Business Principles Operations

Operations explains the value of production. Many of the business principles address how to maximize production for the least cost which in turn provides the best opportunity to generate a profit in business.

Age Discrimination – Small Business Impact

Age Discrimination

The Age Discrimination in Employment Act of 1967 (ADEA) is a federal law that protects workers age 40 and older.  It is administered and enforced by the Equal Employment Opportunity Commission (EEOC).  The goal of the Act is to provide equal opportunity for citizens age 40 and older.  The Act does generally exclude small businesses and this article is written to guide the small business owner, specifically the human resources manager in regards to the impact the Act has on your small business operation.

At-Will Employment Doctrine

At-Will Employment Doctrine

In the world of employment, there are two positions of bargaining.  One is the employer and the other is the employee.  In general, the public views the two positions as unequal in nature given the power of the Company.  This is due to the historical position the courts have taken in employer/employee cases.   As the human resources officer of your Company it is important for you to fully understand the At-Will Employment Doctrine as this doctrine sets the relationship between the two parties.

Cost Drivers in Small Business

Cost Drivers in Business

The textbook answer defines cost drivers as those factors that determine the overall cost of operations.  As an example, in manufacturing the cost drivers may be processing time or number of steps to produce the product.  In service, the cost drivers could be the actual ratio of billable to non-billable time.

Payroll – Introduction to Basic Concepts

Payroll

Payroll is envisioned as the simple employer employee agreement related to compensation for services.  I often think of this as the simple handshake whereby the employer agrees to pay the employee a set rate per hour of work.  This was true a hundred or more years ago, but over time; history and governmental regulations complicated this simple relationship.

Exempt and Non-Exempt Employees

Exempt Employees

The Federal Labor Standards Act of 1938 sets the standards as it relates to Exempt and Non-Exempt employees and their associated compensation and work standards.  The Labor Standards Act is located in Chapter 20 Section 201 of the Federal Code.  This Act is applicable to those small business operations with more than $500,000 of annual revenues and who participate in interstate commerce.

The Key Man

Key Man

One of the most misunderstood principles of business deals with the one or few individuals in a small business operation who are critical to operations.  This individual is referred to as the Key Man.  The best example is that of the primary wage earner in the family unit. 

Throughput – Business Definition and Identification

Throughput

When a business can maximize the product or service delivered within a given period of time, it has reached maximum throughput.  This is the basis of maximizing earnings and therefore profits for a company.  This article will examine the definition more thoroughly and illustrate to the reader how to identify issues associated with the throughput for your business.

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