Business Management

Question 1

Identity and explain the points of superiority

Answer 1

Quality - organisations that can improve the quality of their output over alternative products will be better able to sell their products

Flexibility - organisations that provide flexibility such as ordering in person, over the phone, online or with and iPhone app are much more convenient and will be better able to sell their products.

Speed of delivery - organisations that can provide speedy service will often be better able to sell their products.

Question 2

Competitive avantage

Answer 2

Means being able to better sell your product in the market by developing a point of superiority over your competitors.

Question 3

Motivation theories

Answer 3

Are designed to improve the performance of workers in organisations.

Question 4

What did herzberg establish?

Answer 4

Herzberg established a two factor theory of motivator factors and hygiene factors. Motivators come from the job itself and provide motivation to do the work, whilst hygiene factors are dissatisfiers - they must be as good as possible, but do not motivate workers.

Question 5

What was Edwin Locke’s theory?

Answer 5

Edwin Locke’s theory involves the establishment of clear goals for staff that provide a sense of direction and motivation. Employees are motivated by clear and specific goals. These goals must provide a challenge for the employees but not overwhelm them or they risk losing motivation.

Question 6

Name some ‘motivators’

Answer 6

• Achievement
• Recognition
• Work itself
• Responsibility
• Advancement
• Personal growth

Question 7

Name some ‘hygiene’ factors

Answer 7

• Status
• Security
• Personal life
• Salary
• Work conditions
• Relationship with peers/supervisor
• Supervision
• Company policy and administration

Question 8

What is involved in the establishment phase?

Answer 8

Planning: HR managers must forecast and plan to meet the organisations future needs for employees. The organisation must have the right number and kinds of people, at the right places, at the right time who can complete the tasks set and help to achieve the organisations objectives.

Question 9

Job description

Answer 9

Job description includes what the job entails, the duties to be performed, the roles and titles of the position. This ensures that the applicants have a clear understanding of job expectations before accepting the job.

Question 10

Job specification

Answer 10

Job specification includes a description of the skills, qualifications, experience and personal attributes required for doing the job. This ensures that people with the appropriate qualifications and experience are employed.

Question 11

How does cost gain a competitive advantage

Answer 11

Since most customers are rational, if a product is the same or similar then they will purchase the cheaper of the two.

Question 12

What are the five steps for selecting applicants?

Answer 12

1. Screen and Shortlist applicants - check resumes against job specification and discard those who don’t match.
2. Interview - meet candidates and determine if they are fit for the job
3. Check background - ring up referees and ask about their work, and make sure qualifications are real
4. Conduct tests - medical or physiological that may be required depending on the job
5. Advise the applicants - notify the successful applicants and advise the rest

Question 13

What are four recruitment methods?

Answer 13

1. Job advertisement at local TAFE
2. Job advertisement in the local newspaper
3. Job advertisement on SEEK or other internet site
4. Job advertisement in shop window