Category: Business Principles Operations
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An Introduction to the Employee Manual (Handbook)
The employee manual is a guidebook and a tool to explain the policies and procedures for the small business operation. It addresses the basic expectations for performance and conduct of the employee. The manual is only a guide and the employee needs to understand its importance in the overall corporate policies and procedures hierarchy.
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Operating Control Reports in Business
A part of any information feedback loop is the operating control reports in business.
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Operate Within Your Range of Production
One of the basic business concepts is range of production. It means maximizing the capacity (range) of the assets in your operation. When the business operation goes beyond the maximum production range, costs associated with the marginal production generally exceed the revenue generated with the marginal increase. To maximize profit in any business, operate within your range of…
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The Different Forms of Compensation
There are two different forms of compensation provided to employees; direct and indirect. Direct forms of compensation have a multitude of types or methods, from salaries to bonuses. Indirect compensation is primarily the various types of benefits and long term incentives. This article is an introduction to the terminology of compensation. One of the forms of compensation…
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Labor Availability – How to Calculate Maximum Available Hours
Every service related business wants to maximize the hours the staff bills or provides services to customers. When they are working, the business gets to bill for time and generate revenue. Maximum revenue means the best chance at creating the highest profit.
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Develop a Position Profile
The primary goal of the Human Resources Department is to match the best person to the job in the company. This maximizes both effectiveness and efficiency for the company. In order to achieve the best matching of resources to the positions in the company, the human resources director should develop a position profile. This profile…
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Find the Bottleneck
In every business no matter production or service, there exists a bottleneck. Your job as the owner or manager is to find it and fix the problem. Once this one is found and resolved; move onto the next one. There is always a bottleneck to find and fix. What is important is to find the problem,…
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Gain an Understanding of the Work Environment
One of the top three purposes of any business operation is to provide security to employees. This consists of financial reward, generating self-worth and creating an environment of maximum productivity. Every industry is hampered by outside forces that places restrictions or dampens the spirit of the employees. Before developing a policies and procedures manual, gain…
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A Story About Great Production
What I learned was that equipment didn’t call in sick, it didn’t back talk me, it never got upset about how much it was paid and it just kept on humming. It was making us money and I didn’t have to deal with personnel issues. Boy, if only all production could be like this. Turn it on…
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Production – Where the Rubber Meets the Road
All the rest of the business issues I write about mean zilch unless you have great production. This is the one area that you as the business owner need to devote your energy towards over any other.