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Discuss about the Operational Cost Control- Production And Operations Department.

- Recruitment

- Training

- Team building

- Contract negotiation

  1. Genuine consent: a contract can only be binding is the parties involved give their genuine consent. A contract will not be binding if there is proof of; duress, undue influence, or misrepresentation of facts,
  2. Consensual Agreement: One of the principles that governs any industrial agreement is the willing display of an offer by one party and the other has to accept willingly for that agreement to be binding.
  3. Binding by law: each part must be able to perform/ play his role as stipulated by the contract. An agreement is a binding document in law and by accenting to that agreement; all parties have a legal obligation to fulfill that which has been stipulated in the contract
  4. Legality: a contract is binding if and only if it does not break any other existing laws or proven to have any form of illegality.
  5. Capacity/intention to perform; a contract is only binding if both parties have the capacity to fulfill their role as stipulated in the contract. There are three groups of people who by law are deemed not to have the capacity to perform: the mentally incapacitated, those under the influence of drugs or alcohol and minors below the stipulated age (below 18 years)
  6. Three key result areas of the organization and who they apply to.

  1.Customer Satisfaction- sales and marketing department

  1. Operational Cost Control- Production and operations department

.  3. Record keeping- finance and procurement department

  1. Organization’s objectives for human resource planning.

The main objective of human resource planning is to ensure the organization human resource needs are properly met, without having a surplus or a shortage of manpower, while enabling employees to get the best fit jobs matching their skills.

  1. Organizational policies relating to balancing family/work relationships.

The organization considers the welfare of its employees to be of main importance and this includes the welfare of the employees’ family. All employees have a mandate to ensure that their family is not neglected. The organization provides free counseling services to any employee who may be having family related issues. Family related matters should not be an excuse to a drop in performance for any employee.  All family related matters should be kept away from work unless aired on the forums provided by the organizations policies.

6.List at least five external or internal organizational support services for employees.

Counseling services

Health and Fitness programs

Drug and substance abuse programs

Financial management and investment services

Onsite Child care services 

7.Performance measurement system utilizedin theorganization.

Improvement in individual, group, or organizational performance cannot occur unless there is some way of getting performance feedback. Feedback is having the outcomes of work communicated to the employee, work group, or company. For an individual employee, performance measures create a link between their own behavior and the organization's goals. For the organization or its work unit's performance measurement is the link between decisions and organizational goals.

It has been said that before you can improve something, you have to be able to measure it, which implies that what you want to improve can somehow be quantified. Additionally, it has also been said that improvement in performance can result just from measuring it. Whether or not this is true, measurement is the first step in improvement. But while measuring is the process of quantification, its effect is to stimulate positive action. Managers should be aware that almost all measures have negative consequences if they are used incorrectly or in the wrong situation. Managers have to study the environmental conditions and analyze these potential negative consequences before adopting performance measures.

Performance measures can be grouped into two basic types: those that relate to results (outputs or outcomes such as competitiveness or financial performance) and those that focus on the determinants of the results (inputs such as quality, flexibility, resource utilization, and innovation). This suggests that performance measurement frameworks can be built around the concepts of results and determinants.

Principles of an industrial agreement

Measures of performance of a business usually embrace five fundamental, but interlinking areas:

  1. Money, usually measured as profit
  2. Output/input relationships or productivity
  3. Customer emphasis such as quality
  4. Innovation and adaption to change
  5. Human resources

Within the operations area, standard individual performance measures could be productivity measures, quality measures, inventory measures, lead-time measures, preventive maintenance, performance to schedule, and utilization. Specific measures could include:

  1. Cost of quality: measured as budgeted versus actual.
  2. Variances: measured as standard absorbed cost versus actual expenses.
  3. Period expenses: measured as budgeted versus actual expenses.
  4. Safety: measured on some common scale such as number of hours without an accident.
  5. Profit contribution: measured in dollars or some common scale.
  6. Inventory turnover measured as actual versus budgeted turnover.

While financial measures of performance are often used to gauge organizational performance, some firms have experienced negative consequences from relying solely on these measures. Traditional financial measures are better at measuring the consequences of yesterday's actions than at projecting tomorrow's performance. Therefore, it is better that managers not rely on one set of measures to provide a clear performance target. Many firms still rely on measures of cost and efficiency, when at times such indicators as time, quality, and service would be more appropriate measures. To be effective, performance yardsticks should continuously evolve in order to properly assess performance and focus resources on continuous improvement and motivating personnel. In order to incorporate various types of performance measures some firms develop performance measurement frameworks. These frameworks appear in the literature and vary from Kaplan and Norton's balanced scorecard to Fitzgerald’s framework of results and determinants.

Kaplan and Norton's balanced scorecard approach operates from the perspective that more than financial data is needed to measure performance and that nonfinancial data should be included to adequately assess performance. They suggest that any performance measurement framework should allow managers to ask the following questions:

  • How do we look to our shareholders? (financial perspective)
  • What must we excel at? (internal business perspective)
  • How do our customers see us? (customer perspective)
  • How can we continue to improve and create value? (innovation and learning perspective)

However, the balanced scorecard is flawed as it does not allow for one of the most important questions of all:

  • What are our competitors doing? (the competitor perspective)

A number of suggestions have been offered by various experts on the subject of designing performance measurement systems. Below is a list of suggestions derived from a number of these experts. Some of these apply to all measures and some apply to a limited number of a firm's measures. A firm's performance measures should:

  • Be simple and easy to use.
  • Have a clear purpose.
  • Provide fast feedback.
  • Cover all the appropriate elements (internal, external, financial and nonfinancial).
  • Relate to performance improvement, not just monitoring.
  • Reinforce the firm's strategy.
  • Relate to both long-term and short-term objectives of the organization.
  • Match the firm's organization culture.
  • Not conflict with one another.
  • Be integrated both horizontally and vertically in the corporate structure.
  • Be consistent with the firm's existing recognition and reward system.
  • Focus on what is important to customers.
  • Focus on what the competition is doing.
  • Lead to identification and elimination of waste.
  • Help accelerate organizational learning.
  • Help build a consensus for change when customer expectations shift or strategies and priorities call for the organization to behave differently.
  • Evaluate groups not individuals for performance to schedule.
  • Establish specific numeric standards for most goals.
  • Be available for constant review.
  1. Data collection and methods of calculating the performance measure must be clearly defined.
  2. Objective performance criteria are preferable to subjective ones.
  3. Recognize that measures may vary between locations; avoid a "one size fits all" mentality.
  1. Clearly define the firm's mission statement.
  2. Identify the firm's strategic objectives using the mission statement as a guide (profitability, market share, quality, cost, flexibility, dependability, and innovation).
  3. Develop an understanding of each functional area's role in achieving the various strategic objectives.
  4. For each functional area, develop global performance measures capable of defining the firm's overall competitive position to top management.
  5. Communicate strategic objectives and performance goals to lower levels in the organization. Establish more specific performance criteria at each level.
  6. Assure consistency with strategic objectives among the performance criteria used at each level.
  7. Assure the compatibility of performance measures used in all functional areas.
  8. Use the performance measurement system to identify competition, locate problem areas, assist the firm in updating strategic objectives and making tactical decisions to achieve these objectives, and supply feedback after the decisions are implemented.
  9. Periodically reevaluate the appropriateness of the established performance measurement system in view of the current competitive environment.

Finally, it is important that the performance measurement systems used by managers be continually reviewed and revised as the environment and economy changes. Failure to make the necessary modifications can inhibit the ability of the organization to be an effective and efficient global competitor.

  1. Write 200 words for each the following pieces of legislative and regulatory requirements, explain how your organisation complies with them:

Work health and safety legislation is an act aimed at defining and providing a safe workplace environment or employees to perform their duties. In order to comply with this regulation the organization has put in place various mechanism:

  1. Assessing the internal organizational risks is one of the ways the organization has used to help in conforming to the WHS legislation. By knowing the workplace safety and health risks which may be detrimental to the employees’ safety, the organization is able to put in place the necessary measures to avert those risks.
  2. Providing a safe working condition; the organization has provided the workers with all the necessary gear for them to perform their tasks. They also have an elaborate system of identifying any potential safety or health hazard and putting up proper signs and signals as warning mechanism when approaching areas identified as hazardous.   
  3. Training is done to all employees to provide them with the necessary information on workplace safety. This training is useful as it elaborates how to tackle the various challenges which may arise, that can be detrimental to employee safety. Training of equipment and machinery handling, and maintenance is periodically done to inform the relevant employees on the safe handling of those equipments and precautions to take incase the equipments behave in an unusual manner

This is a rule or policy aimed at giving all employees equal opportunities in the workplace regardless of their social status or personal background.

External and internal organizational support services for employees

There are several measures put in place by the organization to discourage discrimination and enhance equal opportunity.

  1. The organization has encouraged the growth of work place diversity right down from the recruitment process. By having a diverse group of personnel, the cases of discrimination can be seen to reduce.
  2.  Strict adherence to anti-discrimination law and policies set by the organization has also helped the organization to reduce cases of discrimination in the organization. By communicating to all employees the repercussions of discrimination, one of them being dismissal from work, the employees are able to know the magnitude of
  3. Encouragement of the minority groups to take leadership in all workplace activities is also a tactic used to combat discrimination in the workplace.
  4. Continuous assessment of employees needs is also a tool employed by the organization to encourage the anti discriminatory practices. By knowing the various employee needs, the organization is able to act accordingly. Those groups which seem disadvantaged and discriminated against can have reprieve from the actions taken by the organization to meet their needs.
  1. Staff development strategies used in theorganization.

Here are eight ways to develop employees, keep them engaged, and increase the probability they will remain with the organization:

  1. Create Individual Development Plans: The first step in developing employees is to create a development plan. It is important to sit down with the employee and discuss individual interests and career goals. This conversation will help identify the development activities that individual should be undertaking. After all, not everyone shares the same goals or has the same perspective about what they want to achieve in their career. Still others may be unsure about what they want to do. The development plan should provide a roadmap for the employee that includes measurable goals and a realistic timeframe for achieving each goal. Taking time to discuss and add detail to the employee development plan or blueprint will increase the likelihood for a return-on-investment for all involved.
  2. Provide Performance Metrics: It is essential to set specific quantitative metrics to help an employee understand where they need to be or what they can realistically achieve. Then, as these performance metrics are met, the bar can be raised so the employee feels a continued sense of accomplishment. Before running a marathon, a runner first sets shorter goals and then works their way up, running further and further and building the muscles and power needed to eventually get them to that marathon goal. A manager work with the employee to decide where he or she is now in relation to achieving key performance objectives that will eventually lead them to where they want to be and need to be. Measuring progress also provides evidence of how these activities are working. Furthermore, performance metrics help drive accountability when paired with effective leadership as taught here.
  3. Provide Opportunities Outside of Job Function: Today’s organizations have become so compartmentalized that employees believe they can only operate within their department or function. However, to truly develop an employee for a larger role in the company, they need to understand how all aspects of the organization work. Create opportunities for an employee to take on new responsibilities outside their job function. This cross-training will increase their awareness and knowledge of the organization and help them work more effectively with others because they have a new understanding of what other employees do for the company. The additional responsibility will put them in new situations, add challenges, expand skill sets, and encourage them to think on their feet, which will also improve their chances for success in any future roles they take on. This type of development also creates energy and excitement in the workplace.
  4. Give Constructive Feedback: Feedback does not mean criticizing, chiding, or disapproving. Instead, it should be constructive in nature and include specific recommendations for further improvement and development. Feedback should also be delivered regularly and tied to data or examples such as the performance metrics or the individual development plan. Only using feedback for employee reviews can result in missed opportunities to guide an employee through the professional development process. Employees want to know how they are doing. If feedback is used as a tool for growth and recognition, and not a tool to knock the employee down, it will make a measurable difference.
  5. Remove Barriers: Many organizations are rigid in their organizational structure and processes, which can make it challenging to implement some cross-functional development and facilitate dynamic growth and high-performance training. It’s up to leadership to bridge silos, knock down walls, and design a system that encourages a fluid approach to learning and working. Today’s generation of workers are used to change and enjoy open work environments that let them explore. Take the barriers away and watch people flourish.
  6. Link to a Professional Network: Help employees access additional contacts that can help them grow. Introduce them to other professionals that can serve as mentors or coaches, sign them up for professional industry associations, send them to training courses and workshops, and create and attend networking events. Getting them connected to a network offers a way to get additional support, advice, and information on how to grow professionally and personally. It also gives the organization another ambassador for the business.
  7. Outlay Resources: From day one, an employee is an investment that the organization is making and from which it expects a return. To get the most out of employees requires making further investments along the way. Although many of the tactics on this list do not necessarily require dollars to implement, resources are still being used in the form of time and focus. Other employee development activities, including training, online learning programs, and coaching are well worth the monetary resource investment dollar. Whatever the resource, this additional investment is necessary and valuable when it is thoughtfully aligned with the organization’s strategic goals and the individual development plans designed around key talent.
  8. Set the Example: An employee will see the value of the development process when they see their current leadership continue to develop personally and professionally. By modeling this behavior, leaders build credibility and the trust necessary to encourage employees to participate in development-building activities. It shows employees that development is part of the organization’s culture. It sends the message that it’s important for, and expected from, everyone in the organization to be part of a continual improvement process that nurtures from within. If you want to compete with big brands, you have to emulate big brands.

Unfair dismissal occurs when an employee’s term has been terminated abruptly, with or without due notice. It can also occur when an employer terminates an employees’ contract without having reasonable grounds. For example, termination from participating in activities which are deemed detrimental to the employer and are within the established employee rights e.g. activities pertaining to trade unions, can be seen as unfair termination.  Due to these reasons an employee is entitled to make an unfair dismissal complaint to a recognized employment tribunal. However, the organization has put in place various rules to regulate instances that might arise from unfair dismissal;

Policies: The organization has put in pace policies to safeguard the employees against unfair dismissal. These policies are part of the overall human resource policies aimed at safeguarding the employees of the organization from being dismissed on unreasonable grounds. The policies of dismissal are also in line with the country’s’ labour laws.

Termination process: All employees accused of any wrong doing are subjected to a disciplinary committee where they are given a fair chance to defend themselves more so if they are to be dismissed due to gross negligence or misconduct. Termination is always taken as the last resort mechanism by the organization.

Communication: before any termination, the employee has to be given due notice according to the prescribe statutes. The notice should be communicated in a humane manner that does not diminish the pride of the employee. The communication should be clear indicating reasons for dismissal.

Employee empowerment: employees are empowered to know their rights and encouraged to air out any violation of their employment terms to the relevant authorities.

In compliance with the labor laws, employees can seek reprieve from the internal human resource tribunal if they are dismissed; before the retirement age, and if they have worked for the organization for a period of one year or more inclusive of the established legal period of notice before termination.    

However, the organization has provided clear guidelines indicating that, an employee cannot be dismissed on the grounds that;

  • They have engaged in activities pertaining to trade unions they belong to
  • They have failed to perform tasks outside their prescribed work specification or jurisdiction contrary to their terms of contract.
  • They have any maternity related challenges
  • Airing out complaints in good faith about the statutory employee rights
  • Airing out complaints in good faith on matters relating to employee safety and health standards in the work place

If an employee has been identified to have been dismissed unfairly, the compensation can be in form of reinstatement or awarding of monetary compensation for the remaining contractual period,

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My Assignment Help. (2019). Operational Cost Control- Production And Operations Essay.. Retrieved from https://myassignmenthelp.com/free-samples/operational-cost-control-production-and-operations-department.

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My Assignment Help (2019) Operational Cost Control- Production And Operations Essay. [Online]. Available from: https://myassignmenthelp.com/free-samples/operational-cost-control-production-and-operations-department
[Accessed 28 May 2024].

My Assignment Help. 'Operational Cost Control- Production And Operations Essay.' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/operational-cost-control-production-and-operations-department> accessed 28 May 2024.

My Assignment Help. Operational Cost Control- Production And Operations Essay. [Internet]. My Assignment Help. 2019 [cited 28 May 2024]. Available from: https://myassignmenthelp.com/free-samples/operational-cost-control-production-and-operations-department.

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