...What is Attrition? • Attrition is the reduction or loss of employees through different conditions. Reasons for attrition include retirement, resignations or even death. Attrition rates also depend on the general economic climate. However, regardless of the reason, attrition has a substantial cost to business. For example, when employees leave, a business will have to consider new employee training, relocation, search firms or agencies, interviews and background checks and advertising costs. These costs are substantial especially if your business has to constantly hire to replace employees that leave your organization through attrition. Attrition Rate • Organizations use several different methods to determine the actual attrition rate of the company. The approach will vary by company. However, previous attrition calculations can not determine any future attrition rates with certainty. For example, attrition rates cannot predict economic downturns that may force massive layoffs or even the closure of a division of your business. According to "Human Resources Management," you can minimize the attrition rate within an organization by implementing policies conducive to a productive working environment with equitable salaries and wages. How to prevent turnover Employees are important in any running of a business; without them the business would be unsuccessful. However, more and more employers today are finding that employees remain for approximately 23 to 24 months, according...
Words: 909 - Pages: 4
...Operational strategy: * The services offered by the venture come under the ‘Food and Beverage’ industry and will initially cater to the 600+ student managers of SIMS. * Ideally, a team of 6 people would be required for handling the day-to-day operations at any point of time along with a team of 3-4 people who would look into element of Marketing and Promotion. The day-to-day operations would involve the preparation of the food-items and beverages as according to the quantity demanded. * Along with this an individual, to manage the daily monetary-transactions, would be continuously required to maintain and keep a track of the finances of the venture. * The work force required would be managed amongst the team-managers by working in shifts and changing the responsibilities as and when required while keeping in-mind the smooth working of the venture. * Expenses will include material-procurement costs, salaries, travel, communication, electricity and internet bills. Risks and challenges: Problem 1: Many other players in the ‘food-industry’ in the market. Solution: Give an unmatched service and the most satisfying experience in the market, take regular feedback from customers, discuss the different options and implement new ideas that would adapt to the ever changing environment. Problem 2: Not enough customers initially. Solution: Work towards creating strong relations with the initial customers, networking and developing strong promotional activities...
Words: 473 - Pages: 2
...1. Companies that often achieve high success rate do so because of the fact that they design their operations to support the company’s business strategy. These firms take the necessary steps to ensure that production operations are suited for the intended target markets. Production Operations can be defined as the special ability that production does well in order to outperform its competition, whether through offering quality, flexibility, low cost, or durable products/services. Toyota Motor Corporation a globally recognized leader in the automotive industries focuses on quality as its operation capability. If the company had focused on low cost instead of quality its operations would have an altogether different look. Two ways that Toyota’s operation might have changed as a result of a cost minimization focus which would be the most appropriate in this case are reduction in models they offer and a reduction in marketing and advertising. Since its inception in the 1930’s Toyota has offered over 150 different models across its major markets in Asia, Europe and North America. However, not all of the models offered have been profitable for the company which has resulted in many models being discontinued. With a cost minimization focus Toyota who has had great success with such models as the Camry and Corolla both of which were ranked in the top 10 of best cars to purchase. The company can focus more of its revenue into producing more of these particular models and enhancing...
Words: 1203 - Pages: 5
...Yes, I agree with the opinion-that, construction firms use operations strategies in their firms in order to gain and attain profits. Eventually, in today’s time like other industries, construction firm also have no way without implementing operation management strategy in their firms. A successful business operates by knowing what it does best, why it does what it does and what it needs to do to stay focused and gain market share. It has a clear vision of why the business exists and what measurable results are expected to keep it winning for a long time. The purpose of a business is to give the owner what he or she wants. In publicly traded companies, stockholders want three things: quarterly earnings or profits, increasing stock values and revenue growth. Operations Management: Operations Management is more about running the entire business than just the production line, and involves accounting, pay, personnel, shipping, and all aspects of a business. The point of operations management is to fully integrate all operations so the company operates as an integrated coordinated whole, rather than as separate, independent departments each doing their own thing. The operations manger need to look at ways to coordinate purchasing, accounting, planning, production, personnel, maintenance and training. If any one of these becomes disconnected from the others, then you get bottlenecks outside of the production line that slow down production. For instance, if personnel does not...
Words: 1792 - Pages: 8
...THIS PARTNERSHIP AGREEMENT is made this __________ day of ___________, 20__, by and between the following individuals: | |Address: __________________________ | |___________________________ |City/State/ZIP:______________________ | | |Address: __________________________ | |___________________________ |City/State/ZIP:______________________ | 1. Nature of Business. The partners listed above hereby agree that they shall be considered partners in business for the following purpose: ______________________________________________________________________________ ______________________________________________________________________________ 2. Name. The partnership shall be conducted under the name of ________________ and shall maintain offices at [STREET ADDRESS], [CITY, STATE, ZIP]. 3. Day-To-Day Operation. The partners shall provide their full-time services and best efforts on behalf of the partnership. No partner shall receive a salary for services rendered to the partnership. Each partner shall have equal rights to manage and control the partnership and its business. Should there be differences between the partners concerning ordinary business matters, a decision shall be made by unanimous...
Words: 720 - Pages: 3
...Formulating a Market Strategy BY REX STEWART #006 AUGUST - SEPTEMBER - 1986 In the previous article, we talked primarily about tools to determine your market niche and ways to utilize these tools in gathering information to determine your store's market position. With this information gathered, what do we do with it? On the board level, it should be utilized to formulate a strategic plan or to review an already existing plan. More importantly, on the staff level, the information gathered is the basis for an operational marketing strategy. A marketing strategy should be used as a working paper that guides the store's operations for the next 1-2 years. The format of a marketing strategy has three sections: 1. basic assumptions -- based on survey results and past planning processes; 2. strategic goals -- goals for growth and fiscal health of the co-op; 3. achieving goals -- operational ideas for changes that will alter the perception of the storefront by the public to conform to the strategic goals. (An advertising strategy, to be discussed in our next column, is a result of the marketing strategy and needs to be treated as a separate document. A market strategy creates the product to be advertised; the advertising strategy defines the markets to be advertised in and the media vehicles to be used.) As mentioned earlier, it is important that corporate goals are established through a strategic planning process before an operational marketing strategy can be written. These...
Words: 995 - Pages: 4
...Strategies for oil and gas companies There are a variety of challenges facing the energy industry, from decreased access to sovereign reserves, to declining fields, innovation challenges, increased regulation and new energy policies. These challenges pose a threat to the basic industry structure. Oil & gas companies espouse four common industry-wide strategies of Portfolio Management, Operational Efficiency, Financial Management and Sustainability-of which the first three are core operating strategies of oil & gas companies. The companies have derived their profitability, growth, and shareholder returns based on the superior execution of these strategies. Though talk about Sustainability is a business imperative, it is no longer a differentiating factor and is not integrated with the core strategies. The current challenges facing the energy industry, however, necessitate that the companies integrate sustainability, innovation and management of technology strategies with their core strategies of portfolio management, operational efficiency and financial management. In this thesis, we propose two distinct strategic options: Total Life Cycle Management and Management of Technology. Environmental management and organizational efficiency are an integral component of both the strategic options. Through Total Life Cycle Management, the companies address challenges of continued access to easier to develop and produce reserves and legacy fields, efficiencies, costs and hosts expectations...
Words: 360 - Pages: 2
...Strategic Choice and Evaluation Paper Target Firm: Hamilton Sundstrand is a subsidiary of United Technologies Corporation and is among the largest global suppliers of technologically advanced aerospace and industrial products. With more than 50 major facilities worldwide, Hamilton Sundstrand designs and manufactures aerospace systems for commercial, regional, corporate, and military aircraft, and is a major supplier for international space programs. Introduction A company is continuously faced with decisions to select among the factors that would make the business more attractive and focus on the ones that defines and aligns with its visions of “what it would like to be”. A company can overextend itself by attempting to have the best service or delivery time, the highest quality product, and the lowest cost; and could possibly result in failure. Therefore, it is inherent that a company use strategic planning to focus on primary objectives for long-term preparation and success. Hamilton Sundstrand and its sister companies are already market leaders in many established and mature markets; however, in order to continue its growth in the near future an examination of its long-term objectives is necessary. According to Pearce and Robinson, Strategic Management: Formulation, Implementation, and Control, there are seven common categories of long term objectives: profitability, productivity, competitive position, employee development, employee relations, technological leadership...
Words: 1702 - Pages: 7
...1. Actions Taken: One of the first things identified by Powder was a bottleneck in the process that took place for the work needed to be completed by the Construction department. TOC consists of Problem Solving and Management/Decision-Making Tools called the Thinking Processes (TP). TOC is applied to logically and systematically answer these three questions essential to any process of ongoing improvement: “What to change?” “To what to change?” “How to cause the change?” (science of business) The first principle of Goldratt’s Theory of Constraints is that the primary goal of every business function—every department, every workflow, every system, every process, and every policy—is the same: to earn revenue for the business. (agileattorney) In addressing the questions above, Powder decided that with proper planning, he could maximize revenues, reduce wastage and solve several problems at once. Looking at his current capacity to produce, he realized he needed to change the level of work flow passed on to him by the Construction Department. His idea hinged on loaning the Construction Department the assistance they needed by allowing underutilized SD crews to assist with construction related tasks. Powder scheduled his staff to ensuresufficient coverage for his own workload. The remaining staff was appointed to “Construction”. Stage 2: Adopt Best Practice The lean synchronization approach calls upon resources to work smarter rather than harder. Lean thinking...
Words: 1336 - Pages: 6
...for reasonableness and feasibility. Implementing the plan is the fifth step, and this involves putting the plan into action. The action over a reasonable tome period will reveal if the plan needs changes, and specifically where. The last planning step is to monitor and control the process implemented to see if the action for the plan work s well enough to sustain the goal for the desired term. Planning also has different types as well as steps. Strategic planning is used for long-term planning. This allows a company to plan strategies for long-tern economic survival through strategic goals. Tactical and operational plans are implemented after strategies and strategic goals are determined. Tactical plans apply to middle managers and operational plans apply to frontline managers. The difference is that tactical planning is a broader strategic goal, and operational strategies require frontline supervisors to detail the strategies for employee application on a...
Words: 454 - Pages: 2
...ISDS 2001 – STUDY GUIDE for Final Exam – Chapters 3 and 6 Objectives: After completing Chapter 3, you should know: 1. that BPM encompasses a core set of processes, including financial and operational planning, consolidation and reporting, modeling, analysis, and monitoring of KPIs, linked to organizational strategy 2. that BPM helps organizations translate a unified set of objectives into plans, monitor execution, and deliver critical insight to improve financial and operational performance 3. that BPM refers to the business processes, methodologies, metrics, and technologies used by enterprises to measure, monitor, and manage business performance 4. that BPM is an enterprise wide strategy that seeks to prevent organizations from optimizing local business at the expense of overall corporate performance; concentrates on enterprise-wide view. 5. that BPM = BI (monitor and analyze) + Planning (a unified solution) 6. understand that the closed-loop process (the BPM cycle) links strategy to execution in order to optimize business performance Using a closed-loop process to optimize business performance implies that four process steps are implemented: * Strategize - setting goals and objectives. Where do we want to go? * Plan - establishing initiatives and plans to achieve those goals. How do we get there? * Monitor – overseeing actual performance and comparing that to the goals and objectives. How are we doing? * Act and Adjust – taking corrective...
Words: 2196 - Pages: 9
...decline in net profit. This decrease is attributed to a change in the communications industry and a decline in the demand of communication products. Desert is beginning a strategic movement to reallocate its resources to capitalize on the added communication services in the industry. A team has been assigned to integrate strategies that will help generate the profit needed in regard to its call center. Contained in this paper is the strategic plan created by the team to aid in team and management collaboration, training programs, and tactics in identifying and minimizing conflict within teams. Presenting the Operational Change Before the team creates a strategic plan, management should not inform employees of the change because this may create problems among the employees. They may think jobs are at risk or the company is closing. After the plan is created, management should provide employees with details of the plan that affect them. These details will include the organization’s mission, how it intends to fulfill that mission, and the plan to train employees and provide them with the tools needed to perform effectively their tasks during and after the operational change. Training of Multiple Audiences Training provides education, raises awareness, opportunities to prevent fraud, improve ethical practices, and increases short and long-term company profits. The training plan is designed to maintain the following principles (Robbins & Judge, 2011): • Training goal – training...
Words: 1715 - Pages: 7
...you are preparing to fail.” Winston Churchill is accredited for saying "He who fails to plan is planning to fail." Both are correct and relevant in today’s business environment. Planning is the cornerstone of any successful business. Today’s planning is governed by two leading processes, strategic and operational planning. I will review the attributes that both plans embody with relations to SWOT analysis conducted on Liberty Global Inc. Strategic and Operational plans for Liberty Global Inc. Strategic planning is a top-down approach provided by top management that defines; goals, objectives, and direction of the organizations for the next three to five years (Robbins & Coulter, 2012). It lays the foundations for growth, improving productivity, and to improve return on investment for the organization’s investors. Operational planning details how the organization will accomplish the goals, objectives, and strategies outlined in the strategic plan. Operational planning is a bottom-up approach that addresses the needs and performance of the organization in the short-term, one-year and under. It addresses the question, what are we going to do this year and how. The operational plan should be reviewed on a regular basis to ensure that it is on target. Liberty Global is the leading international cable operator. The company operates in 13 countries across Europe and in Chile. The company has more than 22,000 employees globally with revenues exceeding $10 Billion in 2012 ("Liberty...
Words: 691 - Pages: 3
...Managerial Accounting The purpose of this presentation is to convey the importance and purpose of managerial accounting, how the managerial accountants support the strategic decisions, ways strategies can be implemented by management and strategy implementation steps that managers can take. As the Board of Directors you will be charged with interpretation of information provided by the accountants. As a board using the financial and managerial accountants’ reports and feedback will assist with the planning and execution of decision that will strategically allow all employees from management down to the front line to operate efficiently. The purpose of managerial accounting is to take historical information, such as financial statements, budgets and operations reports to create a plan focus inwardly within the company. Managerial accounting is a system of providing and measuring financial and operational information. The system is designed to motivate behaviors, guides managerial action, and support and create necessary cultural values needed to achieve an organization’s strategic objectives (Geense, 2005). Managerial accounting is comprised of 4 ideas that are the key to its definition. The ideas capture the purpose, scope, attributes and nature of managerial accounting. Cost and operational information, including some financial information define the scope. Reaching the key strategic objectives is managerial accounting's purpose. Managerial accounting by nature is a measurement...
Words: 831 - Pages: 4
...STRATEGY AND PLANNING This week’s Management class discussion has been on Strategic planning in organizations. This paper will explain 3 types of goals, which are important to an organization as we as explanations and elements involved in created strategy of an organization. Organizations are built with the goal of the profitability through process in mind. The organization control approach incorporates goals and strategy used to reach them. (Boundless.com Jul 2015) Using their mission statements, top managers do strategic planning to determine what the organization long-term goals should be for the next 1-5 years with the resources they expect to have available. Strategic management is a level of managerial activity bellowing setting goals and above tactics. (Boundless.com 2015). Strategic management provides overall direct to an enterprise. Strategic planning requires visionary and directional thinking. It should communicate general and profit goals and ways to achieve them. Strategic management provides overall direction to the enterprise. Objectives are determined by the results of the strategic assessment. These objectives should run parallel on a timeline, some short-term and others long-term. (Kincki & Williams 2015) Tactical Planning’s by done by middle management, they are normally given a 6-25 month time frame. The strategic priorities and policies are passed down to middle managers that determine what contribution their departments or similar work...
Words: 1198 - Pages: 5
