Managing Operations and

Human Resources
Entrepreneurship
Learning Outcomes
• Describe the 6Ms of operations
in relation to the business
opportunity
• Discuss the five functions of
management
• Select appropriate management
style for intended business
• Develop an operations manual
• Develop inventory and
financial management system
• Describe the HR functions
• Identify staffing needs
• Develop job analyses
• Identify recruitment and
selection process
 Operation Management
• Is about delivering product and services to customer to meet or surpass
their expectations.

• Management of the entire process that transfer inputs into outputs.

Outputs can be physical goods

Inputs can be material, manpower and machine
 1. Quality expectation
Operation Managers
must do the ff: 2. Delivery Expectations
Begin with the customers wants and desires
in mind.
3. Price Expectation
These can be classified into three customer
outcome expectations
The 6Ms of Operations
• Money
• Management
• Manpower
• Machine
• Materials
• Method
• This 6M’s are transforms into the right output through a highly
predictive system.
The 6Ms of Operations
• Money – Should flow through the transformation process or JIT as the five
others are needed (physical facilities are set up, employees are hired and operating system are installed)
• Management- Should also come ahead of the others Ms in order to design
and develop the transformation process
• Manpower- Should be the next after the management to ensure proper
installation of equipment's
• Method- Should be the next after Manpower to ensure the right process of
every product and services
• Machine
• Materials
Lay outing
• Store layout is the design of a store's floor space and the placement
of items within that store.
• Store layout helps influence a customer's behavior, which means
when done right, it's a key strategy to a store's prosperity
Production Planning and Scheduling
The Five Functions of Management

Planning Organizing Staffing

Implementing Controlling
Planning
Involves analyzing
information, setting goals,
and making decisions Types of Planning
about what needs to be Strategic planning
done to move the business
forward Intermediate-range planning
Short-term planning
 Identifying and arranging the
Organizing work and resources needed to achieve
the goals that have been set for your
Assignment of tasks business
Grouping of tasks into
departments
Organizational Structure
Allocation of resources of the
organization
Staffing Implementing
Includes all activities
involved in obtaining, training, • Involves directing and leading
and compensating the the people to accomplish the
employees of a business goals of the organization
• Authoritative
• Democratic
• Mixed
• Laissez Faire
Controlling
 Compare actual revenues and
expenses with what was projected
 Observe business operations and
determine if they are running
effectively
 Inspect products and services to Is the process of setting
ensure they are meeting standards for the operations of a
performance standards business and ensuring those
standards are met.
 An operations manual contains all Operations Manual
of the rules, policies, and procedures
that a business should follow in order
to function effectively.
Operating Policies
Customer Service Policies
Delivery Policies
Safety Policies
Inventory Management
• Meeting Inventory Needs
• Purchasing Plan
• Tracking Your Inventory
• Perpetual Inventory Method
• Stock Cards
• POS
• Periodic Inventory Method
• Managing Your Inventory
• Costs of Carrying Inventory
• Obsolescence
• Deterioration
• Interest fees
• Insurance
• Storage
• Costs of Being Out of Stock
• Stock Turnover Rate
Financial Management
• Managing Your Cash Flow
• Creating a Cash Budget
• Improving Your Cash Flow
• Increasing Cash Receipts
• Decreasing Cash Disbursements
• Prepare and Analyze Financial
Statements
• Prepare Financial Statements
• Analyze Sales
• Analyze Net Profit on Sales
• Set and Meet Profit Goals
• Breakeven Analysis
Staffing
• Involves determining the • Job Description
number employees you need • Job
and defining a process for • Task
hiring them
• Function
• Job Analysis
• Job Specification
• Organizational Structure
• Chain of command
Recruiting
• Looking for people to hire and • Alternatives to Adding Staff
attract them to the business • Freelancers
• Classified Advertisements • Interns
• Online Career and Employment Sites • Temporary Workers
• Contractual
• Employment Agencies
• Seasonal
• College Place Centers
• In-Store Advertising
• Referrals
• Job fairs
The Hiring Process

Reviewing and
Screen Interviewing the Making a job
verifying job
Candidates best candidates offer
applications
Compensation Package
• Types of Pay • Benefits
• Wages • Mandatory / Statutory Benefits
• Salary • Paid Leave
• Bonus
• HDMF / Pag-ibig
• Philhealth
• Profit Sharing
• SSS
• Commission
• Insurance
• Retirement Plans
Implementing Your Staffing Plan
• Understanding the Levels of
Management
• Supervisory
• Middle level
• Top-management level
• Apply Leadership Styles
• Theory X, Y, and Z
• Enforce Employee Policies
• Train Your Employees
• On-the-job training
• Coaching
• Mentoring
• Conferences and seminars
Controlling Human
Resources
• Evaluate Employees
• Performance Evaluation
• Promote Employees
• Dismiss Employees