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Business 3&4 > Exam 🤬 > Flashcards

Exam 🤬 Flashcards

1
Q

What is a business?

A

A business is an entity that provides goods or services to customers in exchange for money, with the aim of generating profit.

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2
Q

what are the 6 business types

A
  • sole trader
  • partnership
  • private limited company
  • public listed company
  • government business enterprise
  • social enterprise
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3
Q

sole trader definition

A

A business structure that is owned and operated by one individual

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4
Q

what are 4 ways to identify a sole trader?

A
  • unlimited liability
  • owner retains all profits after personal income tax is paid
  • simple and cost effective
  • single individual makes all decisions
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5
Q

what are 3 advantages of a sole trader?

A
  • owner has full control and decision-making power
  • Easy to register and set up
  • The owner can retain all business profits
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6
Q

what are 3 disadvantages of a sole trader?

A
  • unlimited liability
  • may be difficult to take time off
  • limited expertise (may lack diverse skills, making it challenging to manage business effectively)
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7
Q

what is unlimited liability

A

the personal legal responsibility a business owner has for an unincorporated business’s debts

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8
Q

what is unincorporated

A

a legal status of a business whereby the business owner and the business are viewed as the same legal entity

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9
Q

partnership definition

A

A business that is owned by 2 to 20 people

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10
Q

what are 4 ways to identify a partnership?

A
  • 2-20 owners
  • simple and cost effective structure
  • profits shared between owners
  • unlimited liability
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11
Q

what are 3 advantages of a partnership?

A
  • Easy and simple to register and set up
  • distribution of tasks, leveraging the skills and expertise of each partner
  • Greater range of expertise and ideas amongst numerous partners
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12
Q

what are 3 disadvantages of a partnership?

A
  • Profits must be shared among partners
  • Differences in opinion or conflicts among partners can arise
  • Unlimited Liability
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13
Q

Private limited company definition

A

An incorporated business structure that has at least one director and a maximum of 50 shareholders

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14
Q

what are 4 ways to identify a private limited company?

A
  • pty ltd after business name
  • only up to 50 shareholders
  • limited liability of the shareholders
  • shares can only be sold privately
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15
Q

what are 3 advantages of a private limited company?

A
  • limited liability
  • raise funds by selling shares to a selected group of investors
  • company exists independently of its owners, providing stability and continuity (separate legal identity)
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16
Q

what are 2 disadvantages of a private limited company?

A
  • It is expensive to set up and operate as there are higher set-up and ongoing administration costs
  • Limited to 50 shareholders, restricting the ability to raise capital publicly
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17
Q

public listed company definition

A

An incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX

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18
Q

what are 6 ways to identify a public listed company?

A
  • ltd after business name (limited liability)
  • shares sold publicly
  • unlimited shareholders
  • limited liability of shareholders
  • stricter regulations due to public listing
  • have to display financial info publicly
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19
Q

what are 3 advantages of a public listed company?

A
  • limited liability
  • can raise significant funds by selling shares to the public on stock exchanges
  • shareholders can easily buy or sell shares on the open market
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20
Q

what are 3 disadvantages of a public listed company?

A
  • Subject to stringent government regulations and reporting requirements
  • Loss of Control, shareholders have a say in major decisions, (dilute control of owner)
  • The process of becoming a public company can be expensive and time-consuming
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21
Q

social enterprise definition

A

Type of business that aims to fulfil a community or environmental need by selling goods or services

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22
Q

what are 2 ways to identify a social enterprise?

A
  • mission, focus is on social or environmental cause
  • profits are reinvested in the business or donated to charities
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23
Q

what are 3 advantages of a social enterprise?

A
  • can gain a positive reputation by contributing to society
  • Can take various legal forms, adapting to the specific goals of the enterprise
  • may attract support from customers who value socially responsible businesses
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24
Q

what are 2 disadvantages of a social enterprise?

A
  • Profits must be reinvested or used for charitable purposes
  • Balancing social and financial objectives can be challenging
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25
Q

Government Business Enterprise definition

A

A business that is owned and operated by the government

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26
Q

what are 2 ways to identify a GBE?

A
  • owned by the government but managed separately
  • exists to provide a public service
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27
Q

what are 2 advantages of a GBE?

A
  • Delivers goods and services that help the community and the community’s needs
  • Can benefit from government support, including funding or regulatory advantages
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28
Q

what are 2 disadvantages of a GBE?

A
  • Subject to potential changes in strategic directions dictated by the government
  • Management decisions may be influenced by government directives
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29
Q

what is limited liability

A

when shareholders are only liable to the extent of their original investment, meaning they are not personally responsible for the business debts.

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30
Q

what are dividends

A

regular sums of money paid out to shareholders from a company’s profit

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31
Q

what are business objectives

A

the goals a business intends to achieve

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32
Q

what are the 7 main business objectives?

A
  • to make a profit
  • to increase market share
  • to meet shareholders expectations
  • to fulfil a market need
  • to fulfil a social need
  • to improve efficiency
  • to improve effectiveness
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33
Q

making a profit definition

A

earning more revenue than business expenses

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34
Q

increasing market share definition

A

a business’s percentage of total sales within an industry

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35
Q

meeting shareholder expectations definition

A

providing a financial return on their investment in the company, which is in the form of dividends or capital gains

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36
Q

fulfilling market need definition

A

when a business fills a gap in the market, which involves addressing customer needs that are currently unmet or underrepresented by other businesses in the same industry

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37
Q

fulfilling social need definition

A

improving society and the environment through business activities.

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38
Q

what are stakeholders

A

Stakeholders are individuals, groups, or organisations who have a vested interest in the performance and activities of a business.

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39
Q

what is efficiency

A

how productively a business uses its resources when producing a good or service.

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40
Q

effectiveness definition

A

the extent to which a business achieves its stated objectives

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41
Q

what are 5 internal stakeholders?

A
  • shareholders
  • owners
  • directors
  • management
  • employees
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42
Q

suppliers definition

A

individuals or groups that source raw materials, component parts, and processed materials and sell them to a business for use in the production of its goods and services

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43
Q

what are 5 external stakeholders?

A
  • customers
  • competitors
  • suppliers
  • trade unions
  • general community
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44
Q

customers definition

A

individuals or groups who interact with a business by purchasing and utilising its goods and services

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45
Q

what are 10 stakeholders

A
  • customers
  • competitors
  • suppliers
  • trade unions
  • general community
  • shareholders
  • owners
  • directors
  • management
  • employees
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46
Q

competitors definition

A

a business rival in the same market offering the same/similar product or service of a business

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47
Q

trade union definition

A

an organised association that represents workers in a particular trade or profession

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48
Q

general community definition

A

individuals and groups who are impacted by a business’s operations and decisions, often because they are located in close proximity to the business

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49
Q

shareholders definition

A

Individuals who have purchased shares in a company and are therefore part owners of that company

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50
Q

managers definition

A

individuals who oversee and coordinate a business’s employees and lead its operations to ultimately achieve the business’s objectives

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51
Q

employees definition

A

individuals who are hired by a business to complete work tasks and support the achievement of its objectives

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52
Q

directors definition

A

An individual or member of a board of people that have overall responsibility for managing the company’s business activities

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53
Q

owners definition

A

individuals who establish, invest, and have a share in a business

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54
Q

what are 2 general expectations of managers

A
  • recognition of their achievement of business objectives
  • increase status and growth (career advancement)
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55
Q

what are 2 general expectations of owners

A
  • receive return of their investment (growth of business)
  • fostering positive relationships with stakeholders (boost reputation)
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56
Q

what are 2 general expectations of employees

A
  • fair wage and salary
  • have job satisfaction
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57
Q

what are 2 general expectations of customers

A
  • high quality outputs received
  • experience good customer service
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58
Q

what are 2 general expectations of suppliers

A
  • increase their own revenue
  • establish a long-term relationship with business
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59
Q

what are 2 general expectations of the general community

A
  • increase local employment rate
  • ensure business operations are socially responsible
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60
Q

what is a management style?

A

the approach and manner in which employees are directed and motivated within a business.

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61
Q

what are the 5 management styles

A
  • autocratic
  • persuasive
  • consultative
  • participative
  • laissez-faire
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62
Q

what are 3 things to look for when identifying a management style?

A
  • communication
  • decision-making
  • employee involvement
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63
Q

what is centralised control

A

one individual having concentrated authority to make decisions

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64
Q

which management styles have centralised control

A
  • autocratic
  • persuasive
  • consultative
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65
Q

which management styles have decentralised control

A
  • participative
  • laissez-faire
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66
Q

autocratic management style definition

A

An autocratic management style involves a manager making decisions and directing employees without any input from them

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67
Q

3 advantages of autocratic management style

A
  • Decisions can be made quickly as there is no consultation
  • quick instructions give tasks completed quicker
  • clearly defined instructions (less confusion)
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68
Q

3 disadvantages of autocratic style

A
  • Attitude and trust remain negative as there is no employee participation
  • Increased potential for conflict
  • low employee motivation (due to no involvement)
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69
Q

persuasive management style definiton

A

A persuasive management style involves a manager making decisions and communicating the reasons for those decisions to employees without their input.

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70
Q

2 advantages of persuasive management style

A
  • Management retains full decision-making control (with still more trust for emps)
  • Quick decision-making allows for work processes to be completed faster
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71
Q

3 disadvantages of persuasive management style

A
  • Businesses lack the opportunity to take into account a broader range of approaches
  • it takes time to consult with employees prior to making decisions
  • Employees remain frustrated because they are denied any participation in the decision-making process
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72
Q

which management styles have two-way communication

A
  • consultative
  • participative
  • laissez-faire
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73
Q

which management styles have one-way communication

A
  • autocratic
  • persuasive
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74
Q

consultative management style definition

A

A consultative management style involves a manager seeking input from employees on business decisions but making the final decision themselves.

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75
Q

3 advantages of consultative management style

A
  • greater variety of ideas, which can help make a better decision
  • Employees are more involved in the business so can feel a sense of fulfilment which can improve moral
  • may feel more motivated and involved with the business when asked to contribute their ideas
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76
Q

3 disadvantages of consultative management style

A
  • it takes time to consult with employees prior to making decisions
  • Some issues don’t suit a consultation process
  • if the process is not consistent, staff will be uncertain of their roles
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77
Q

participative management style definition

A

A participative management style involves a manager sharing information with employees so that employees can participate in decision-making

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78
Q

3 advantages of participative management style

A
  • Positive relations between management and employees means there is a lower likelihood of disputes
  • The two-way communication process means greater flow of ideas
  • High motivation and job satisfaction as a result of employee participation
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79
Q

3 disadvantages of participative management style

A
  • More time consuming, as more views must be considered
  • Compromises made rather than clear, decisive decisions
  • Not all employees may wish or be equipped to contribute
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80
Q

laissez-faire management style definition

A

A laissez-faire management style involves a manager communicating business objectives to employees and giving them freedom to make decisions independently.

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81
Q

3 advantages of laissez-faire management style

A
  • Helps employees feel a sense of ownership towards the project they are working on
  • Encourages creativity, which is conducive to a dynamic working environment
  • Communication is open and ideas are shared
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82
Q

3 disadvantages of laissez-faire management style

A
  • Resources, including time and money may be misused or used ineffectively, due to the loss of management control
  • May lead to creative differences and thus internal conflict
  • Focus on business objectives can be easily lost
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83
Q

what are the 4 factors when deciding a management style that needs to be considered

A
  • time
  • employee experience
  • nature of the task
  • manager preference
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84
Q

what management styles are suitable when there is limited amount of time and why

A

autocratic or persuasive as the manager can make decision quickly and do not need to discuss with employees

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85
Q

what management styles are suitable when there is a lot of time available and why

A

consultative, participative, or laissez-faire as there can be lots of discussion about the best option (two-way discussions)

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86
Q

what management styles are suitable when they have inexperienced employees and why

A

autocratic or persuasive, as they will be unlikely be able to help

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87
Q

what management styles are suitable when they have experienced employees and why

A

consultative, participative, or laissez-faire as they can give there experienced opinion and ideas (two-way communication)

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88
Q

what management styles are suitable when the tasks are simple and why

A

autocratic or persuasive, the discussion of ideas may not be needed so the manager can figure it out themselves

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89
Q

what management styles are suitable when the tasks are complex and why

A

consultative, participative, or laissez-faire as they allow for two-way conversations and managers and employees can make more innovative and well-informed decisions by sharing ideas and suggestions

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90
Q

what management styles are suitable when the manager likes to have control and why

A

autocratic or persuasive, has centralised decision-making and one-way communication

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91
Q

what management styles are suitable when the manager likes to have shared control and why

A

consultative, participative, or laissez-faire, allows for two-way conversations and employee involvement in the decision-making processes

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92
Q

what are management skills

A

the abilities or competencies that managers use to complete tasks for business objectives

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93
Q

what are the 6 main management skills?

A
  • planning
  • decision-making
  • communication
  • delegation
  • interpersonal skills
  • leadership
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94
Q

planning definition (management skills)

A

The process of determining a business’s objectives and establishing strategies to achieve these aims.

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95
Q

what are the 3 levels of planning?

A
  • strategic
  • tactical
  • operational
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96
Q

what is strategic planning (management skills)

A

Strategic planning involves the broadest scope of what a business aims to achieve in the next two to five years and affects the general direction of business decisions made.

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97
Q

what is tactical planning (management skills)

A

Tactical planning involves the long-term strategies a business intends to use in the next one to two years in order to fulfil its strategic plan.

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98
Q

what is operational planning (management skills)

A

Operational planning involves the short-term actions a business takes on a daily basis to achieve its tactical plan.

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99
Q

what is a way of planning (management skills)

A

SWOT analysis, (strengths, weaknesses, opportunities, threats)

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100
Q

when are 2 times planning might be used by a manager

A
  • determining long-term goals of a business
  • planning training programs
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101
Q

decision-making definition (management skills)

A

The skill of selecting a suitable course of action from a range of plausible options

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102
Q

when are 2 times decision-making might be used by a manager

A
  • determining the direction of the business (long-term objectives)
  • where to allocate different resources
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103
Q

communication definition (management skills)

A

Communication is the skill of effectively transferring information between parties.

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104
Q

when are 2 times communication might be used by a manager

A
  • to give directions
  • to resolve conflicts
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105
Q

delegation definition (management skills)

A

Delegation is the skill of assigning tasks and authority to lower-level employees in the business hierarchy.

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106
Q

when are 2 times delegation might be used by a manager

A
  • give to more experienced employees (for good quality)
  • to meet tight deadlines (finish work)
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107
Q

interpersonal definition (management skills)

A

Interpersonal is the skill of creating positive interactions with other employees, to foster beneficial professional relationships.

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108
Q

when are 2 times interpersonal skills might be used by a manager

A
  • conflict resolution
  • collaboration (group work)
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109
Q

leadership definition (management skills)

A

the skill of motivating others in order to achieve a business’s objectives

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110
Q

when are 2 times leadership might be used by a manager

A
  • motivate teams/employees
  • leading by example
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111
Q

what management styles use planning frequently

A
  • autocratic, persuasive, consultative
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112
Q

what management styles use decision-making frequently (below that sometimes)

A
  • autocratic, persuasive, consultative
  • participative
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113
Q

what management styles use communication frequently (below that sometimes)

A
  • consultative, participative, laissez-faire
  • autocratic, persuasive
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114
Q

what management styles use delegation frequently (below that sometimes)

A
  • participative
  • persuasive, consultative, laissez-faire
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115
Q

what management styles use leadership frequently (below that sometimes)

A
  • participative, laissez-faire
  • consultative
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116
Q

corporate culture definition

A

Corporate culture is the shared values and beliefs of a business and its employees.

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117
Q

what are the two types of corporate culture

A
  • real
  • official
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118
Q

what is real corporate culture

A

Real corporate culture involves the shared values and beliefs that develop organically within a business, and are practised on a daily basis by its employees.

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119
Q

what is official corporate culture

A

Official corporate culture involves the shared views and values that a business aims to achieve, often outlined in a written format.

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120
Q

what are 3 indicators of official corporate culture

A
  • logos
  • slogans
  • written policies
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121
Q

what are 3 indicators of real corporate culture

A
  • language used
  • dress
  • behaviours of employees
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122
Q

what are 2 similarities of real and official CC

A
  • concerned with the shared values and beliefs of people in the business.
  • aim to change the way employees interact with each other and the business
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123
Q

what are 2 differences between real and official CC

A
  • OCC is often written, whereas RCC is usually unwritten
  • OCC includes the ideals of businesses, RCC includes what occurs in actuality
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124
Q

what are 3 benefits of positive corporate culture

A
  • Increased productivity
  • Increased work ethic
  • Greater profitability
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125
Q

what are 3 costs of negative corporate culture

A
  • Decreased productivity
  • Decreased work ethic
  • Decreased profitability
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126
Q

what is human resource management?

A

the organisation of employee’s roles, pay, and working conditions

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127
Q

What does effective human resource management give

A

enable a business to
- retain its employees,
- giving them high levels of motivation
- job satisfaction

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128
Q

What does poor human resource management give

A

employees being unsatisfied and demotivated by their work task (affecting business objective completion)

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129
Q

what is motivation

A

the willingness of an individual to expend energy and effort in completing a task.

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130
Q

what does more motivation by employees lead to?

(2)

A
  • willingness to work hard to achieve business objectives
  • increase productivity of them
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131
Q

what are 3 benefits of motivated employees

A
  • Likely be more focused, adaptable, and productive
  • Employees feel valued, appreciated
  • More satisfied employees mean a business can retain and use employees’ skills and experiences
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132
Q

what is Maslow’s Hierarchy of Needs

A

a motivational theory that suggests people have five fundamental needs, and their sequential attainment of each need acts as a source of motivation.

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133
Q

what are the 5 fundamental needs (Maslow’s)

A
  1. physiological
  2. safety and security
  3. social
  4. esteem
  5. self-actualisation
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134
Q

what are the intrinsic needs (Maslow’s)

A

social, esteem, self-actualisation

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135
Q

what are the extrinsic needs (Maslow’s)

A

physiological, safety and security

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136
Q

what are physiological needs (Maslow’s)

A

the basic requirements for human survival, such as food, water, and shelter

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137
Q

what are 2 examples of physiological needs in a business

A
  • wage
  • working conditions
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138
Q

what are safety and security needs

A

the desires for protection from dangerous or threatening environments

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139
Q

what are 3 examples of safety and security needs in a business?

A
  • job security (long term contracts)
  • safe and healthy workplace (safety equipment)
  • required training is given
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140
Q

what are social needs

A

the desires for a sense of belonging and friendship among groups, both inside and outside the workplace

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141
Q

what are 2 examples of social needs in a business

A
  • having friendly associates
  • having organised employee activities
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142
Q

what are esteem needs

A

an individual’s desires to feel important, valuable, and respected

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143
Q

what are 2 examples of esteem needs in a business

A
  • working for a promotion
  • pay being risen due to status of role
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144
Q

what are self-actualisation needs

A

the desires for an employee to reach their full potential through creativity and personal growth

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145
Q

what are 3 examples of self-actualisation needs in a business

A
  • challenging work allowing for creativity
  • participative decision-making
  • opportunities for personal growth and advancement
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146
Q

what are 2 advantages of Maslow’s Hierarchy of Needs

A
  • Simple and easy to understand, so easy to implement
  • managers can observe employee behaviour and figure out what motivates them (increasing efficiency, productivity, and profitability of the business)
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147
Q

what are 3 disadvantages of Maslow’s Hierarchy of Needs

A
  • time-consuming for management to assess which needs have been met for each individual employee
  • no explanation of what motivates employees once they have achieved self-actualisation.
  • no way to measure precisely how satisfied one level of need must be before the next higher need becomes a motivator
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148
Q

what is Lawrence and Nohria’s four drive theory

A

a motivational theory that suggests that people strive to balance four fundamental desires

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149
Q

what are these 4 fundamental desires (lawrence and nohria)

A
  • drive to acquire
  • drive to bond
  • drive to learn
  • drive to defend
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150
Q

drive to acquire definition

A

the desire to achieve rewards and high status

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151
Q

what types of rewards can the drive to acquire give

A
  • non-financial
  • financial
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152
Q

what are 3 non-financial rewards that employees can get

A
  • pathways for promotion
  • prestigious job title
  • increased range of responsibilities
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153
Q

what are 3 financial rewards that employees can get

A
  • performance-based bonuses
  • higher wages
  • increase in salary due to promotion
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154
Q

drive to bond definition

A

the desire to participate in social interactions and feel a sense of belonging

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155
Q

how can a manager fulfil the drive to bond

A

creating an environment that promotes both work-related and personal interactions

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156
Q

what are 3 examples of how a manager can implement strategies to fulfil the drive to bond

A
  • Celebrating employee milestones and birthdays
  • Encouraging group work instead of tasks to be done by a single person
  • Holding social events that employees can regularly attend and participate in
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157
Q

drive to learn definition

A

desire to gain knowledge, skills, and experience

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158
Q

what should managers do to fulfil the drive to learn

A

provide employees with opportunities to grow, face and overcome challenges and enhance their knowledge and skills

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159
Q

what are 3 examples of manager implementing strategies to fulfil the drive to learn

A
  • Adopting a mentoring system between junior and senior employees
  • Regularly rotating the types of tasks assigned to employees
  • Assigning challenging work tasks to employees to broaden their range of skills
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160
Q

drive to defend definition

A

the desire to protect personal security as well as the values of the business

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161
Q

how can managers fulfil the drive to defend

A

ensure that employees can defend themselves and the business when required

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162
Q

what are 3 ways that managers can fulfil the drive to defend

A
  • Implementing policies using employee input
  • Developing a vision that employees agree with
  • Building trust by supporting and collaborating with employees
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163
Q

What are 3 advantages of Lawrence and Nohria’s four drive theory

A
  • is a model for managers for an increase in employee engagement and motivation
  • managers can use any 4 drives at one time
  • Strategies that motivate employees through the drive to acquire can also boost productivity
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164
Q

What are 3 disadvantages of Lawrence and Nohria’s four drive theory

A
  • time-consuming (determining each strength for each drive in each employee)
  • Should one drive dominate, an imbalance can occur between the personal and business outcomes
  • Dominant drives for each employee can change over time, (management has to regularly assess effectiveness)
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165
Q

What is Locke and Latham’s goal setting theory

A

A motivational theory that states that employees are motivated by clearly defined goals that fulfil five key principles

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166
Q

what are the 5 key principles for goal setting

A
  • clarity
  • commitment
  • task complexity
  • feedback
  • challenge
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167
Q

what should does a clear (clarity) goal include (goal setting theory)

A

Clear and specific goals, that are easy to measure
As well as having a time-frame to coordinate resource use

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168
Q

What does a committed goal include (goal setting theory)

A

a goal that an employee want to work towards
With more input of the goal creation, the more likeliness of goal completion

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169
Q

what is a complex goal include (task complexity) (goal setting theory)

A

It is important that goals are challenging enough to motivate employees, though the level of complexity should not overwhelm them.

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170
Q

what happens if the goal is too complex (goal setting theory)

A

motivation will decrease as it may be out of their reach

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171
Q

what should a challenging goal include (goal setting theory)

A

challenging goals create more motivation, because people are more motivated to complete something that they haven’t done before.
The goal should still be achievable. There is no point setting a goal that is unachievable or beyond the capabilities of the employee (setting up to fail).

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172
Q

what does feedback of the goal include (goal setting theory)

A

include opportunities for ongoing, constructive feedback for the employee.

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173
Q

why is feedback on goal important (what does it give) (goal setting theory)

A

It provides opportunities to offer recognition for progress achieved, to make adjustments to the goal if necessary

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174
Q

how should goals be established by employees and managers

A

Managers need to sit down with individual employees or small teams of employees to collaboratively create a set of goals that they could work towards achieving over a specific period of time.

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175
Q

what are 3 advantages of the goal setting theory

A
  • Goals that align employee goals with achieving business objectives are likely to improve business performance
  • The process of managers setting goals with employees can improve levels of trust and the relationship between employees and management.
  • Employees may be more motivated to complete tasks if work goals align with their personal interest
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176
Q

what are 3 disadvantages of the goal setting theory

A
  • Goals that are too difficult can become overwhelming and lead to dissatisfaction
  • If goals are not specific enough, employees be confused and can lack focus.
  • The process of collaboratively establishing goals with individual employees or teams and providing regular feedback is very time consuming
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177
Q

what are financial motivating strats

(motivational strategies)

A

strategies that generate motivation by providing some monetary incentive

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178
Q

what are non-financial motivation strats (motivational strategies)

A

strategies that provide an incentive or benefit to the employee through non-monetary means

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179
Q

what are the 5 main motivation strategies

A
  • performance-related pay
  • career advancement
  • investment in training
  • support
  • sanction
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180
Q

performance-related pay definition

A

a financial reward that employees receive for reaching or exceeding a set business goal

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181
Q

what are 3 advantages of using performance-related pay

A
  • Can provide immediate motivation
  • Clear criteria on how to achieve the incentive
  • Can be used to motivate many employees at once improving overall business performance.
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182
Q

what are 3 disadvantages of using performance-related pay

A
  • Can cause conflict among employees if they feel assessment is unfair
  • Safe work practices may be sacrificed to achieve set outcomes
  • time-consuming for the manager to review each employee’s performance against criteria and determine who receives a financial reward
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183
Q

what is a short-term advantage of performance-related pay

A

Employees may be motivated to improve performance quickly in order to gain financial rewards

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184
Q

what is a short-term disadvantage of performance-related pay

A

Employees may be demotivated if they are competing against their colleagues for financial rewards.

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185
Q

what is a long-term advantage of performance-related pay

A

With history of reward and recognition for high-performing employees, employees are more likely to be motivated by the expectation that they will receive rewards in the future

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186
Q

what is a long-term disadvantage of performance-related pay

A

In the long term, employees may become demotivated if they continually have to compete with their peers to achieve financial rewards

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187
Q

what can career advancement in a business look like

A

job enlargement
job enrichment

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188
Q

what is job enrichment

A

employees having increased authority over their work and a greater depth of content

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189
Q

what is job enlargement

A

giving employees more tasks to do (could be more complex or more variety)

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190
Q

career advancement definition

A

the upwards progression of an employee’s job position

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191
Q

what are 3 advantages of career advancement

A
  • Can provide a means of retaining valuable employees, (can develop inside the business, with promotion or more responsibilities)
  • Employees may develop broader skills and knowledge base which may help with long term career opportunities
  • cheaper than recruiting new employees
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192
Q

what are 2 disadvantages of career advancement

A
  • May not motivate employees immediately as a promotion can take time to earn
  • May cause resentment from those overlooked for promotion (conflict)
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193
Q

what is a short-term advantage of career advancement

A

Employees may be rapidly motivated if they are taking on more responsibility in the workplace

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194
Q

what is a short-term disadvantage of career advancement

A

Employees may become resentful and demotivated if they believe they were not considered for a promotion.

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195
Q

what is a long-term advantage of career advancement

A

Employees may be motivated by ongoing opportunities to be promoted or take on additional responsibilities.

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196
Q

what is a long-term disadvantage of career advancement

A

There may be a limited number of responsibilities an employee can absorb into their role within a business. (only can get so high position-wise)

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197
Q

investment in training definition

A

allocating resources to improve employee skills and knowledge

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198
Q

what can investment in training look like in a business (3)

A
  • providing employees with mentoring
  • training programs within the business
  • paying for employees to be trained by other professionals outside of the business
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199
Q

what are 3 advantages of investment in training

A
  • Employees feel valued as the business recognises their work and is willing to invest in them
  • productivity gains and quality improvements as employees are increasing their skills and knowledge
  • Can provide a sense of job security for employees as the business is making an investment in the employee
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200
Q

what are 3 disadvantages of investment in training

A
  • Training can be financially expensive, especially for off-the-job training
  • There may be a loss of productivity temporarily while the employee is being trained
  • Training may not be directly relevant to tasks undertaken by employees.
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201
Q

what is a short-term advantage of investment in training

A

Employees may be motivated in the short term by the opportunity to learn new skills

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202
Q

what is a short-term disadvantage of investment in training

A

Taking time off work to participate in training programs may cause employees to lose momentum and consequently lack motivation.

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203
Q

what is a long-term advantage of investment in training

A

Employees may be constantly motivated as they feel valued by the business when they are provided with opportunities to develop their skills

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204
Q

what is a long-term disadvantage of investment in training

A

Employees may become demotivated by the consistent workflow interruptions caused by training programs.

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205
Q

support (motivational strategy) definition

A

involve providing employees with any assistance that improves their satisfaction at work

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206
Q

what can support look like in a business (2) (motivational strategy)

A
  • regularly checking on their health and wellbeing.
  • praising and encouraging good performance.
207
Q

what are 3 advantages of using support (motivational strategy)

A
  • Problems can be dealt with efficiently before they escalate, saving time.
  • Support is generally financially cheap
  • Employees who feel supported are less likely to leave the business.
208
Q

what are 3 disadvantages of using support (motivational strategy)

A
  • It can be time-consuming for a manager to maintain relationships with staff
  • May be ineffective if a manager does not have good interpersonal skills.
  • It can be costly to provide ongoing support
209
Q

what is a short-term advantage of using support as a motivational strategy

A

Employees may be motivated by working in a business where their wellbeing is considered and valued.

210
Q

what is a long-term advantage of using support as a motivational strategy

A

Employees may be motivated for a long period of time when they feel valued by management and are able to resolve issues efficiently.

211
Q

sanction definition (motivational strategy)

A

involve penalising employees for poor performance or breaching business policies

212
Q

what is 3 examples of sanction being used in a business

A
  • written warnings
  • demotion
  • lost promotional opportunity
213
Q

what are 3 advantages of sanction being used as a motivational strategy

A
  • can motivate some workers to improve their performance
  • It can get some employees motivated to act quickly as they feel guilty
  • Does not incur any immediate cost to implement.
214
Q

what are 3 disadvantages of sanction being used as a motivational strategy

A
  • Can create a negative corporate culture as tasks are completed out of fear.
  • Excessive emphasis on sanctions can reduce employee sense of belonging
  • Levels of trust between employees and management may decrease.
215
Q

what is a long-term disadvantage of using sanction as a motivational strategy

A

The use of sanctions can contribute to a negative workplace environment, decreasing employee satisfaction and motivation.

216
Q

what is a short-term disadvantage of using sanction as a motivational strategy

A

Employees may become resentful of their managers using sanction, potentially leading to resignations and decreases in productivity.

217
Q

what is a short-term advantage of using sanction as a motivational strategy

A

Employees may be motivated to quickly follow instructions in order to avoid punishment.

218
Q

what are the 2 types of training

A
  • on the job
  • off the job
219
Q

training definition

A

the process of increasing the knowledge and improving the skills of an employee to help them perform more effectively and efficiently in their role.

220
Q

what does on the job training involve

A

employees improving their knowledge and skills within the workplace

221
Q

what are 3 ways on the job training can be implemented by a business

A
  • Being coached by an existing employee on how to perform a role
  • Job shadowing (watching over experienced employee working in the same position)
  • senior staff member acts as a mentor
222
Q

what are 3 advantages of on the job training

A
  • No travel is required, expenses and costs are reduced
  • Employees can quickly become familiar with work equipment, reducing the time to complete their training
  • Training is tailored to meet the specific needs of the business
223
Q

what are 3 disadvantages of on the job training

A
  • Poor habits of staff may be passed on to other employees
  • Quality of the trainer may vary (teaching skills of other employees low)
  • Senior staff who are responsible for training new employees are taken away from their own work duties
224
Q

what does off the job training involve

A

employees improving their knowledge and skills in a location external to the business

225
Q

what are 3 ways that off-the-job training could be implemented (examples of types)

A
  • Attending conferences that provide theoretical knowledge
  • Performing simulations or workshops external to the workplace
  • Online training courses that are performed outside of traditional working hours
226
Q

what are 3 advantages of off the job training

A
  • training from professionals gives employees new perspectives on how to perform their roles to a higher standard
  • It does not take more experienced employees away from their jobs to train other employees
  • Errors made by employees during training do not occur on site, decreasing expenses associated with waste
227
Q

what are 3 disadvantages of off the job training

A
  • More expensive, with fees charged for travel costs, loss of productivity, possibly accommodation
  • Lost working time and potential output while the employee is absent from work
  • Employees may try to find a job elsewhere with the external qualifications they gain, causing this investment in training to be redundant
228
Q

performance management definition

A

the process used to improve business and individual employee performance to ensure that goals and objectives are being met.

229
Q

what are the 4 performance management strategies

A
  • management by objectives
  • performance appraisals
  • self-evaluation
  • employee observation
230
Q

what does management by objectives involve (performance management) (definition)

A

both managers and employees collaboratively setting individual employee goals that contribute to the achievement of broader business objectives.

231
Q

what are 3 advantages of using management by objectives as a performance management strategy

A
  • Promotional opportunities may arise for employees who consistently achieve their objectives
  • Collaboration between managers and employees when setting objectives can foster positive workplace relationships
  • Aligning employee objectives with the business’s overall objectives means that employees are always working towards business goals
232
Q

what are 2 disadvantages of using management by objectives as a performance management strategy

A
  • Developing objectives that benefit both the business and employees can take time
  • Employees may take harmful shortcuts in their work in order to achieve their objectives, negatively impacting progress of objective
233
Q

what does performance appraisals involve (definition, performance management)

A

a manager assessing the performance of an employee against a range of criteria, providing feedback, and establishing plans for future improvements

234
Q

what is a way that performance appraisals can be undertaken, and how does it work (performance management)

A

Essay Method, manager will keep a journal on each employee being appraised, these may be about the performance of different aspects of the employees tasks

235
Q

what are 3 advantages of using performance appraisals as a performance management strategy

A
  • Employees who demonstrate strong performance may be recognised for promotional opportunities.
  • Communication between managers and employees during one-on-one reviews, improving workplace relationships.
  • The results from the performance appraisal process can outline areas where employees are struggling, training can be given
236
Q

what are 2 disadvantages of using performance appraisals as a performance management strategy

A
  • Employees may lose motivation if they receive multiple poor performance appraisals
  • This process can be time consuming as managers individually review each employee’s performance
237
Q

what does self-evaluation involve (definition, performance management)

A

an employee assessing their individual performance against a set of criteria

238
Q

what are 3 advantages of using self-evaluation as a performance management strategy

A
  • can save managers time, as employees evaluate their own performance
  • The employer can gain insight into an employee’s understanding of their own strengths and weaknesses and assign work accordingly
  • Employees may be empowered to improve performance (directly involved in performance management)
239
Q

what are 2 disadvantages of using self-evaluation as a performance management strategy

A
  • If an employee is biased or dishonest in assessing their performance, a manager will not gain reliable information
  • Employees may underestimate or exaggerate their own skills, (not reliable or accurate eval)
240
Q

what does employee observation involve (definition, performance management)

A

a range of employees from different levels of authority assessing another employee’s performance against a set of criteria

241
Q

what are 3 advantages of using employee observation as a performance management strategy

A
  • Employees may be responsive to feedback provided by peers as they value their opinion
  • When an employee is unaware that they are being observed, it allows for an accurate analysis of an employee’s performance
  • The manager can gain multiple different perspectives about an employee
242
Q

what are 3 disadvantages of using employee observation as a performance management strategy

A
  • Results may be misleading if employees are aware they are being evaluated
  • Employees may feel stressed if they are made aware that they are being observed, leading to poorer performance
  • The development of criteria for observers to use can be time consuming
243
Q

what is termination (of an employee)

A

the process whereby a business ends its employment contract with an employee

244
Q

what is the termination method that is both voluntary and involuntary

A

redundancy

245
Q

what are the 2 termination methods that are exclusively voluntary

A

retirement, resignation

246
Q

what is the termination method that is exclusively involuntary

A

dismissal

247
Q

what is retirement

A

Retirement involves an individual deciding to leave the workforce permanently as they no longer wish to work

248
Q

what is resignation

A

Resignation involves an employee voluntarily terminating their own employment, usually to take another job position elsewhere.

249
Q

what is redundancy

A

Redundancy involves an employee no longer working for a business because there is insufficient work or their job no longer exists.

250
Q

what is dismissal

A

Dismissal involves the involuntary termination of an employee who fails to meet required work standards or displays unacceptable or unlawful behaviour.

251
Q

what is voluntary redundancy

A

a business allows employees to nominate themselves to become redundant after the business announces that this process will occur

252
Q

what is involuntary redundancy

A

a manager notifies employees that their position in the business has been made redundant, providing them with no choice in the matter.

253
Q

what are the two types of considerations a business may have when terminating an employee

A
  • transition
  • entitlement
254
Q

what are entitlement considerations

A

legal obligations an employer owes to its employees following the termination of their employment contract

255
Q

what is an example of an entitlement consideration for retirement

A

entitled to receive their accrued entitlements including payment of untaken annual leave and untaken long service leave

256
Q

what is an example of an entitlement consideration for resignation

A

The employee must give a period of notice to the employer. The amount of notice is stipulated in the employment agreement. An employer can withhold money if the employee does not give the minimum required notice.

257
Q

what is an example of an entitlement consideration for redundancy

A

notified in writing about the redundancy which should include matters such as reasons for termination, period of notice, actual date of termination and the redundancy payment

258
Q

what is an example of an entitlement consideration for dismissal

A

to full payment for the work they have completed

259
Q

what are transition considerations

A

social and ethical practices that a manager can consider implementing when terminating employment.

260
Q

what are 3 examples of common transition considerations a business may have when termination occurs

A
  • offering resume writing or interview training to employees to improve their employability
  • introducing counselling and financial services to ease the uncertainty of leaving the business
  • providing retiring employees with reduced number of hours as getting closer to retiring
261
Q

what are the 5 main participants in the workplace

A
  • HR managers
  • employers/employer associations
  • employees
  • unions
  • Fair Work Commision
262
Q

what are human resource managers

A

individuals who coordinate the relationship between employees and management within a business.

263
Q

what are 3 vague roles of HR managers

A
  • hiring employees
  • Implementing agreements
  • Resolving conflicts
264
Q

what is the main goal of employees

A

to work towards completing business objectives

265
Q

what are 3 vague roles employees have

A
  • Complete tasks with proper care and diligence
  • Avoid misusing confidential information
  • Obey terms in their contract
266
Q

what is an employer association

A

An employer association is a group or organisation that represents the interests of employers in a specific industry or sector.

267
Q

what are 3 vague roles of employer associations

A
  • provide support to employers
  • provide advice to employers
  • represent employers during negotiations
268
Q

what is the collective bargaining period

A

the negotiation between employer and employees in regards to wages and conditions

269
Q

what is a union

A

organisations composed of individuals who represent and speak on behalf of employees in a particular industry to protect and improve their wages and working conditions.

270
Q

what are 2 vague roles of unions

A
  • Seek better wages and work conditions (for emps)
  • Represent employees and negotiate these new wages and conditions (for emps)
271
Q

what is the fair work commision (FWC)

A

Australia’s independent workplace relations tribunal that has a range of responsibilities outlined by the Fair Work Act.

272
Q

what are 3 vague roles of the FWC

A
  • Set national minimum working standards
  • Approve and monitor enterprise agreements
  • Act as a mediator
273
Q

what are the 2 main ways of determining wages and working conditions

A

awards and agreements

274
Q

what are awards

A

legal documents that outline the minimum wages and conditions of work for employees across an entire industry

275
Q

what are 2 advantages of using awards

A
  • All employees within a particular industry, receive the same minimum wage and working conditions (level playing field)
  • the use of Awards is time efficient, (no bargaining process)
276
Q

what are 2 disadvantages of awards

A
  • Businesses lack the opportunity to develop a relationship with their employees, as awards are based upon predetermined standards
  • Employees may be unsatisfied by only receiving the minimum wages and conditions.
277
Q

what are agreements

A

legal documents that outline the wages and conditions of employees and are applicable to a particular business or group of businesses

278
Q

how is the agreement developed

A

collective bargaining, done by employees and employers (or the representatives) at the workplace level

279
Q

what are 2 advantages of agreements

A
  • positive relationships between employees and employers may develop in the negotiation process
  • Can improve employee satisfaction and performance (better wages and working conditions)
280
Q

what are 3 disadvantages of agreements

A
  • More time-consuming for employers to undertake negotiations
  • Employees who cannot gain representation from unions may be exploited by employers (power imbalance)
  • As they provide wages and/or working conditions above the Award, they are generally more expensive to implement
281
Q

what are disputes commonly about between employers and employees (3)

A
  • wages and working conditions
  • safety
  • business policies
282
Q

what is the dispute resolution process

A

a series of steps that disputing parties follow in order to resolve a disagreement and reach a resolution

283
Q

what are the 2 dispute resolution methods

A

mediation and arbitration

284
Q

when a dispute occurs, what are the 4 simple steps for an outcome (dispute resolution process)

A
  1. try to resolve in the business
  2. if cannot be solved, get a third party to try to help
  3. attempt mediation
  4. if mediation doesn’t work, go to arbitration
285
Q

what is mediation (dispute resolution)

A

Mediation involves an impartial third party facilitating discussions between disputing parties to help each side of the conflict reach a resolution themselves.

286
Q

what are 3 advantages of mediation

A
  • Participants in mediation are generally more satisfied with the agreed outcome
  • It is less expensive than more formal dispute resolution processes (informal setting)
  • When parties reach decisions together, it promotes positive working relationships for the future
287
Q

what are 3 disadvantages of mediation

A
  • Each party is under no obligation to reach an agreement
  • There may be an unbalanced power dynamic between employees and managers (employees are tentatitive/nervous)
  • If a final decision is not reached, the process can be a waste of time.
288
Q

what can the third party do in mediation

A

third party only assists the conversation to help the disputing parties to work towards their own agreement but will not offer suggestions or make any decisions on their behalf

289
Q

what is arbitration (dispute resolution)

A

Arbitration involves an independent third party hearing arguments from both disputing parties and making a legally binding decision to resolve the conflict.

290
Q

what are 2 advantages of arbitration

A
  • It guarantees that a final decision is made by a third party
  • The final decision is legally binding (argument cannot happen again)
291
Q

what are 3 disadvantages of arbitration

A
  • expensive, due to the costs incurred from conducting hearings.
  • Employees have reduced control over the final decision and therefore may be unhappy at the end of this process.
  • may harm future workplace relations (people may be unhappy (both parties))
292
Q

what are 2 similarities between arbitration and mediation

A
  • Both methods require an independent body or individual to be involved in resolving the dispute
  • Both methods are more formal than resolving disputes within a workplace without a third party
293
Q

is what operations management

A

Operations management involves coordinating and organising the activities involved in producing the goods or services that a business sells to customers.

294
Q

what can businesses get when they get increased efficiency (3)

A
  • production costs can be minimised,
  • levels of waste may decline,
  • and the time taken to produce goods or services can be reduced
295
Q

how can operations managers optimise a businesses operating system

A

electing the most suitable strategies to lower production costs, improve quality, and reduce wastage

296
Q

how can operations management contribute the achievement of business objectives

A

By improving levels of efficiency and effectiveness in a business’s production process

297
Q

what are the 3 key elements of an operations system

A
  • inputs
  • processes
  • outputs
298
Q

what are inputs

A

the resources used by a business to produce goods and services

299
Q

what are 3 examples of inputs

A
  • labour resources (employees)
  • raw materials, such as flour and iron
  • capital resources, such as equipment and machinery
300
Q

what are processes

A

the actions performed by a business to transform inputs into outputs

301
Q

what are 3 examples of processes

A
  • mixing
  • designing
  • constructing
302
Q

what are outputs

A

the final goods or services produced as a result of a business’s operations system, that are delivered or provided to customers

303
Q

manufacturing business definition

A

A manufacturing business use resources and raw materials to produce a finished physical good

304
Q

service business definition

A

A service business provide intangible products, usually with the use of specialised expertise

305
Q

what are the 6 main operations characteristics that a service or manufacturing business can have

A
  • Tangibility
  • Storability of the output
  • degree of customer contact during production
  • Occurrence of production and consumption
  • Standardised or tailored product
  • Labour or capital intensive
306
Q

what is a tangible output

A

an output that can be touched

307
Q

Tangibility for manufacturing business’s

A

transform inputs into tangible outputs

308
Q

Tangibility for service business’s

A

transform inputs into intangible outputs

309
Q

what is inventory

A

Inventory includes the resources and finished goods held as stock.

310
Q

Storability of the output for manufacturing businesses

A

they can store outputs as inventory and distribute them to customers at a later date.

311
Q

Storability of the output for service businesses

A

cannot store the service and sell them later

312
Q

degree of customer contact during production for manufacturing businesses

A

requires minimal customer contact in order to produce a good.

313
Q

degree of customer contact during production for service businesses

A

There is a high level of customer involvement when producing a service

314
Q

Occurrence of production and consumption for manufacturing businesses

A

production and consumption occur separately.

315
Q

Occurrence of production and consumption for service businesses

A

Production and consumption happen simultaneously.

316
Q

what are standardised goods

A

goods that are produced consistently and are virtually identical to one another.

317
Q

Standardised or tailored product for manufacturing business

A

Generally goods can be easily standardised and mass produced

318
Q

Standardised or tailored product for service business

A

As customers are directly involved in the production process, services are easily customised for individual client requirements. (so tailored)

319
Q

Labour or capital intensive for manufacturing businesses

A

business are often more capital intensive (machines)

320
Q

Labour or capital intensive for service businesses

A

Services are performed rather than produced and are often more labour intensive

321
Q

what are 3 similarities between manufacturing and service businesses

A
  • aim to optimise efficiency and effectiveness in their operations.
  • aim to optimise their operations to produce high-quality outputs at a low cost of production.
  • have to deal with suppliers during the process of managing operations
322
Q

what are the 6 main technological strategies

A
  • automated production lines
  • robotics
  • computer-aided design
  • computer-aided manufacturing techniques
  • artificial intelligence
  • online services
323
Q

what are automated production lines

A

Automated production lines involve machinery and equipment that are arranged in a sequence, and the product is developed as it proceeds through each step.

324
Q

what are 3 advantages of automated production lines

A
  • Improving accuracy can reduce errors and the number of resources wasted in production. Reduces environmental impact and improve its reputation.
  • Technology can complete tasks for extended periods of time
  • Removing tasks that may be tedious or dangerous to complete can positively impact employee morale
325
Q

what are 3 disadvantages of automated production lines

A
  • a poor reputation if it implements technology that makes employees redundant
  • Sudden breakdowns of automated production lines can halt production altogether (down productivity)
  • It can be expensive for a business to repair and update automated production lines
326
Q

what is robotics

A

programmable machines that can perform specified tasks

327
Q

what are 3 advantages of robotics

A
  • Performing tasks precisely and accurately can ensure products are consistently produced at a high standard (boosting reputation)
  • Tasks can be performed much faster than human labour
  • Removing the need for employees to complete dangerous tasks can improve workplace safety
328
Q

what are 3 disadvantages of robotics

A
  • A business may develop a poor reputation if it implements robotic technology that makes employees redundant
  • It can be expensive for a business to repair and update robotic technologies
  • There are high initial setup costs associated with purchasing, programming, and installing robotics.
329
Q

computer-aided design definition

A

digital design software that aids the creation, modification, and optimisation of a design and the design process.

330
Q

what are 2 advantages of computer-aided design

A
  • Customers have the flexibility to modify a design to suit their needs. Attracting more customers
  • Can speed up the product design process as designs can be created and modified faster
331
Q

what are 3 disadvantages of computer-aided design

A
  • Can develop a poor reputation if the CAD software makes numerous employees redundant
  • It may be costly to continuously update or repair
  • There are high initial setup costs associated with purchasing and installing
332
Q

computer-aided manufacturing techniques definition

A

Computer-aided manufacturing (CAM) techniques involve the use of software that controls and directs production processes by coordinating machinery and equipment through a computer.

333
Q

what are 3 disadvantages of computer-aided manufacturing techniques

A
  • The business may develop a poor reputation if the CAM software makes numerous employees redundant
  • Sudden breakdowns can cause production to halt altogether and compromise productivity
  • It may be costly to continuously update or repair CAM software
334
Q

what are 3 advantages of computer-aided manufacturing techniques

A
  • Improved accuracy allows for high quality products to be consistently produced (improves reputation)
  • Removing tasks that may be tedious or dangerous to complete may positively impact employee morale
  • Can speed up the manufacturing process as machinery does not have to be manually reset by humans
335
Q

Artificial intelligence definition

A

Artificial intelligence (AI) involves using computerised systems to simulate human intelligence and mimic human behaviour.

336
Q

what are 3 advantages of artificial intelligence

A
  • Artificial intelligence can provide prompt customer service 24/7. Boosting satisfaction and reputation
  • Artificial intelligence may remove tedious tasks for employees(boosts job satisfaction)
  • Artificial intelligence can perform functions much faster than humans
337
Q

what are 3 disadvantages of artificial intelligence

A
  • The business may develop a poor reputation if artificial intelligence makes numerous employees redundant.
  • There are high initial setup costs associated with purchasing and installing artificial intelligence
  • It may be costly to recalibrate and maintain artificial intelligence
338
Q

Online services definition

A

Online services are services that are provided via the internet

339
Q

what are 3 advantages of online services

A
  • Online services, such as food ordering platforms, can process orders accurately and provide increased customer convenience (boosts reputation)
  • Online services can process bookings faster than employees (for example)
  • Employees get increased job satisfaction if the online service removes tedious or boring tasks from their workload
340
Q

what are 3 disadvantages of online services

A
  • If the platform providing the online service experiences technical difficulties it may disrupt the business’s operations
  • The process of a business developing its own platform that provides online services may be time consuming
  • There may be high initial establishment costs for a business that develops its own platform to provide online services
341
Q

what are the 4 main materials strategies

A
  • forecasting
  • master production schedule
  • materials requirement planning
  • Just in time
342
Q

forecasting definition

A

a materials planning tool that predicts customer demand for an upcoming period using past data and market trends.

343
Q

what are 2 advantages of using forecasting

A
  • Prevents the excessive ordering of materials that may go to waste if unneeded
  • Can reduce the cost of storage as it prevents the need for a large space to store materials
344
Q

what are 2 disadvantages of using forecasting

A
  • It can be time consuming to analyse historical data and market trends
  • Production halts may occur if the business has insufficient materials due to inaccurate predictions
345
Q

master production schedule definition

A

A master production schedule (MPS) is a plan that outlines what a business intends to produce, in specific quantities, within a set period of time.

346
Q

what are 2 advantages of master production schedule

A
  • Improves a business’s reputation by having a reduced impact on the environment. (not buying excessive stuff)
  • Clear rostering can allow employees to develop a positive work-life balance.
347
Q

what are 3 disadvantages of master production schedule

A
  • May find a master production schedule unhelpful as it is not a flexible program.
  • It can be time consuming to map out details of production
  • Implementing and maintaining this plan can be expensive.
348
Q

Materials requirement planning definition

A

Materials requirement planning (MRP) is a process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule

349
Q

what are 2 advantages of materials requirement planning

A
  • Ensures a business only has the exact materials it needs, decreasing waste generated in production
  • It is less likely that production will halt due to insufficient materials or organisational errors.
350
Q

what are 2 disadvantages of materials requirement planning

A
  • It can be time consuming to constantly update the materials plan.
  • Implementing and maintaining the materials plan can incur additional administrative and training costs.
351
Q

just in time definition

A

Just in Time (JIT) is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production.

352
Q

what are 2 advantages of just in time

A
  • Eliminates idle stock, therefore limiting the amount of stock wasted from expiry or damage in storage
  • Reduces expenses associated with waste
353
Q

what are 3 disadvantages of just in time

A
  • may fail to meet customer demand from a lack of reserves stock (damage reputation)
  • If suppliers are unreliable and fail to deliver the correct materials at the right time, production may be brought to a halt.
  • Delivery costs may increase due to more frequent deliveries
354
Q

quality definition

A

a good or service’s ability to satisfy a customer’s need.

355
Q

what are 3 main quality strategies

A
  • quality control
  • quality assurance
  • total quality management
356
Q

quality control definition

A

Quality control involves inspecting a product at various stages of the production process, to ensure it meets designated standards, and discarding those that are unsatisfactory.

357
Q

what are 3 advantages of quality control

A
  • Prevents faulty/unsafe products from reaching the customer.
  • Inexpensive to implement, as it is controlled internally by the business
  • good reputation for the business and potential higher revenue from having more satisfied customers
358
Q

what are 3 disadvantages of quality control

A
  • Defects may be missed
  • Errors are eliminated after they occur, usually when the product has already been created. Costs with waste
  • It can be time consuming to identify and address the causes of errors in production
359
Q

quality assurance definition

A

Quality assurance involves a business achieving a certified standard of quality in its production after an independent body assesses its operations system.

360
Q

what are 3 advantages of quality assurance

A
  • it is a proactive process –errors are detected and avoided BEFORE they occur.
  • Costs are reduced because there is less wastage and re-working of faulty products
  • improve a business’s competitiveness as customers are likely to have increased confidence in the business and its products.
361
Q

what are 3 disadvantages of quality assurance

A
  • It can be expensive to organise an external body to assess the operations system of a business.
  • It is a medium to long-term process; quality assurance systems cannot be implemented quickly.
  • May need continual monitoring to ensure that the standards are met.
362
Q

total quality management definition

A

Total Quality Management (TQM) is a holistic approach whereby all employees are committed to continuously improving the business’s operations system to enhance quality for customers.

363
Q

what are the 3 features of using total quality management

A
  • customer focus, meaning identifying and fulfilling the exact needs and wants
  • continuous improvement, doing methods to ensure high standard is met
  • employee empowerment, ensuring teamwork and participation is fostered allowing that everyone is improving quality
364
Q

what are 2 advantages of total quality management

A
  • The system eliminates defects and waste, thereby reducing production costs and effectively increasing profits.
  • TQM helps in understanding customer needs and meeting their expectations –adds to areas of competitiveness.
365
Q

what are 2 disadvantages of total quality management

A
  • Employees may feel confused about their role in improving quality if managers fail to communicate the TQM strategy clearly
  • Often takes many years and significantly planning to implement.
366
Q

what is waste

A

Waste refers to any resource that is discarded because it cannot be further used in the production process.

367
Q

what is waste minimisation

A

Waste minimisation is the process of reducing the amount of unused material, time, or labour within a business.

368
Q

what are the 3 waste minimisation strategies

A
  • reduce
  • reuse
  • recycle
369
Q

what is reduce

A

Reduce is a waste minimisation strategy that aims to decrease the amount of resources, labour, or time discarded during production.

370
Q

what is an example of how reduce can be implemented

A

Adjust the amount of goods produced each month based on predicted customer demand.

371
Q

what is reuse

A

Reuse is waste minimisation strategy that aims to make use of items which would have otherwise been discarded.

372
Q

what is recycle

A

Recycle is waste minimisation strategy that aims to transform items which would have otherwise been discarded.

373
Q

what is an example of how reuse can be implemented

A

Reusing functional parts of defective products

374
Q

what is an example of how recycle can be implemented

A

Technologies can be implemented for recycling various resources like glass, paper, metals, plastics, etc

375
Q

what is lean management

A

Lean management is the process of systematically reducing waste in all areas of a business’s operations system whilst simultaneously improving customer value.

376
Q

what are the 4 lean management principles

A
  • takt
  • zero defects
  • one-piece flow
  • pull
377
Q

what is the pull strategy / principle (lean management)

A

Pull is a lean management strategy that involves customers determining the number of products a business should produce for sale.

378
Q

what is one-piece flow (lean management)

A

lean management strategy that involves processing a product individually through a stage of production and passing it onto the next stage of production before processing the next product, continuing this process throughout all stages of production.

379
Q

what is zero defects (lean management)

A

Zero defects is a lean management strategy that involves a business preventing errors from occurring in the operations system by ensuring there is an ongoing attitude of maintaining a high standard of quality for the final output.

380
Q

what is takt

A

Takt is a lean management strategy that involves synchronising the steps of a business’s operations system to meet customer demand

381
Q

what are 3 advantages of using lean management strategies/principles

A
  • A business can improve its reputation as it is actively reducing and managing waste, which benefits the environment.
  • Reduces the overall use of materials, which leads to fewer production costs.
  • A business can reduce the amount of time that is wasted between tasks.
382
Q

what are 2 disadvantages of using lean management strategies/principles

A
  • It can be costly to implement lean management as implementing new policies, procedures, and training employees can come at a high expense.
  • It may be time-consuming to train inexperienced employees and provide them with the knowledge to commit to lean production methods.
383
Q

what is CSR (definition)

A

the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

384
Q

what are 3 examples of how CSR can be used in inputs

A
  • Using environmentally-sustainable inputs
  • Using renewable energy to power facilities and equipment
  • Using local suppliers
385
Q

what are 3 examples of how CSR can be used in processes

A
  • Minimising level of wastage (e.g. using technology)
  • Disposing of waste appropriately
  • Reducing or eliminating packaging
386
Q

what are 3 examples of how CSR can be used in outputs

A
  • Ensuring finished products are of an acceptable quality and must be safe and reliable (e.g. no defective or harmful products)
  • developing an alternative product that is more environmentally friendly
  • Ensuring ethical dealings with customers regarding returns and making repairs/replacements for defective goods
387
Q

global sourcing of inputs definition

A

Global sourcing of inputs involves a business acquiring raw materials and resources from overseas suppliers.

388
Q

what are 2 advantages of global sourcing of inputs

A
  • Higher quality materials can be sourced, allowing a product to better meet customer expectations.
  • There is greater access to cheaper raw materials and resources, allowing reduced operating costs
389
Q

what are 3 disadvantages of global sourcing of inputs

A
  • difficult to communicate with suppliers (language barriers)
  • Delivery may be time-consuming depending on where the supplies are being sent from
  • If resources are damaged during the transportation process, they may need to be discarded, (more expenses)
390
Q

overseas manufacture definition

A

Overseas manufacture involves a business producing goods outside of the country where its headquarters are located.

391
Q

what are 3 advantages of overseas manufacture

A
  • greater access to highly skilled employees who have expertise in production
  • greater access to labour resources, (reduce business costs)
  • Production speeds can be improved through the use of highly skilled and experienced overseas employees.
392
Q

what are 3 disadvantages of overseas manufacture

A
  • Manufactured goods may be damaged during the transport process
  • Delivery is time-consuming (compared to home)
  • Poor communication and language barriers leads to production and delivery delays
393
Q

global outsourcing definition

A

Global outsourcing involves transferring specific business activities to an external business in an overseas country.

394
Q

what are 3 examples of global outsourcing jobs

A
  • data entry
  • packaging and distribution
  • call centres
395
Q

what are 3 advantages of global outsourcing

A
  • can allocate more resources and focus on its own areas of expertise.
  • Productivity increases as the external business has the expertise to complete specified tasks more efficiently
  • able to decrease labour costs (no local emps)
396
Q

what are 3 disadvantages of global outsourcing

A
  • reduced control over some of its activities (not in the business)
  • difficult to communicate with external, overseas businesses (language)
  • Local employees from the business’s main operating country lose their jobs.
397
Q

what are 2 similarities between overseas manufacture and global outsourcing

A
  • Both involve the execution of business activities in a location away from the business’s main headquarters.
  • Both allow the business to reduce operational expenses.
398
Q

what are 2 differences between overseas manufacture and global outsourcing

A
  • A business retains full control of its operations when implementing manufacturing overseas.
  • A business that implements global outsourcing retains little control over the transferred activities.
399
Q

what are 2 similarities between global sourcing of inputs and overseas manufacture

A
  • have the potential to improve quality and reduce production costs.
  • Products or raw materials and resources travel between countries during delivery
400
Q

what are 2 differences between global sourcing of inputs and overseas manufacture

A
  • Global sourcing of inputs involves acquiring resources and raw materials from overseas suppliers for
    manufacturing in the business’s main country of operation.
  • Overseas manufacture involves a business’s manufacturing phase occurring in a country outside of the
    business’s main headquarters.
401
Q

what are 2 similarities between global sourcing of inputs and global outsourcing

A
  • Both allocate certain business tasks to external businesses.
  • Both allow the business to reduce operational expenses.
402
Q

what are 2 differences between global sourcing of inputs and global outsourcing

A
  • Global sourcing of inputs involves acquiring resources and raw materials from overseas suppliers for manufacturing in the business’s main country of operation.
  • Global outsourcing involves the completion of specific business activities, such as IT services, in a country outside of the business’s main headquarters.
403
Q

what is business change

A

the alteration of behaviours, policies, and practices of a business.

404
Q

what are the 2 types of approaches a business can have to business change

A
  • reactive approach
  • proactive approach
405
Q

proactive approach to business change definition

A

A proactive approach is when a business changes to avoid future problems or take advantage of an opportunity to gain a competitive advantage.

406
Q

reactive approach to business change definition

A

A reactive approach is when a business undertakes change in response to a situation or crisis.

407
Q

what is 2 similarities between a proactive approach and a reactive approach to business change

A
  • They are utilised by a manager or business to implement change
  • they involve the business undertaking change for future benefits, such as growth, progression, and to improve or restore its brand image
408
Q

What are 3 main differences between a proactive and reactive response to business change

A
  • why they occur (in response or to take advantage of future)
  • the use of risk strategies (reactive = high risk, proactive = low)
  • the planning or timing of response
409
Q

what are key performance indicators

A

Key performance indicators (KPIs) are criteria that measure a business’s efficiency and effectiveness in achieving its different objectives

410
Q

What are the 10 KPI’s

A
  • percentage of market share
  • net profit figures
  • rate of productivity growth
  • number of sales
  • number of customer complaints
  • rates of staff absenteeism
  • level of staff turnover
  • number of workplace accidents
  • level of wastage
  • number of website hits
411
Q

percentage of market share definition (KPI)

A

Percentage of market share measures the proportion of a business’s total sales, compared to the total sales in the industry, expressed as a percentage figure

412
Q

net profit figures definition (KPI)

A

net profit figures are calculated by subtracting total expenses incurred from total business revenue earned, over a specific period of time

413
Q

rate of productivity growth definition (KPI)

A

Rate of productivity growth is the change in the total output produced from a given level of inputs over time, expressed as a percentage figure.

414
Q

number of sales definition (KPI)

A

Number of sales is the total quantity of goods and services sold by a business over a specific period of time.

415
Q

number of customer complaints definition (KPI)

A

Number of customer complaints is the number of customers who notified the business of their dissatisfaction over a specific period of time.

416
Q

rates of staff absenteeism definition (KPI)

A

Rates of staff absenteeism are the average number of days employees are not present when scheduled to be at work, for a specific period of time.

417
Q

level of staff turnover definition (KPI)

A

Level of staff turnover is the percentage of employees that leave a business over a specific period of time and must be replaced

418
Q

number of workplace accidents definition (KPI)

A

Number of workplace accidents measures the amount of injuries and unsafe incidents that occur at a work location over a specific period of time.

419
Q

level of wastage definition (KPI)

A

Level of wastage is the amount of inputs and outputs that are discarded during the production process.

420
Q

number of website hits definition (KPI)

A

Number of website hits is the amount of customer visits that a business’s online platform receives for a specific period of time

421
Q

how to calculate rate of productivity growth (KPI)

A

(new productivity - old productivity) / old productivity
times 100

422
Q

force field analysis definition

A

Force Field Analysis is a theoretical model that determines if businesses should proceed with a proposed change.

423
Q

what are driving forces

A

Driving forces are the factors affecting the business environment that promote and support business change

424
Q

what are restraining forces

A

restraining forces are factors that resist a business change or actively try to stop it.

425
Q

what are the 4 processes in a force field analysis

A
  1. weighting
  2. ranking
  3. implementing a response
  4. evaluating a response
426
Q

weighting (force field analysis) definition

A

Weighting is the process of scoring and attributing a value to the driving and restraining forces.

427
Q

in simple what happens in weighting (Force Field Analysis)

A

Business will identify driving and restraining forces and then rank them based on importance
Mostly 1-5 rank

428
Q

what ranking tells us in terms of driving vs restraining (Force Field Analysis)

A
  • If driving higher likely to succeed
  • If driving equal or lower it is unlikely to succeed
429
Q

In simple what is implementing a response (Force Field Analysis)

A

Implementing an action that can be taken to strengthen the driving forces, reduce or eliminate the restraining forces, and/or the actual execution of the change.

430
Q

what happens in ranking (Force Field Analysis)

A

each driving and restraining forces ranks are added together to see if the driving outweighs, are equal to, or less than the restraining forces

431
Q

in simple what is happening in evaluating a response (force field analysis)

A

comparing the actual change to the anticipated change and determining whether further action needs to be taken.
This can be done by using KPI’s to measure the success

432
Q

what are 2 disadvantages of a business implementing the force field analysis

A
  • Conducting the analysis will require business resources, at a cost to the business
  • Can be time-consuming
433
Q

what are 3 advantages of a business implementing the force field analysis

A
  • Businesses can save money by only implementing change where success is likely
  • increase morale (with successful change)
  • can examine if a proposed change can be implemented successfully
434
Q

what are the 11 things that can act as driving forces to a business

A
  • owners
  • managers
  • employees
  • pursuit of profit
  • reduction of cost
  • competitors
  • legislation
  • globalisation
  • technology
  • innovation
  • societal attitudes
435
Q

what is globalisation (driving force)

A

the process by which governments, businesses, and people across the globe are becoming more interconnected, allowing for increased international trade and cultural exchange

436
Q

societal attitudes definition (driving force)

A

Societal attitudes are the collective values, beliefs, and views of the general public.

437
Q

what are 6 things that can act as restraining forces to a business

A
  • managers
  • employees
  • legislation
  • organisational inertia
  • time
  • financial considerations
438
Q

organisational inertia definition (restraining force)

A

Organisational inertia is an unenthusiastic response from the people within the business to the proposed change.

439
Q

What are Porter’s two generic strategies

A
  • lower cost
  • differentiation
440
Q

Porter’s lower cost strategy definition

A

Porter’s lower cost strategy involves a business offering customers similar or lower-priced products compared to the industry average, while remaining profitable by achieving the lowest cost of operations among competitors.

441
Q

what are 3 advantages of businesses using Porter’s lower cost strategy

A
  • Attractive to cost-conscious customers
  • Reduces the expense of operations
  • barriers to entry for new competitors as it is often challenging for them to match lower prices
442
Q

what are 3 disadvantages of businesses using Porter’s lower cost strategy

A
  • Customers are not loyal to particular brands
  • Low prices may result in customer perceptions that the good or service is of lower quality
  • Thin profit margins and reliance on low operating costs can leave a business vulnerable to unexpected increases in expenses
443
Q

porter’s differentiation strategy definition

A

Porter’s differentiation strategy involves offering customers unique services or product features that are of perceived value to customers, which can then be sold at a higher price than competitors.

444
Q

what are 3 advantages of Porter’s differentiation strategy

A
  • Customers are often loyal to the business because of unique product features or services not offered by competitors.
  • Quicker sales from loyal customers when new products or services from the business are introduced
  • Can charge premium prices for products as customers cannot purchase the product elsewhere.
445
Q

what are 3 disadvantages of Porter’s differentiation strategy

A
  • Can be difficult to prevent competitors from replicating points of differentiation.
  • Higher selling prices can deter cost-conscious consumers.
  • New employees may require additional training to adapt their skills to match the business’s point of difference.
446
Q

what is a similarity between Porter’s lower cost and differentiation strategies

A

They both increase a business’s profitability by providing a competitive advantage

447
Q

competitive advantage definition

A

Competitive advantage is the conditions or attributes that place a business in a superior position compared to its immediate competitors.

448
Q

what is leadership in change management

A

the ability to positively influence and motivate employees towards achieving business objectives during a transformation.

449
Q

what are 3 way managers can show strong leadership in change management

A
  • building a shared vision
  • providing ongoing communication
  • providing ongoing support
450
Q

what are the 13 strategies to respond to KPI’s

A
  • staff training
  • staff motivation
  • change in management styles
  • change in management skills
  • cost cutting
  • increased investment in technology
  • improved quality in production
  • initiating lean production techniques
  • redeployment of resources (natural, capital and labour)
  • innovation
  • global sourcing of inputs as a business opportunity
  • overseas manufacture as a business opportunity
  • global outsourcing as a business opportunity
451
Q

what is cost cutting

A

the process of reducing business expenses

452
Q

what are 3 ways of implementing cost cutting

A
  • merging staff roles, or removing them entirely
  • sourcing materials from cheaper suppliers
  • stopping the production of goods with high amounts of unsold stock
453
Q

what is the redeployment of resources

A

involves reallocating natural, labour, and capital resources to different areas of the business to improve productivity and effectiveness.

454
Q

what does redeployment of labour resources involve

A

transferring employees to other areas of the business (can be because of increased amount of technology)

455
Q

what does redeployment of natural resources involve

A

business reusing, recycling, or repurposing its raw materials (think waste minimisation strats)

456
Q

what does redeployment of capital resources involve

A

business using physical assets for a different purpose than what they were initially intended for

457
Q

what are 3 ways innovation be used to respond to KPI’s

A
  • developing new goods and services that meet existing customer needs,
  • promoting its products with unique marketing techniques,
  • implementing faster and more productive methods of operating
458
Q

what are 6 ways to develop a positive corporate culture

A
  • leading by example
  • implementing a uniform
  • rewards and recognition (for good work)
  • positive communication in workplace
  • developing employee training programs
  • hosting social gatherings
459
Q

What is a learning organisation

A

A learning organisation is an organisation that facilitates the growth of its members and continuously transforms itself to adapt to changing environments.

460
Q

what are the 5 principles of having a learning organisation (senge)

A
  • systems thinking
  • mental modes
  • shared vision
  • team learning
  • personal mastery
461
Q

what does becoming a learning organisation do

A

It will help a business manage change more effectively

462
Q

what is systems thinking (learning organisation)

A

a management approach that considers the interrelationship between the parts of a whole system (ability to see the big picture rather than in isolation)

463
Q

what is mental modes (learning organisation)

A

existing assumptions and generalisations that must be challenged so that learning and transformation can occur in an organisation

464
Q

what is shared visions (learning organisation)

A

an aspirational description of what an organisation and its members would like to achieve (able to develop a vision that the people within the business believe in).

465
Q

what is personal mastery (learning organisation)

A

Personal mastery is the discipline of personal growth and learning, aligned with one’s values and purpose (people within the business with undertake continual learning)

466
Q

what is team learning (learning organisation)

A

the collective learning that occurs when teams share their experience, insights, knowledge, and skills to improve practices

467
Q

what are low-risk strategies (responding to change)

A

Low-risk strategies are measured management approaches that gradually encourage employees to accept and participate in a business change.

468
Q

what are the 4 low risk strategies

A
  • communication
  • empowerment
  • support
  • incentives
469
Q

what is communication as a low risk strategy

A

Communication as a low-risk strategy involves managers openly and honestly transferring information to employees, and listening to their feedback so that employees are fully aware of the reasons for, and impacts of an upcoming change

470
Q

what may communication to employees lead to (low-risk strategy)

A

increases employees’ understanding of the proposed change and builds trust in management, (less likely to resist change)

471
Q

what is empowerment as a low risk strategy

A

empowerment as a low-risk strategy involves managers providing employees with increased responsibility and authority during times of change.

472
Q

what may empowerment of employees lead to (low risk strategy)

A

directly involved within the process, leading to a greater willingness to contribute to the change process.

473
Q

what is support as a low-risk strategy

A

Support as a low-risk strategy involves managers providing employees with assistance as they move from current to new practices.

474
Q

what may support to an employee lead to (when implementing a change)

2 things

A
  • reduce an employee’s level of fear and stress
  • make them feel more prepared to embrace the change
475
Q

what is incentive as a low-risk strategy

A

Incentives as a low-risk strategy involves managers providing financial or non-financial rewards to encourage employees to support change.

476
Q

what are 3 advantages of using a low-risk strategy

A
  • Low-risk strategies can make employees feel valued by the business.
  • Communication, empowerment, and support all result in a higher chance of change being successful in the long term due to increased trust and cohesion between managers and employees
  • Incentives and empowerment can provide employees with opportunities to advance their careers.
477
Q

what are 2 disadvantages of using a low-risk strategy

A
  • All low-risk strategies are not useful in crisis situations as they take a longer period of time to be effective
  • Incentives lead to financial expenses for the business
478
Q

high-risk strategies definition

A

High-risk strategies are autocratic management approaches used to influence employees to quickly accept and follow a business change

479
Q

what are 2 high-risk strategies

A
  • threat
  • manipulation
480
Q

what is manipulation as a high-risk strategy

A

Manipulation as a high-risk strategy involves influencing employees to support a proposed change by providing incomplete and deceptive information about the transformation.

481
Q

what is an example of manipulation being used

A

managers leaving out details, distorting the facts, or making the change seem more beneficial than it actually is

482
Q

what is threats as a high-risk strategy

A

Threat as a high-risk strategy involves forcing employees to follow a proposed change by stating that they may or will cause harm to them if they fail to do so.

483
Q

what are 2 advantages of high-risk strategies

A
  • High-risk strategies are effective in crisis situations where change must occur rapidly
  • The initial implementation of high-risk strategies can be relatively inexpensive for the business
484
Q

what are 3 disadvantages of high-risk strategies

A
  • may lead to the development of a negative corporate culture in the future, due to long-term distrust
  • The relationship between management and employees is compromised.
  • There may be low morale in the workplace
485
Q

what is lewin’s 3 step change model

A

Lewin’s Three-step Change Model is a process that can be used by a business to implement change successfully.

486
Q

what are the 3 steps in lewin’s change model

A
  • unfreeze step
  • change step
  • refreeze step
487
Q

what is the unfreeze step

A

The unfreeze step involves moving a business to a state where stakeholders are prepared to undergo change.

488
Q

what are 3 strategies that can be used to apply the unfreeze step

A
  • identifying what needs change and why
  • communicating urgency
  • engage stakeholders (let them raise concerns)
489
Q

what is the change step

A

The change step involves moving a business towards its desired state.
This step transforms the business’s practices to meet its new objectives.

490
Q

what are 3 strategies that can be used to apply the change step

A
  • providing ongoing support
  • communicate clearly
  • involving employees in the change
491
Q

what is the refreeze step

A

The refreeze step involves ensuring a change is sustained within a business for the long term.

492
Q

what are 2 strategies that can be used to apply the refreeze step

A
  • embed changes into everyday practices (update policies)
  • monitor and evaluate the change (use KPIs)
493
Q

what are 2 positive effects of change on owners

A
  • can provide a business owner with an increased return on their investment and greater financial security
  • opportunities for business owners to use their leadership skills to connect with employees and develop stronger interpersonal relationships
494
Q

what are 2 positive effects of change on managers

A
  • more opportunities to develop new skills or advance their career
  • may provide a manager with financial and non-financial reward
495
Q

what are 2 negative effects of change on owners

A
  • a business owner may experience personal and financial implications
  • overwhelmed and stressed by the increased workload and responsibilities
496
Q

what is a negative effect of change on managers

A
  • a manager may lose their job and financial security
497
Q

what are 2 positive effects of change on employees

A
  • provided with new responsibilities and opportunities for career advancement that improve their motivation and overall job satisfaction
  • undertake training to provide them with a different set of skills, helping improve their future employability
498
Q

what are 2 negative effects of change on employees

A
  • develop complex skills and learn difficult processes, which may increase stress levels
  • employees may fear for their job or financial security (for redundancies to be made)
499
Q

what are 2 positive effects of change on customers

A

Greater satisfaction due to:
- lower costs
- better quality

500
Q

what are 2 negative effects of change on customers

A
  • with cheaper suppliers less quality (decreased satisfaction)
  • dissatisfied with increase in price
501
Q

what are 2 positive effects of change on the general community

A
  • job opportunities, local employment rates may increase
  • if a change is reducing environmental impact then, they may improve living standards for general community
502
Q

what is a positive effect of change on suppliers

A
  • demand may increase if a business requires a greater amount of resources to meet its production needs
503
Q

what is a negative effect of change on suppliers

A
  • may require its suppliers to involuntarily adjust their processes to meet the new demands of the business
504
Q

what is a negative effect of change on general community

A
  • change that results in redundancies may increase local unemployment rates and poverty levels
505
Q

what are the 3 things that the business should consider CSR for when making a change

A
  • employees
  • general community
  • environment
506
Q

what is 2 examples of CSR strategies that could be used for employees

A
  • offer counseling
  • providing extra training
507
Q

what might considering employees look like when making a business change (CSR)

A

involves a manager addressing factors that promote staff wellbeing during periods of business change. Considering things like:
- social, financial, and mental wellbeing of employees

508
Q

what might considering the general community look like when making a business change (CSR)

A

involves a business reducing or eliminating practices that are
detrimental to the wellbeing of society

509
Q

what is 2 examples of CSR strategies that could be used for the general community

A
  • hiring local suppliers (when choosing new ones)
  • redeploy employees to other roles (if taken over by technology)
510
Q

what might considering the environment look like when making a business change (CSR)

A

involves a business reducing the negative impacts of its activities on the planet

511
Q

what is 2 examples of CSR strategies that could be used for the environment

A
  • purchasing technology that minimises the waste generated
  • choosing local supplier (less carbon emissions)
512
Q

what are 2 advantages of using CSR considerations when making a business change

A
  • Customers may be more inclined to purchase from socially-responsible businesses
  • develop a positive reputation, leading to more customers purchasing its goods or services
513
Q

what are 2 disadvantages of using CSR considerations when making a business change

A
  • A constant focus on CSR may decrease a business’s productivity levels
  • CSR practices can be expensive for a business to initially implement
514
Q

what are 3 examples of what reviewing KPIs can evaluate after the change has occurred (how effective it was)

A
  • identifying whether the change has successfully achieved its objectives
  • whether the change has negatively impacted another area of performance
  • whether more effort and time are required for the change to achieve desired objectives

Business 3&4 (7 decks)

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