business aos3 Flashcards
operations management
overseeing the process required in the production of goods and services
operations
the function of the business that transforms inputs(resources) into a final product (output.
tangibles
physical goods that can be seen and touched
intangibles
customers pay for the skill and expertise of the service provider
inputs
resources used to create a good or a service
processes
all the procedures required for inputs to be transformed into products(outputs
outputs
the final product or service produced by the business. the quality is a direct reflection on the inputs and processes
productivity
a ratio of the output of goods and services to the inputs used to achieve the output
operation system
consists of the three stages inputs, processes and outputs
master production schedule
a statement of what a business intends to produce
materials requirement plan
a computerised inventory management system used to schedule and place orders
forecasting
analysing past data to make future predictions
computer aided design
A software system that enables a product to be created in digital form, modified, analysed and tested before it is put into production
Computer aided manufacturing
the use of software and computer-controlled machinery to manufacture products. The main purpose of Cam is to create a faster and more efficient production process.
CIM
combination of CAD and CAM
just in time
management system to avoid holding unnecessary stock. supplies arriving just in time for production
quality control
physical checks for defects by performing inspections at various points in the production process to check for defects in the product. The aim of quality control is to identify problems early so they can be rectified quickly.
total quality management
a whole organisation approach to achieving quality based on continuous improvement in the area of quality. Quality is embedded into the culture and every employee understands that they have a role to play in improving quality
quality assurance
a business achieves a standard of quality in the production of a good or service as assessed by an independent body. They must meet these standards that are set for their industry in order to receive the quality assurance
continuous improvement
the business uses regular evaluation to have ongoing improvement into the future. The business will continue to set higher standards that it aims to achieve.
waste minimisation
reduce
Decrease use of resources, activities, labour and time to reduce waste production.
waste minimisation
reuse
Businesses can look to reuse resources again for the same purpose or repurpose the resource for a different purpose.
waste minimisation
recycle
convert waste material into usable products
pull
the business only produces the amount that the market demands.
takt
the speed in which a business needs to produce products to meet customer demand. This allows a business to have a continuous flow and adapt quickly to any rises or falls in demand
zero defects
identifying errors or defects as soon as they occur so they can be rectified immediately. Defects cause waste and a lean business will aim to have zero defects.
CSR
conducting business in a ethical manner. (economic, social and environmental)
environmental sustainability
responsible management of natural resources to fulfil current needs without compromising the future
global sourcing
business getting materials(inputs) from overseas suppliers
overseas manufacturer
when the process stage is done overseas
global outsourcing
third party to do a operation overseas
supply chain management
meeting customer demands for goods and services
Sole Traders
A sole trader is an individual who owns the business and is the sole person legally responsible for all aspects of the business.
Advantages include:
Simple to set up and operate.
Gives the owner full control of the business.
Partnerships
A partnership is a business structure that involves 2 to 20 individuals who own a business together.
Private Limited Companies
The ownership of a private limited company is divided into shares, whoever owns one or more of these shares is called a shareholder. However, these shares are not listed on the stock exchange.
More complex to start up and run.
Money earned belongs to the company.
Public Listed Companies
A public listed company has members (shareholders) who own the company, and directors who run it. The company is listed on the stock exchange for members of the public who can trade shares in it.
Limited liability.
Listed on the Australian Stock Exchange.
Social Enterprises
A social enterprise is a profit-making business with social objectives whose surpluses are reinvested for said social objective, rather than being driven by the need to deliver profit to shareholders and owners.
Not a charity or foundation.
Government Business Enterprises
A government business enterprise is owned by the commonwealth, but unlike government departments, aims to act under general business principals and to make a profit.
Limited liability.
Mission statements
What the business is doing now to achieve its vision statement, such as completing business objectives to then move closer to completing their vision statement.
vision statement
What the business hopes to achieve in the future, whether that be a business objective such as making a profit or fulfilling a social need.
make a profit
Attaining/creating more revenue than its expenses
Increasing market share:
Owning/operating a greater portion of the market in which the business is operating in.
Fulfil a market/social need.
Tending to an issue within society/the community.
nternal Stakeholders Owners,
: Individuals who own the business and decide its functions and overall direction.
internal Stakeholders Managers,
Coordinate employees and staff to complete their roles to satisfy the requests of the manager.
Employees
individuals who work for the business and complete tasks to move the business towards the intended direction of the owner.
shareholders
Individuals who own a certain percentage of the business through owning “shares”, they do not have a greatly influential role in the outcome of the business.
Competitors,
Opposing businesses which sell goods/services within the same market as another business. The seek to own more of the market than other businesses and sell more than other businesses.
Suppliers
Producers who provide the business with raw materials for them to then produce goods or services.
Customers
Individuals who purchase goods and services from the business.
Trade unions
Groups who represent employees and fight for their working rights such as wages and working conditions.
Autocratic:
A management style which involves the leader dictating the objectives to be achieved, and how to achieve them.
Persuasive
: A management style which involves the leader dictating the objectives to be achieved and persuading the employees as to how to achieve them.
Consultative:
A management style which involves the leader asking their employees for their opinions before ultimately making the decision themselves.
Participative
A management style which involves the leader sharing the decision-making responsibility with their employees to create a consensus decision
Laissez-faire:
A management style which involves employees being totally responsible for the decision making and operations of the business. This manager in this style has no central role or power. They may still set objectives and have ultimate accountability, but it is the employees who effectively run the business.
Delegation of tasks
Being able to hand down tasks and roles to individuals within the business.
Decision making
Being able to choose outcomes especially in times of stress
What is corporate culture? What does it include?
Corporate culture can be defined as the shared values, beliefs, and practices of a business
What is the difference between official and real Corporate Culture
Official: Official culture can be described as the values and beliefs that a company is trying to convey to the public. It can usually be observed in places like mission statements, logos, slogans, and other symbols
Real: Real culture can be described as the actual values and beliefs present in a company, observable from dress, behaviour, and the way employees and managers relate to each other.
What is Human Resource Management
The management of a wide range of responsibilities relating to the human (employees) function within a business in order to increase efficiency of employees and the business, as well as managing the employee life cycle.
Typical HRM objectives
Improving employee efficiency and effectiveness. - Ensuring the employee work environment is up to par with OHSA standards. - Ensuring the business is properly staffed.
How does HRM link to overall business objectives?
If HR can source well suited employees for the business and their working environments as well as increase their efficiency and effectiveness. This will increase the businesses overall effectiveness in completing business objective
What is motivation?
Motivation is the drive behind an individual to complete a task or reach a goal.
Hierarchy of Needs (Maslow)
Self-actualization: Personal fulfillment. (More
challenges)
- Esteem needs: Sense of accomplishment
(Recognition/attention)
- Social needs: Love, affection. (Love/acceptance/friendship) -
Safety and security: Shelter, clothing. (Physical/emotional safety) -
Physiological needs: Food, water. (Survival/basic needs)
Hierarchy of Needs (Maslow)
Positives: - Provides a clear structure that they can build into the business.
Negatives: - Assumes all employees are all motivated in the same order as the hierarchy.
Goal Setting theory (Locke and Latham)
Clarity (clear goals using the SMART principal)
2. Challenging but achievable
3. Goal commitment
4. Task complexity
5. Performance feedback
Goal Setting theory (Locke and Latham)
A AND D
Positives: - A very focused and ‘individual-specific’ approach
Negatives: - It could be extremely time consuming to individually set goals and provide feedback in a large business.
Four Drive Theory (Lawrence and Nohria)
Drive to acquire-
This relates to an individual’s desire to acquire goods and services in life. - Rernuneration - Reward and recognition. - Promotion - Prestigious jog titles.
Drive to bond-
This relates to an individual’s desire to form long term relationships. - Social interactions - Celebrations - Feeling including in business decisions.
Drive to learn-
This relates to an individual’s desire to continually learn new things. - Training and development programs - Mentoring - Setting challenging goals
Drive to defend-
This relates to an individual’s desire to defend themselves and those they care for. - Defending the company - Pride in values and beliefs. - Defending a work colleague
Performance related pay
strategy that involves salary or wages that are based on how well an employee performs, for example, the greater number of sales, the greater their income.
Strengths: - Very personal goal focused. - If correctly set, objectives can. Be very powerful and motivating.
Weaknesses: - Becomes very competitive and potentially conflicting.
Career advancement
developing an employee’s career through being promoted or giving them new roles.
Strengths: - Employees may develop broader skills and knowledge base which may help with long-term opportunities.
Weaknesses: - Can become competitive.
Investment in training
business pays for training programs to employee’s skills and knowledge to make them more efficient and effective in their role. LONG TERM BASED.
Strengths: - Usually targeted at business objectives
Weaknesses: - Time consuming - Expensive
Support
manager mentoring the employee, instilling belief and aspiration in them, and helping them overcome problems and seize opportunities. LONG/SHORT TERM BASED.
Strengths: - Employees feel valued and respected by the business.
Weaknesses: - May involve a lot of management time meeting with and supporting the employee.
Sanction
/punishment for failure to meet or comply with business objectives is a motivational strategy that involves (E.g.,) pay penalties, loss of promotional opportunities.
Strengths: - Can be very powerful for those employees motivated or frightened by fear.
Weaknesses: - Does not support employees to make mistakes, learn, and develop (learning organisation).
On-the-job training (including advantages and disadvantages)
learning from other existing employees, within the employee’s current job (On site), they will learn to perform this job more efficiently and effectively than before.
arbitration
third party makes a non-negotiable decision which both arguing parties have to follow
mediation
the third party helps the two arguing parties to come to a mutual agreement
