Comparing actual labor cost with the budgeted amount


1. A manager's activities are often analyzed and classified according to the following set of managerial functions: planning, organizing, leading, and controlling. Classify following activities by functions:

a. Explaining to a subordinate the nature of an error he or she is making

b. Shifting responsibility for dealing with customer complaints

c. Preparing the budget

d. Outlining equipment requirements for the following year

e. Comparing actual labor cost with the budgeted amount

f. Explaining a work assignment to a subordinate

g. Carrying out a supervisory development program

h. Giving an order to a subordinate

i. Encouraging and inspiring a subordinate

j. Examining a report on product rejects for the work

k. Analyzing financial statement ratios

l. Formulating a credit policy

2. Assume that you are the manager, and an employee has confronted you with the following complaint. Write a response that will maintain the employee's morale and self-esteem and yet get you off the hook.

a. "I'm underpaid and overworked!"

b. "Management doesn't trust employees in this company".

c. "There's too much pressure and 'slave driving' around here."   

d. "I'm bored with my job. There's just not enough challenge and variety".   

e. "Working conditions around here are terrible."

f. "Management never keeps us informed about what's happening around here."

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Operation Management: Comparing actual labor cost with the budgeted amount
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