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AIM: This unit focuses on the understanding and skills needed to manage activities in the workplace to improve effectiveness

and efficiency.

INTRODUCTION
Every business has a reason(s) why it operates.
A sole trader or a large company will have plans not only for

the immediate future but also for the long term, 5-10 years in the future.
PLANS to increase productivity, increases efficiency thus

increasing profit.
Therefore better systems makes the business more

efficient.

INTRODUCTION
AIM

MISSION
(SMART) CORPORATE OBJECTIVES
DEPARTMENTAL OBJECTIVES

INDIVIDUAL TARGETS

BUSINESS AIMS
An aim is where the business wants to go in the future:

its goals/objectives . It is a statement of purpose e.g. we want to grow the business into Europe. Making a profit this is the most common (and obvious) type of aim Sales growth business aims to sell more of its products or services. This does not always relate to profit as you may sell more products but at a lower price.

MISSION STATEMENT
A mission statement sets out the business vision and values

that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business.
Qualitative Aims e.g./ to be the best in the industry, To be the lowest cost producer in Europe

Usually brief and fairly general. Direct and to the point.

Help the business FOCUS Provide a PLAN for the FUTURE CLARIFY for all stakeholders what the business is trying to do To

INSPIRE.

BUSINESS OBJECTIVES
In order for a business to complete its aims, it must make

them easier, or more manageable to do. Business objectives are measurable targets of how to achieve aims. They are stepping stones in achieving overall aims. E.g. A businesses aim is to raise profits by 20% in 3 years. An objective could be to lower costs in production by 10%. Another objective to complete the aim could be to improve customer satisfaction to allow repeat custom.

CULTURE
A set of values or beliefs shared by people in an

organisation. The way we do things here. Norms of behaviour.

All companies have a culture, whether it is recognized and

consciously shaped or not. A company culture can benefit a company or be detrimental, depending on what it is. A company culture is responsible for how things are done at the company, including what decisions are made and how theyre made.

Uniform Communication Hours Environment Bars / Computer area

INTERRELATIONSHIPS OF FUNCTIONS
All functions of the business have to work together to

achieve the aims/goals of the business. E.g If a company intends to maximise profit then each functional area must be accountable for increasing profit. How could the following increase profit?
Production reduce wastage, use cheaper raw material, use

less staff. Marketing use cheaper mediums of marketing (local newspaper instead of national paper, advertise on internet instead of TV)

INTERRELATIONSHIPS OF FUNCTIONS
HR recruit a higher standard of employee, train existing

staff to work more effectively. ICT/Administration Use less or cheaper electronic equipment. Finance calculate where redundancies can be made, give less money to each departments budget.

INTERRELATIONSHIP WITH PROCESSES


It is important to manage processes as well as functions.
All of the people in the organisation should understand the

interrelationship of processes and how these processes contribute to the overall business goals of the organisation. E.g the launch of a toothbrush. Production team has to work closely together with the design team to ensure the quality is very good. They also have to work closely with the marketing team so that they can concentrate on how to sell and advertise the toothbrush.

BUSINESS PROCESS MANAGEMENT


Business Process Management (BPM) provides

methodology and tools to identify, measure and improve companies processes operations. Thus improving the organisations business performance and its relationship with customers and suppliers. It is a new way of seeing things that happen in the organisation, how they can be managed, analysed and improved. There are principles and models that are of effective process management which will be discussed in the other lectures.

EXTRA READING

Textbooks Harrison A et al Cases in Operations Management 3rd Edition (FT Prentice Hall, 2003) ISBN: 0273655310 Naylor J Introduction to Operations Management 2nd Edition (FT Prentice Hall, 2002) ISBN: 0273655787 Oakland J S and Porter L J TQM: Text with Cases 3rd Edition (ButterworthHeinemann, 2003) ISBN: 0750657405 Slack N et al Operations Management (FT Prentice Hall, 2003) ISBN: 0273679066 Journals/newspapers A daily broadsheet eg The Times, The Guardian, The Financial Times Many professional and academic institutions publish journals relevant to this unit. Examples are: Production, Planning & Control International Journal of Productivity & Performance Management The TQM Magazine

WEBSITES
Websites can provide reports on research and current theories as well

as case study materials. Examples are: www.businesscases.org/newInterface Provides business case studies. www.dti.gov.uk/mbp Department of Trade and Industry www.efqm.org Management advice for European businesses www.hbsworkingknowledge.hbs.edu Harvard Business School www.hse.gov.uk Health and Safety Executive www.hsl.gov.uk Health and Safety Laboratory www.managerwise.com Provides information on management practice www.praxiom.com Praxiom Research Group provides information on ISO 9001:2000 quality standards www.quality.co.uk Provides advice on quality management

RECAP
Every business has a reason(s) why it operates. An aim is where the business wants to go in the future. A mission statement sets out the business vision and

values. Business objectives are measurable targets of how to achieve aims. All companies have a culture, a set of values or beliefs they

follow. All functions of the business have to work together to achieve the aims/goals of the business. Business Process management (BPM) provides methodology and tools to identify, measure and improve companies processes operations.

Overall aims of a business task Guess the company


______s vision is to be the world's best quick service

restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."

ANSWER

Guess the company


B_____ aims to be the place for health and beauty

customers. We want to secure market leadership in the UK and build on our brands growing success internationally

ANSWER

Guess the company


_____s mission is to provide a global trading

platform where practically anyone can trade practically anything."

ANSWER

Guess the company


"To make the world's information universally

accessible and useful"

ANSWER

THANK YOU !...