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O = Increased Output
C = Reduce Cost
Q = Increase Quality
R = Increase Revenue

OCRQ means increase output, decrease cost, improve quality and generate
revenue. To increase the productivity (output) we should make the strategies by
which we decrease our cost, improve quality and generate revenue. The OCRQ Q
Level 4 NVQ in Management of Learning and Development Provision will be
suitable for you if you have direct responsibility for the strategy and plan for
learning and development and identify the learning and development needs of the
organization. Your work situation must give you the opportunity to be involved in
a range of management and strategic tasks, which may of teams and individuals
reviewing health and safety procedures in the workplace. The OCRQ Level 4 NVQ
in Co-ordination of Learning and Development Provision will be suitable for you if
you have direct responsibility for the strategy and plan for learning and
development and identify the learning and development needs of the organization.
Your work situation must give you the opportunity to be involved in a rang e of
management and strategic tasks

The Key Elements of Business Success From an Operating Perspective

Managing your operations effectively is a prerequisite for overall business success.
In most businesses, operations consume a large part of company resources and are
vital for high rates of customer satisfaction. You can make sure your business is a
success from an operating perspective by monitoring key elements and striving for
continuous improvement in the underlying processes. Operational success lets you
focus on revenue and profitability.

A key success indicator for a company's operations is the manufacture of high-
quality products. The output from production has to be fit for its intended use,
durable and of consistent quality. When the product quality matches the needs of
the company's target market, sales increase, while customer service requirements
and warranty claims decrease. You can help ensure a high-quality output with a
design that lends itself to consistent manufacturing processes, by measuring
process variables during manufacturing and correcting for deviations, and by
testing the final product extensively.
While the steps of the operational process are important, the organization must also
assess its work at the end of the process. Quality control examines the final product
and looks for defects and ways it can be improved. Most businesses will only
accept a certain level of defects or problems -- some prefer not to accept any at all.
This improves product flow and solves minor problems that could become major
issues later on.
Cost Control
The purpose of operations is to supply the required products as needed. Careful
planning of operations with reserve capacity, flexible working hours for production
employees and the use of suppliers who can react quickly allows you to adjust
production to customer demand. Too few products result in lost sales while
overproduction can be costly if demand continues to drop and the company has to
keep high inventories. This element of business success measures how close you
come to the ideal of having an item come out of production just as a customer
wants to buy it.

Break Even Point Formula

The point in time when costs invested in Development cost/Annual return
developing or improving an HR Example
program is equal to or greater than A new on-line training program has
The returns. In other words, the break- a development cost of $100,000. It
even point is reached when returns to- is expected to generate a return of
date are equal to investments. $50,000 in reduced delivery costs
each year.
Break-even point = $100,000 /
$50,000 = 2 years

Cost -Benefit Ratio Example

The new succession management
How the Benefits of a program or program will produce a savings of
activity relate to the Costs associated $500,000 in reduced search firm
with developing and executing that fees over the targeted time frame
program or activity When you are (2 years) and will cost $250,000 to
calculating Costs for any HR program b develop and manage over that
e clear as to what you have included. In Same period.
our example here we have included the Cost-benefit ratio =
salary + benefit costs for a new program $500,000:$250,000 = 2:1
lead and the use of a consultant to help Total Cost-Benefit ratio is 2 to 1.
develop the new program and make the
systems changes to our HRIS necessary
to capture Successor and High Potential
identification. We have note included
the cost of the time of managers and
HRBPs to participate in the program.

Operations uses facilities, equipment, labor and financing to produce output. A key
element of business success is to make sure operations makes use of these
resources in the most efficient way possible. Keeping inventory low reduces
financing requirements and uses less space in facilities. Balancing use of skilled
labor with mechanization and automation for optimal use of space and investment
helps increase efficiency. Reducing wait times and optimizing the movement of
material and people in the process reduces the amount of space required and the
time it takes to manufacture an item. Your use of these optimizing techniques helps
the success of the business.
ROI (Return on Investment)
The return on company’s monetary investment in a new program or activity or
change to a current program or activity. The measurement of ROI can be
calculated in several ways. If your organization has a standard formula, it’s best to
use that formula. If not, this formula can work for most situations. Anticipated
Benefits can be ascertained by looking at potential reductions in the costs of
administering and delivering the program (e.g., reduced vendor fees, lower head
coun needed
to administer), increases in productivity or reductions in costs enabled by the
methodology or other aspect of the program (e.g., less time away from work and
reduced travel expenses by putting a program on-line), and improved outcome
s (e.g., reducing turnover and employee relations issues, and increasing employee
productivity with a better leadership program). Quantify these benefits as much as
possible. Costs and Benefits must be calculated for a set period of time that
represents a reasonable life time for the program. A complete ROI analysis should
also highlight those benefits that cannot be financially quantified but still represent
desired outcomes.

The amount of profit a business generates is an important element of business
success, and the cost of operations directly affects profitability. Lower costs, and
the resulting price decreases often let your company increase sales. When
operations increase production to meet the higher demand, it can usually reduce
costs further through economies of scale. Possible sources of cost savings are
comparing ownership with the possibility of renting facilities and leasing
equipment, changing suppliers, eliminating costly but unnecessary features in
products and finding lower-cost materials while maintaining quality.Revenues are
probably your business's main source of cash. The quantity, quality and timing of
revenues can determine long-term success.

 Revenue growth (revenue this period - revenue last period) ÷ revenue last
period. When calculating revenue growth, don't include one-time revenues,
which can distort the analysis.
 Revenue concentration (revenue from client ÷ total revenue). If a single
customer generates a high percentage of your revenues, you could face
financial difficulty if that customer stops buying. No client should represent
more than 10 percent of your total revenues.
 Revenue per employee (revenue ÷ average number of employees). This ratio
measures your business's productivity. The higher the ratio, the better. Many
highly successful companies achieve over $1 million in annual revenue per

•Purpose of OCQR
Conducting internal quality assurance of the assessment process
Identifying the learning and development needs of an organization •
Designing learning programmers
Working with individuals to identify their learning aims and agree learning
Preparing resources to support learning
Managing the contribution of other people to the learning process
evaluating and improving programs
Reviewing health and safety procedures in the workplace.

To increase the productivity (output) we should make the strategies by which we
decrease our cost , improve quality and generate revenue.

January-June July - Hr Matrix Remarks

O Average Good 10% Efficient process
we cross checked the process
and analysis weak areas in it
C $ 50 $ 40 10% By timely recruitment
Q Good Excellent 30% By improving quality

R $ 100,000 $150,000 50% By hiring productive employess

g health and safety procedures in the workplace.

How HR can contribute in Revenue

Many small businesses don't have dedicated HR departments because they cost
money to run, and HR isn't a department that generates revenue. However, an HR
department can result in cost savings for companies that decide an in-house HR
department provides a return on investment. Although HR doesn't increase
revenue, certain HR functions can save a small business a considerable amount of
money. In other words, HR doesn't increase revenue, but it can add to the bottom
line through cost-saving measures

* Hiring Decisions

* Making wise hiring decisions isn't an extraordinary responsibility for HR or for

various departments' hiring managers. However, choosing the right candidate
doesn't just mean selecting someone to fill an immediate vacancy -- it also means
selecting candidates who demonstrate a certain enthusiasm about the job, which
HR experts often refer to as employee engagement. Engagement can translate into
higher profits for organizations because employees who are fully engaged may be
more productive.

* Turnover
Turnover is costly, particularly for small businesses. Calculate the expenses
associated with terminations, staff time necessary to explain continuation of
benefits to departing employees and seemingly insignificant costs like transferring
keys, reconfiguring passwords and collecting an employee's badge. The costs add
up. When HR reduces turnover, the savings help the bottom line enormously,
which adds to the company's revenue. year to lose valued employees. Engaged
employees are happy and fulfilled; they have no reason to consider leaving."
Employee engagement, which is obtained through wise hiring decisions, pays off
in terms of reducing turnover

 Employee Relations

Based on some of the highly publicized settlements of employment

discrimination cases, just one seven-figure settlement for a lawsuit can
cripple a small business. An employee relations program mitigates the
potential risks that businesses face if they become embroiled in litigation
over unfair employment practices. An effective employee relations program
includes steps for resolving employee issues, designating an HR staff
member specifically trained to investigate complaints and mediation to
restore the workplace to a fully functioning machine that produces revenue.

 Outsourcing
 The decision to outsource HR functions can increase revenue for small
businesses through significant cost savings. Many companies to which small
businesses outsource their HR functions specialize in meeting the needs of
companies with just a handful of employees. In addition, professional
employer organizations, or PEOs, are a form of outsourcing companies that
can handle all of an employer's HR functions. Outsourcing or engaging a
PEO saves money because the fees typically are less than the cost to employ
a full-time HR expert.

How HR reduces Cost

Given today’s volatile economies and hypercompetitive markets, businesses are
under constant pressure to compress costs and improve profitability. For HR, this
challenge is multi-faceted as the department is tasked with cutting costs, without
cutting heads, and boosting productivity, employee morale, and engagement at the
same time. However, being a strategic business function, HR has numerous
advantages and can really help companies cut costs.

Here are some ways

1 Hire and retain star performers:

An organization’s ability to attract, hire, and retain top talent is critical to

compressing costs. A bad hire can be even costlier – every time organizations
replace a bad hire, it can cost them 10 times the salary of the outgoing employee.
Add to it the costs of lost productivity and training, and the number could be even
more staggering. Leveraging digital technologies such as Robotic Process
Automation (RPA), Artificial Intelligence (AI), voice-first solutions, social media,
and others, HR can turn hiring, onboarding, and ongoing employee engagement
into intelligent processes that accurately identify the best-fit candidates and
retention strategies.

Prioritize training and mentoring:

 An often overlooked aspect, providing regular employee training and

mentoring can help HR reduce costs in a two-fold manner – one, by
increasing productivity, and second, by reducing employee turnover. The
increase in productivity through training is not only evident when the
concerned employee is doing a specific job, but even when he/she is
absent/leaves as others who received similar training can quickly fill the
void, creating a robust internal succession pipeline.

Promote talent mobility: Conventional wisdom supports this and it has

been proven time and again that developing talent from within is far more
beneficial than looking outside. Yet, organizations ignore the value of talent
mobility and continue to shell out big bucks to hire external talent. Digest
this – it takes 18% more compensation to hire external candidates than the
internal promotes in the same jobs. What’s worse - external hires are 61%
more likely to be fired from their new jobs than those who are promoted
from within the company. Why? Because it takes time for anyone to learn to
navigate the ropes of an organization, adjust to the culture and hit the
ground running.

 Consolidate activities: Most companies offer discretionary, non-mission

critical perks like office parties, team outings, reimbursements, and other
such activities which account for a significant portion of operational
budgets. Rather than eliminating these to cut costs (which can upset
employees), HR can help consolidate some of these spends like combining
training and team outing days, scheduling out-of-office activities for various
departments together or in the same weekend to make optimal use of
external resources such as facilities and trainers.

Do a cost-value analysis for everything

 The goal of any cost-cutting exercise should be to eliminate any task whose
cost of doing it exceeds the business value it provides. But this analysis is
difficult as some tasks do not have a direct monetary value. The bottom line
is to take time, identify the gaps, plan the cost cuts and the impact they will
have, and only then execute.

How HR can improve the Quality of


Techniques for Improving Human Resource Management in the Enterprise

Today, it is assumed that the main asset of any organization lies in people. Quality,
productivity, profitability, customer satisfaction and the image of a company
depends largely on training, coordination and motivation of its staff. For a
company to function properly it requires that the persons composing know, willing
and able to work properly.

Inadequate people management can lead to myriad problems that hinder the
performance of an organization:

 Lack of motivation
 undefined responsibilities
 Lack of training / information
 Lack of internal communication
 Non-cooperation
 Lack of coordination
 Conflicts of interest

1. Leadership
Leadership can be defined as the ability of an individual to develop the potential of
a team in pursuit of a common interest.

There are different leadership styles (authoritarian, participatory, consultative, ...).

Each style may be appropriate to the context and characteristics of employees. The
source of leadership may be the charisma, the hierarchical power, the power of
knowledge or behavior.

Through education and training, people who have responsibility for others can
develop optimal leadership style. A leader does not command it runs, does not
impose, but seeks consensus, not divide but unites.

2. Mentoring

The mentoring (mentoring) is a process by which a person (mentor) teaches,

advises, and guides to another (the mentee) in their personal and professional
development. It is the traditional "sponsorship" that currently is used primarily in
high positions in organizations.

Mentoring should not be improvised requires setting goals, planning and

monitoring of results.

Although there are similarities, mentoring differs from coaching in the mentor
must have expertise in the field in which you want to start the mentee, while the
coach does not have to have an experience in this field.

Some advantages of mentoring:

 Mentoring is a powerful tool that facilitates the retention and transmission

of knowledge in the enterprise
 Increase satisfaction guardian and the ward
 Increase staff retention and commitment of these with the company.

. Competence Management / Knowledge Management and Performance


This methodology allows to reconcile the interests of the company with the
interests of each individual. While comparing the knowledge and skills required by
the organization to those who reside in people.
we define competence as the ability or quality which makes a person is able to play
a role. Management skills, involves identifying all you need for people to know,
willing and able to provide full value for the benefit of the organization. skills
management, requires:

 An identification of the skills necessary for achieving the objectives of the

organization (strategic, tactical and operational)
 skills assessment in the Members of the organization
 A plan to bring existing powers with the necessary
 setting and monitoring targets both individual and collective performance.
These goals should be possible to verify the use of these skills

5. Incentive Systems
An incentive system is to facilitate the reconciliation of the interests of each person
with the interests of the company.
Incentives should be established objectively, based on agreed targets and
indicators. The incentive system should be transparent, clear and concise.
Incentives must be aligned with individual goals, but also with collective goals, so
as to encourage teamwork versus individualistic attitudes.
One of the basic requirements for the proper functioning of the incentive system is
internal communication:
 On the objectives of the company
 on individual goals
 The degree of fulfillment of the objectives on time, so that deviations can be
Example: In the same company in the private agency that established the system of
performance appraisal, incentives based on the degree of fulfillment of the
objectives of productivity, quality and ideas contributed by each person and

HR Metrix
Human resources metrics are different measurements that are used to show the
value that the human resources function provides to the organization. These
measurements demonstrate how effective the efforts of the human resources
department are to the overall success of the organization.
Types of Human Resources Metrics
There are three types of human resources metrics:

 Metrics that measure the effectiveness of the human resources function

 Metrics that measure the efficiency of the human resources department
 Metrics that measure the effectiveness of the employees within the

Brainstorming As A Training Technique

When brainstorming is used in a training seminar, it's often used differently than
where the goal is to solve a specific problem. That's because the purpose of
brainstorming in seminars is a bit different -- to encourage learners to think both
creatively and critically, which in turn, gets us to the ultimate goal, learning.In
learning situations it's important that trainers be clear that there should be no
evaluation of ideas in the first "stage" of brainstorming, and that in the second
stage -- evaluating responses, learners should think deeply and critically about the
ideas generated.In this way, by encouraging THINKING, learning is
maximized.Trainers use a wide variety of learning activites and exercises to
promote learning. It's critical that trainers master the "tools of the trade", since
exercises and activites that are incorrectly used just use up valuable training time,
and can even interfere with job performance once learners return to the

The Japanese adopted the Stalin Era, Management style after WW2.
The focus was efficiency, to maximize input output Coefficients. To Decrease the
cost to produce, But also Increase or maintain quality. That was an important
factor, Of how the Japanese Economy reconstructed itself. Also give the workers
Material incentives to expedite all those aspects. One example in the USSR was
Coal miners, the technicians above ground made 1.5 the wage of the miners below.
To Increase Productivity the miners were given an increased wage. The miners
were given one of the highest wages in the USSR. There piece rate charter equaled
to about 5,000 rubble a year. Remember also this was the early 50s, The USSR in
this time had a much more sturdy monetary policy. They backed currency in Gold,
Oil, Francs, and Also consumer goods. Giving it 60% more power then 1USD.
The Firms in the USSR had a top down salary for management; They had to attract
the best. To expedite productivity. However a Bottom to the top systems for shared
profits and bonuses. The profits, Obviously after Expenditures and Liabilities were
paid, Then the revenue subject to a Turnover of Value tax, Which funded the state
expenditures. What was left could be Divided amongst the workers, Sit idle in an
account to be saved for the next Productive Period. Or used for recreation. Bonuses
on top were given to individuals, Who were standout workers. Who helped cut cost
and Increase Efficiency.
The bottom to the top distribution of profits and bonuses ensured the workers had a
vested interest. But also made management work harder to receive them, If it was
top down they would have less of a concern if they would get any.
1. Small Business»
2. Running a Business»
3. Business Success»

The Key Elements of Business Success From an Operating Perspective

by Tyler Lacoma

Related Articles

 1 What Are the Key Components to Competitive Success in Business?

 2 The Role of an Operations Manager
 3 5 Core Operational Strategies
 4 Functional Areas of a Typical Business
Business operations is the facet of an organization where most of the direct labor takes place. In
a service business, operations are highly task-oriented and tend to follow clear steps until the
service is completed. In a manufacturing company, operations are even more central and follow
the product from basic resources to a completed unit and that unit's transportation. Many other
business activities support these primary operations, and certain types of business management
focus solely on operations and how they can be improved.


When it comes to business operational management, the organization must bring in a supply to
work with from somewhere. For service-oriented companies, this supply tends to be primarily
data, although office supplies and hardware are also important factors. For manufacturers,
supply is the raw materials that the company buys to make products. The supply should be
dependable and cost-efficient, with the business buying the best resources at the best prices.
Many businesses have supply management strategies to locate the best prices for this end.


Business operations should also see efficiency as a primary goal. The efficiency focus began with
practices such as lean management and systems management used primarily in manufacturing
circles, but the concepts soon found their way into other industries. How the business arranges
its production chain physically, how many steps of the production process it can do at the same
time and what the downtime of its equipment or process is are all vital factors in increasing
efficiency. The goal is to produce as many goods in as short a time as possible.

Reliability and Adaptability

Reliability and adaptability provide an interesting tension in business operations. On one hand,
operations need to be reliable. Supervisors need to know that they can produce a certain amount
of units to meet potential demand no matter what. On the other hand, businesses need enough
adaptability to change with market and technology shifts and embrace new practices to keep
operations efficient.

Quality Control

While the steps of the operational process are important, the organization must also assess its
work at the end of the process. Quality control examines the final product and looks for defects
and ways it can be improved. Most businesses will only accept a certain level of defects or
problems -- some prefer not to accept any at all. This improves product flow and solves minor
problems that could become major issues later on.

References (3)

 Reference for Business: Operations Management

 Biz Forum: Sales and Operations Planning – A Key Element of HR Success
 FAO: Improving the Organization and Management of Extension