Most people work to satisfy needs of one kind or another. Non-financial motivators are things other than money that motivate people to work. Abraham Maslow developed his hierarchy of needs based on research about what motivates people to work. He suggested that there were 5 levels of need that influence a person's behavior.
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Basic needs - A person starts at the bottom of the hierarchy and will initially seek to satisfy basic needs (e.g. food, shelter).
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Safety needs - Safety needs at work could include physical safety (e.g. protective clothing) as well as protection against unemployment, loss of income through sickness etc).
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Social needs - Social needs recognize that most people want to belong to a group. These would include the need for love and belonging (e.g. working with colleague who support you at work, teamwork, communication)
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Self-esteem needs - Esteem needs are about being given recognition for a job well done. They reflect the fact that many people seek the esteem and respect of others. A promotion at work might achieve this
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Self-actualization - Self-actualization is about how people think about themselves - this is often measured by the extent of success and/or challenge at work
People are only truly motivated by enabling them to reach for and satisfy the factors that Herzberg identified as real motivators, such as personal growth, development, etc., which represent a far deeper level of meaning and fulfillment.
Frederick Herzberg who investigated what factors contribute to job satisfaction:
- Interesting work,
- Having responsibilities,
- being praised for doing a good job,
- being able to achieve,
- personal growths,
- opportunities for advancement
All these are concerned with the content of the job and opportunities for undertaking more challenging work.
John Lewis motivates its employees by their policies and leisure benefits are designed to help Partners balance their working and home lives and therefore stay committed to long-term careers with the Partnership. Whatever the role, the pay range will be extremely competitive and reviewed in the light of the employee’s progress, Providing various bonuses, assurances, holidays, facilities and also discounts on most of the products that they sell and discounts increases as they stay for longer.
Employees in John Lewis are from different background and are happy to work together in John Lewis since the diversity in John Lewis does not discriminate its employees on any background.
Diversity in the John Lewis is based on three values:
- Partners are treated as individuals and with respect, honesty and fairness,
- Their employment policies are fair and provide equal opportunities for all and
- The Partnership respects and reflects the communities within which it trades.
Remuneration
The human resource department is also responsible for the remuneration of the employees. Remuneration is the package of rewards given to an employee including pay and other benefits. Staff workers-usually office workers- are paid an annual salary. This is divided into twelve equal parts and normally paid directly into the employee’s bank account each month by credit transfer. The amount paid each month does not tend to receive overtime or piece-rate payments.
Non-staff employees such as machine operators are paid weekly wages. Usually employees receiving wages will be asked to work for a week in advance before they are paid. The sum paid for a normal working week is referred to as a basic wage or salary. Many employees receive extra benefits on top of their basic wage, either in money or some other form. Not all employees receive wages or salary. For example, salespeople may be paid on the commission basis, i.e. according to their success in selling the firm’s products. The main ways of calculating pay are described below. A bonus is paid as an additional encouragement to employees. It can be paid out of additional profits earned by the company as a result of the employee’s effort and hard work.
The main ways of calculating pay are described below.
Pension
A pension is a steady income given to a person (usually after retirement). Pensions are typically payments made in the form of a guaranteed annuity to a retired or disabled employee
Flat Rate
This is a set of pay, based on the number of hours- for example 120£ for a 20-hour week. This is a easy to calculate and administrate, but it does not give the employee any incentive to work harder.
Time Rate
Under this scheme, the worker receives a set rate per hour. Any hour’s worker above a set number is paid at an overtime rate.
Piece Rate
This system is sometimes used in the textile and electronics industries, among others. Payment is made for each item produced which meets a given quality standard.
The advantage of suck a scheme is that it encourages effort. However, it is not suitable for jobs which require time and care. Also, the output of many jobs in service industries is impossible to measure accurately. For example, how could you measure the output of a teacher, bus driver or doctor?
Bonus
A bonus is paid as an additional encouragement to employees. It can be paid out of additional profits earned by the company as a result of the employee’s effort and hard work. Bonuses may also be used as an incentive to workers around Christmas or at times when they might be inclined to slacken effort.
John Lewis remunerates their employees by giving both salaries plus a range of benefits. Employees are given wages and salaries according to their position; hourly pay is given to most of the employees since most of the employee’s work for a short time. All employee’s are given payment is given in the end of each month which is better since there is less confusion of giving some employees weekly and some monthly. Their policies and leisure benefits are designed to help Partners balance their working and home lives and therefore stay committed to long-term careers with the Partnership. Whatever the role, the pay range will be extremely competitive and reviewed in the light of your progress. Addition to salary, a Partner will enjoy an array of excellent benefits:
- Annual bonus
Every year, a proportion of the business’s profits are distributed to Partners as a percentage of their previous year’s earnings. In recent years, the bonus has varied between 12% and 18%.
- Discounts
After three months’ service, all Partners are entitled to a 12% discount on most purchases from John Lewis. In John Lewis this rises to 25% after one years’ service.
- Paid holiday
The holiday entitlement is four weeks per year, rising to five weeks after three years. There are further long-service increases for most Partners after ten or fifteen years. Management Partners, including graduate trainees, receive five weeks’ holiday from the outset.
- Pension scheme
They offer a non-contributory final salary pension scheme, payable from the age of 60, to most Partners who have completed a five-year qualifying period.
- Life assurance
Their life assurance scheme pays a sum equivalent to three times annual salary to your nominated beneficiary.
- Subsidized dining room
In most sites around the Partnership, we provide a dining room where you can enjoy excellent food at very reasonable process.
- Holiday and leisure facilities
The business owns a number of residential clubs which offer subsidized holiday accommodation for Partners with at least three years’ service including:
Ambleside Park in the Lake District
Brownsea Castle in Poole Harbour, Dorset
Odney Club in Berkshire, near our Winter Hill Golf Club
Leckford Abbas in Hampshire
- Sports clubs
An extensive range of sports activities including football, netball, golf, and skiing, sailing, squash, riding and gliding is provided.
- Societies
Partners can join many societies including drama, film, photography, music and art.
- Ticket subsidies
Ticket subsidies of 50% of the cost of a visit to the theatre, opera or concert hall are available up to a maximum of £60 per year. Partners may also take advantage of corporate membership to bodies such as English Heritage, the Science Museum and the Royal Society of Arts.
- Education subsidies
They give generous financial support to Partners who wish to acquire a new leisure skill or continue their education, e.g. through the Open University or evening classes.
- Extended leave
Partners who complete 25 years’ service can enjoy paid sabbatical leave of up to six months.
- Health services
It has an occupational health service staffed by three full-time doctors and fifty occupational health advisers.
- Special help in time of need
In cases of particular need, they will help a Partner with a loan or a grant.
- Voluntary benefits and discounted deals
A range of benefits for Partners such as discounted private healthcare and a car purchase scheme, along with a number of one-off deals with hotels, amusement parks etc.
Retention
The Human resource department also helps in retention of the employees. Retention is the ability of a company to keep the employees for a long time. The following is used by managers to keep their employees interested and helps in retaining them.
Job Enlargement
Job enlargement (sometimes also referred to as “horizontal loading”) involves the addition of extra, similar, tasks to a job.
In job enlargement, the job itself remains essentially unchanged. However, by widening the range of tasks that need to be performed, hopefully the employee will experience less repetition and monotony that are common on production lines which rely upon the division of labour.
With job enlargement, the employee rarely needs to acquire new skills to carry out the additional task, and the motivational benefits of job enrichment are not usually experienced.
Job Rotation
Job rotation involves the movement of employees through a range of jobs in order to increase interest and motivation. Job rotation can improve “multi-skilling” but also involves the need for greater training.
In a sense, job rotation is similar to job enlargement. This approach widens the activities of a worker by switching him or her around a range of work.
Job rotation may offer the advantage of making it easier to cover for absent colleagues, but it may also reduce' productivity as workers are initially unfamiliar with a new task.
Job Enrichment
Job Enrichment is the addition to a job of tasks that increase the amount of employee control or responsibility. It is a vertical expansion of the job as opposed to the horizontal expansion of a job, which is called job enlargement.
The John Lewis’s Constitution states that: 'The Partnership aims to employ and retain as its members people of ability and integrity who are committed to working together and to supporting its Principles. John Lewis retains its employees by their competitive salaries and also their excellent benefits such as extended leave and extra discount and also longer paid holidays. Their assurances, pension schemes and annual bonuses.
Dismissal
The human resource department is also responsible for dismissal of the employees. Dismissal is to discharge a person from their employment.
Dismissal is advised when, among other reasons, an employee has engaged in serious misconduct or an employee has not corrected performance, attendance or behavior. Dismissal in a business is usually carried out by the following steps:
VERBAL Warning
When appropriate, the initial disciplinary action should be verbal. The discussion should be firm but fair and should ensure that the employee clearly understands the established standards and expectations with respect to the performance, attendance or behavior. A written record of the date and content of such discussions should be maintained in the appropriate files in the department.
WRITTEN Warning
when a discussion with an employee has not resulted in the needed improvement or if the initial situation indicates a need for stronger action, the next step is a formal discussion, followed by a written disciplinary warning to the employee. The written warning outlines the performance, attendance or behavior issues, states expectations, and lists consequences if issues continue.
Human Resources are available to assist department management with the warning letter. Copies of this letter should be maintained in the appropriate departmental file and also transmitted to Human Resources to be placed in the official employee file.
Finance
Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. Financial accounts are concerned with classifying, measuring and recording the transactions of a business.
Business costs:
These are incurred before a business begins to operate, such as the purchase of land, building and equipment.
These are also incurred once a business is running, no matter how many products it sells or how many customers it has. A car manufacturer has to pay heating bills whether it sells one car a day or a hundred. Fixed costs are also called indirect costs.
These are also incurred once a business is operating. This time the amount spent directly relates to the number of products sold or the amount of services provided relate to the number of products sold or the amount of services provided. The number of tyres bought by a car manufacturer depends on the number of cars made. This is why variable costs are also called direct costs.
Internal sources of finance
- The board of a public limited company may retain profits for a year rather than share it amongst the owners. The cash can be invested to earn interest.
- Assets that is no longer required, like an outdated computer or an obsolete piece of machinery, can be sold.
- Stock levels can be reduced and funds made available for other uses.
Examples of internal finance are:
•Day to day cash from sales to customers.
•Money loaned from trade suppliers through extended credit.
•Reductions in the amount of stock held by the business.
•Disposal (sale) of any surplus assets no longer needed (e.g. selling a company car).
External sources of finance
- A sole trader or a small business may be able to borrow money from family or friends without paying interest.
- Loans from a bank or a building society can be expensive. An agreed amount is borrowed and repaid over a fixed period of time with interest.
- Grants from central or local government will cost the firm nothing.
- Firms often lease equipment or machinery to avoid a large outlay of cash. This is useful if a firm needs to upgrade within the medium term as technology advances.
Examples of external finance are:
- An overdraft from the bank.
- A loan from a bank or building society.
- The sale of new shares through a share issue.
Common methods of finance
Cash and cheques are the most basic method to pay the employees. Wages are usually paid in cash; salaries are paid in cheques and also by electronic transfer which sending money directly to the employees account.
Sources of finance fall into two main categories. Short- term finance is designed to be paid back quickly, while long-term loans may be paid back ever many years. The different types of finance are:
- Trade credit
This is a useful source of finance provided by suppliers. With trade credit, a business can use the goods or service provided by suppliers before they are paid or.
- Overdraft
An overdraft is probably the most frequently used solution to cashflow problems. The bank sets an agreed limit on the customer’s bank account, beyond which they will not draw. This is called an overdraft facility. The amount the customer borrows is called an overdraft.
- Factoring
Trade debts mean the money can often be tied up for as much as six months. For business requiring cash quickly this can be a real problem. A factoring company may offer immediate payment of part of the amount owed to a business- normally around 80% - with the balance being paid when the debt is settled.
- Leasing the hire purchase
There are many different ways for customer to receive goods and make payments over time. Goods on hire purchase remain the property of the finance company until the customer has made all the payments. With leasing, the lessee uses the asset while making regular payments to the lessor, who owns it. An operating lease is for a small amount, and a capital or finance lease is for large item over an extended period.
The purposes of a firm's Trading account and Profit and Loss account are to calculate and show the gross and net profits. To measure how profitable a business is, percentages are used.
The provided information is about how to calculate the, gross profit margin, the net profit margin or the Return on Capital Employed (ROCE), Depreciation.
Gross profit margin- Computed by dividing Gross profit (or Sales – Cost of Goods Sold) by Total Sales.
Net profit margin- Used for evaluating how well a company is doing. Computed by dividing Net profit by sales. The higher the net profit margin the better.
Return on Capital Employed (ROCE)
Investors want to know how much profit their capital investment is making for them. This also applies to prospective shareholders. The ROCE is an important indicator of how efficiently a business is being managed. To get a meaningful picture, Go Faster Sports results this year would have to be compared with those of previous years, and with those of their competitors.
Obtaining capital and resources
Loans, employees, land, buildings, technology, equipment, investors and retained profit. John Lewis retained earnings were £108.4m, up by £19.4m (21.8%) on last year.
Record Financial Transaction
Income (inflow) is the money that is received as a result of the normal business activities of a business.
An Expense (outflow) represents an event in which an asset is used up or a liability is incurred.
All expenses are divided into
- Operational expense (OPEX)
- Capital expenditure (CAPEX)
- Financial expense
Operating expenditures (OPEX) are the on-going costs for running a product, business, or system. Its counterpart, capital expenditures (CAPEX), refers to the cost of developing or providing non-consumable parts for the product or system. For example, the purchase of a photocopier is the CAPEX, and the annual paper and toner cost is the OPEX. For larger systems like businesses, OPEX may also include the cost of workers and facility expenses such as rent and utilities.
Source document
Receipt
The printed record given to a customer at checkout that lists the purchases made, the total amount of the transaction including taxes, discounts and other adjustments, the amount paid and the method of payment. Increasingly, these receipts may also include messages from the retailer, warranty or return details, special offers, advertisements or coupons. Receipts may also be provided for non-retail operations such as banking transactions.
Journal
Journal is the book where record the transaction's entry for first time. A book in which an account of transactions is kept previous to a transfer to the ledger in the process of bookkeeping. Cash payment journal and cash receipt journal are the two types of journals in a business. The double-entry bookkeeping system is the basis of the standard system used by businesses and other organizations to record financial transactions. The general journal is where double entry bookkeeping entries are recorded by debiting one account and crediting another account with the same amount. The amount debited and the amount credited should always be equal, thereby ensuring the accounting equation is maintained. A general journal entry includes:
- The date of the transaction;
- Titles of the accounts debited and credited;
- The amount of each debit and credit; and,
- An explanation of the transaction also known as a Narration.
Ledger
A ledger is a principle book for recording transaction. The general ledger or nominal ledger is the main accounting record of a business which uses double-entry bookkeeping. It will usually include accounts for such items as current assets, fixed assets, liabilities, revenue and expense items, gains and losses. The general ledger is the summary of all the transaction that occur in a company
Financial statement
Incomes statement and Expenditure statement
An Income Statement, also called a Profit and Loss Statement (P&L), is a financial statement for companies that indicate how Revenue is transformed into net income. The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.
Balance sheet
A balance sheet is a statement of the book value of all of the assets and liabilities (including equity) of a business or other organization or person at a particular date, such as the end of a financial year. It is known as a balance sheet because it reflects an accounting identity.
John Lewis Balance statement of 2006 and 2007:
The core aim of any business is to survive. After this, if it is in the private sector it will want to make a profit. If it is in the public sector it may want to improve or expand the services it provides. Either way, it will need to control its finances. By collecting all the available financial information and recording it in various accounts a business can assess how well it is performing. This is important both for a business internally as well as externally.Within all organizations, money comes in and flows out. This is called organization’s cashflow.
Internally, managers want to know how much they are selling, the level of their costs and the amount of profit they are making. From this information they can set budgets and performance targets to plan for the next trading year. An accountant can show managers where financial problems might be occurring within their company.
Externally, all businesses are legally required to keep records of their finances. A firm has to make its accounts available to the Inland Revenue (Corporation Tax), and Customs and Excise (VAT). The larger the business, the stricter the rules on what accounts it has to prepare. Most business has to prepare a:
- Trading and Profit and loss account
- Balance sheet
- Directors' report
Limited companies also have to publish an annual report and final accounts because they have a separate legal identity.
These accounts have to be checked by an independent person (an auditor) to ensure that they give a 'true and fair view' of what has happened to the business during the previous year. Potential investors or shareholders, for example, will want to know if a business is worth investing in. Potential creditors will also want to know whether the company will be able to repay any loans or credit they give them.
These assessments are based on two key accounting concepts: liquidity and profitability.
A business is solvent if it can meet its short-term debts when they are due for payment. To do this it needs adequate working capital. There are 3 main reasons why a business needs adequate working capital. It must:
- pay staff wages and salaries
- settle debts and therefore avoid legal action by creditors
- benefit from cash discounts offered in return for prompt payment
Working capital = current assets Minus current liabilities
Current assets are those that form part of the circulating capital of a business. They are replaced frequently or converted into cash during the course of trading. The most common current assets are stocks, trade debtors, and cash.
A fixed asset is an asset of a business intended for continuing use, rather than a short-term, temporary asset such as stocks. Fixed assets must be classified in a company's balance sheet as intangible, tangible, or investments.
The John Lewis Partnership produces annual and interim reports for the benefit of their shareholders, the Partners. They also believe in sharing this information with all interested parties and therefore publish our reports online. John Lewis wants to make more profit for Partners which means making sure that their operations, in terms of systems, processes and procedures are as efficient as possible, so they are launching a programme called 'Springboard' which will look at their financial operations across the Partnership and ways to improve them over the coming years. The business plan in John Lewis has been broken down into three headings: Partners, Customers and Profit. John Lewis aims to double its sales over the next 10 years but also aims to do this without doubling the cost of it at the same time.
John Lewis has had an outstanding year, with retail gross sales up by £256.1m, 10.6%, to £2.7bn and most categories gaining market share. The star performer was again Electrical and Home Technology, which achieved sales growth of 22.8%.
Sales per square foot grew by 9.6% to £755, from £690 last year.
John Lewis has been improving and expanding their partnership since they had started and has improved greatly over the past few years.
• Gross sales up 10.5%, £254.8m to £2.7bn
• Like-for-like sales up 10.3%
• John Lewis Direct sales up 64.0%, £72.3m to £185.2m
• Divisional profit up 37.5%, £71.9m to £263.5m
• Operating profit up 59.5%, £66.2m to £177.4m
• Operating margin up 200 basis points to 6.6%
Financial performance
Marketing
Marketing is the process of identifying the consumers' wants and needs and making the product to satisfy these. Many companies today claim that their main aim is to satisfy consumer needs. Instead of having to use hard-selling techniques to persuade customer to buy, these market-led companies sell goods easily because they produce what the customer wants. This can be done through market research. Main purposes of marketing:
- Marketing is about meeting the needs and wants of customers;
- Marketing is a business-wide function – it is not something that operates alone from other business activities;
- Marketing is about understanding customers and finding ways to provide products or services which customers demand.
When marketing products, firms need to create a successful mix of:
- The right product
- Sold at the right price
- In the right place
- Using the most suitable promotion
Marketing intelligence
This can be information gathered from many sources, including suppliers, customers, and distributors. Marketing intelligence is a catch-all term to include all the everyday information about developments in the market that helps a business prepares and adjust its marketing plans. It is possible to buy intelligence information from outside suppliers who set up data gathering systems to support commercial intelligence products that can be profitably sold to all players in a market.
Market research involves the collection of data to obtain insight and knowledge into the needs and wants of customers and the structure and dynamics of a market. In nearly all cases, it would be very costly and time-consuming to collect data from the entire population of a market. Accordingly, in market research, extensive use is made of sampling from which, through careful design and analysis, Marketers can draw information about the market. Sample design covers the method of selection, the sample structure and plans for analysing and interpreting the results. Sample designs can vary from simple to complex and depend on the type of information required and the way the sample is selected.
E. Jerome McCarthy divided marketing into four general sets of activities. His typology has become so universally recognized that his four activity sets, the Four Ps, have passed into the language.The four Ps are:
- Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. John Lewis sells a variety of products including electrical, home and gardening, clothing, leisure and sport equipment, gifts, toys etc. John Lewis gives various warranties and guarantees on their every product so customers can claim their refunds or repair that product if they have the receipt.
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Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or services, e.g. time, energy, psychology or attention. 'Never Knowingly Undersold', is the unique promise to our customers that the price of any item John Lewis sells will always be as low as the lowest price in the neighborhood, has been the slogan for over 75 years. Through the efforts of John Lewis Partners serving customers with their suppliers' high quality goods. Every John Lewis shop has a team that checks the prices of local competitors, and they also encourage all Partners to discover if a product is being sold lower than their. If a customer finds that one of their products is sold for a lower price by another local retailer, they will lower their shelf price so that all customers benefit, rather than just the customer who spotted it. Their commitment to checking and lowering prices applies on the same basis to products in their competitors’ Sales. Where a competitor has a very short term promotion lasting only one or two days, they may not have enough time to check and change each price. However, their refund promise still applies.
- Promotion: This includes advertising, sales promotion, publicity, and personal selling, and refers to the various methods of promoting the product, brand, or company. John Lewis promotes its products mostly by advertising in their own website and also in all their stores. They have their own John Lewis catalogue. They give out different offers depending upon the season, e.g. free standard delivery for everything on Christmas helps their customers order from home through their catalogue or the website. They also have various catalogues in their stores to make it easier for the customer to check for its availability rather than searching for the particular product that they need.
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Place: refers to how the product gets to the customer; for example, point of sale placement or retailing. John Lewis is usually situated on the main shopping area’s such as Kingston which makes it easier for the customers to find it, John Lewis also helps provides their customers the route to the nearest store in their website.
The SIVA Model provides a demand customer centric version alternative to the well-known 4Ps supply side model (product, price, place, promotion) of marketing management.
- Product -> Solution
- Promotion -> Information
- Price -> Value
- Place ->Access
These four elements are often referred to as the marketing mix. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services.
As well as the standard four Ps (Product, Pricing, Promotion and Place), services marketing calls upon an extra three, totaling seven and known together as the extended marketing mix. These are:
- People: Any person coming into contact with customers can have an impact on overall satisfaction. Whether as part of a supporting service to a product or involved in a total service, people are particularly important because, in the customer's eyes, they are generally inseparable from the total service. As a result of this, they must be appropriately trained, well motivated and the right type of person. Fellow customers are also sometimes referred to under 'people', as they too can affect the customer's service experience.
- Process: This is the process (es) involved in providing a service and the behavior of people, which can be crucial to customer satisfaction.
- Physical evidence: Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like.
Administration
Administration consists of the performance or management of business operations and thus the making or implementing of major decisions. Administration can be defined as the universal process of organising people and resources efficiently so as to direct activities toward common goals and objectives.
Organization of the administrative activity
Centralization
Centralization occurs when all of the administration of a business is performed in one office.
Advantages
- Standardized administrative expenses.
- Specialization results in a greater division of labour.
- Fewer copies are required; hence, the business saves on storage space.
- Centralization is more efficient and effective.
- There is less duplication of effort and less machinery required.
Disadvantages
- Impersonal relationships
- Documents lose their confidentiality.
- Highly advanced and technical nature of some departments makes centralization difficult.
- The tremendous workload may become unmanageable under centralization.
- It is often hindered by the diversity of activities found in one department.
Decentralization
Decentralization occurs when each department does its own administration.
Another function of Business Administration is a mix of all types of business in one topic.
Advantages
- Red tape may be sidestepped.
- Exposes workers to a wider variety of tasks, providing greater stimulation.
- Good, interpersonal relationships.
Disadvantages
- Work cannot always be completed in as timely a fashion.
- Specialization is often unattainable.
- Division of labour can be impossible in a small office.
- It is difficult to standardize work procedures.
The administrative function
The administrative function refers to similar or related activities regarding the handling and processing of information, grouped together to form a function or department. The administrative activity, meanwhile, refer to the different types of work (the handling and processing of incoming and outgoing information) done in this function.
A summary of the range of tasks administrators carry out is given below:
- Collecting, distributing and dispatching the mail.
- Storing and retrieving paper and electronic records.
- Organizing meeting and preparing meeting documents.
- Responding promptly to enquiries.
- Preparing documents using word processing, spreadsheet and presentation packages such as PowerPoint.
- Researching information.
- Sending and receiving messages by telephone, fax and email.
- Making arrangements for visitors.
- Making travel arrangements.
- Purchasing supplies of office stationery and equipment.
- Making arrangements for events, such as interviews or sales conferences.
Information management
The information management function performs the following activities:
Cost accounting
- Management is kept up to date with all of the relevant production information and cost statistics.
- Avoids incorrect price calculations
- Calculates cost price of product
- Basis for the planning of production and marketing activities
- Determines whether or not the product will be competitive.
Accounting records
- All business transactions should be recorded so that the management has a current record of transactions.
- The information obtained is used to draw up financial statements and reports.
- It also helps to keep control over the accuracy of work.
- The following systems are used to record transactions:
- Sales and debtors system
- Purchases and creditors system
- Stock recording system
- Administration of salaries and wages
- Administration of cash and other payments
Administrators, broadly speaking, engage in a common set of functions to meet the organization's goals. These "functions" of the administrator were described by Henry Fayol.
- Planning is deciding in advance what to do, how to do it, when to do it, and who should do it. It maps the path from where the organization is to where it wants to be. The planning function involves establishing goals and arranging them in logical order. Administrators engage in both short-range and long-range planning.
- Organising involves identifying responsibilities to be performed, grouping responsibilities into departments or divisions, and specifying organizational relationships. The purpose is to achieve coordinated effort among all the elements in the organization. Organizing must take into account delegation of authority and responsibility and span of control within supervisory units.
- Staffing means filling job positions with the right people at the right time. It involves determining staffing needs, writing job descriptions, recruiting and screening people to fill the positions.
- Directing is leading people (see Leadership) in a manner that achieves the goals of the organization. This involves proper allocation of resources and providing an effective support system. Directing requires exceptional interpersonal skills and the ability to motivate people. One of the crucial issues in directing is to find the correct balance between emphasis on staff needs and emphasis on production.
- Controlling is the function that evaluates quality in all areas and detects potential or actual deviations from the organization's plan. This function's purpose is to ensure high-quality performance and satisfactory results while maintaining an orderly and problem-free environment. Controlling includes information management, measurement of performance, and institution of corrective actions.
- Budgeting, exempted from the list above, incorporates most of the administrative functions, beginning with the implementation of a budget plan through the application of budget controls.
Health and safety
Over 350 people die each year as a result of accident and injury in the workplace. Over 10,000 early deaths occur as a result of past exposure to hazardous material and substances such as asbestos. 29 million working days are lost as a result of injuries and accidents at work. These statistics show the importance of health and safety in a organization.
The main requirement of Health and Safety regulations in this country are:
- Every employer with five or more employees must carry out a ‘risk assessment’.
- The employer must then take health and safety measures in line with the risk assessment.
- The employer must appoint competent people to help carry out the health and safety arrangements.
- Employers must set up emergency procedures.
- Employers must provide clear information procedures and training to employees
- They must work jointly with other employees sharing the same premises.
Safety in the workplace is not just a management responsibility. It is also up to employees to take steps to ensure their own and other people’s health and safety. In particular, employees must:
- Comply with company arrangements and procedures for securing a safe workplace.
- Report incidents to management that have led, or may lead, to injury.
- Co-operate in the investigation of accidents in order to prevent them happening again.`
Customer Service
Customer service is the provision of service to customers before, during and after a purchase. According to Turban et al, 2002 “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation”. Its importance varies by product, industry and customer. As an example, an expert customer might require less pre-purchase service (i.e. advice) than a novice. In many cases, customer service is more important if the purchase relates to a “service” as opposed to a “product". Customer service may be provided by a person or by automated means called self-service. Examples of self service are Internet sites.
Customer service may be employed to generate such competitive advantage as a particular service proposition can be harder to copy for competitors. The implementation of a particular customer service proposition must consider several elements of the organization. A company may attempt to differentiate itself from its competition through the provision of better customer service. The consistent delivery of superior service requires the careful design and execution of a whole system of activities that includes people, technology, and processes; although, the rewards will include improved revenue from customers that are impressed with the service provided. The relation should not be only a buyer seller-relation but beyond. Some companies do better than expected. Customer service is mainly evaluated by:
- The speed of service,
- The way in which the service was delivered,
- The attitude of the staff,
- The quality of the finished result.
Providing information
Consumers with a problem will need to know what to do. Therefore providing the right information is needed:
- Knowing which sources give help and advice,
- Understanding how to make a complaint,
- Realizing how the court system operates and how they can take legal action,
- Understanding how to make a claim,
- Knowing the likely outcomes of such claims.
John Lewis provides information by advertising in newsletters, leaflets, mail, email, on the T.V. John Lewis catalogue, pamphlets in their stores and John Lewis website.
Giving advice
Advice is more precise than information. It has to be tailored to the needs of the person making the request. Some types of advice about legal, safety, financial or medical issues must be correct. Therefore experts are referred to these types of queries. A special function known as technical services exists to give specific advice.
Advice on household furniture, gifts, nursery, gardening, electrical etc is found in pamphlets in John Lewis stores found near each of these sections and on their website. Employees in the stores are also available to help.
Credit facility
Private individuals can pay for items they buy in cash, by cheques or on credit. Credit can be obtained in one of three ways:
- Paying by credit card,
- Paying in installments on direct debit,
- Borrowing the money by taking out a loan.
Most retailers will have a license of credit to a customer which enables them to offer all forms of credit to a customer up to a value of £15,000.
John Lewis partnership card acts as an ordinary credit card but has various added benefits with it such as
- 0% on all Balance Transfers, fixed for the first 6 months from account opening,
- 2% Balance Transfer fee apply (£5 minimum, £50 maximum),
- 0% on all your purchases for the first six months from account opening,
- Typical 16.9% APR.
- Exclusive programme of events for cardholders,
- Special invitation evenings in John Lewis shops.
Facilities for the disabled
John Lewis offers a range of facilities to help make John Lewis an easier and more convenient place to shop for the disabled:
- Help with shopping - just ask any of the staff,
- No need to carry heavy shopping – purchases can be collected at the end of the visit from the Customer Collections Point on the Ground floor next to the Ber Street entrance,
- Free delivery - to all local areas,
- Telephone shopping,
- Accessible parking - reserved spaces on the Ground floor of car park.
- Shop mobility - manual or motorized wheelchairs are available in Castle Mall,
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Public telephone at accessible height,
- Hearing loops,
- Accessible toilets,
- Accessible fitting rooms,
- Wide access lift,
- Wheelchairs for loan, bookable in advance,
- Sign language.
- Large print or audio tape
After sale service
This service includes several types of activities:
- Giving refunds on returned goods
There should be a clear policy on returned items, so that customer service staff does not frequently have to ask their boss for assistance or clarification. Some organizations will accept any goods back within a limited period, providing the customer has kept the receipt, and will refund the money. Others will only exchange goods which are faulty; they won’t exchange goods simply because the buyer changed their minds. Others will only allow item which are not faulty to be exchanged for other goods or for a credit note, so that the purchaser can select another item at a later date.
If a customer returns anything bought from John Lewis, John Lewis will be able to refund or exchange a product provided it is in fully resale-able condition. Returns should be made within a reasonable time (usually 28 days) and in original, undamaged packaging. If the product is not returned to John Lewis in fully resaleable condition, John Lewis reserve the right to refuse a refund on the item, or deduct up to 20% of the original selling price from the refund amount. Flowers orders can be changed or cancelled if confirmed at 12 noon the day before the delivery date scheduled.
- Offering a repair service for faulty goods,
This may be a small-scale operation, such as a small jeweler’s shop, or a large-scale one. Makers of household appliances routinely have a service facility. Customer service staff take the calls, check the customer’s details on a database, find out details of the fault and arrange for a technician to call. Spare parts which are regularly needed will be carried in the technician’s van so that the appliance can be repaired immediately.
If a product from John Lewis needs repair during the guarantee period, contacting the nearest john Lewis store with details of the mode number and date of purchase, it will be repaired under some exclusion:
- If the item under guarantee has been accidentally damaged e.g. if it has been dropped.
- If it has been misused or abused.
- If the product has been used commercially.
- Batteries and consumables are not covered.
- Offering a maintenance service,
Many organizations regularly check the equipment they have installed as apart of the terms of the sale. A business organization with a comprehensive burglar alarm system will expect the engineers to visit regularly to check the equipment. Fire extinguishers are regularly checked and inspected took place on each one. Security equipment, such as CCTV cameras, is also checked tested.
- Dealing with technical queries.
This is also a form of after-sales service. As an example, many people evaluate internet service providers not just by their connection cost and transmission speed, but also by the speed they respond to customers with problems. The ‘help’ facility is a critical part of this service and some providers are far better than others. This is an example of a service where excellent technical support attracts more customers.
Delivering goods
After any order from John Lewis online, an email will be sent to the customer within 24 hours. Delivery in John Lewis is currently free on orders over £100. The dispatch time for a product can be found on each individual product page. John Lewis delivers from Monday to Saturday, between 9am and 6pm. If there is more than one order the products may be sent out from multiple locations and therefore may arrive separately.
Health and safety
Retail outlets, like all other business organizations, must comply with health and safety legislation. Regulations have been introduced for health and safety, the main ones are:
- The reporting of injuries, disease and dangerous occurrences regulations,
- The control of substances Hazardous to health,
- The electricity at work regulations,
- The noise at Work regulations,
- The management of health and safety at work regulations,
- Display screen equipment regulations,
- Provision and use of work equipment regulations,
- Personal protective equipment at work regulations,
- Manual handling operations,
- The fire precautions Act,
- Health and safety regulations (first aid),
- The health and safety regulations (safety sign and signals),
- Employer’s liability regulations.
Business Studies for you 2nd edition
BTEC First Business 2nd edition
http://www.bbc.co.uk/schools/gcsebitesize/business/
http://www.tutor2u.net
http://en.wikipedia.org/wiki/Administration
http://en.wikipedia.org/wiki/Marketing
http://en.wikipedia.org/wiki/Finance
http://www.johnlewis.com/
http://www.johnlewispartnership.co.uk/
http://www.johnlewisjobs.com/
www.partnershipcard.co.uk/
www.jlpaccountcard.com/
