BUSINESS P2 Flashcards
Examples of long-term insurance
- Life insurance
- Pension fund
- Trauma insurance
- Funeral insurance
- Medical aid
MANAGEMENT vs LEADERSHIP
MANAGEMENT
- Guides human behavior.
- Does things right.
- Focuses on how and when.
- Task orientated
- Instructional in their approach.
LEADERSHIP
- Influences human behavior.
- Does the right things.
- Focuses on what and why.
- Motivational/Inspirational in their approach.
Leadership Styles
Democratic leadership
Autocratic leadership
Transactional leadership
Advantages of the autocratic leadership style
- Quick decisions can be taken without consulting
employees. - Work gets done in time.
- Communication is clear as employees
know exactly what to do. - Clear guidance can be given to new staff.
Advantages of the transactional leadership style
- Encourages employees to work hard because they will receive rewards
- Improves employees’ productivity and morale.
- Disciplinary action procedures are well communicated.
- The goals and objectives of the business can be achieved as workers are
motivated.
Impact of handouts as a visual aid
Positives/Advantages
- It is easy to update handouts with recent information.
- Meaningful handouts may be handed out at the start of the presentation to
attract attention
Negatives/Disadvantages
- It only summarizes key information, some details might be lost.
- Printed material is expensive and it is easy to lose hard copies.
Factors to be considered while presenting
- Avoid hiding behind equipment.
- Show the most important information first
- Maintain eye contact with the audience
- Do not rush or talk too slowly
- Keep the presentation short and simple.
Responding to questions after a presentation in a non-aggressive and
professional manner.
- Keep answers short and to the point.
- First listen and then respond.
- Always address the questions and not the person.
- Don’t debate when responding to
questions. - Be polite when responding to questions.
Principles of insurance
Security
- Aims to provide financial security to the dependents of deceased.
Indemnity
- The insured may not profit from Insurance.
Insurable interest
- An insurable interest must be expressed in financial terms.
Utmost good faith
Information supplied when claiming should be true.
Impact of non-profit companies
Positives/Advantages
- Has continuity of existence even if its members retire.
- Can receive government aid to render their services.
- They provide social services to various communities.
Negatives/Disadvantages
- Needs professional assistance to set up this organisation.
- Does not generate enough capital to cover their expenses.
- Creating a non-profit company takes time, effort and money
Components of CSR
Environment
Health and safety
Corporate governance
Business ethics
Employees and customers
Community
Ways in which professional, responsible, ethical, and effective business
practice should be conducted
- Mission statement should include values of equality.
- Treat workers with respect by recognizing work well done.
- Treat all their employees equally, regardless of their race etc.
- All workers should have access to equal opportunities.
- Draw up code of conducts
Human Rights
- Privacy
- Respect and Dignity
- Equity
- Freedom of Speech and Expression
- Information
- Vote
- Children’s right
- Safety
- Health care
Causes of conflict in the workplace
- Management and workers may differ in personality and background.
- Constant changes can cause instability.
- Lack of clarity regarding employee’s roles and responsibilities.
- Disciplinary procedures may appear unfair if favoritism or nepotism is involved.
- Certain leadership styles, such as autocratic management, may disregard worker input.
Dealing with pricing of goods in rural area.
- Charge fair prices for goods and services.
- Avoid unethical business practices to attract customer loyalty.
- Work together with suppliers to share delivery costs to remote rural areas.
Importance of team dynamic theories in
improving team performance
- Allocates tasks according to the role of each team member.
- Team dynamic theories explain how effective teams work.
- Team members can maximize performance as tasks are allocated
according to their skills
CSR VS CSI
CSR
- Intention to change business practices.
- Focus on increasing image and profits.
- Often intended as a marketing initiative.
- Projects linked to the business (training the unemployed)
CSI
- Actively committing money and resources to uplift the community.
- Focus on upliftment of community ROI.
- CSI projects relevant to the needs of communities.
- Intended to benefit and uplift communities through social development.
- Projects external to the business with a strong developmental approach.
Roles of health and safety representatives in protecting the workplace
environment
- Identify potential dangers in the workplace.
- Investigating workers’ complaints.
- Ensure that employers comply with COIDA.
- Ensure that protective clothing is provided to all workers.
Examples of non-verbal presentations
- Tables
- Graphs
- Handouts
-Diagrams
-Slide shows
Benefits of diversity in the workplace
- Diversity in the workforce improves morale.
- Businesses with a diverse workforce are more likely to have a good.
public image and attract more customers. - Employees demonstrate greater loyalty to the business because they
feel accepted. - Workforce diversity improves the ability of a business to solve
problems
Responsibilities of employees in promoting health and safety
in the workplace
- Report unsafe or unhealthy conditions.
- Report accidents to the employer by the end of the shift.
- Use prescribed safety equipment.
- Take reasonable care of their own safety
Types of benefits paid out by the UIF
- Sickness benefits
- Maternity benefits
- Paternity benefits
- Adoption benefits
- Parental benefits
- Unemployment benefits
Situations in which the autocratic leadership style can be applied
- When all the information is available to solve the problem.
- In emergencies, where there is a shortage of time.
- When dealing with employees who are not cooperative.
- When employees are new.
- In crisis situations, e.g. accidents
Situations in which the transactional leadership style can be applied
- The business wants to maximize employee performance.
- Deadlines have to be met on short notice.
- Workers have a low morale.
- Productivity levels are very low.
Advantages of a PowerPoint
- Easy to combine with sound.
- Simple may capture the interest of the audience.
- Video clips can provide variety and capture the attention of the audience.
- Slides should only be used where they can summarize
information.
Democratic Leadership Style
- The leader involves employees in the decision-making process.
- Clear communication ensures group commitment to final decisions.
- People-oriented, as employees’ feelings and opinions are considered.
- Workers feel empowered as they are involved in the decision-making process.
- Handles conflict situations by involving followers in finding the best solution.
Autocratic Leadership Style
- A leader takes all decisions alone without involving employees.
- Line of communication is clear as it is top-down; followers know exactly what to do.
- Task-oriented, as the opinions of employees are not considered.
- New employees feel confident as strong leadership is provided.
- Handles conflict situations by telling followers what they should do.
Stages of team development
- F orming
- A djourning
- P erforming
- S torming
- N orming
Impact of CSI/CSR on Businesses
Positives/ Advantages
- Promotes customer loyalty resulting in more sales.
- Biz may enjoy the support of communities.
-Gives businesses tax advantages such as tax reduction.
Negatives/Disadvantages
- CSI activities distract business focus from its core business functions
- Detailed reports must be drawn up, which can be time consuming.
- Most managers are not trained to handle social programmes.
Advantages of creative thinking
- Complex business problems may be solved.
- Improves motivation amongst staff members
- Better ideas are generated.
- Productivity increases as employees may quickly generate multiple
ideas which uses time and money more effectively.
Ways in which businesses could promote cultural rights
- Employees should be trained on cultural tolerance.
- Employ people from various cultural backgrounds.
- Encourage employees to participate in cultural activities such as religious
gatherings. - Allow employees to provide solutions to challenges from their own cultural
perspective.
Advantages of force-field analysis
- Employees feel included and understood.
- Employees develop and grow with the business
- Enables businesses to strengthen the driving forces and weaken the restraining
forces.
Advantages of a state-owned company
- Profits may be used to finance other state departments.
- Generates income to finance social programmes.
- Jobs are created for all skills levels.
Leadership theories
- Situational leadership theory
- Transformational leadership theory
Ways in which businesses can deal with difficult employees in the
workplace
- Guidelines for improvement should be given.
- Ask someone in authority for their input into the situation.
- Identify the type of personality which is creating the problem.
- Help difficult employees to be realistic about the task at hand.
Aspects of designing a multimedia presentation
- Use legible font and font size.
- Start with the text.
- Keep the text simple.
- Create clear graphics.
- Limit information on a slide.
- Make sure there are no spelling mistakes
Link between triple bottom line and social responsibility
Profit
- Businesses should not make a profit at the expense of its
community.
People
- Improve the quality of life of their employees.
Planet
- Recycle, e.g. packaging from recycled material
Impact of CSI/CSR on Communites
Positives/Advantages
- Provision of bursaries encourages communities to improve their skills.
- The standard of living of the community is uplifted.
- Better educational facilities are established in poor communities.
Negatives/Disadvantages
- Businesses are not always equipped to address social problems.
- Communities tend to be dependent on CSR programmes and struggle to take their own initiatives.
- Businesses tend to focus on CSR programmes that does not directly benefit the community.
Ways of contributing to the well-being of the employees
- Provide overtime schedules for fair workload distribution.
- Provide transport to employees who work unusually long hours.
- Establish mentoring programmes for junior employees.
- Conduct team-building sessions to improve employees’ morale.
- Provide accommodation for their employees.
Implication of equality, respect and on businesses
- Mission statement should include values of equality/respect.
- Training policies should include issues such as
diversity - All workers should have access to equal opportunities.
Handling of conflict in the workplace
- Acknowledge that there is conflict in the workplace.
- Identify the cause(s) of the conflict.
- Arrange a meeting between conflicting employers/employees.
- Parties must agree on the best solution.
- Direct conflicting parties towards finding
solutions.
Functions of the Johannesburg Securities Exchange
- Regulates the market for dealing with shares.
- Plans, researches and advises on investment possibilities.
- Ensures that the market operates in a transparent manner.
- Provides protection for investors.
- Encourages short-term investment.
Ways businesses could contribute time and effort in improving the well-being
of communities
- Run projects to uplift the community.
- Ensure that the products they supply do not harm consumers.
- Donate money to community projects.
- Make ethically correct business decisions
Advantages of insurance for businesses
- Transfers the risk from the insured to an insurance company/insurer.
- Protects businesses against losses due to death of a debtor
- Protects businesses against dishonest employees
Roles of the health and safety representatives in protecting the workplace
environment
- Ensure that protective clothing is provided.
- Ensure that all equipment that is necessary to perform the work is provided
- Ensure that employers comply with COIDA.
Dealing with unemployment as a socio-economic issue
- Provide SDPs through learnerships.
- Offer bursaries to the community to improve the level of education.
- Create jobs for members of the community.
- Support existing small businesses to create more employment opportunities.
Impact of CSR/CSI on communities
Positives
- Community skills can be improved through the provisions of bursaries.
- Better educational facilities are established in poor communities.
- The standard of living of communities is uplifted
Negatives
- Businesses are not always equipped to address social problems.
- Communities tend to be dependent on CSR programmes and struggle to take
their own initiatives.
- Businesses tend to focus on CSR projects that does not directly benefit
communities.
Types of compulsory insurance
Road Accident Fund (RAF)
- Insures road users against the negligence of other road users.
COIDA
-The fund covers occupational diseases and workplace injuries.
UIF
- Businesses are compelled to register their employees with the fund and to pay contributions to the fund.
Transformational leadership theory
- Suitable for a dynamic environment, where change could be drastic
- Leaders have the respect of their followers.
- Encourages followers to try new things.
Role of personal attitude in successful leadership
- Positive attitude releases leadership potential for personal growth.
- A leader’s good attitude can influence the success of the business.
- Leaders’ attitude may influence teams’ thoughts.
- Leaders should model the behaviour that they want to see in team
members.
Examples of CSI projects
- Buy school uniforms for needy learners
- Offer HIV/ AIDS prevention programmes
- Offer food parcels to alleviate poverty
- Donate money to social events that benefit the community directly.
- Fund additional lessons, for example Mathematics and Science
LIMITED LIABILITY vs UNLIMITED LIABILITY
LIMITED LIABILITY
- Applicable to companies that have
a separate personality
- Losses are limited to the amount
that the owner invested in the
business.
- The owners personal assets are
protected against the debts of the
business.
UNLIMITED LIABILITY
- Applicable to a sole proprietorship
and partnership as they do not have
a separate personality.
- The liability of the owner to pay
debts is not limited to the
business only
- The owners personal assets may be
seized to pay for the debts of the
business
Impact of fixed deposit
Positives
- Investors can choose the investment period that suits them
- It has a low risk as investors are guaranteed of the final payment.
-The period of investment can be over a short/medium/long term.
Negatives
- Low returns compared to other investments
- May not outperform the effect of inflation over the long-term.
- The investor cannot withdraw their funds before the maturity date.
Factors to be considered when making investment decisions
- Return on investment (ROI)
- Risk
- Investment term
- Inflation rate
- Taxation
- Liquidity
Delphi technique
- Experts do not have to be in one place and will be contacted individually.
- Summarise the responses from the experts in a feedback report.
- The business should choose the best solution
Types of shares
Bonus shares
Ordinary shares
Preference shares
Founders’ shares
Impact of RSA
Positives
- Interest is usually higher than on fixed deposits.
- Interest can be received twice a year.
- No charges payable on this type of investment.
Negatives
- Retail bonds are not freely transferable amongst investors.
- Retail bonds cannot be given to banks as security for obtaining loans.
- A minimum of R1 000 must be invested, which may be difficult for some small
investors to accumulate.
problem-solving vs decision-making
PROBLEM-SOLVING
- Problems can be solved by a team or an individual team member.
- Alternative solutions are
generated and critically
evaluated.
DECISION-MAKING
- It is often done by one
member of senior management
which makes it authoritarian.
- Various alternatives are
considered before choosing the
best one.
Ways in which businesses can create an environment that promotes creative
thinking in the workplace
- Encourage job swops within the organisation.
- Study how other businesses are doing things.
- Encourage alternative ways of doing things
Impact of Unit Trust
Positives
- Easy to cash in when an investor needs money
- A small amount can be invested per month.
- Generally, beats inflation on the medium/long term.
Negatives
- Share price may fluctuate.
- It is not a good option for people who want to avoid risks at all costs.
- Units Trusts are not allowed to borrow, therefore reducing potential returns.
Meaning of corporate social responsibility
- It is an obligation required by law that benefits the society.
- A business voluntarily takes steps to improve the quality of life of employees
and their communities.
Compensation Fund in terms of COIDA as a type of compulsory insurance
- Employees do not have to contribute towards this fund.
- The fund covers occupational diseases and workplace injuries.
- Compensates employees for injuries and diseases incurred at work.
- Life insurance
- Pension fund
- Trauma insurance
- Funeral insurance
- Medical aid
Examples of long-term insurance
MANAGEMENT
- Guides human behavior.
- Does things right.
- Focuses on how and when.
- Task orientated
- Instructional in their approach.
LEADERSHIP
- Influences human behavior.
- Does the right things.
- Focuses on what and why.
- Motivational/Inspirational in their approach.
MANAGEMENT vs LEADERSHIP
Democratic leadership
Autocratic leadership
Transactional leadership
Leadership Styles
- Quick decisions can be taken without consulting
employees. - Work gets done in time.
- Communication is clear as employees
know exactly what to do. - Clear guidance can be given to low-skilled/inexperienced/new staff.
Advantages of the autocratic leadership style
- Encourages employees to work hard because they will receive rewards
- Improves employees’ productivity and morale.
- Disciplinary action procedures are well communicated.
- The goals and objectives of the business can be achieved as workers are
motivated.
Advantages of the transactional leadership style
Positives/Advantages
- It is easy to update handouts with recent information/developments.
- Meaningful handouts may be handed out at the start of the presentation to
attract attention
Negatives/Disadvantages
- It only summarizes key information, some details might be lost.
- Printed material is expensive and it is easy to lose hard copies.
Impact of handouts as a visual aid
- Avoid hiding behind equipment.
- Show the most important information first
- Maintain eye contact with the audience
- Do not rush or talk too slowly
- Keep the presentation short and simple.
Factors to be considered while presenting
- Keep answers short and to the point.
- First listen and then respond.
- Always address the questions and not the person.
- Don’t debate when responding to
questions. - Be polite when responding to questions.
Responding to questions after a presentation in a non-aggressive and
professional manner.
Security
- Aims to provide financial security to the dependents of deceased.
Indemnity
- The insured may not profit from insurance
Insurable interest.
Utmost good faith
Information supplied when claiming should be accurate/true.
Insurable interest
- An insurable interest must be expressed in financial terms.
Principles of insurance
Positives/Advantages
- Has continuity of existence even if its members retire.
- Can receive government aid to render their services.
- They provide social services to various communities.
Negatives/Disadvantages
- Needs professional assistance to set up this organisation.
- Does not generate enough capital to cover their expenses.
- Creating a non-profit company takes time, effort and money
Impact of non-profit companies
Environment
Health and safety
Corporate governance
Business ethics
Employees and customers
Community
Components of CSR
- Mission statement should include values of equality.
- Treat workers with respect by recognizing work well done.
- Treat all their employees equally, regardless of their race etc.
- All workers should have access to equal opportunities.
- Draw up code of conducts
Ways in which professional, responsible, ethical, and effective business
practice should be conducted
- Privacy
- Respect and Dignity
- Equity
- Freedom of Speech and Expression
- Information
- Vote
- Children’s right
- Safety
- Health care
Human Rights
- Management and workers may differ in personality and background.
- Constant changes can cause instability.
- Lack of clarity regarding employee’s roles and responsibilities.
- Disciplinary procedures may appear unfair if favoritism or nepotism is involved.
- Certain leadership styles, such as autocratic management, may disregard worker input.
Causes of conflict in the workplace
- Charge fair/market related prices for goods and services.
- Avoid unethical business practices to attract customer loyalty.
- Work together with suppliers to share delivery costs to remote rural areas.
Dealing with pricing of goods in rural area.
- Allocates tasks according to the role of each team member.
- Team dynamic theories explain how effective teams work.
- Team members can maximize performance as tasks are allocated
according to their skills
Importance of team dynamic theories in
improving team performance
CSR
- Intention to change business practices.
- Focus on increasing image and profits.
- Often intended as a marketing initiative.
- Projects linked to the business (training the unemployed)
CSI
- Actively committing money and resources to uplift the community.
- Focus on upliftment of community ROI.
- CSI projects relevant to the needs of communities.
- Intended to benefit and uplift communities through social development.
- Projects external to the business with a strong developmental approach.
CSR VS CSI
- Identify potential dangers in the workplace.
- Investigating workers’ complaints.
- Ensure that employers comply with COIDA.
- Ensure that protective clothing is provided/available to all workers.
Roles of health and safety representatives in protecting the workplace
environment
- Tables
- Graphs
- Handouts
-Diagrams
-Slide shows
Examples of non-verbal presentations
- Diversity in the workforce improves morale.
- Businesses with a diverse workforce are more likely to have a good.
public image and attract more customers. - Employees demonstrate greater loyalty to the business because they
feel accepted. - Workforce diversity improves the ability of a business to solve
problems
Benefits of diversity in the workplace
- Report unsafe or unhealthy conditions.
- Report accidents to the employer by the end of the shift.
- Use prescribed safety equipment.
- Take reasonable care of their own safety
Responsibilities of employees in promoting health and safety
in the workplace
- Sickness benefits
- Maternity benefits
- Paternity benefits
- Adoption benefits
- Parental benefits
- Unemployment benefits
Types of benefits paid out by the UIF
- When all the information is available to solve the problem.
- In emergencies, where there is a shortage of time.
- When dealing with employees who are not cooperative.
- When employees are new/not fully trained.
- In crisis situations, e.g. accidents
Situations in which the autocratic leadership style can be applied
- The business wants to maximize employee performance.
- Deadlines have to be met on short notice.
- Workers have a low morale.
- Productivity levels are very low.
Situations in which the transactional leadership style can be applied
- Easy to combine with sound/video clips.
- Simple may capture the interest of the audience.
- Video clips can provide variety and capture the attention of the audience.
- Slides should only be used where they can summarize
information.
Advantages of a PowerPoint
- The leader involves employees in the decision-making process.
- Clear communication ensures group commitment to final decisions.
- People-oriented, as employees’ feelings and opinions are considered.
- Workers feel empowered as they are involved in the decision-making process.
- Handles conflict situations by involving followers in finding the best solution.
Democratic Leadership Style
- A leader takes all decisions alone without involving employees.
- Line of communication is clear as it is top-down; followers know exactly what to do.
- Task-oriented, as the opinions of employees are not considered.
- New employees feel confident as strong leadership is provided.
- Handles conflict situations by telling followers what they should do.
Autocratic Leadership Style
- F orming
- A djourning
- P erforming
- S torming
- N orming
Stages of team development
Positives/ Advantages
- Promotes customer loyalty resulting in more sales.
- Biz may enjoy the support of communities.
-Gives businesses tax advantages such as tax reduction.
Negatives/Disadvantages
- CSI activities distract business focus from its core business functions
- Detailed reports must be drawn up, which can be time consuming.
- Most managers are not trained to handle social programmes.
Impact of CSI/CSR on Businesses
- Complex business problems may be solved.
- Improves motivation amongst staff members
- Better ideas are generated.
- Productivity increases as employees may quickly generate multiple
ideas which uses time and money more effectively.
Advantages of creative thinking
- Employees should be trained on cultural tolerance.
- Employ people from various cultural backgrounds.
- Encourage employees to participate in cultural activities such as religious
gatherings. - Allow employees to provide solutions to challenges from their own cultural
perspective.
Ways in which businesses could promote cultural rights
- Employees feel included and understood.
- Employees develop and grow with the business
- Enables businesses to strengthen the driving forces and weaken the restraining
forces.
Advantages of force-field analysis
- Profits may be used to finance other state departments.
- Generates income to finance social programmes.
- Jobs are created for all skills levels.
Advantages of a state-owned company
- Situational leadership theory
- Transformational leadership theory
Leadership theories
- Guidelines for improvement should be given.
- Ask someone in authority for their input into the situation.
- Identify the type of personality which is creating the problem.
- Help difficult employees to be realistic about the task at hand.
Ways in which businesses can deal with difficult employees in the
workplace
- Use legible font and font size.
- Start with the text.
- Keep the text simple.
- Create clear graphics.
- Limit information on a slide.
- Make sure there are no spelling mistakes
Aspects of designing a multimedia presentation
Profit
- Businesses should not make a profit at the expense of its
community.
People
- Improve the quality of life of their employees.
Planet
- Recycle, e.g. packaging from recycled material
Link between triple bottom line and social responsibility
Positives/Advantages
- Provision of bursaries encourages communities to improve their skills.
- The standard of living of the community is uplifted/quality of life of communities is improved.
- Better educational facilities are established in poor communities.
Negatives/Disadvantages
- Businesses are not always equipped to address social problems.
- Communities tend to be dependent on CSR programmes and struggle to take their own initiatives.
- Businesses tend to focus on CSR programmes that does not directly benefit the community.
Impact of CSI/CSR on Communites
- Provide overtime schedules for fair workload distribution.
- Provide transport to employees who work unusually long hours.
- Establish mentoring programmes for junior employees.
- Conduct team-building sessions to improve employees’ morale.
- Provide accommodation for their employees.
Ways of contributing to the well-being of the employees
- Mission statement should include values of equality/respect.
- Training policies should include issues such as
diversity - All workers should have access to equal opportunities.
Implication of equality, respect and on businesses
- Acknowledge that there is conflict in the workplace.
- Identify the cause(s) of the conflict.
- Arrange a meeting between conflicting employers/employees.
- Parties must agree on the best solution.
- Direct conflicting parties towards finding
solutions.
Handling of conflict in the workplace
- Regulates the market for dealing with shares.
- Plans, researches and advises on investment possibilities.
- Ensures that the market operates in a transparent manner.
- Provides protection for investors.
- Encourages short-term investment.
Functions of the Johannesburg Securities Exchange
- Run projects to uplift the community.
- Ensure that the products they supply do not harm consumers.
- Donate money to community projects.
- Make ethically correct business decisions
Ways businesses could contribute time and effort in improving the well-being
of communities
- Transfers the risk from the insured to an insurance company/insurer.
- Protects businesses against losses due to death of a debtor
- Protects businesses against dishonest employees
Advantages of insurance for businesses
- Ensure that protective clothing is provided.
- Ensure that all equipment that is necessary to perform the work is provided
-Ensure that employers comply with COIDA.
Roles of the health and safety representatives in protecting the workplace
environment
- Provide skills development programmes through learnerships.
- Offer bursaries to the community to improve the level of education.
- Create jobs for members of the community.
- Support existing small businesses to create more employment opportunities.
Dealing with unemployment as a socio-economic issue
Positives
- Community skills can be improved through the provisions of bursaries.
- Better educational facilities are established in poor communities.
- The standard of living of communities is uplifted
Negatives
- Businesses are not always equipped to address social problems.
- Communities tend to be dependent on CSR programmes and struggle to take
their own initiatives.
- Businesses tend to focus on CSR projects that does not directly benefit
communities.
Impact of CSR/CSI on communities
Road Accident Fund (RAF) - - Insures road users against the negligence of other road users.
COIDA
-The fund covers occupational diseases and workplace injuries.
UIF
- Businesses are compelled to register their employees with the fund and to pay contributions to the fund.
Types of compulsory insurance
- Suitable for a dynamic environment √, where change could be drastic
- Leaders have the respect of their followers.
- Encourages followers to try new things.
Transformational leadership theory
- Positive attitude releases leadership potential for personal growth.
- A leader’s good attitude can influence the success of the business.
- Leaders’ attitude may influence teams’ thoughts.
- Leaders should model the behaviour that they want to see in team
members.
Role of personal attitude in successful leadership
- Buy school uniforms for needy learners
- Offer HIV/ AIDS prevention programmes
- Offer food parcels to alleviate poverty
- Donate money to social events that benefit the community directly.
- Fund additional lessons, for example Mathematics and Science
Examples of CSI projects
- Applicable to companies that have
a separate personality
-Losses are limited √ to the amount
that the owner invested in the
business.
-The owners personal assets are
protected against the debts of the
business.
UNLIMITED LIABILITY
- Applicable to a sole proprietorship
and partnership as they do not have
a separate legal entity/personality.
-The liability of the owner to pay
debts is not limited to the
business only
- The owners personal assets may be
seized to pay for the debts of the
business
LIMITED LIABILITY vs UNLIMITED LIABILITY
Positives
- Investors can choose the investment period that suits them
- It has a low risk as investors are guaranteed of the final payment.
-The period of investment can be over a short/medium/long term.
Negatives
- Low returns compared to other investments
- May not outperform the effect of inflation over the long-term.
- The investor cannot withdraw their funds before the maturity date.
Impact of fixed deposit
- Return on investment (ROI)
- Risk
- Investment term
- Inflation rate
- Taxation
- Liquidity
Factors to be considered when making investment decisions
- Experts do not have to be in one place and will be contacted individually.
- Summarise the responses from the experts in a feedback report.
- The business should choose the best solution
Delphi technique
Ordinary shares
Preference shares
Founders’ shares
Bonus shares
Types of shares
Positives
- Interest is usually higher than on fixed deposits.
- Interest can be received twice a year.
No charges payable on this type of investment.
Negatives
- Retail bonds are not freely transferable amongst investors.
- Retail bonds cannot be given to banks as security for obtaining loans.
- A minimum of R1 000 must be invested, which may be difficult for some small
investors to accumulate.
Impact of RSA Retail Savings Bonds
PROBLEM-SOLVING
- Problems can be solved by a team or an individual team member.
- Alternative solutions are
generated and critically
evaluated.
DECISION-MAKING
- It is often done by one
member of senior management
which makes it authoritarian.
- Various alternatives are
considered before choosing the
best one.
problem-solving vs decision-making
- Encourage job swops within the organisation.
- Study how other businesses are doing things.
- Encourage alternative ways of doing things
Ways in which businesses can create an environment that promotes creative
thinking in the workplace
Positives
- Easy to cash in when an investor needs money
- A small amount can be invested per month.
- Generally, beats inflation on the medium/long term.
Negatives
- Share price may fluctuate.
- It is not a good option for people who want to avoid risks at all costs.
- Units Trusts are not allowed to borrow, therefore reducing potential returns.
Impact of Unit Trust
- It is an obligation required by law that benefits the society.
A business voluntarily takes steps to improve the quality of life of employees
and their communities.
Meaning of corporate social responsibility
- Employees do not have to contribute towards this fund.
- The fund covers occupational diseases and workplace injuries.
- Compensates employees for injuries and diseases incurred at work.
Compensation Fund in terms of COIDA as a type of compulsory insurance
IMPACT OF DEMOCRATIC LEADERSHIP STYLE
Positves:
