Business Principals & Practices

Business Principals & PracticesCPP Review - 2006

John Hewitt, CPP, CIPM

Senior Security Manager

Trammell Crow Company

214-438-8861

5/23/06


Business Principals & Practices

Sections

A) Basic Principals, Definitions, and ConceptsB) Behavioral Theories C) Basics of Human BehaviorD) FinancesE) Budget for Loss PreventionF) Planning, Management, EvaluationG) CommunicationH) Personnel Management



Terms

• Span of Control

• Unity of Command

• Chain of Command

• Functional Authority

• Staff Functions



“Span of control” is a management term which refers to the number of personnel over which one can

effectively supervise



When security managers exercise authority delegated by a senior executive to whom they report, such authority is known as “functional” authority



The number in of personnel which on can effectivley supervise:

IDEAL: 1 supervisor to 3 employees

GOOD: 1 supervisor to 6 employees

ACCEPTABLE: 1 supervisor to 12 employees



“Unity of command” is a management concept which means that an employee should have only one immediate superior to whom the employee should report



The security manager should have the necessary authority to carry out responsibilities. To accomplish this, the security manager should occupy a position where the manager reports directly to a vice-president or higher



Chain of Command is the path along which authority flows



When security managers exercise authority delegated by a senior executive to whom they report, such authority is known as “functional” authority



In the organizational structure of proprietary firms, security may provide both line and staff functionsa. When advising senior executives, the

security manager performs “staff”duties

b. In security operations, the security manager carries out “line” duties

As a general rule, “line” duties are considered to be operational in nature and “staff” duties are of a support nature



Behavioral Theories



Maslow

Herzberg

McGregor

Argyris



Dr. Abraham Maslow developed a five-step process which describes man’s behavior in terms of the needs he experiences. These needs are:– Food and shelter (basic needs)– Safety - such as security, protection and avoidance of

harm and risk– To belong– Ego status - receiving some special recognition– Self-actualization, such as being given assignments which

are challenging



• Frederick Herzberg’s “Motivation-Hygene Theory” - defined two independent categories of needs - hygene factors and motivators.

• Hygene Factors - salary, fringe benefits, security (Civil Service), rules and regulations and supervision.

• Motivators - Challenging assignment, increased responsibility, recognition for work and individual growth



The “Theory X” management theory holds that the average employee has little ambition, dislikes work and must be coerced, controlled and directed to achieve organizational objectives - Douglas McGregor



The “Theory Y” management theory holds that the average employee does not dislike work, is self-directed, is creative and imaginative, accepts responsibility and is committed to achieving organizational needs and objectives -Douglas McGregor



Theory X and Theory Y were

developed by Douglas McGregor



Those in management who believe the behavioral assumption of “Theory X” take an autocratic approach to get work done.Whereas “Theory Y” encourages managers to support and encourage employees in efforts to higher achievement



Immaturity / Maturity Theory of Chris Agryis

From passive to active

From dependence to independence

From restricted patterns to diversified behavior

From lack of self awareness to control



The three main theories of organizational behavior are:

a. Autocratic theory

b. Custodial theory

c. Supportive theory



The “autocratic theory” holds that management is all-powerful and employees are obligated to follow orders without question



The “custodial theory” holds that the aim of the company is to make the employee happy and contented through economic benefits and thus they will be positively adjusted to their work. This theory does not motivate employees to produce to their full capacity



The “supportive theory” holds that through good leadership, management will provide a climate where employees will take on added responsibilities and thus make greater contributions to the growth of the company.Leadership: “We rather than they”



Finances

A “budget” is a plan stated in financial terms. It sets forth in dollars the necessary allocation of funds to achieve the plan.



Zero based budgeting requires that the benefits from an activity be weighed against the benefits to be lost if the planned activity is carried out at a lesser level or not done at all.



• Line item budgets - each item is listed by separate line

• Program budgets - funds are allocated by specific activity

• Capital budgets - used for infrequently purchased high dollar items



• Budgeting approaches can be bottom up and top down or top down and bottom up.

• Top down and bottom up is preferred by some because senior management initiates the process by establishing acceptable expenditure limits and guidelines prior to detailed planning by middle or operating management



Carry budget out in three dimensions:– The operation/project must unfold as

planned

– The operation/project must take place when planned

– It will not exceed the planned costs.



M.B.O.

Management by objective (MBO) is a systematic way of achieving agreed to goals set ahead of time



Budgets are normally prepared annually or biannually.



Communications

• The art of effective communication is the most important

skill for successful management.• When a job is done poorly, it is usually because the

manager failed to communicate clearly.



A) Communication should be in writing whenever possible

B) Open Communication depends on willingness to listen, and respond.

C) All employees should be free to communicate with the security director.

D) When a job is done poorly, it is usually because the manager failed to communicate clearly.



Personnel Management

A) Discipline should be as positive as possible

B) Constructive discipline is the training which develops disciplined conduct and corrects, molds the employee.

C) Any punishment connected with discipline should be a means to an end. (Not Personal).

D) All employees require constructive discipline

Discipline:



Personnel Management

A) Object: Select the best qualified canadidates

B) Primary qualification factors:

1. The employees performance record in present job

2. Anticipated/expected preformance in new job

C) Educational achievements

D) Disqualifiers are valid for one time only

Promotions:



TestRandom Sample Questions



1. One supervisor can effectively control only a limited number of people and that limit should not be exceeded. This principle is called:

• a. Unity of command• b. Supervisory limits• c. Span of control• d. Line of discipline



1. One supervisor can effectively control only a limited number of people and that limit should not be exceeded. This principle is called:

• a. Unity of command• b. Supervisory limits• c. Span of control• d. Line of discipline



2. An important principle of organization is that an employee should be under the direct control of one and only one immediate supervisor. This principle is :

• a. Unity of command

• b. Supervisory limits

• c. Span of control

• d. Line of discipline



2. An important principle of organization is that an employee should be under the direct control of one and only one immediate supervisor. This principle is :

• a. Unity of command

• b. Supervisory limits

• c. Span of control

• d. Line of discipline



3. From an organizational standpoint, the head of security should report to:

• a. Superintendent of buildings

• b. Manager of buildings and grounds

• c. Head housekeeper

• d. A vice-president or higher



3. From an organizational standpoint, the head of security should report to:

• a. Superintendent of buildings

• b. Manager of buildings and grounds

• c. Head housekeeper

• d. A vice-president or higher



4. The most conspicuous role of the security department in any organization is that of:

• a. Educational services• b. Management services• c. Special services• d. Protective services



4. The most conspicuous role of the security department in any organization is that of:

• a. Educational services• b. Management services• c. Special services• d. Protective services



5. Training sessions consisting of a security awareness program for new employees should be conducted by:

• a. Special training officers

• b. Security personnel

• c. Consultants skilled in training

• d. Member of management



5. Training sessions consisting of a security awareness program for new employees should be conducted by:

• a. Special training officers

• b. Security personnel

• c. Consultants skilled in training

• d. Member of management



7. Perhaps the most common shortcoming in the security industry is:

• a. Lack of support by top management• b. Failure to properly prepare and equip

new supervisors with tools to discharge their important responsibilities (supervisor training)

• c. Lack of planning• d. Lack of monetary resources



6. Perhaps the most common shortcoming in the security industry is:

• a. Lack of support by top management• b. Failure to properly prepare and equip

new supervisors with tools to discharge their important responsibilities (supervisor training)

• c. Lack of planning• d. Lack of monetary resources



7. As a rule, which department of the company administers the recruiting activity?

• a. The security department

• b. Administrative department

• c. Personnel department

• d. Internal affairs



7. As a rule, which department of the company administers the recruiting activity?

• a. The security department

• b. Administrative department

• c. Personnel department

• d. Internal affairs



8. In non-entry level recruiting, the recommended technique is:

• a. “Blind ad”

• b. Open advertisement in newspaper

• c. Advertisement in trade journal

• d. By word of mouth on selective basis



8. In non-entry level recruiting, the recommended technique is:

• a. “Blind ad”

• b. Open advertisement in newspaper

• c. Advertisement in trade journal

• d. By word of mouth on selective basis



9. Every applicant’s first interview should be with:

• a. The security manager director

• b. The security supervisor

• c. A security line employee

• d. A personnel interviewer



9. Every applicant’s first interview should be with:

• a. The security manager director

• b. The security supervisor

• c. A security line employee

• d. A personnel interviewer



10. The heart of personnel selection is:

• a. Polygraph test

• b. Review of application

• c. Interview

• d. Background investigation



10. The heart of personnel selection is:

• a. Polygraph test

• b. Review of application

• c. Interview

• d. Background investigation



11. Which of the following is not recommended policy with regard to security manuals?

• a. It must be updated on a regular basis• b. Employees should not be allowed to have

possession of it• c. The manual should be put in the hands

of all regular security personnel• d. It should include procedural instructions for

specific incidents



11. Which of the following is not recommended policy with regard to security manuals?

• a. It must be updated on a regular basis• b. Employees should not be allowed to have

possession of it• c. The manual should be put in the hands

of all regular security personnel• d. It should include procedural instructions for

specific incidents



12. Among classical theories of human behavior in the work environment, one emphasizes negative aspects of employee behavior which is known as:

• a. The autocrat theory• b. The custodial theory• c. The supportive theory• d. McGregor’s “Theory X”



12. Among classical theories of human behavior in the work environment, one emphasizes negative aspects of employee behavior which is known as:

• a. The autocrat theory• b. The custodial theory• c. The supportive theory• d. McGregor’s “Theory X”



13. Among classical theories of human behavior in the work environment is one which suggests that employees do not inherently dislike work and will actually seek responsibility and better performance if encouraged to do so. It is known as:

• a. McGregor’s “Theory Y”• b. McGregor’s “Theory X”• c. The supportive theory• d. The motivation theory



13. Among classical theories of human behavior in the work environment is one which suggests that employees do not inherently dislike work and will actually seek responsibility and better performance if encouraged to do so. It is known as:

• a. McGregor’s “Theory Y”• b. McGregor’s “Theory X”• c. The supportive theory• d. The motivation theory



14. Dr. Frederick Herzberg developed a position that motivation comes from work itself, not from those factors such as salary and job security. This theory is known as:

• a. The supportive theory

• b. The work motivation theory

• c. The custodial theory

• d. McGregor’s “Theory X”



14. Dr. Frederick Herzberg developed a position that motivation comes from work itself, not from those factors such as salary and job security. This theory is known as:

• a. The supportive theory

• b. The work motivation theory

• c. The custodial theory

• d. McGregor’s “Theory X”



This presentation was designed to be used in accordance with other study materials and was not intended to be used solely as a study guide. This presentation does not contain all material from the “Business Principals and Practices” section of the CPP Study Guide© . The presentation was intended to give you the “Golden Nuggets” which will assist you with taking the CPP Exam. Thanks, John Hewitt, CPP - 5/23/ 2006.



Facts from CPP Study Guide 12th edition © 2005

James Bomba, CPP

Phillip Deming, CPP

Questions / Tests – CPP Study Guide 12th edition

Presentation - John Hewitt, CPP

2006 CPP Study Group – Dallas, TX

Thanks to: Southwest Airlines, Vance Toler.



Documents

Business Principals & Practices