The formal structure of organisation - main elements.
HNC
BUSINESS ADMINISTRATION
OUTCOME 2
STRUCTURE OF BUSINESS ORGANISATIONS
Student's Name: MYRA CARRAGHER
THE FORMAL STRUCTURE OF ORGANISATION
THE MAIN ELEMENTS OF ORGANISATIONAL STRUCTURE
A company's structure influences how its strategies are carried out and how work is done.
Organisation structure is the basic framework of positions, groups of positions, reporting relationships and interaction patterns that an organisation adopts to carry outs its strategy.
There are six elements of organisation structure:
* Job definition
* Forming departments and work units
* Creating a hierarchy
* Distributing authority
* Co-ordinating and integrating activities
* Differentiating between positions
Job definition specifies the boundaries of a job by describing what tasks the job does and does not involve, the responsibilities and expectations of the job holder and the authority of the job holder to make decisions.
Below is an example of job definition within Finning (UK) Ltd.:
Construction Equipment Sales Rep
Accountabilities Market Analysis - Gather and analyse relevant market data to identify potential commercial opportunities and identify trends
Sales Planning - Develop appropriate sales plans to ensure that industry/sector sales targets are achieved
Marketing - Liase with customers and suppliers to ensure that all Finning products and services are presented in a manner benefiting the corporate image
Channel/Dealer Development - Work with associated dealers and franchise operations to maximise product distribution and ensure that Finning products and services are presented appropriately
Customer Service - Liase with other internal functions and departments to ensure that the highest levels of customer service are provided to purchasers of Finning products and services
Internal Communication - Influence and communicate with territory and account management representatives to ensure that a consolidated sector/industry plan is implemented nation-wide
Information Gathering - Maintain a personal understanding of key developments within the sector/industry so that commercial opportunities can be identified and capitalised upon
Personal Information Seeking - Position self as an expert in the relevant sector/industry so that clients will look to the incumbent as a reliable source of technical and industry information.
Performance Measures: Revenue; Profit; Market Share; Marketing Effectiveness; New Business; Customer Satisfaction
Knowledge and Skills: Direct Sales Experience
Deep and detailed sector and industry knowledge
Product knowledge
Supervisory experience
Understanding of dealer networks
Understanding of local marketing principles
Understanding of sales planning processes
As an organisation grows, the tasks within that organisation tend to become more specialised. Job specialisation is the process of breaking jobs into small component parts and assigning specialists to perform each part.
Advantages of job specialisation would be:
* Job holders can develop enormous skill in performing a narrowly defined and specified task.
* Job specialisation typically means that less work time is lost in switching from one job to another.
* Specialised equipment to increase productivity can be more easily developed in highly specified jobs
* Training people for specialised jobs is relatively easy
Disadvantages of job specialisation would be:
* Boredom is a problem. Workers often get little satisfaction from the job and feel no pride in carrying out trivial tasks
* Workers with highly specialised jobs often have high levels of absenteeism and job dissatisfaction and may quit more readily or develop antagonistic relationships with their superiors
Examples of job specialisation within Finning (UK) Ltd. would be the Service Engineers, Parts Sales Interpreters, Construction Equipment Sales Reps, Customer Service Sales Reps.
Once jobs have been designed, organisations must then group the jobs into logical units. At upper levels of an organisation, the groups may be called divisions, product groups or units. At middle and lower levels, they are usually called departments. Departmentalisation is the basis on which jobs are grouped together within an organisation.
MAIN TYPES OF ORGANISATIONAL STRUCTURE
FUNCTIONAL ORGANISATION - groups jobs on the basis of common functions, such as, marketing, production, finance and human resource.
The main advantages of functional organisation are that by grouping people together on the basis of their technical and specialist expertise, the organisation can facilitate both their utilisation and their co-ordination in the service of the whole enterprise. Functional grouping also provides better opportunities for promotion and career development.
The disadvantages are primarily the growth of sectional interests which may conflict with the needs of the organisation as a whole, and the difficulties of adapting this form of organisation to meet issues such as product diversification or geographical dispersement. Functional structures are probably best suited to relatively stable environments.
The organisational chart below is an example of one such type of structure used within Finning (UK) Ltd.
PRODUCT OR SERVICE
Another form of grouping is by product. This is a popular structural form in large organisations having a wide range of products or services. In the National Health Service, for example, the key groups of employees - medical, nursing, para-medical and hotel services - are dispersed according to the service they provide, e.g. maternity, orthopaedic, surgical, psychiatric and other services. By comparison, a large pharmaceutical company could be organised as below.
Finning (UK) Ltd. also operates this type of structure as it has several divisions which all operate separately. These consist of:
* Power Systems
* Materials Handling
* HCMQ
The advantage of a product organisation is that it facilitates co-ordination and integration, speeds up decision making and eases assessment of units' performance.
Disadvantages of this type of organisation. There is some duplication of effort in the various functional areas and managers tend to focus narrowly on their product responsibilities rather than the overall organisation.
GEOGRAPHIC
Another form of organisation structure is the one grouped on a geographical basis. This is usually adopted where the realities of a national or international network of activities make some kind of regional structure essential for decision-making and control.
The advantages of geographic structure are:
* Reduction in transport costs
* The ability to cater for different local tastes
* International operations units can adapt to different legal, political and economic constraints
As in product organisation, the geographically based organisation tends to produce decentralised activities, which may cause additional control problems for the senior management. Hence it is usual with such structures to find groups of senior functional managers at headquarters in order to provide direction and guidance to line managers in the regions or product groups.
Finning (UK) Ltd. operates this type of structure also. They have their main UK organisation as well as organisations based in Canada and Chile. As well as this they also have this system in operation within the UK. The head office based in Staffordshire, but they also have 19 other branches throughout the UK. This enables them to cater to a wider customer base and claim more of a market share within their industry sector.
Below is an example of Finning (UK) Ltd. International geographical structure.
PROJECT TEAMS
A project team may be set up as a separate unit on a temporary basis for the attainment of a particular task. When this task is completed the project team is disbanded or members of the unit are reassigned to a new task. Project teams may be used for people working together on a common task or to co-ordinate work on a specific project such as the design and development, production and testing of a new product; or the design and implementation of ...
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Below is an example of Finning (UK) Ltd. International geographical structure.
PROJECT TEAMS
A project team may be set up as a separate unit on a temporary basis for the attainment of a particular task. When this task is completed the project team is disbanded or members of the unit are reassigned to a new task. Project teams may be used for people working together on a common task or to co-ordinate work on a specific project such as the design and development, production and testing of a new product; or the design and implementation of a new system or procedure. For example, project teams have been used in many military systems, aeronautics and space programmes. A project team is more likely to be effective when it has clear objectives, a well defined task, a definite end result to be achieved, and the composition of the team is chosen with care.
One such team is ongoing at the moment within Finning (UK) Ltd. A project team (DBSi team) has been set up to enable Finning (UK) Ltd., Finning (Canada) and Finning (Chile S.A.) to standardise their computer database system for the Construction and Materials Handling divisions. This will ensure all Finning dealer operations are working together to ensure that the service they provide to their customers is the same no matter where they are located in the world.
MATRIX
Matrix structures are organisational forms which have come about as a result of co-ordination problems in highly complex industries such as aircraft manufacture, where functional and product types of structure have not been able to meet organisational demands for a variety of key activities and relationships arising from the required work processes. A matrix structure usually combines a functional form of structure with a project-based structure. For example, in a two year project to produce a modified version of a standard aircraft, one project manager will co-ordinate, and be held accountable for, the work to be undertaken by the project team, and he will be the person who deals on a regular basis with the client. However, in addition to reporting to his own senior line manager on progress with the project as a whole, he will also report on specialist matters, such as design issues, to one or more functional managers, depending on the complexity of the project. The functional managers provide technical expertise and organisational stability. The project manager provides the driving force and the day-to-day control required to steer the project through during its relatively temporary lifetime.
The main feature of a matrix structure is that it combines lateral with vertical lines of communication and authority. This has the important advantage of combining the relative stability and efficiency of a hierarchical structure with the flexibility and informality of an organic form of structure. A matrix form focuses on the requirements of the project group, which is in direct contact with the client. It helps to clarify who is responsible for the success of the project. It encourages functional managers to understand their contributive role of the purely functional form, i.e. individual empire building by the functional heads. However, like all organisational form, matrix structures do have their disadvantages. The most important are:
* The potential conflicts that can arise concerning the allocation of resources and the division of authority as between project groups and functional specialists
* The relative dilution of functional management responsibilities throughout the organisation
* The possibility of divided loyalties on the part of members of project teams in relation to their own manager and their functional superiors
Despite these disadvantages, the matrix form probably offers us the best answer to date to the issue of handling the tension between the need to differentiate and the need to integrate the complex activities of modern organisations.
Matrix structure within Finning (UK) Ltd.
HYBRID
Hybrid structures occur when an organisation adopts a structure, which combines two structures from either functional, product or customer principles as a basis for its design.
Most organisations eventually use multiple forms of structure within a single overall structure. This is certainly the case within Finning (UK) Ltd.
Once work groups have been departmentalised, the organisation needs to develop a network of reporting relationships.
A hierarchy is the pattern of reporting relationships between individuals in positions throughout an organisation. The hierarchy has two purposes; to specify which positions are responsible for which areas of operation and to specify the authority of different positions relative to one another.
Authority is the power created and granted by the organisation. Organisations must decide how authority is to be distributed among various positions, levels and departments.
The process of distributing authority between managers and subordinates is known as delegation.
Delegation is a three step process between a manager and one or more subordinates.
) Assigning responsibility
2) Granting authority
3) Creating accountability
Many managers are reluctant to delegate because they don't know how to do so or they feel threatened by a subordinate who performs well. Organisations need to help managers decide how much responsibility to delegate and to overcome the threat of being overshadowed.
Decisions about how to distribute authority throughout an organisation result in decentralisation or centralisation.
Decentralisation is the systematic delegation and responsibility to middle and lower levels of an organisation. Centralisation is the systematic retention of power and responsibility at higher levels of an organisation.
Decentralisation and centralisation are the opposite ends of a continuum. Most firms are relatively more decentralised or relatively more centralised. Centralisation generally allows top managers to exercise control over the organisation, however, it also slows decision making and constrains innovation.
Decentralisation distributes control more evenly throughout the organisation. It also tends to speed decision making and make the organisation more flexible and responsive. However, decentralisation allows more opportunities for errors in decision making. The decision to decentralise or centralise is influenced by the organisation's environment, size and economic performance.
Delegation is essentially a power-sharing process in which individual managers transfer part of their legitimate authority to subordinates / team leaders, but without passing on their own ultimate responsibility for the completion of the overall task which has been entrusted to them by their own superiors. The reasons for delegation are mainly practical, but some are idealistic. Practical reasons include:
* Senior managers can be relieved of less important, or less immediate, responsibilities in order to concentrate on more important duties
* Delegation enables decisions to be taken nearer to the point of impact, and without the delays caused by frequent reference upwards
* Delegation gives managers the opportunity to experience decision making and the consequences of their decisions
* Delegation encourages managers to learn how to cope with responsibility
* Delegation enables organisations to meet changing conditions more flexibly, especially at the boundaries of their system
Idealistic reasons for delegation include:
* Delegation is a good thing for individual growth, and contributes to staff morale
* Delegation is 'the sine qua non of empowerment' (Peter, 1988)
* Delegation helps to enrich individuals' jobs and humanises work.
Most organisations find the need to delegate forced on them by circumstances, especially the pressures on managers to concentrate on environmental issues rather than on internal problems. However, the best practice is to be found in organisations that use delegation positively as an important employee motivator as well as a means of facilitating effective decision-making throughout the organisation.
One of the major questions which has to be faced when considering the practical aspects of delegation is how many subordinates, or team members, can be managed effectively by any one manager or supervisor. This is the classical management issue of the so-called 'span of control', i.e. the number of employees reporting directly to one person. In practice spans can vary between one and forty or more subordinates directly supervised, although the most likely range is between three and twenty. Smaller spans tend to be found among managerial, professional and technical groups. Here factors such as cost, the complexity of the work and the need to deal adequately with the problems of people, who may themselves be managers of others, require a closer involvement by superiors in the total operation of their units. Towards the bottom end of the organisational hierarchy, where routine tasks are being carried out by employees who have no subordinates themselves, it is practicable to have much larger spans.
The whole question of spans of control is linked to top management's views about the number of levels they should have in their organisation. If a flat organisation is preferred, then larger spans are an inevitable consequence, especially for middle managers. If a tall structure is preferred, then spans can be smaller. Any final decision has to be a compromise between these opposing consequences. Other important influences on the size of the spans in an organisation or unit include:
* The levels of ability of management i.e. are they capable of producing results with spans of a certain number?
* The level of knowledge and experience of the subordinates concerned, e.g. well-trained and experienced staff require less supervision than those without training and experience
* The complexity of the work of the unit and the degree of change to which it is subject, i.e. the more complex and more fast changing the work, the more necessary it is to install narrow spans of control
* The costliness of possible mistakes by individuals in the unit
* The degree of hazard or danger associated with the work, e.g. work on oil rigs or in biochemical laboratories requires special attention to safety procedures
An early example of an organisation that tried to take account of the variables at work in deciding spans of control was the Lockheed Company in the USA. In the 1960's they developed a method of 'span evaluation' which allocated weightings and points to different degrees of key variables in delegation. These variables were as follows:
) Similarity of functions
In a range from identical through to similar to fundamentally distinct
2) Geographically contiguity
Together or dispersed
3) Complexity of functions
In a range from simple repetitive to highly complex and varied
4) Direction and control
From minimum supervision and training to constant close supervision
5) Co-ordination
From minimum relation to others to extensive mutual non-recurring relationships
6) Planning
From minimum scope and complexity to extensive effort in areas and policies not chartered
Few organisations have gone to the lengths that Lockheed did, but the work provided some useful focal points for clarifying important aspects of managing people that have to be taken into account in establishing the levels of delegation which are possible in a given situation.
Finning (UK) Ltd., Glasgow Branch operates a tall organisational structure, which means they have narrow spans of control.
At the top of the chain of command (hierarchy) within Finning (UK) Ltd., Glasgow Branch, is the Regional Manager, who has a span of control of 63 employees. Next in line would be the Customer Services Manager who has a span of control of 57. Below that would be the Workshop Service Manager who has a span of control of 26, after whom would be the BCP Field Control Supervisor whose span of control is 12 and lastly there would be the Parts Supervisor who has a span of control of 9.
ORGANISATIONAL RELATIONSHIPS
In any organisation structure certain formal relationships between individual positions will arise from the defined pattern of responsibilities. There is often confusion over the meaning of different terms and their implications for organisational structure, but these individual authority relationships may be identified as line, functional, staff or lateral. The design of organisation structure in terms of the principle of line, functional, staff or lateral, determines the pattern of role relationships and interactions with other roles.
LINE RELATIONSHIPS
In line relationships authority flows vertically down through the structure, for example, from the managing director to managers, section leaders, supervisors and other staff. There is a direct relationship between superior and subordinate, with each subordinate responsible to only one person. Line relationships are associated with functional or departmental divisions of work and organisational control. Line managers have authority and responsibility for all matters and activities within their own department.
Within Finning (UK) Ltd. the Sales Manager and the Sales Representatives, the Customers Service Manager and the Customer Service Representatives, Field Service Supervisor and Field Service Engineers are all examples of line relationships.
FUNCTIONAL RELATIONSHIPS
Functional relationships apply to the relationships between people in specialist or advisory positions, and line managers and their subordinates. The specialist offers a common service throughout all departments of the organisation, but has no direct authority over those who make use of the service. There is only an indirect relationship.
For example, the personnel manager within Finning (UK) Ltd. has no authority over staff in other departments; this is the responsibility of the line manager. But as top management would have sanctioned the position and role of the personnel manager other staff might be expected to accept the advice that is given. The personnel manager, however, could be assigned some direct, executive authority for certain specified responsibilities such as, health and safety matters throughout the whole organisation. However, specialists in a functional relationship with other managers still have a line relationship with both their own superior and their own departmental subordinate staff.
Another example of this relationship within Finning (UK) Ltd. would be the Regional Manager who has a functional relationship with the Customer Services Manager, whilst he also has a line relationship with the Sales Representatives.
STAFF RELATIONSHIPS
This type of relationship exists where authority is representative and responsibility advisory. Employees in a staff position have no direct authority in their own right, but act as an extension of their superior and exercise only 'representative' authority.
An example of this kind of relationship within Finning (UK) Ltd. would be between the branch administrator and the regional manager. There is no direct relationship between the branch administrator and other members of staff except where delegated authority and responsibility has been given for some specific task. However, the branch administrator often has some influence over other members of staff, especially those in the same department or grouping. This may be partially because of the close relationship between the branch administrator and the regional manager, and partially dependant upon the knowledge and experience of the administrator and the strength of the administrators own personality. In this respect the branch administrator exercises the regional managers authority. Having no personal authority she cannot take decisions herself, although she does have a duty to advise the manager on all aspects of the business and to offer her own recommendations.
The advantages of this are:
* A good method of educating and training future leaders
* A saving of time of top management who are relieved of mundane administration work
The disadvantages are
* Personal assistants often attain great 'unofficial' power and influence
* Ambitious staff managers may try to assume authority over line managers
LATERAL RELATIONSHIPS
Lateral relationships exist between people at the same level of organisation. It is not concerned with responsibilities or authority but rather with providing an avenue for communication and co-ordination between widely different aspects of work. Lateral relationships may be categorised into:
Colleague Relations: The relationship that exists between people working in the same department and who are subordinate to the same superior.
Collateral Relations: The relationships that are necessary for the interchange of ideas and opinions between people at the same level but in different departments within the organisation.
Illustration of Formal Organisational Relationships
THE MAIN USES OF ORGANISATIONAL CHARTS
The organisational structure of a business is most easily summarised in an organisational chart. The chart shows at any given moment in time how work is divided and the grouping together of activities, the levels of authority and formal organisational relationships. The organisational chart provides a pictorial representation of the structural framework of an organisation. Some charts are very sketchy and give only a minimal amount of information whilst others give varying amounts of additional details, such as an indication of the broad nature of duties and responsibilities of the various units. Others include names of post holders and even photographs, and some give the salary grading for individual positions.
Using such a chart would allow employees to become familiar with the organisation, making them feel a part of the company, allowing them to know who's who and what's going on.
Organisational charts are useful in explaining the outline structure of the company. They may be used as a basis for the analysis and review of structure, for training and management succession, and for formulating changes. The chart indicates several important details about the organisation.
) Lines of communication
2) Delegation of authority
3) Accountability
4) Span of Control
5) The way in which the work of the organisation is grouped
Organisational charts have several weaknesses as a means of explaining organisational structure. Most importantly, they may not be consistent with reality. They may not be current. They may imply a formality that does not exist in practice. Often, they are drawn from a top down perspective. The organisation may look quite different from the bottom than from the top. They often imply that a pyramid structure is the best or only way to organise a business. A circular organisational approach or team approach may in fact be better in some cases. The organisation chart may fail to come to come to grips with the power and authority of a popular and charismatic person relatively low in the organisation or a person who has a substantial financial investment in the business without being a formal part of the management team.
An organisational chart (Finning (UK) Ltd.- Glasgow Branch)
ORGANISATIONAL CONTROL
Controlling activities are concerned essentially with measuring progress and correcting deviations. The basic functions of control are:
* to establish standards of performance
* to measure actual performance against standards
* to take corrective actions where necessary
Financial control takes the targets of desired performance as its standard, then systematically collates information relating to actual performance and identifies the variances between target and actual performance. Thus, whereas budgets in themselves are primarily tools of planning, the process of financial control is both a planning device and a control device. The primary aims of a financial control system are to:
* establish short term business plans
* determine progress towards the achievement of short-term plans
* ensure co-ordination between key areas of the organisation (e.g. between marketing and production)
* delegate measurable responsibilities to managers, without loss of control
* provide a controlled flexibility for meeting change in the short-term
Finning (UK) Ltd. uses a financial control system within the construction sales department. The structure of the sales dept is functional. At the beginning of every year each sales person is given a forecast of his targets for that year. This would include how many machines he should sell for that period, which is also broken down into number of units per quarter which should be sold. They are also given a master call planner, which outlines their expected customer contacts and mailshots for the period. The way in which these targets are controlled is by the sales administrator who keeps a record of every machine sold and lost sales. She produces a report on a weekly basis for the sales manager, who in turn has a sales meeting on a monthly basis to investigate why targets are not being met, and to give advice and assistance where needed to anyone having problems.
Another example of organisational control is behaviour control. To enable Finning (UK) Ltd. to monitor and control employee behaviour they have set up an employee appraisal system. The way in which the appraisal system works is that at the beginning of each year every employee is invited to one-to-one meetings with his or her direct line manager who will discuss their performance for the previous year and together they shall set the objectives for the current year. By having these appraisals it allows management to keep a closer eye on the activities of individual employees and record whether or not they are reaching targets set or if they are in fact suited to the position which they are in.
Quality control is basically a system for setting quality standards, measuring performance against those standards and taking appropriate action to deal with deviation outside permitted tolerances. Quality control activities can be very costly, and since they represent an overhead cost in the production area, the degree of time and resources spent on them must be related to factors such as price, consistency, safety and legal requirements.
Inspection is an important part of quality control. Usually a choice has to be made whether to carry out 100% inspection or some lesser amount on a sampling basis. Where perfect quality is required then 100% inspection will be applied. For example, fine porcelain items would require 100% inspection whereas your run-of-the-mill household crockery may not. In batch or mass production, 100% inspection is not always necessary, nor is it always effective. The most widely used techniques of inspection apart form 100% inspection are random sampling, where batches are concerned, or continuous sampling, in mass production. Random sampling means that a batch is accepted or rejected on the basis of the number of rejects found after taking a random sample from the batch. Continuous sampling is used in mass production systems, and entails an initial 100% inspection until a predetermined number of correct items have passed in succession, then random sampling begins and continues until a further reject appears. 100% inspection is recommended and the cycle is repeated if necessary.
The benefits of Quality Control are primarily as follows:
* reduction in costs of scrap or reworking
* reduction in complaints from customers
* enhanced reputation for company's products
* feedback to designers and engineering staff about performance of products and the machines required to produce them
Finning (UK) Ltd. have numerous quality control procedures in place in numerous departments including, new equipment sales, used equipment sales, workshop service and repair, field service repair. The objectives of quality control within the field service repair department is to ensure that:
* Field service repairs are conducted in a pre-determined and controlled manner
* Customer requirements are reviewed, recorded and communicated to appropriate personnel, and achieved
* Work performed is carried out in the correct manner using the appropriate tooling
* Job status is easily identifiable
* Records confirming achievements of required quality are retained
In order that Finning (UK) Ltd. can control work being carried out by their field engineers they have put in place operational guidelines for a field service engineer. These are:
. Requests for field service assistance and repair are forwarded to Field Service departments covering the geographical area where the service request has emanated from
2. Call recipients use the customer interview checklist to ensure the necessary information is received to open the work order
3. Work order segments are opened, if necessary, using the standard SMCS code search in DBS, or a document version. Standard jobs utilise job inquiry functions in DBS (when available), or the data supplied via the ROP program. For repair costs above credit limits, Credit Control department is contacted for approval numbers
4. On work order creation, details are entered into the W-6 scheduler used for the planning and monitoring of active work progress
5. Field service departments assign work to engineers, providing all available information. Communication of work order detail with engineer is either via mobile phone, PSTN or face to face
6. Field service departments, where possible, assign parts and specialist tool requirements using Cat SIS and issue electronically as detailed in the parts and tooling procurement procedure
7. All parts or specialist tooling is dispatched to convenient locations (as specified by field service departments) for engineer collection prior to attending job sites. All dispatching of parts or tooling is a parts department function
8. On receipt, engineers check parts and tooling prior to leaving for site. All parts are inspected prior to fitting
9. All necessary technical information is available to engineers via SIS & STW
0. On arrival at sites, engineers follow issued field service guidelines, checking equipment serial numbers against work order, ensuring compatibility. In the event that supplied data does not match; engineers communicate discrepancies to field service department for advice on how to proceed
1. Engineers MUST carry out risk assessments prior to the commencement of any investigation or repairs, at any time during repairs where there is a change of circumstances or when requested by a responsible person, using the appropriate risk assessment, in accordance with H&S manuals procedure H&S/01-00.0 (and field service guidelines)
2. For equipment being worked on, or in an un-repaired state, prohibiting safe operation, engineers must attach "DO NOT OPERATE" tags to equipment controls
3. Engineers use, information contained in Caterpillar service manuals (STW) and associated documents, expertise and initiative to complete repairs. Field service supervisor / controller exercise control and give authority to proceed when:
i) The extent of work is greater than initially perceived
ii) For minor deviation to the extent of the work required, authority to proceed is obtained from field service departments. Guidelines for what constitutes a minor deviation are tasks which can typically be completed whilst on site and with little additional resources
4. Sub-contracted resources or services are required and have to be charged. Miscellaneous charge details are added to prevent the oversight of LPO's at billing
5. Where additional work exists, engineers, if appropriate, contact field service departments and request additional segments, Field service departments contact customer and seek approval to proceed, communication is documented in the work order notes
6. If additional work requests, involve CSSR's visiting sites to quantify / discuss scopes of work with customers, field service departments relay requests to CSSR's/CSS's via phone or e-mail
7. Non conforming/scrap parts are immediately removed from work areas. Details of customers instructing the re-use of non-conforming/scrap parts are recorded on service reports
8. Engineers complete service reports, daily and obtain customer signatures, verifying work carried out to customers satisfaction, copies of service reports are supplied to customers or their representatives
9. Service reports contain indicators for parts to be returned. Engineers identify parts to be returned using parts ordered information, communicating this information to field service departments, ensuring returns are completed on a timely basis
20. Service reports contain indicators for warranty parts. For work orders identified as 'warranty', engineers indicate whether there are failed parts for warranty storage. Engineers also complete warranty labels, attaching labels to warranty parts for return to call centres
21. On leaving site, engineers telephone field service department verifying work completion and receive new work order instructions queued for them
22. Engineer timesheets are compiled and submitted daily for entry into DBS, ensuring timely accrual of work order costs
23. Engineers completed time records are authorised by field service departments in accordance with established practice
24. Service administration, verify work order details and carry out work order closures and billing
25. On work order closures, invoices are automatically generated. Invoices contain brief descriptions of work carried out
26. Equipment that requires moving to workshop premises for further work, will conform to workshop service procedures
BIBLIOGRAPHY
Management & Organisational Behaviour Laurie Mullins
Management Theory & Practice G A Cole
www.ee.uwa.edu.au/~ccroft/em333/lecg.html
Website: Ohio State University
www.amp.org.uk
Business Management Robert Erskine
An Integrated Approach to Business Studies Bruce R Jewell
Finning (UK) Ltd. Intranet
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