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Bsbmgt517 Manage Operational Plan Oz Assignment
The operational plan is very important for an organisation as it helps in various aspects. The major benefit of the operational plan is to outline the business operations and growth projections. In addition to this, a framework regarding the management approach is also developed which ensures that the aspects like marketing, staffing,financial, and other resources are effectively used in order to attain success. Further, the operational plans help the business to enhance their operations and accomplish their business objectives effectively. An operational plan manages the working operation of the business such that managing the employees to work according to the plan (Maté, et al. 2012). When the operational plan is effectively implemented it would result in high profitability to the organisation.
There are various key result areas which influence the business of an organisation. The four major key result areas of an organisation are:
1. Planning – In order to attain high productivity and efficiency, it is necessary for the organisation to plan things properly. Due to effective planning, managers and owners develop their objectives and attain it with help of an action plan.
2. Organising – When the business expands, it is difficult to handle it so proper organising should be done like organising team performance and minimising redundancies.
3. Staffing – Recruitment is an essential element in the growth of the business. It helps the organisation in gaining potential employees (Sharda, et al. 2013).
4. Supervising –It is the responsibility of the manager to regularly monitor the employees and provide necessary guidance and training for their enhancement.
If the customers complain about the quality of products then it is the responsibility of the manager to handle the situation effectively. Initially, the production department would be contacted in order to aware them about the quality of products. Then the production department enhances their production process. After that, the distribution department would be called in order to stop the distribution of bad quality products and the distributed products would be reverted back to the company. In addition to this, effective marketing of the products should be done for building awareness among the customers. The products should be developed in such a manner that should satisfy customers (Teece, 2010). In addition to this, a customer satisfaction department should be developed in order to regularly take the feedback of customers.
There are number of legislation which should strictly follow during the implementation of the operational plan. The legislation is minimum wages, minimum working hours, health and safety, discrimination acts, etc. During the implementation of the operational plan, workers should be paid suitable wage and also the laws regarding minimum working hours should be followed strictly. It is important to ensure that the health and safety are provided to the employees and worker them. The organisation should follow the important standards as per the government regarding the health and safety of employees. During the implementation of the operational plan, the health and safety of employees should be ensured (Stutely, 2012). Further, there would be no discrimination with the employees during the operational plan. In addition to this, the legal standards and procedures for the business should be followed during the implementation of the operational plan.
Recruiting, selecting and inducting the appropriate staff in the organization for the operations, enhance the efficiency of the operations which in turns can enrich the overall productivity of the organization. Initially, for recruitment organization can adopt either internal, external or third-party recruitment approach. In internal approach, the company can perform an evaluation and can shift and promote the existing employees to the other department or higher post. Further, through utilizing external approach company externally recruit the employees. External approaches of recruitment include recruitment of college student forms their campus, publishing job advertisement etc. Furthermore, a third-party approach can be used in which a consultancy can be hired to get the fined and experienced staff for the company (Zikmund, et al. 2013). The recruitment process should incorporate an aptitude, subjective and psychometric test for initial screening. The process should be followed by the personal and subjective interview by the experienced managers and other senior officers.
Contingency plan: the contingency plan is formulated for a result or outcome and utilized for the risk management. In other words, a contingency plan is a course of action formulated for helping a firm responds effectively to the situation that may arise or significant future event (Peppers & Rogers, 2016). In addition, sometimes the contingency plan refers to the alternative plan or “Plan B”.
A contingency plan comprises of seven steps process:
1. Developing the policy statement for contingency plan
2. Conducting business influence analysis
3. Preventive controls
4. Developing contingency techniques
5. Creating information system for the contingency plan
6. Testing the plan regarding training and exercises
7. Ensuring maintenance of plan
It is important for the organisation to safeguard their brand name, trademarks, and intellectual property. The methods and techniques for the operations of the business is the intellectual property of the organisation and it could be safeguard through different methods. The five major methods are:
1. Trademarks – It is a right which is granted over a logo, shape, and picture regarding their products and services.
2. Patents –Patent is a right for any company to safeguard their substance, process or methods which are beneficial for their operations (Yilmaz & Flouris, 2010).
3. Copyright –This protection is automatic and free and it also provides a legal safeguarding for expressing the ideas. In patent and trade marker registration is required but in copyright, nothing is required. It is done for safeguarding the computer programs, and databases.
4. Design rights –The appearance of the product which gives it a different visual is known as design. It comprises of branding, packaging, and logo.
5. Domain Names –It is the unique address of organisation on the internet. It helps the consumers to easily find the organisation.
It is important for the organisation to include the stakeholders in the operational plan. This would help in handling the operation and attaining their objectives effectively. The stakeholders that should be included in the operational plan are:
1. Owners – Every organisation has an owner who handles the operations for their business operations.
2. Customers – There are set of customers in every business and they are connected with the organisation in different aspects (McKinney, 2015).
3. Sponsors –In order to promote the products and services different sponsor would help the organisation.
4. Employees –The operations of the organisation are conducted with help of their employees and staff members.
5. Community –Every organisation has a brand image and it is necessary for them to maintain their image in front of every community.
It is important to monitor the operation plan in order to attain the business objective of the organisation effectively. There are different ways through which the operational plan could be monitored.
1. Monitoring at regular intervals in order to analyse that the required task is achieved or not.
2. Developing a tracking system in order to operational management the progress of the plan.
3. Creating plan review dates in order to check that the respective objective is complete on that date or not (McDonald & Wilson, 2016).
4. Necessary changes should be made in the plan when a change occurs in the business environment.
In order to effectively monitor the implementation of operational plan financial data is very important. It helps in analysing the areas where major improvement is needed for the growth. The financial data is required of different areas such as costing of raw material, production cost, marketing cost, and revenue. The costing of raw material would help in enhancing the operational plan as per the market requirement. Then the data of production cost would be helpful in the operational plan as analysing the cost of their operations. Then the marketing cost would be analysed in order to know the proper implementation of operation plan. The effective marketing would be needed as per the operational plan (Steiner, 2010). Then the revenue data would be evaluated from the operational plan and the necessary changes would be made in order to attain the desired objective.
The business plan can be measured through certain points that are objectives, product or services, current market condition, crucial changes in the industry, marketing strategy applied by the organisation which help in accounting number of sales along with structuring the marketing plan and to evaluate through cash flow and providing the right way when it comes to profitability. The basic activities that can be used to measure the activities are by controlling, comparing and finding the cause of differences along with that eliminating negative difference (Bierman Jr &Smidt, 2012).
When approaching to measure the success of the business plan it is necessary to indicate the key performance indicator which helps in understanding the performance of the organisation at each stage. Some of the listed KPI are:
2. Customer Satisfaction and Retention
3. Employee turnover Rate
4. Average Annual Expenses to serve one customer
5. Internal Promotions Vs. External Hires
In order to judge the safety practices of the staff members, it is essential to have a detailed understanding of the challenges that they are facing in day to day. Considerable skills are required in order to minimise the consequences that can cause at the workplace. It is essential to follow certain norms of the organisation in order to assess the risks that can be maintained with communicating health and safety policy to staff. It is necessary to record your risk assessment and steps that help in reducing the chance of accidents. This can be corrected with including the staff handbooks or posting the safety measures on notice board and must check whether they are maintaining comfort and cleanliness, first-aid supplies and keeping the procedures of safety updated (Wang, et al. 2010). It must be evaluated through preparing the occupational safety and health policy programme as the part of the working activities of the organisation. Under the Health and Welfare at Work Act 2005, it is necessary to set a clear direction to the health and services practices to the employees.
The operational plan is defined as the structured framework that is used to provide tavibrant picture of an organization. Two basic models and methods that are used for developing the plan are integrated planning model and rational planning model. Integrated planning model has various numbers of strategic plans, which is divided into parts from level to level and interrelated as well for making the decision strongly (Taniguchi, et al. 2016). By the use of this model, an organization can prepare a plan for their business operation effectively. Whereas in the rational planning model, the decision-making process can be accompanied by the manner and proper monitoring and controlling of the business will also be achievable.
It is imperative for an organization to achieve different objectives using operational plans. In order to achieve organizational objectives, an organization should consider all the factors associated with the operational plan. The operational plan can be used to achieve organizational objectives as it delivers different benefits. It can be adopted for following key purposes such as Identification of goals of a section or department, for adopting it appropriate tools and tactics and for Proper utilization of resources to meet the goals (Board, 2017). A company should utilize appropriate resources, tools and tactics to develop the effective strategy to achieve different organizational objectives.
The five essential elements that are considered to successfully prepare a budget are as under:
1. Be comprehensive and stay focused
2. Know the priorities
3. Set effective goal
4. Stay up to date
5. Seek professional advice (Berninger, et al. 2011)
To prepare a budget we can do this by following the under mentioned steps:
1. Define a SMARTER goal
2. Figuring out exact income
3. Calculating the exact expenses
4. Categorising the budgets
5. Adding all spending by categories
6. Choosing a method to track your budget
7. Proper review of the method chosen
8. Corrections and adjustments
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10. Steiner, G. A. (2010). Strategic planning. Simon and Schuster.
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