Financial Accounting: Quality of Earnings

The terms “quality of earnings” is used by accountants to describe how well a reported earnings number communicates a firm’s true performance. It is further distinguished using high-quality earnings and low-quality earnings. Management in any firm can influence earnings causing the earnings to either, increase or decrease. Among most firms there can be several income manipulators; three of the most common ways are big bath charge, a cookie jar reserve, and revenue recognition. We will show where you can identify such manipulations when analyzing a company’s financial statements.

Indicators of Earnings: High and Low

High

• Persistence in Earnings
• A Strong and consistent relationship between the income and operating cash flow
• Reasonable, conservative, and consistent use of accounting methods and estimates
• Fewer internal and external risks, similar to the health care industry.

Low

• Unexplainable, steep fluctuations in net income
• Frequent changes in accounting principles – FIFO to LIFO, amortization tables for fixed assets, and so on.
• Use of aggressive accounting methods instead of conservative accounting methods.

Big Bath Charge – this type of method is used when a company is not performing. It reduces the quality of earnings, and management will swap future expenses in the non-performing year with the current profits to the future term. This type of method violates the matching principle of GAAP. To notice if this method is being used it can be seen over several years, not just in one single year. Unusual expenses and write-offs in the previous years, read the management reports and analysis on the company’s overall performance for those years to determine if such a method is being used.

A Cookie Jar Reserve – this method reminds me of the expression and/or situation “got your hand stuck in the cookie jar” which is similar to this method. This method more describes an account more of which is a liability but is used when recognizing an estimated expense inaccurately. When the accurate amount and/or expenditures actually occur it is charged against the reserve rather than the income. This method is also a violation of the matching principle. To identify this manipulation in a financial report and/or statement we have to read and review the notes and look at the different trends in such reserves, for example, the allowances for bad debt account.

Revenue Recognition – this method is used to record earnings that haven’t been collected as revenue. For example, I walk into a Joe Depot Store and charge a new refrigerator as credit. The company takes the credit as earned and/or collected revenue when it is on a credit account and not received from the creditors yet. To identify such a manipulation when reviewing financial records pay close attention to the policy and analyze the relationship between accounts receivable and sales. If accounts receivable as a percentage of sales rises, a red flag would be raised and an investigation would need to be conducted.

Calculating and Analyzing Ratios

Based on the financial information provided, calculate the following ratios and explain their purpose:

Current Ratio = Current Assets / Current Liabilities

12/31/2010

= 1,550.00/535.00

=2.89

12/31/2009

=1,330.00/425.00

=3.12

Inventory Turnover Ratio = Cost of goods sold / (Beginning inventory + Ending Inventory) / 2

12/31/2010

=2,200/750 /2

=2,200/375

=5.86

12/31/2009

=2100/755 /2

=2100/377.5

=5.56

Accounts Receivable Turnover Ratio= Net Credit Sales / Average Net Accounts Receivable

12/31/2010

=3500/425

=8.23

12/31/2009

=3200/425

=7.5

Debt to Equity Ratio = Total Liabilities / Total Shareholders’ equity

12/31/2010

=535/1415

=.37

12/31/2009

=425/1350

=.31

Return on Assets Ratio = Net Income / Average total Assets

12/31/2010

=683/2700

=25.2%

12/31/2009

=592/2700

=21.9%

Asset Turnover Ratio = Net Sales / Average Total Assets

12/31/2010

=3500/2700

=1.29

12/31/2009

=3200/2700

=1.18

Return on Equity Ratio = Net Income – Preferred Dividends / Average common Shareholders’ Equity

12/31/2010

=683-25/4000

=.1645

12/31/2009

=592/4000

=.148

Profit Margin Ratio = Net Income / Net Sales

12/31/2010

=683/3500

=.195

12/31/2009

=592/3200

=.185

Price-Earnings Ratio = Market Price per common share / Earnings per share

=40.00/6.58

=6.079

Dividend Yield Ratio = Dividend per share / Market price per share

=2.60/40.00

=.065

Ratio Analysis

Describe how a bank lending officer might use ratio analysis. Select five ratios that would be most useful for the purpose and explain the rationale for your selection.

Current Ratio - helps creditors determine if a company can meet its short-term obligations. Bank lenders use this ratio to help better determine their current and previous history on short-term obligations. For example, short term loan.

Debt to Equity - The debt/equity ratio is a leverage ratio that represents what amount of debt and equity is being used to finance a company's assets. If a company’s debt is too high or debt to equity ratio is too high then it would tell the lender that the company has a lot of financing or debt into its assets.

Return on Assets – Measures the company’s success in using its assets to earn income for owners and creditors. Profits or income for a company means money that can be paid to the owners and/or creditors for debt that is owed.

Asset Turnover – measures how efficiently a company uses its assets. Some creditors and/or lenders will audit a company to determine if a company is using all of its assets to achieve as much profit as possible.

Profit Margin – To measure the amount from each dollar of sales that is bottom-line profit. The reason for my selection of this ratio is to show lenders how much net income is actually coming in after all expenses.

Tort Law Theory Analysis

Introduction

The tort law theory is a wrong doing that determines foreseeability and negligence in a case. Tort law has three main categories; intentional, unintentional (negligence), and strict liability. In this article, we will analyze the court case James v. Meow Media case and discuss the position, elements of negligence, what was missing in the words that prevented the court from finding this company at fault, and how the ruling would affect other companies in that industry if the company was at fault.

Analysis

According to court case James v. Meow Media, Inc. this case was based on whether the deaths of three high school students were considered foreseeable negligence. This case was about a fourteen-year-old freshman student that was regularly playing violent interactive video and computer games. This freshman Michael Carneal watched videotaped movies, one, in particular, was The Basketball Diaries showing a high school student having dreams of killing students and staff in the school. Carneal a handgun and five shotguns into his high school and started shooting; resulting in the deaths of three students and wounding others. As a result of this the parents of the three dead students sued the producers and distributors of the violent video games and movies that Carneal watched. The parents were suing for recovery damages for wrongful death and accusing the defendants were negligent in producing and disturbing such products.

(CASE 5.2 Negligence James v. Meow Media, Inc. 300 F.3d 683, Web 2002 U.S. App. Lexis 16185 (2002) p.1)

Position

After reviewing and analyzing this court case determining that the U.S. District Court applied Kentucky law in agreeance that the defendants did not owe or breach a duty to the plaintiffs and therefore not liable for any damages. If the defendants actually stated in the video games and videos, “Carneal go and shoot students and staff” then it would be considered negligence and intentional by the defendants or showing specific details of a religion or student ethics then it could also be determined as Intentional Misrepresentation (Fraud). The parents are pushing the Freedom of Speech act which grants the defendants the right to free speech. However, if the plaintiffs could prove that Carneal had purchased these violent video games and videos as for any rated R videos and video games require to have someone over the age of seventeen to purchase such products. If this was not the case and Carneal had intentionally purchased the products then the negligence and liability would fall to the retail store and/or distributors to that store and not enforcing the law even at the register.

Reversal Analysis

If the ruling by the U.S. District Court found the defendants guilty or in favor of the plaintiffs then all industries that produce and distribute such violent games and videos would have to recall all products and pay out any damages to those families involved in any shootings where such events like Carneal’s shooting at the high school would be found negligence and liable for recovery damages.

Conclusion

After looking through the court case and reviewing the facts of the case it has come to understand that our judicial system and law is very complex. The tort law theory and categories representing it showing there are many level in which a business could be found liable for wrongful doing or unintentional doing. Understanding the law and either knowing or not knowing if the business and/or individual have broken law is up for a judge and jury of peers to determine.

References

CASE 5.2 Negligence James v. Meow Media, Inc. 300 F.3d 683, Web 2002 U.S. App. Lexis 16185 (2002)

Alternative Dispute Resolution Process

In business law there two main types of processes that used to resolve a dispute. One is going through the traditional court system and the second is an alternative dispute resolution. The alternative dispute resolution is the most common process used to settle disputes. However, the alternative dispute resolution process uses several different methods when coming to a settlement. The most common method is the arbitration method. The other form of methods is negotiation, mediation, conciliation, mini-trial, fact-finding, and judicial referee. The two alternative dispute resolution methods I will be discussing are arbitration and negotiation.

The alternative dispute resolution process can either be a long process or short process depending on the negotiations and if a settlement is agreed upon. There are some cases where the alternative dispute resolution process doesn’t always work and the dispute does go to an actual traditional court system. In most circumstances, the dispute settles out after a few negotiations between parties. Generally the process works when the plaintiff ( the accuser) goes after a party and/or form of business, therefore, the defendant (accused). This alternative dispute resolution process keeps the dispute more private and nothing will be shown in open court. The plaintiff will normally demand some type of settlement depending on the circumstances it could either be money, shares in a business, dispute of ownership, etc. The defendant will either argue of such dispute or try to settle with an offer of money towards the plaintiff this is known as the negotiation method. However, in some cases both parties (plaintiff and defendant) will have a neutral party handle both sides known as the arbitration method. Once both parties have come to an agreement which is also known as a settlement agreement then the dispute is finalized and closed.

The negotiation method is a process in which both parties’ debate and/or dispute to try and come to a voluntary settlement agreement over the dispute. When the negotiations start it can take several hours to several months depending on the situation and if both parties agree upon the terms of which the plaintiff and/or defendant agree by request. There are times when this method can cost a business so much money that they can’t afford to keep negotiating due to legal and finance situations. 

The arbitration method exists when both parties agree to a neutral party handling both sides of the case and finalization of the settlement. This is the most common method because of its effectiveness and neither party has to face each other in person and pay for their own attorney to represent their business. Using a neutral party to handle both sides’ cuts on costs and time. “Arbitration enables parties to avoid juries. n43 Most business courts permit jury trials, n44 although parties may be able to waive their right to jury trial by contract. n45. Dispute resolution in business courts is a public process, with parties' privacy protected only by the power of the courts to enter protective orders. Arbitration is a private [*500] process and more likely to result in a confidential resolution of the parties' dispute” (Drahozal, p. 1 2009).

Overall the alternative dispute resolution process has been a successful method over going through the traditional court system. Through the arbitration method, it keeps businesses out of the public and keeps the dispute privately. In most businesses don’t like to go to open court they prefer to keep things quiet and in-house.

References

Drahozal, C. R. (2009). BUSINESS COURTS AND THE FUTURE OF ARBITRATION. Cardozo Journal Of Conflict Resolution, 10491

Adjusted Trial Balance

An Unadjusted Trial Balance is a balance of entries that have been implemented over an extended period of time without any adjustments being made. For example, the unadjusted trial balance above shows what the company has on file for each account. However, there were several entries that were not added to the accounts, therefore, making this an unadjusted trial balance.

Adjustment Entries

These entries are then used to make the necessary adjustments to the proper accounts to finalize the unadjusted trial balance to an Adjusted Trial Balance.

Current and Non-Current Assets and Liabilities

Through my course of college, I have been working on Financing, Accounting, and other fun facts that I did not clearly understand before. Now that I have understood the basic and more complex topics of Financing and Accounting I thought I would share some of this general knowledge by starting with Current and Non-Current Assets and Liabilities. Below are some examples of these and an explanation as to why they are in such category.

• Finished goods inventory – Current asset, will be sold and converted to cash with a year

• Raw materials -  Current Asset, will be converted to finished goods with a year

• Bank loan with a repayment date three years from today – non-current liability – 3 years

• Bank loan with a repayment date six months from today – current liability – due with a year

• Outstanding receivables from products sold – current asset- will be converted to cash within a year

• Depreciation expense – profit and loss statement, expenses go on the P&L (Profit & Loss)

• Salary expense for employees – profit and loss statement, expenses go on the P&L

• Interest expense (payable to bank for loans) – profit and loss statement, expenses go on the P&L

• Money owed to a supplier for raw materials purchased – current liability, to be paid with a year

• Dividends to be paid to shareholders two months from today – current liability, to be paid with a year

• Retained earnings – equity by definition

• Shareholder’s paid-in capital – equity by definition

• Machinery and equipment – non-current asset, lasts more than a year

• Accrued salaries and related expenses such as payroll taxes – profit and loss statement, expenses go on the P&L

• Income tax to be paid to the US government one month from today – current liability, to be paid with a year

• Cash and cash equivalents – current asset, by definition

• Building – non-current asset, lasts more than a year

• Goodwill – non-current asset- lasts more than a year

• Bonds payable to be paid in 15 months non-current liability – greater than a year 

Student Career Counseling, Colleges & Career Paths: with a side of Speghatti Sauce

There are several pros and cons of high schools and colleges trying to factor prediction about future wages into student career counseling. Several pros of high schools are they can help students decide on the type of college they wish to pursue after they graduate high school. On the other hand, college student career counseling can help guide students through college on academic and career level. However, there are several cons to student career counseling of high schools and colleges. When high schools and colleges try to make predictions about future wages can have several bad outcomes. For one, the overall salary for student career counseling pays less than your traditional teacher. However, for those who have a college degree tend to be paid more. What can potentially benefit students is finding the right career for them with guidance. When they are given guidance they are able to succeed and with some college education will be paid more than minimum wage.

When students are trying to predict the future outcome of jobs and wages they need to look at the overall picture; the economy and job growth rates. Some of the sources today that predicts job growth rate and salary pay are not always accurate. The best way to look at it is what is in demand and watch the market on a particular area of interest for your career field and see the supply and demand works for that career. If you’re seeing a decline in that job doesn’t mean you won’t be able to achieve it or be able to have that career. Companies may just be laying off employees or the economy may be in decline. When high schools and colleges try to look too far ahead for future earnings’ prospects of various jobs changes. High schools and colleges may give incorrect information to the students that looking for a money making the career over having a good career but doesn’t pay that much. When the student discovers they were given inaccurate information from the high school or college it can lead to the student feeling overwhelmed, upset, and angry. Potentially for giving inaccurate information can lead to a lawsuit as well. 

What Factors to Consider When Financing a Truck

Trucks can be very expensive to purchase depending on the use of the vehicle. The buyer needs to determine if they are purchasing a new or used truck. They also need to look at the financing options; through a bank, a trucking company or a dealership. Commercial motor vehicles (semi-trucks) can cost anywhere from $30,000 to over $800,000 depending upon the size, style and purpose of the vehicle.

New or Used

New trucks come off a factory line new, never been owned, and come with warranties. New trucks also have the latest software, built-in GPS system, and APU (auxiliary power unit). Used trucks may have an APU, dents, frame, water, accident damage and no warranty. Buyers deciding on a used truck need to review the vehicle history. A used truck that is being financed is similar to purchasing a vehicle at a car dealership when wanting to look at the history, dealerships are required to provide such history. For example, a Carfax report detailing previous damages and owners of the vehicle.

Purpose

When determining the purpose of the vehicle the driver must first determine which type of equipment and product they will be hauling. The purpose of the truck can be any of the following;

• ·         Dry van – 48 to 53 feet long, hauls anything that doesn’t require refrigeration and can fit in the trailer. For example, recycled paper.
• ·         Reefer – 28 to 53 feet long, hauls anything needed to be refrigerated and dry products. For example, a truck load of frozen chicken.
• ·         Flatbed – 48 to 53 feet long, these types of trailers are open to Mother Nature’s weather and can haul anything requiring heavy chains or tarps. For example, a load of lumber.
• ·         Oversized – 53 feet or longer, this type of trailer is meant for anything requiring flags, possible escort service, and weighs more than 80,000lbs gross weight. For example, construction vehicles.
• ·         Covered Wagon – 48 feet long, this trailer is a dry van and flatbed all in one. It can haul dry van and flatbed product. For example, windows and glass doors.
• ·         Livestock – 53 feet long, similar to dry van but the trailer from top to bottom is normally a metal type material with ramps attached at the rear, sides and even inside the trailer. This trailer also has holes on both sides to the live animals inside can breathe during transport.

 Condo trucks have two beds and mid-roof trucks have a single bed. Flat-bed trucks have racks on the back of the cab and extra side boxes for storage. Racks are used for hanging chains that secure the cargo. Extra side boxes are used for storing tarps, straps, load locks, tire chains and maintenance supplies. There are three different types of sleepers; standard, extended, studio. Standard sleepers are range from 40-50 inches and are used for sleeping, resting, and pre-planning trips. Extended sleepers or studio sleepers range from 55 to more than 60 inches. These types of sleepers can have showers, bathroom facilities and even a small electric stove. The bigger the sleeper the higher the cost.

Financing through a bank or dealership

The buyer having excellent or good credit, finance through a bank or dealership. They search the internet, newspaper, and truck paper for dealerships and banks. Banks and dealerships run credit checks and loan options. Bank interest rates and payments on a loan are lower than financing through a dealership or trucking company. Buyers that have average credit, lease a truck through a dealership. However, interest rates are high and a signed contract with a company (trucking or non-trucking) for one year is required.

Financing through a trucking company

Buyers having poor credit, finance a truck through a trucking company. A trucking company offers two options; clean walk away and tied lease-finance. Tied lease-finance means the buyer is tied to the truck for a certain amount of years with serious consequences if not finished. Walk away lease-finance gives the buyer the choice to walk away from the truck at any time without any consequences. Buyers considering finance with a trucking company will sign a contract. Contracts inform buyers of any problems, fees, payments, and insurance. Trucking companies have the same concept as a dealership when selling a truck.

Sole Proprietorship, Partnership (General and Limited), and a Corporation

In any business structure, there are three main structure topics; Sole proprietorship, Partnership (General and Limited), and a Corporation. Each of which has both disadvantages and advantages for any entrepreneur. In this report, we will discuss the difference between a sole proprietorship, partnership (general and limited), and a corporation.

A sole proprietorship like any type of business structure is formed by an entrepreneur and is the simplest form of business structure. The owner of the business is the business itself and is the most common form of business in the U.S. today. When creating a sole proprietorship there are no expensive federal or state government approval fees or government approval of that level. What there is are some local governments or counties in states that require businesses to register within that county for the type of business. In the initial investment as a sole proprietorship if the business would happen to fail then all the investment (capital) that was put into the business goes with it. However, in the event when the business fails and all costs are not covered by the initial capital the sole proprietor has unlimited personal liability. This gives creditors and banks the right to go after the sole proprietor’s personal assets. Also, at the end of the year the sole proprietor must prepare a personal income tax form 1040 U.S. individual income tax return for federal income tax purposes (Cheeseman. 2013. P.532.). When filing taxes this way gives the sole proprietor the option to write-off anything that was therefore purchased for the business or lost; this is also known as a Schedule C.

A general partnership or “ordinary partnership” is known as a voluntary business of two or more people who partake in the business (Cheeseman. 2013. P.533). This type of partnership can be done if there are more than one initial investors, but only one person wishes to run the business itself while the rest earn profit from it. However, with any loss in the business or if the business were to fail then all initial investors would become liable for the debt and/or obligation of the partnership. “An ordinary partnership can operate under the names of any one or more of the partners or under a fictitious business name” (Cheeseman. 2013. P. 533.). The difference between a sole proprietorship and partnerships, in general, is they do not have to pay federal income taxes. However, what they have to do instead is file the gain or loss under general filing. In any general partnership, the parties invested have a right in obtaining their initial investment back if so forth written in the agreement. If not, then in some partnerships can cause what’s called tort liability.

A limited partnership is similar to that of a general partnership. However, when two parties only want to invest their money and not be personally liable for any of the partnership's debts and obligations it becomes a limited partnership. The limited partners do not have any say in the management of the business itself whereas a general partnership does. Another difference between a limited and a general partnership is limited partnerships are required to execute and sign a certificate of limited partnership to make the agreement legal and binding. After the certificate is executed and signed the partnership must also keep it current by filing it with the same offices where the certificate was originally filed for creditors. If the certificate is not filed correctly the limited partnership can become a defective formation making all parties a general partnership and, therefore, liable for any loss in the business. An advantage for a limited partnership is a new partner may be added later on so long as all the partners agree to it.

Corporations are just as common as sole proprietorships. The only difference is a corporation is made up of shareholders and the one with the most shareholders is known as the CEO or chief executive officer of the company. Corporations have the option of being a publically traded company or being a private company. Also, when it comes time for filing taxes, creating a name there are several big differences between a corporation, partnership, and sole proprietorship. A proprietor is single taxed by the gains or loss. A partnership is also single taxed but taxed by each partner. A corporation is double taxed because it can necessarily have as many owners as the number of shares they have. Corporations when looking at companies to distinguish the difference is the name of the business itself. For example, Howard & Sons would be known as a partnership and Roehl Transport Inc. would be known as a corporation.

Reference Page

Cheeseman, H. (2013). Business Law, Custom Seventh Edition. [VitalSource Bookshelf Online]. Retrieved from https://itt-tech.vitalsource.com/#/books/9781256881605/

Steep Grade Warning Signs & Things to look out for

Ever come across these grade signs and wonder what they mean? All truck drivers should but for those who don't read on.

When these warning signs are shown on the highway are no for scenery or pleasure but are actual warnings. The first thing to look at when seeing these signs is the grade % and how many miles. How the grading system works is pretty simple, the steeper the slope the higher the grade. The miles indicated in the picture above represents the length of the downgrade. For example, at 6% downgrade with seven miles listed means you are going down the hill or mountain at a 6% grade for seven miles.

The five axles or more signs are also applicable to individuals that are pulling any kind of trailer. People that are pulling small Uhaul trailers, campers, boats, etc, should read these warning signs. The axle sign is broken down into weight categories, 60K-65K, 65-70, 70-75, and 75-80,000lbs. However, small cars and pickup trucks will want to heed these warnings because of the heavier gross weight the faster the descent. A lot of times pickup trucks and cars will lose control of the trailer they are towing because they are traveling too fast. Even if you are running late, behind, whatever the reason may be, SLOW DOWN! Nothing is worth your life. A vehicle, trailer, boat, camper, etc can be replaced. 

If you are pulling a small trailer, boat, camper, etc. Before you start down to pull off on the shoulder or rest area and inspect your brakes. Commercial drivers have a job to do like everyone else traveling the highways. If hauling a Uhaul trailer, friend's trailer or pulling something that has wheels on the back inspect the brakes before traveling down.

Say you're traveling down one of these grades and you see something that looks like this:

Seeing smokey brakes does not mean the vehicle is out of control. Smokey brakes can happen on any vehicle not just commercial. Again, if you are hauling a trailer all your brakes can start to smoke from getting warm. If you see a vehicle with smokey brakes don't be alarmed. If you have a CB radio in your vehicle be courteous and let the driver know. Also, vehicles that have flashing hazard lights traveling downhill means the vehicle is going slower than the suggested speed limit. Don't get angry and start honking your horn, instead go around. They are just doing their job to keep control of the vehicle safely.

Writing with a side of Apple Suprise

This analysis explores a published article and the fundamentals of how any educated or un-educated individual uses their writing and grammar skills. In the article, Writing ability declines but still crucial for success describes how even the most educated individuals can make the most common writing and grammatical errors. When it comes to writing; whether writing a resume, essay, cover letter, research paper, etc. we have to write persuasively. Also, having sentence structure, proofreading, and revising our work is a key component to any formal or informal piece of writing.

When we have retrieved our degree in business, math, education, etc. but have poor writing skills can affect whether or not we are able to obtain that dream job after all. ""Let's say 25 percent of students who leave a college are struggling at basic level with grammar and organization," said Jeffrey Galin, director of Florida Atlantic University's Center for Excellence in Writing. "They are not going to be able to get jobs that require written communication. And in an era where jobs are slim and employers can be picky, they are going to be relegated to manual jobs”" (Fleshler, p.1). The first thing an employer looks at when an individual applies to a company for employment is their cover letter and resume. 

Some employers are very “picky” when it comes to simple grammatical and/or writing errors (Fleshler, p.1). Even misspelling their address can cause an interview or potential job to be passed on or placed in the do not hire bin. Author Fleshler explains the importance of even the simplest of writing is just as important as writing up a report for a job or even an essay for college.

It is important that we write persuasively when writing a resume and cover letter to an employer. In a resume, describes our job history, past knowledge and skills that we currently have but the good stuff is in the cover letter. When writing any cover letter to a company it’s like making a sale at a dealership or selling pastries to a local bakery. We have to sell ourselves to the company. If the company isn’t pleased with our cover letter they won’t even look at the resume. We must take our time and know the company in and out before submitting an application so we know it’s the right job for us.

Fleshler, D. (2012, May 19). Writing ability declines but still crucial for success. McClatchy - Tribune Business News Retrieved from http://search.proquest.com/docview/1014258928?accountid=27655

Divisive manager and the micro-manager

Have you ever been employed and had to deal with one of these two types of managers?

The Divisive Manager

When an individual is promoted to a supervisory role is typically due to exceptional work performance and leadership performance. However, some individuals when given a supervisor role take advantage cause favoritism to certain employees and more discipline to those that don’t need it. “If this manager was promoted from within the team, he or she still goes out to lunch with old friends on the team, excluding others. Unfortunately, the divisive manager appears to be all too common. Playing favorites is a top employee complaint about bosses, according to a 2011 survey conducted for CareerBuilder .com” (Meinert p.32). 

The Micro-Manager

The manager constantly leaning over your shoulder after given a task two minutes prior to seeing where you are at with it. Having a customer on the phone while trying to three tasks at once and a manager in your ear asking how the task is coming can be rather frustrating. The employee can lose focus and become very distracted losing overall customer satisfaction and hurting potential revenue for a company.

References

Meinert, D. (2014). 5 TYPES OF BAD BOSSES. HR Magazine, 59(8), 26.

The Loose Scrap Paper Story

January 2nd, 2012

When you’re driving a truck over the road you experience different situations in all aspects. One I experienced was a load full of loose scrap paper. The trailer was pre-loaded and ready for pick up from a common paper plant out of the state of Alabama.

 Arriving at its final destination in Georgia following all the signs for scrap paper loads to the receiving docks…or so I thought. The guard informs me at the gate “do you have any open bottles without lids on them?” confused and giving the guard a weird look, I replied “no”. The guard looked at me and smiled “follow the road to the left and if the two bays are full wait for the next available bay, oh and read the sheet I gave you on further instructions”. I carried on through the gate “following the yellow brick road” around this massive building.

Hearing the pressure noises and steam pipes from the plant running I drive around the last corner of the building and see the so-called “bay” in sight. My jaw dropped…taking a big gulp, I saw a truck in a vertical position being shook up and down with loose scrap paper coming out the back end of the trailer… All I am thinking to myself at this point is “this is just great, I just cleaned this truck”. Both of these so-called bays were full so I pulled off to the side and waited for a bay to become open. Looking at the angle of the ramp I had to back up into I was trying to figure out how they managed to do it…until I saw it… One of the trucks was pulling off from the “bay” I’d more call it a platform with a lower jaw and a throat to eat the paper (laugh out loud).

The driver just pulls off the platform and slowly drives down the steep ramp with their trailer doors shut and drives away. Guess what? I’m next…80,000lbs of weight backing up keeping the clutch steady. After about a minute of backing up the only mirror, I could use to see the platform itself was the smallest mirror. My left leg starts to shake from keeping my foot on the clutch (which is a no-no). I had to stop the truck half way up pushing the clutch down and hitting the breaks so I could adjust the mirrors so I could see where I was backing up. After the trailer reaches the platform I feel the truck slowly backing up onto it. The truck lining up enough to see the inches of space on both sides to back onto. The best way to describe it is backing up onto a scale big enough for a commercial vehicle with only one-foot high thigh bumper bars to stop the trailer from jumping it. The bumper bars won’t stop a trailer or truck from going over the edge, it’s just like guidelines more or less.

After getting the rig nice and snug on the platform, I see a man in a small plexiglass booth waving at me to come back to the booth. Taking a deep breath and patting myself on the back for a job well done I open the driver door. The noise of the plant is so loud I can’t even hear myself talk without yelling. I climb down the truck slowly turn and step off the platform onto a catwalk which leads me to the booth. I smile at the man and walk into the booth. The gentleman greets me and asks “I bet this is your first time here”. I start to laugh “how could you tell?” The gentleman snickers “I can see your CB radio still hanging in the mirror of your truck, I advise you to take anything down that can fall, slide, or get damaged and put it on the floor or the bunk. When finished open your trailer doors and return to the booth, please”. I thank the gentleman for the information and inform him that I would be right back.

I walk back to my truck and take the CB radio, television, everything on the dash and move it to the bed and wrap the television up in one of my blankets. Satisfied with moving everything I step out of the truck and walk back to the trailer and open the doors. When I was finished I walked back to the booth. The gentleman asks me again to be sure I have moved everything that needed to be moved. I nodded and he then tells me I have to walk down the stairs behind him all the way to the ground and wait there until the truck is back on the platform.

Before departing the booth, he hands me a set of safety glasses and construction vest. “Put these on before you leave the booth again please” the gentleman stated. I put the safety glasses and construction vest on then walk out of the booth and continue down the stairs. Soon as I reach the ground I walk out far enough to get a shot of my truck being lifted up from the ground. After taking the picture, I had realized something…I had a Styrofoam Cup in one of the cup holders with mountain dew and ice in it…I shrug my shoulders knowing there is nothing I can do but watch.

A few minutes go by and all the loose scrap paper falls out the backend of the trailer. The gentleman sets the truck and trailer back down on the platform making a loud bang. Straddled by the noise “I hope that wasn’t my truck”, the gentleman yells down to me waving me to come back up.

I climb back up the stairs and reach the top huffing and puffing from smoking too many cigarettes I walk into the booth. The gentleman turns towards me “here are your bills, shut your trailer doors before leaving the platform”. I thanked him, walked out of the booth and walked to the back of the trailer to shut the doors. After shutting the driver’s side door, I walk around to shut the passenger side and I realize where the noise came from…the driver next to me had backed his trailer up and over the driver’s side bumper bar and was stuck. As I was going over to try and help the driver the “nice” gentleman that was in the booth come out raising all kinds of hell at the driver. I shut the passenger side door and walked back to my truck with a little smile trying not to laugh. For all I know that could have been me but the look on the “nice” gentleman’s face…priceless.

I climbed up in my truck to find the mountain dew was on everything. I started laughing as I pulled off the platform and down the slope. I had to stop and get a mountain dew at the truck stop before arriving here. I pulled off in the waiting area to try and clean the mess up. Realizing how long it would it, I headed off to the truck stop for another thorough cleaning and give the truck a bath. Last thing you need in a truck you sleep in is ants and bugs. Ever since that day I buy mountain dew that comes in a plastic bottle and has a screw on lid.

Stay smart and stay safe. Don’t be in a hurry!

Security for a home or residence

Ever think about what could happen if your house is broken into? Instead of waiting until after it happens be proactive and help prevent it. Burglars and robbers tend to avoid places that seem easy to get to into. There are several different options you can do to prevent it from ever happening.

Option 1: Get a guard or watch dog

There are several different types of breeds that are known for being good guard dogs. Some types are German Shepherds, Rottweiler, Doberman pinscher, Standard Schnauzer, etc. If you want a good guard dog get them as a puppy and train them as you wish. If you are afraid of them being over protective of you or your family socialize the dog with others. Professional Dog Trainers can also help in basic housetraining and teach the dogs of what O.K. is and not O.K.

Option 2: Have a light pole installed by Power Company

If you live in an area that doesn’t have a lot of light at night you can call your Power Company and have them install a light pole on your property for only $10 extra on your electric bill a month. The extra light is also a deterrent from robbers and burglars that wish to try and enter during the night time.

Option 3: Install a security system

There are several different kinds of security systems; privately owned or provider. If you wish to pay a monthly fee for your house to be monitored on when you enter and exit your home them a security provider would be for you. Several security providers are ADT, SafeWise, LifeShield, etc. There are tons of providers out there but be sure to read the fine print before signing any contract. For a basic system with ADT costs around $40.00 a month which comes with 3 door alarms, 1 security panel, and 1 motion sensor (if you have cats or dogs it will cause this to go off A LOT).

Having a privately owned security system is also an option that doesn’t require a monthly fee. Some security systems available come with 1 video camera to several hundred. Today they make security systems that can be recorded digitally to any computer or hard drive. An external hard drive is normally pretty cheap if you wish to have the video stored on something other than your computer. A basic security system from Best Buy is $100.00 and comes with a recording station.

Option 4: Beware of dog and security signs

Place security and beware of dog signs on the door, windows within reach from the ground and out in your front yard. This is the cheapest option to go buy. Signs don’t cost much at all and by placing these signs on the doors, windows and in the front yard lets people know you mean business. If you don’t have a security system installed in your home place signs out. When a burglar or robber sees these signs it makes them believe you have a security system installed in your home.

On a final note if you don’t have any deadbolts installed on your doors. Have a professional, husband, or neighbor install them. Their cheap and easy to install. Also, have the framework around the doors checked before their installed to make sure that when you are home and someone is trying to get in that the deadbolt will hold.

A little story about Donner's Pass from 2010

May 31, ^st 2010

Made it all the way to California today and went through Donner’s pass for the first time ever. When I first started approaching Donner I started seeing the warning signs for commercial vehicle warning. My first instinct was to relax and remember what I was taught about doing down a mountain. When I first started down Donner the view was priceless. I took my time and stopped at every pull off point to give the truck and trailer brakes a check and time to cool off. After making it to the bottom, I realized to myself that it wasn’t that bad and it gave me more confidence which later led me to become an even better driver.

Being out here on the road is great though I don't have to listen to anyone complaint, it would be nice to have someone around to keep me company. I can't always get what I wish for. For it being my first time in California though I'm really liking it here. The drivers here are even worse than Florida, have to keep on every mirror all the time. Just wish I had someone or a dog with me so I could go do more stuff or go see things with someone and make it something special. I feel like I can't stop thinking sometimes. My mind wonders around every subject whether I'm getting a load tomorrow, family, and friends. Having family and friends is all I need to succeed in being a professional driver. Respect people whom are older than you and take advice when you can get it.

Oh and I received my next load, Cabbage here I come!


Side Note: In high elevations temperatures can get quite chilly. Enjoy it with a nice warm cup of Hot Chocolate!

Getting Traffic and Learning How to Create a Pin on Pinterest

One of the first things you want to do is follow boards, groups, individuals, and companies. Then start creating boards of your own and creating pins so everyone can enjoy your work! Below are just 8 simple steps on how to follow a board and create your own pin that will help increase your traffic to your boards, sites, and more! Enjoy!

Step 1: Search within Pinterest for a board, groups, individuals, and companies 

Step 2: Follow the boards, groups, individuals, and companies of your choosing (If you follow them, they will follow you)

Step 3: Go to your homepage on Pinterest (www.pinterest.com). Then click on one your boards and you will see a box that says Add A Pin. Click on it. You will then be prompted to add a pin from either The Web or Your Device. (If you have a blog and/or personal website you want to choose “The Web”).

Step 4: Go to your blog or website address; find the single article relating to your pin (normally 1 topic only). Copy the URL (CRTL + C) from the address bar.

Step 5: Then go back to Pinterest and add the URL to the box provided

Step 6: Once Pinterest recognizes the URL the “Next” box will light up red. Which enable you to click Next.

Step 7: Choose an Image to Create the Pin, If the website does not have an image it will not let you Pin It you have to either add an image to the pin or put one on your website. Click on an image that suits your pin.

Step 8: You can then add a description to your pin and pick a board for the pin to go under. Once the description is in and you know the board you wish to pin it to simply click the Pin it icon. You’re all set! Keep your pins creative and description short and to the point to attract more viewers to your site.

Effective Communication

This analysis explorer’s one published article named "Communication Problems at Ozark Corporation" written in Supervisors Today on how one lead supervisor communicates to another. In this article one lead supervisor named Sam Case and a new supervisor named Paul encountered ineffective communication that caused the loss in production and Section A’s production line to be shut down again. There are several ways this could have been prevented through effective communication. Also, knowing the barriers to effective communication and the implementations it can cause will help Sam and Paul become better supervisors in the long term.

The communication between the two supervisors was very broad and weak which caused ineffective communication and loss in production. According to the article “March is the busiest time of the year at Ozark Corporation. Thus, when the production line in Section A has trouble for the second time in a week, Sam Case decides he’d better get it straightened out immediately. As the lead supervisor, Sam is directly in charge of Sections A and B. Sam calls in Paul Banks, the new supervisor in Section A” (Robbins, DeCenzo, and Wolter p.277). Sam knew there was a problem with one of the production lines and needed to find out what the issue was by discussing it with Paul. Sam’s approach to Paul on the problem with the production line was direct and forward about fixing the problem immediately.  To better understand what happened between Sam and Paul’s communication here is the discussion of the production line they discussed;

“SAM: Paul, we seem to be having some problems in your section. The line has been down twice in the last three days. This is our busiest time of the year. We can’t afford to have recurring problems of this type. I want you to stop that quality-control project I have you working on, find out what the problem is out on the line, and get rid of it.”

“PAUL: Okay, I’ll get out there, find out what’s causing the problem, and get rid of it.”

 “SAM: Fine.”

(Robbins, DeCenzo, and Wolter p.277)

In their discussion between each other as supervisors were very ineffective communication. Sam, I had told Paul to find out why the line was continuing to shut down and to “get rid of it” (Robbins, DeCenzo, and Wolter p.277). There are several steps that Sam should have taken in providing effective communication. Sam clearly stated that he wanted the problem taken care of right away or that was the impression that Paul had received. Sam did not clearly state to Paul to have the issue taken care of at the end of the work day.

Sam should have first asked Paul if he knew what was causing the line to breakdown so many times. If Paul didn’t know the issue then Sam should have confronted the situation about preventative maintenance. However, if it was not in Paul’s job description to do preventative maintenance or troubleshoot issues then it would not be Sam’s place to discipline Paul. Sam should have just asked Paul to find out what the issue was with the Section A production line and report back to him so they both could discuss a solution together.

As for Paul, there are several things that he had done wrong as a supervisor. A majority of supervisors in a production line setting if they are in charge of a section then they are responsible for all aspects of the line, including maintenance. When Paul was confronted about the production line being shut down so many times he should have known the problem and/or issue. By not knowing what the problem and/or issue may imply to his boss Sam that he is not doing his job effectively. Also, when Paul responded that he would “get rid of it” he should have been more specific to Sam as to how soon he would solve the problem or ask when an appropriate time would be to fix it (Robbins, DeCenzo, and Wolter p.277).

One solution that could have prevented the ineffective communication is active listening skills. Active listening means you are giving the individual speaking your undivided attention and asking necessary probing questions to understand what you are hearing. Paul nor Sam was successful in conducting active listening. Paul may have emphasized and repeated what Sam had said to him so there was no question. However, by Paul nor Sam asking any questions at all on the matter at hand caused for conflict. Paul was under the impression to get the problem fixed right away. So Paul found out from the mechanic that it was a mechanical issue and had the mechanic replace the part during production hours. By Paul having the mechanic replace the part during production caused the line to be shut down again which Sam thought was unacceptable.

If Paul and Sam had used active listening they could have worked out a solution together to determine the best course of action on fixing the problem. Instead, Paul took it upon himself to have the problem fixed right away rather than at the end of production hours. Sam didn’t specify to Paul when he wanted the problem fixed, Sam just stated “get rid of it” (Robbins, DeCenzo, and Wolter p.277). Sam could have asked Paul to notify him when they found the problem or why he didn’t know what the problem was from the beginning.

Sam and Paul can become better supervisors from this experience by using active listening and effective communication. Instead of just assuming, ask questions to better understand the situation better. By using these skills and communicating, effectively will make the production run smoother and the supervisors will be more proactive at finding the problems before they start.

References

Robbins, S., DeCenzo, D., & Wolter, R. (2013). Supervision Today! (Seventh ed., pp. 1-475). Upper Saddle River, NJ: Prentice Hall.

Side Note:
Tired of spending $5, $8, and $10 for a box of K-Cups? A majority of grocery stores and supermarkets have individual coffee filters for Keurig's. Using individual coffee filter for your Keurig will save you more than $100 a month alone on coffee and you can still use your favorite coffee! Here is what some of them look like;

P.S. - A four pack at Winn Dixie is only $7!