Transcript Preparing to Plan and to Manage

Preparing to Plan and to
Manage
Unit 4
The Operating Plan
You are the Owner and Operator
•
What does that mean?
1.
2.
3.
4.
Planning
Organizing
Directing
Controlling all aspects of the business
• Primary focus is on:
1. PEOPLE – Employees, Customers, Vendors (who you
buy from)
– Monthly meetings with these groups looking for
FEEDBACK and giving FEEDBACK
2.$$$
– Monthly Income Statements must be created:
» Financial report stating SALES and
EXPENSES
» Calculate either: LOSS, PROFIT or
BREAKING-EVEN
Planning: the act of setting goals,
developing strategies and outlining
tasks and timelines to meet your
business objectives
Three types:
1. Strategic Plans – long term (3 – 5 yr goals)
2. Tactical Plans – midrange (within the Year)
3. Operational Plans – short-term, small goals
that help you reach your tactical plan
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Day-to-day budget, policies, rules
Establish a positive Climate –
business atmosphere
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Three key elements:
1. Image
– Strength of your brand
– How are you perceived??
2. Team building
– With your employees
– Happy employees work harder!
3. Communication
– With employees, customers and vendors
As an Owner, develop your
Management Skills
• What type of manager are you?
1. Power-oriented style
1.
Use power to maintain control
2. Routine-oriented style
1.
2.
More concerned with the daily operations running smoothly than
long-term goals
Allows the employees to independently follow the “rules” and just
enforces them
3. Achievement oriented style
1.
2.
Open to new ideas, rewards behavior, seeks and encourages
feedback
Reflects on daily happenings
Terms
• Define all terms in Chapter 14
– Pg. 304-316
– Complete the 10 mult choice questions
Human Resource Management
• A business major that prepares
you to:
– Hire the right employees that are a fit to the company’s
mission statement and core values
– Qualified through education and experience
– Willing and able to perform
– Retain the employees through professional
development – LOYALTY and HAPPY emps
– OFFER GROWTH AND A CAREER PATH
– Maintain healthy relationships through payroll and
medical and educational benefits administration
– Expert on employment law – when to
fire the employee; how to avoid being
sued by employees
• Know the employees’ rights and the employer’s
rights
• Because you are an Employee in the PRIVATE
SECTOR, you can fire your employees for NO
REASON AT ALL, but you cannot fire an
employee FOR THE WRONG/ILLEGAL
REASON
As the Owner and Operator and
HR Manager…..
• Expert on Reading a Resume
– A Resume earns you the interview
• Shows you are qualified on paper
• Expert on Conducing an Interview
– Know what NOT to ask
– List the top illegal job interview questions
• Interview earns you the job offer
10 Illegal Job Interview Questions
1. Where were you born?
2. What is your native language?
3. How old are you?
4. Are you married?
5. What religion do you practice?
6. Do you have children?
7. Do you plan to get pregnant?
8. Do you have a disability or chronic illness?
9. Are you in the National Guard?
10. Do you smoke or use alcohol?
Watch and Discuss:
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http://www.youtube.com/watch?v=Mxn39v4aFn4
http://www.youtube.com/watch?v=fCH33TgK8Mw
http://www.youtube.com/watch?v=S1ucmfPOBV8&feature=related&saf
ety_mode=true&persist_safety_mode=1
http://www.youtube.com/watch?v=gHXKitKAT1E&feature=related&saf
ety_mode=true&persist_safety_mode=1
4 Technology Rights for
Employees and Employers
1. Is my employer allowed to see what is on my computer
while I am working?
– YES.
– Since the employer owns the computer network and the
terminals, he or she is free to use them to monitor
employees.
– ****Be aware of the Fourth Amendment which
safeguards against unreasonable search and seizure.
Fantasy Football Costs
Employers Billions
Fantasy football is costing employers billions due to lost worker productivity, according to a study by Chicago-based
outplacement firm Challenger, Gray & Christmas. Sort of a Dungeons & Dragons for jocks, fantasy football players
(or "owners") draft their own teams from NFL rosters and compete head-to-head each week for the length of an NFL
season.
On its own, fantasy football is a $1 billion business powered by 24.3 million players, according to the Fantasy Sports
Trade Association. And with buy-in often involved, attention to one's fantasy team—along with a lot of luck—could
mean a lucrative payout to fantasy league members.
But how much time is spent managing fantasy teams when employees should be managing their real-life work?
After taking unemployment into account, Challenger, Gray & Christmas estimates that 22.3 million employed
fantasy football owners spend at least an hour a week managing or tweaking their rosters—a conservative estimate.
According to the U.S. Bureau of Labor Statistics, $19.33 is the average hourly wage, so that comes out to $430.9
million per week lost, or $6.5 billion across a 15-week fantasy season.
Despite the cost of lost productivity, Challenger, Gray & Christmas swear the effects of fantasy football are merely a
blip on the economic radar, noting the study is "non-scientific" and "very rough."
"Employers will not see any impact on their bottom line and, for the most part, business will proceed as usual," CEO
John Challenger noted in the firm's blog post about the study. "However, even if the economic impact is faint, it is
important to acknowledge fantasy football's overall impact as a societal and workplace phenomenon. Companies
that embrace the growing popularity of this activity could actually see a positive impact, particularly in terms of
employee sentiment and loyalty."
So let your fantasy football flag fly. The NFL season kicks off Wednesday night with the reigning Super Bowl
champion New York Giants taking on the Dallas Cowboys
• 2. Is E- mail private?
– In most cases, no.
– If an e-mail system is used at a company, the employer
owns it and is allowed to review its contents.
– Messages sent within the company as well as those that are
sent from your terminal to another company or from
another company to you can be subject to monitoring by
your employer.
– This includes web-based email accounts such as Yahoo
and Hotmail as well as instant messages. In general,
employees should not assume that these activities are not
being monitored and are private.
3. Are my text messages on an employerprovided cell phone private?
• NO
• In a June 2010 decision, City of Ontario v. Quon, the
Supreme Court unanimously upheld the search of a
police officer's personal messages on a governmentowned pager, saying it did not violate his constitutional
rights.
• The warrantless search was not an unreasonable
violation of the officer’s 4th Amendment rights because
it was motivated by legitimate work-related purposes.
• The city was trying to determine whether it needed to
modify its wireless contract, which imposed fees after
employees exceeded character limits on text messages.
4. Can I be fired over what I post on
social media sites?
• It depends on the policies your employer has
in place and your State law.
• Many companies have social media policies that limit what
you can and cannot post on social networking sites about
your employer.
• You should ask your supervisor or human resources
department what the policy is for your company.
• California, Colorado, Connecticut, North Dakota and New York, have laws that
prohibit employers from disciplining an employee based on
off-duty activity on social networking sites, unless the
activity can be shown to damage the company in some way.
• There is no federal law YET stating that an employer is
breaking by monitoring employees on social networking
sites.
• In fact, employers can even hire third-party companies to
monitor online employee activity for them.
• In March, 2010 a company called Teneros launched a
"Social Sentry" service that tracks the online activity of
employees across social networking sites.
– employers use the service to "make sure that employees
don't leak sensitive information on social networks or
engage in any behavior that could damage a company's
reputation."
2 Laws to Know!
• FMLA: Family Medical Leave Act
• How can you qualify:
–
–
The FMLA entitles employees to take unpaid, jobprotected leave for specified family and medical
reasons
with continuation of group health insurance coverage
under the same terms and conditions as if the
employee had not taken leave.
Eligible employees are entitled to:
• Twelve work weeks of leave in a 12-month period for:
1. the birth of a child and to care for the newborn child
within one year of birth;
1. Law: 6 weeks paid
2. the child for adoption or foster care and to care for the
newly placed child within one year of placement;
3. to care for the employee’s spouse, child, or parent who has
a serious health condition;
4. a serious health condition that makes the employee
unable to perform the essential functions of his or her job;
5. the employee’s spouse, son, daughter, or parent is a
covered military member on “covered active duty;”
2. EEO: Rooted in the
Civil Rights Act of 1964
• The U.S. Equal Employment Opportunity
Act is responsible for enforcing federal laws
that make it illegal to discriminate against a
job applicant or an employee because of the
person's race, color, religion, sex (including
pregnancy), national origin, age (40 or older),
disability or genetic information.
• It is also illegal to discriminate against a
person because the person complained about
discrimination, filed a charge of
discrimination, or participated in an
employment discrimination investigation or
lawsuit.
Employee Handbooks
• an important communication tool
between you and your employees.
• A well-written handbook sets forth
– your expectations for your employees, and
describes what they can expect from your
company.
– describes your legal obligations as an
employer, and your employees' rights.
Employee Handbook and Human Resource Management:
Policies
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Page 1: Cover page – include company name, logo, slogan,
address, ‘EMPLOYEE HANDBOOK
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Page 2: Policies – in Table format
Issue
Policy
1.
Consequence
Telephone and Computer Use Policy
• Cell Phone Usage
• Internet Use at Work
• Internet Postings and Social Media
• Email Policy (work and personal)
2. Attendance Policy- lateness AND consequences
3. Family Medical Leave - 12 weeks; write the reason why
they could use FMLA as protected by the Federal Law
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your version of FMLA
http://www.youtube.com/watch?v=VZELzn6207c
4. Pay and Compensation Package
(write BELOW for your policy!)
• Employees are paid on the 1st and 15th of each month
by direct deposit ONLY
– Required Tax deductions: Federal, State, Local, Social
Security, Medicare, Unemployment
– Optional Deductions offered: 401k plan, 529 plan, Medical
Benefits, Dental Benefits,
» 401k and 529 plans offered through Vanguard or Fidelity
» Health Benefits offered through Personal Choice
» 8% of gross pay
5. Disability and Workplace Safety
• Write….
– “Employers are responsible for establishing and
maintaining a healthy workplace environment for their
employees. We have created a safe and secure workplace,
including compliance with the Occupational Safety and
Health Administration's (OSHA) laws. We require
employees to report all accidents, injuries, potential
safety hazards, safety suggestions and health and safety
related issues to management.”
6. Vacation Days– how many
7. Holidays – list which ones you are celebrating
8. Personal Days – how many
8. Sick Days – how many
9. Equal Employment Policy – write the Law…word for word
10. Termination
– list 5 reasons you can terminate ‘on the spot’
11. Drug and Alcohol Policy
12. Dress Code Policy
12. Uniform
13. Business professional, business casual, casual
13. Tuition Reimbursement
% you are willing to contribute for pursing a relevant
degree or training – optional
Payroll Systems – p.305
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You must decide how much is each employee
“worth”…including yourself!
Budget for payroll expense each year
One of your greatest expenses
Tied to law – TAXES!
– www.salary.com
1. Calculate Gross Earnings
2. Calculate Payroll Deductions
3. Prepare Payroll Records
4. Preparing Paychecks
5. Record payroll info as an expense of business (a bill
to the owner)
6. Report payroll info to the federal, state, and local
governments
1. Calculate Gross Pay per Emp.
• Salaried employees
– No matter how many hrs they work, they earn the
same amount $ each pay period
• Hourly employees
– Only get paid by the hour
• Gross Salary is Based on education and
experience and ZIPCODE
– Cost of living!
2. Calculate Payroll Deductions
Required Deductions by Employer
Optional Deductions
• Federal taxes
• 401k Retirement Planning
• (based on income range)
– From 15% - 38%
• PA State tax
– 1%
• Local Tax
– 1%
• Social Security contribution
– 4.2%
• Medicare
– 1.5%
• Unemployment tax
– 3.5%
– $ gets invested into the Stock Market (stocks
of your choice)
• Usually between 1-10% of gross salary
• Employee chooses the Firm to invest their
money – Vanguard and Fidelity
• Medical and Dental Benefits
– Ranging from 0-8% depending on the plan
you choose and if the employer contributes to
your plan
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AETNA
PERSONAL CHOICE – Blue Cross
Horizon
Cobra
Keystone Health
3. Prepare Payroll Records
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use payroll software or hire a 3rd party do
perform their payroll tasks (banks)
4. Preparing Paychecks
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Select a bank to issue the checks
Employees must use Direct Deposit!
NET PAY = Gross Salary – Deductions
5. Record payroll info as an expense of business
(a bill to the owner)
6. Report payroll info to the federal, state, and
local governments
Employee Titles in a Small Business
• Manager/Director of Operations/Operator
– This is You….$50,000/year
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Customer Service Representative
Cashier
Cook/Waitress/Stock Representative
US Minimum Wage: 7.25/hr
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Work Day – 8 hrs - $58
Work week – 40 hours - $290
Bi-weekly pay - $580
26 pay periods a year = $15, 080: Gross Salary
• Total Gross Salaries – No more than $100,000
Know your Expenses!
Create Monthly Income Statement:
•
analyzing your Sales – Expenses
• Goal: to have a profit
• Payroll is a Major Expense of doing
Business
Part 8: The Operating Plan Assignment
1. Create a Payroll schedule for a Max of 5
employees; $100,000 yearly budget
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Use www.salary.com to assign each employee,
including yourself, a Gross Income and to find a job
description
Attach a Word document listing each employee’s
name, Job Title, Gross Salary, Part-time or FullTime status, Salaried or Hourly Employee, and a Job
Description
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Job description includes responsibilities and expectations
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At least ONE Complete Paragraph
2. Plan your Supplies and Equipment Needs
• List each and include the Vendor
3. Write an employee policy for conduct and
consequences
Employee Handbook and Human Resource Management:
Policies
•
•
Page 1: Cover page – include company name, logo, slogan,
address, ‘EMPLOYEE HANDBOOK
Page 2: Policies – in Table or outline format
– Telephone and Computer Use Policy
• Cell Phone Usage
• Internet Use at Work
• Internet Postings and Social Media
• Email Policy
– Attendance Policy- lateness consequences
– Family Medical Leave - 6 weeks or 12 weeks; write the
reason why they could use FMLA
– Pay and Compensation
• Employees are paid on the 1st and 15th of each month by
direct deposit
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Vacation Days– how many
Holidays – list which ones you are celebrating
Personal Days – how many
Sick Days – how many
Health Benefits
– If you opt to use our benefits, Personal Choice is the
provider, 8% of gross pay
Equal Employment Policy – write the Law, EEO
Termination – list reasons you can terminate ‘on the spot’
Drug and Alcohol Policy
Dress Code Policy
Tuition Reimbursement
– % you are willing to contribute for pursing a relevant
degree