing with large companies by marketing on a level playing field –  Helping build ongoing, loyal relationships with customers –  Connecting with strategic partners to speed up vital processes –  Linking everyone in the company with necessary sources of information –  Providing real-time information•  The company that has the most data doesn’t win, but the company that manages that data best (converts that data to useful information) wins
  37. 37. Technology Plans •  A technology plan is a plan for acquiring and deploying information technology. –  Don’t buy technology just because it’s the latest and greatest thing. –  Plan for the right period of time. –  Make the planning process a team effort (employees, customers and vendors). –  Weigh the costs of upgrading your old system vs. going to a new system.
  38. 38. Technology Plans•  Managers who take the time to develop and implement technology plans provide reliable and cost-effective technology. –  Create the plan –  Screen and select the vendors –  Implement the plan –  Monitor performance•  Technology is a strategic investment that can help push your company ahead of the competition. According to “eBusiness Technology Kit for Dummies” (Kathleen Allen and Jon Weisner) –  Write down your organizations core values –  Picture where you see your business ten years from now –  Set a major one year goal for the company guided by your vision –  List some strategies for achieving the goal –  Brainstorm some tactics that can help you achieve your strategies –  Identify technologies that support your strategies and tactics•  Create a concise document, perhaps no more than five to ten pages, that describes your information technology strategies as simply and exactly as possible.
  39. 39. Automation•  Information technology can have a positive impact in two very important ways: –  By automating processes. –  By automating personal management functions (planners)•  If your manual system is inefficient or ineffective, simply automating the system won’t necessarily make your system perform any better.•  When you automate, remove unnecessary steps and make sure that your system is optimized for the new, automated environment.
  40. 40. Potential Negative Side of Information Technology•  Widespread worker abuse of Internet access•  Hackers•  E-mail messages can be unclear and confusing•  Ever-growing quantity of spam and junk e-mail messages•  Slick, animated and sound-laden computer-based presentations can take longer to prepare How to Maximize the Positives of Information Technology•  Stay current on the latest information innovation and news•  Hire experts•  Manage by walking around
  41. 41. Productivity•  Information technology - planned and implemented wisely - can improve an organization’s efficiency and productivity.•  Studies indicate that merely installing computers and other information technology doesn’t automatically lead to gains in employee efficiency.•  As a manager, you must take the time to improve your work processes before you automate them.
  42. 42. Networks and Teamwork•  Benefits to networking include: – Networks improve communication. – Networks save time and money. – Networks improve market vision.•  In a team environment, process management information moves precisely to where the team needs it, unfiltered by a hierarchy.•  Groupware consists of computer programs specifically designed to support collaborative work groups and processes.
  43. 43. Virtual Employees•  A virtual employee is someone who regularly works at a location other than the brick-and-mortar office that houses a company’s business operations.•  Managing people who aren’t physically located near you can be challenging, and should be approached differently than regular employees.•  According to studies, virtual employee productivity can be increased by 30 percent. –  Less time is lost in commuting –  Workers are more satisfied with their jobs
  44. 44. Telecommuting•  Advantages to telecommuting –  Employees can set their own schedules –  Employees can spend more time with customers –  Employees can conduct more work because everything is there where they need it –  You can save money by downsizing facilities –  Costs of electricity, water and other overhead are reduced –  Employee morale is enhanced•  Disadvantages to telecommuting –  Monitoring employee performance is more difficult –  Scheduling meetings can be problematic –  You may need to pay to set up your employees with equipment they need –  Employees can lose their feelings of being connected to the organization –  Managers must be more organized in making assignments
  45. 45. Preparing to Get VirtualHere is checklist for determining if your organization isready for virtual employees.–  Your company has established work standards to measure employee performance.–  Prospective virtual employees have the equipment they need to properly perform their work off-site.–  The work can be performed off-site.–  The work can be completed without ongoing interaction with other employees–  Prospective virtual employees have demonstrated that they can work effectively without day-to-day supervision.–  Supervisors can manage and monitor employees by their results rather than by direct observation.–  Employee worksites have been examined to ensure they are adequately equipped.
  46. 46. Virtual Employees•  For employees who work outside the mainstream organization they’ll probably have little understanding of an organization’s culture, values and goals.•  Virtual employees may find they’re not fairly compensated for home resources (office space, computers, electricity)•  Virtual employees may feel that their personal privacy is being violated if management efforts are too intrusive•  Family duties may intrude on work duties much more often
  47. 47. Virtual Employees•  There are a number of ways to help your virtual workers plug into your company’s culture, become team players, and gain a stake in the organization’s goals in the process. –  Schedule regular meetings that everyone attends – in person, or by conference call or internet chat room. –  Create communication vehicles that everyone can be a part of (monthly updates via youtube). –  Hire a facilitator and schedule periodic team-building sessions with all your employees. –  Initiate regular, inexpensive group events that draw out your virtual employees to mingle and get to know regular employees – and each other.
  48. 48. Managing  Virtual  Teams  hKp://www.youtube.com/watch?v=jc3X9XldA4M  
  49. 49. Managing Employees•  With  the  changing  nature  of  work  today,   managers  have  to  adapt  to  new  circumstances   for  managing  employees.  •  It  can  be  a  challenge  to  manage  employee’s   performance  when  you  may  not  have  in-­‐person   contact  for  weeks  or  months.   –  Make  <me  for  people.   –  Increase  communica<on  as  you  increase  distance.   –  Use  technology.  •  It’s  important  that  virtual  employees  feel  just  as   appreciated  as  your  regular  employees.      
  50. 50. Managing Employees•  Managing employees who work differing shifts is a special challenge for today’s managers. –  Take time to orient shift employees –  Give them the resources to be productive –  Make an ongoing effort to communicate –  Appreciate employees for the job they do –  Treat shift employees the way you want them to act.
  51. 51. SummaryTechnology provides us a way to get informationand to communicate more quickly than everbefore. It is important that managers effectivelyimplement technology to pursue productivity andencourage collaboration in the organization.Because virtual employees are off site there aredifferent management approaches for virtualemployees.

×