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Business Management Unit 3 > Unit 3 > Flashcards

Unit 3 Flashcards

1
Q

Types of Businesses

A 
Sole traders 
Partnerships 
Private Limited Companies 
Public Listed Companies 
Social Enterprises 
Government Business Enterprise
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2
Q

Sole trader

  • Define
  • Features
  • Advantages & Disadvantages
A

A business owned and operated by one person

  • Limited Liability
  • Low cost structure

Advantages -

  • Simple and inexpensive
  • Full control

Disadvantages -

  • Unlimited liability
  • Harder to get finances
  • End of business when owner dies
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3
Q

Partnerships

  • Define
  • Features
  • Advantages & Disadvantages
A

An unincorporated business structure with a minimum of 2 and a maximum of 20 owners

  • Not a seperate entity
  • Requires seperate tax file numbers

Advantages -

  • Simple and inexpensive
  • Risk and workload shared
  • No taxes on business profits
  • On death of one partner the business can keep going

Disadvantages -

  • Unlimited liability
  • Liable for debts of partners
  • May result in disputes between partners
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4
Q

Private limited Company

  • Define
  • Features
  • Advantages & Disadvantages
A

An incorporated company with a minimum of 2 and a maximum of 50 shareholders

  • Not listed on the stock exchange
  • Shares are sold privately

Advantages -

  • The business is its own legal entity
  • Limited Liability
  • Extra capital can be gained by selling more shares

Disadvantages -

  • Complex structure
  • High establishment costs
  • Higher degree of government control and regulations
  • Additional compliance costs
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5
Q

Public listed company

  • Define
  • Advantages & Disadvantages
A

A corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on the stock exchange

Advantages -

  • Limited liability
  • Seperate legal entity
  • Able to gain extra capital through selling shares
  • Listed on the stock exchange, hence more shares sold

Disadvantages -

  • Higher establishment costs
  • Highly complex structure
  • Additional compliance costs
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6
Q

Social enterprise

  • Define
  • Advantages & Disadvantages
A

Businesses that trade to intentionally tackle social problems, improve communities, provide people access to employment and skills development or help the environment

Advantages -

  • Meeting a social need
  • Can open a new market which may meet a need

Disadvantages -

  • Significant in operating costs
  • Difficulty in obtaining capital to start the business and continue its operations
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7
Q

Government Business enterprise

  • Define
  • Advantages & Disadvantages
A

Operates in the public sector of the Australian economy

Advantages -

  • Seperate legal entity
  • Able to carry out government policies delivering community services

Disadvantages -

  • Can be sued
  • Excessive regulation
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8
Q

Business objectives Definition

A

Statements of desired achievements and provide the direction for the business and subsequent actions. All businesses need to establish objectives in order to succeed

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9
Q

Business objectives

A
  • Make a profit
  • Increase market share
  • Fulfil a market and/or social need
  • Meet shareholder expectations
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10
Q

SMART goals

A 
Specific 
Measurable 
Attainable / Achievable 
Relevant / Realistic
Timely / Time bound
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11
Q

Vision Statement

A

Outlines the aspirations and values of the business

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12
Q

Values statement

A

Outlines what the organisations sees as its corporate values and centres around integrity, honesty and ethical behaviour

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13
Q

Types of business objectives

A

Financial - Profit, marketshare
Marketing - Fulfil a market need
Shareholder expectations - Provide a service or product with budgetary constraints

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14
Q

Making a profit

A

The surplus remaining after total costs are deducted from total revenue earned. Desired financial performance of a business

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15
Q

Increase market share

A

Percentage of market controlled by the business
Aims to be higher than competitors
Higher percentage means more sales

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16
Q

Fulfilling a market need

A

Satisfying a customers needs and wants

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17
Q

Fulfilling a social need

A

Benefiting the community through the actions of the business

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18
Q

Meeting shareholder expectations

A

They expect the business they invest in to be successful. They expect to gain capital, dividend to be paid and voting rights

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19
Q

Stakeholders

  • Define
  • Examples
A

A group or individual that has a vested interest in the operations of the business

  • Employees
  • Suppliers
  • Customers
  • Owners
  • Competitors
  • Government
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20
Q

Potential conflicts between stakeholders

- Example

A
  • Between employees and owners about money.

For example the employees may feel that they are being under paid and expect the owners to increase their wages

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21
Q

Corporate social Responsibility

  • Define
  • Examples of how to implement CSR
A

Takes into account an approach that is both ethical and socially responsible. It expresses concern for how its practices affect the environment and societies health and welfare, ethical concern for its workforce and their families but does not include what is legally required by regulations

  • Reducing carbon footprint
  • Using only fair trade
  • Renewable energy
  • Waste management
  • Supply chain using CSR
  • Employing local workers
  • Making donations to charities
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22
Q

Triple bottom line

A

Economic - Profit
Environment - Planet
Social - People

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23
Q

Areas of management responsibility

A
  • Operations
  • Finance
  • Human resource
  • Sales and marketing
  • Technology support
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24
Q

Operations

  • Define
  • Activities
A

Responsible for managing the process of creating goods a services

  • invoice ordering and sourcing stock, minimising waste, ensuring quality meets customer expectations, redesigning the sequence of production
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25
Q

Finance

  • Define
  • Activities
A

An area of management concerned with controlling the activities concerned with receiving and spending money within the business

  • Budgeting, financial planning, managing day to day payments and receipts and auditing the business accounts
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26
Q

Human resources

  • Define
  • Activities
A

An area concerned with managing the employees and all aspects of their working relationship with the business

  • Recruitment, selection, training, motivation and eventual termination of employees, employment terms and conditions and labour laws
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27
Q

Sales and marketing

  • Define
  • Activities
A

An area concerned with connecting the goods and services produced with their end consumers

  • Product features, pricing, promotion, distribution, customer service and after sales support
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28
Q

Technology support

  • Define
  • Activities
A

An area concerned with user-friendly assistance for individuals having technical problems with electronic devices

  • troubleshooting computer problems, office phones, website crashes, powerpoint problems etc
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29
Q

Management styles

A
  • Autocratic
  • Persuasive
  • Consultative
  • Participative
  • Laissez-faire
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30
Q

Autocratic Management

  • Define
  • Advantages & Disadvantages
  • Situation best used
  • Example of business
A

Where the manager tells staff what decision has been made

Advantages -

  • Roles and expectations are defined and monitored
  • Decision making is quick
  • High regard for production and efficiency
  • Decisions are made by an experienced leader
  • Communication is direct

Disadvantages -

  • Doesn’t allow for open communication and feedback on ideas
  • Potential conflicts or disagreements as a result of being “kept in the dark”
  • A quick decision isn’t always the best decision
  • Low motivation and job satisfaction

Best used -
- In high-risk or difficult decisions and in a crisis

Example - 
Mcdonalds 
Bill Gates (Microsoft)
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31
Q

Persuasive Management

  • Define
  • Advantages & Disadvantages
  • Situation best used
  • Example of business
A

Where the manager attempts to sell the decision made

Advantages -

  • Gains trust and support
  • Workers feel values
  • Employees have a clear idea about what they have to achieve

Disadvantages -

  • No input for employees, undervalues benefit of teamwork
  • Low motivation and job satisfaction
  • Low staff morale
  • Limited pool of ideas

Best used -
- Works best in high-risk decisions

Example - 
Gina Rinehart (Hancock prospecting)
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32
Q

Consultative

  • Define
  • Advantages & Disadvantages
  • Situation best used
  • Example of business
A

Where the manager refers to employees before making any decisions

Advantages -

  • Employees feel more valued and respected
  • Gains a variety of ideas and suggestions from employees which will lead to better decision making outcome
  • Higher level of motivation and job satisfaction

Disadvantages -

  • Can be time consuming if many stakeholders are consulted
  • Employees may not understand the complexity of the problem being discussed
  • Employees may feel undervalued if their ideas have been overlooked

Best used -
Works best when there’s a larger scale of stakeholders involved

Example -
Bunnings

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33
Q

Participative

  • Define
  • Advantages & Disadvantages
  • Example of business
A

Where the managers unite with staff to make decisions together

Advantages -

  • Trusting / supportive relationship
  • Higher satisfaction
  • Employees feel a sense of ownership
  • Open communication within the business
  • Creates foo employee relations

Disadvantages -

  • Can be time consuming
  • Conflicts arise when there are varying viewpoints
  • Lack of contribution by all employees, as some would rather not be involved in decision making
Example - 
Warren Buffet (Berkshire Hathaway)
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34
Q

Laissez-fair

  • Define
  • Advantages & Disadvantages
  • Situation best used
  • Example of business
A

Where employees are responsible for all workplace operations

Advantages -

  • Sense of ownership
  • Outstanding work is produced
  • High employee independence
  • Strong motivation and job satisfaction
  • Good communication and open discussions

Disadvantages -

  • Lack of guidance and sense of direction
  • Feeling of unsettlement by the freedom of this style
  • Doesn’t suit employees who are unskilled or need structure and routine tasks or are unmotivated

Best used -
In jobs that require a lot of creation

Example of a business - - Jeff Bezos (Amazon)

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35
Q

Management Skills

A
  • Communicating
  • Delegating
  • Planning
  • Leading
  • Decision making
  • Interpersonal
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36
Q

Communication

  • Definition
  • Application
A

The transfer of information from a sender to receiver

Application -

  • Managers to employees
  • Emails
  • Meetings
  • Verbal or non-verbal
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37
Q

Delegation

  • Define
  • Application
A

The transfer of authority and responsibility from a manger to an employees to carry out specific activities. The manger remains accountable for the work

Application -

  • McDonalds
  • Time efficient
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38
Q

Planning

  • Define
  • Application
  • SO.SAIM
A

Involves the prior thinking that goes into considering how best to achieve a business objective

Application -
- Increase marketshare by 10% over one year

SO.SAIM -
Set Objectives. SWOT (strengths, weaknesses, opportunities, threats) analysis of the situation, Alternatives, Implement, Monitor

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39
Q

Leading

  • Define
  • Application
A

Involves guiding the business towards achieving its objectives. Leadership involves establishing a clear vision with others, and coordinating and balancing the conflicting interests of stakeholders

Application -

  • Business leaders
  • Richard Branson
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40
Q

Decision - Making

  • Define
  • Application
A

Ability to make a choice on a course of action from a variety of alternatives

Application -

  • Set objectives
  • SWOT analysis
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41
Q

Interpersonal

  • Define
  • Application
A

The skills used buy a person to interact with others properly. Generally refers to an employees ability to get along with others whilst getting the job done

Application -

  • Group and personal feedback
  • Motivational factors
  • General/genuine concern for interests
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42
Q

Situational Approach

Management style

A

Manager considers numerous variables to help determine the most appropriate management style to use

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43
Q

Relationship between management styles and skills

A

When communicating and making decisions, managers do so using a certain management style. For example, an autocratic management style uses only one-way communication, whereas participative management uses tow - way communication

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44
Q

Characteristics of Stakeholders

  • Owners
  • Directors
  • Employees
  • Managers
  • Customers
  • Competitors
  • Government
  • Community
  • Interest groups
  • Suppliers

Potential conflicts

A

Owners -
Heavily invested in business, they are income and and reputation reliant

Directors -
Heavily involved in operations and they must be aware and act with honesty. Responsible for setting strategies and strategic objectives

Employees -
Expect fair wages, adequate training and ethical treatment, need long term job security

Managers -
Implement business strategies, expect to be fairly remunerated, ensure business is successful and needs to satisfy all stakeholders

Customers -
Expect quality products for reasonable prices, good customer service, and business needs to be aware of changing customer wants and needs

Competitors -
Compete for shares of market/s and business needs to be aware of competitors to ensure no market share is lost to them

Government -
They implement laws and regulations, impose taxes raise government revenue and they can offer grants for businesses to expand

Community -
Business reputation needs to be inline with community expectations and business needs to take into consideration of becoming more environmentally friendly

Interest groups -
Organisations that attempt to influence business activities

Suppliers -
Business needs to have a good relationship with them, suppliers need to ensure quality inputs at fair prices

Potential conflicts -
Employees want safe working conditions and customers want fair priced products. To increase workplace safety increases the operation costs and product prices

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45
Q

Corporate culture

  • Define
  • Examples
A

The shared values, ideas, expectations and beliefs of the individuals in a business.

  • The way people dress and behave
  • Language employees use and interactions
  • Slogans and logos
  • Rituals and celebration of events
  • Companies policies
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46
Q

Types of corporate cultures

A
  • Official

- Real

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47
Q

Offical corporate culture

  • Observable by
  • Internal or external
A

The values and beliefs the company is trying to convey to the public

Observable by -

  • Mission statements
  • Logos
  • Slogans

External

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48
Q

Real corporate culture

  • Observable by
  • Internal or external
A

The actual values and beliefs present in the company

Observable by -

  • Dress
  • Behaviour
  • The way employees and managers relate to each other

Internal

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49
Q

Strategies for developing corporate culture

A
  • Role modelling behaviour
  • Customer service training
  • Establishing Social gatherings, team bonding
  • Rewarding employees
  • Recruiting for these values
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50
Q

Relationship between managing employees and business objectives
- Include example

A

Business objectives are statements of desired achievements and provide the direction for the business and subsequent actions. Employees need to be managed effectively as they ate the ones who strive to achieve these objectives.

For example a business may choose to provide incentives such as employee commissions, a sum of money that is paid to an employee upon the completion of tasks, as this will make employees more likely to achieve business objectives such as make a profit.

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51
Q

Hierarchy of needs

  • Define
  • Levels & Examples
  • Advantages & Disadvantages
A

Abraham Maslow’s representation of human needs in the form of a pyramid or hierarchy. Maslow believed that one level must be satisfied before moving onto the next

Levels -
-Physiological needs (food, water, warmth, rest)
- Safety needs (security, safety)
- Belongingness and love needs (intimate relationships, friends)
Esteem needs (prestige and feeling of accomplishment)
- Self-actualisation (achieving ones full potential, including creative activities)

Advantages -

  • People are motivated by more than money
  • Workplace needs to be interesting and challenging

Disadvantages -

  • Motivated by one level at a time
  • Manager can’t control the needs
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52
Q

Locke and Latham’s Goal setting theory

  • Define
  • 5 Stages
  • Advantages & Disadvantages
A

A process of motivation that focuses on the process of setting and attaining goals, which are clear and specific.

Stages -

  • Establish goals
  • Undertake tasks using goals
  • Periodic feedback
  • Determine and evaluate outcomes
  • Evaluate if the goal has been achieved

Advantages -

  • Easy to measure
  • Individualised

Disadvantages -

  • Time consuming
  • Unrealistic goals
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53
Q

Four drive theory

  • Define
  • 4 Drives & explanation
  • Advantages & Disadvantages
A

Identifies four basic motivational needs, the strength of each drive differs with each person

Drives -

  • Drive to Acquire - Relates to an individual’s desire to attain goods and services in life
  • Drive to Bond - Relates to an individual’s desire to form long term relationships
  • Drive to Defend - Relates to an individual’s desire to defend themselves and those for whom they care
  • Drive to learn (comprehend) - Relates to an individual’s desire to continually learn new things

Advantages -

  • Recognises different motivations
  • Emotionally intelligent

Disadvantages -

  • Time consuming
  • Hard for managers to assess
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54
Q

Motivational theories

A
  • Abraham Maslow’s hierarchy of needs
  • Locke and Latham’s Goal setting theory
  • Four drive theory
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55
Q

Variables that can improve the chance of success with motivational theories

A
  • Goal commitment
  • Performance feedback
  • Situational constraints
  • Task complexity
  • SMART goals
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56
Q

Motivation Strategies

A
  • Performance related pay
  • Career advancement
  • Investment in training
  • Support
  • Sanctions
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57
Q

Performance related pay

  • Define
  • Advantages & Disadvantages
  • Short & Long term effects
A

A salary or wages system based on how well an employee works or the number of sales

  • The motivation is directed towards the performance that earns the employee the reward. Therefore the setting of the performance objective is vital

Advantages -

  • Very goal focused
  • If correctly set, objective can be very powerful and motivating

Disadvantages -

  • Becomes very competitive and potentially conflicting / selfish
  • Hard to focus on team goals
  • Lose focus on broader objectives
  • One part of the business may be pitted against the other
  • Only works if employees are motivated by pay

Short term effects -
- Immediate motivation

Long term effects -
- May reach a plateau as the employee reaches a comfortable level

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58
Q

Career advancement

  • Define
  • Advantages & Disadvantages
  • Short & Long term effects
A

The prospect and opportunity of developing your career through being promoted or taking on new roles. Thos can motivate employees to perform well and acquire new skills and knowledge

Advantages -

  • Very personal goal focused
  • Employee may develop broader skill and knowledge base which may help with long term opportunities

Disadvantages -

  • Very selfish, can become very competitive
  • Hard to focus on team goals
  • Can be demotivating if career advancement opportunities are not available, employee may leave the business for better prospects
  • May lose focus on business objectives
  • Only works if employees are motivated by advancement, esteem and respect

Short term effects -
- Motivation until employee achieves goal or they give up

Long term effects -
- Culture of self interest

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59
Q

Investment in training

  • Define
  • Advantages & Disadvantages
  • Short and long term effects
A

The business pays for training programs to develop the individual employees or group of employee skills and knowledge to make them more efficient and effective in their role

Advantages -

  • Usually very targeted at business objectives
  • Often leads to productivity gains, quality improvements
  • Can allow for the team to train together to develop group cohesion and synergy

Disadvantages -

  • Can be financially expensive, especially off-the-job training
  • If employee leaves they will take your investment with them

Short term effects -

  • employee morale will go up
  • Productivity should increase

Long term effects -
- Builds skills and knowledge capabilities in staff

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60
Q

Support

  • Define
  • Advantages & Disadvantages
  • Short and long term effects
A

Involves the manager meeting with the employee and verbally instilling belief and aspiration in the employee and mentoring them to help overcome problems and seize opportunities

Advantages -

  • Employees feel valued and respected by the business
  • Manager gets to be directly involved with motivational focus
  • Generally financially cheaper the training investment
  • The feeling of self-worth in the employee may transition benefits to other aspects of the business
  • Becomes cultural - Benefits the whole business

Disadvantages -

  • May involve a lot of management time and meeting with and supporting the employee
  • May take a long time to see the benefits develop

Short term effects -
- Employee moral will increase

Long term effects -
- Will influence a positive culture within the business

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61
Q

Sanction

  • Define
  • Forms
  • Advantages & Disadvantages
  • Short and long term effects
A

Refers to punishment for failure to meet or comply with a business objective.

Forms -

  • A pay penalty
  • Lost promotional opportunity
  • Requirement to complete task work again

Advantages -

  • Can be very powerful for those employees motivated by fear
  • Can lead to focused and hopefully predictable responses

Disadvantages -

  • Doesn’t support employees to make mistakes, learn and develop
  • Very short term immediate focus, builds long term resistance or employees may leave the business
  • Builds negative, fearful culture

Short term effects -
- Fast, direct motivation from employees

Long term effects -

  • Fear and resentment from employees
  • Employees may avoid risk taking
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62
Q

Training Options

A
  • On-the-job

- Off-the-job

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63
Q

Training

  • Define
  • What’s it important for
A

Is focussed on an employees current job and is aimed at improving employees skills, knowledge, attitudes and behaviour to allow employees to do their jobs more efficiently and effectively

Important for -

  • Business performance
  • Individual growth
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64
Q

On the job training

  • Define
  • Advantages & Disadvantages
A

Takes place in the normal work situation, learning from exisiting employees on an employees current job, how to perform this job more efficiently and effectively than before

Advantages -

  • Reduced cost
  • Learn specific skills / knowledge directly related to the job
  • Motivational for coaches or mentor, they will feel more valued
  • Producing goods and services whilst training which adds to the business production

Disadvantages -

  • May produce sub standard production in the short term
  • May learn bad tricks / short cuts from existing employees which are against the business policies
  • Unlikely to learn broader skills / knowledge
  • Unlikely to develop networks with other businesses
65
Q

Types of on the job training

A
  • Coaching
  • Mentoring
  • Job rotation
  • Job shadowing
66
Q

Off the job training

  • Define
  • Advantages & Disadvantages
A

Learning that takes place away from the normal work environment with a professional instructor to show how an employee can perform their job more efficiently and effectively than before

Advantages -

  • Less likely to be distracted by work environment / colleagues
  • Develops employee morale to be selected for off-site training
  • May learn additional broader knowledge and social networks
  • May return with accredited skills / qualifications etc

Disadvantages -

  • Increased cost / expense of training program
  • Cost in terms of employees absence from work
  • Upon return to work it may be difficult to integrate skills
  • Team employees may continue old practices in defiance of new approaches
67
Q

Types of off the job training

A
  • Conferences
  • Lectures
  • Stimulations
  • Role Plays
  • Workshops
  • Online tutorials
  • TAFE / University qualifications
68
Q

Coaching

A

Being taught by an existing employee in how to perform the job

69
Q

Mentoring

A

Watching an existing employee perform the job and learn from their experience / advice

70
Q

Job rotation

A

Completing a number of jobs in a field of the business to see how they all interconnect

71
Q

Job shadowing

A

Following an experienced worker for a few days, watching what they do and how they do it

72
Q

Conferences

A

A formal meeting of people with a shared interest

73
Q

Lectures

A

An educational talk to an audience

74
Q

Stimulations

A

Visual games and case studies that are used to model real life

75
Q

Employee objectives

A
  • Earn an income
  • Terms and conditions of employment
  • Job security
  • Develop skills and knowledge
  • Career advancement
76
Q

Performance management strategies to achieve both business and employee objectives

A
  • Management by objectives (MBO)
  • Appraisals
  • Self-evaluation
  • Employee observation
77
Q

Performance management

A

An assessment of employees present work performance and how this can be directed in the future to achieve both business and employee objectives

78
Q

Management by Objectives (MBO)

A

A strategy that aims to improve performance of a business by clearly defining objectives that are agreed to by both management and employees

79
Q

Appraisals

  • Define
  • Purposes
A

Also referred to as performance review or a performance evaluation, it is a method by which the job performance of an employee is documented and evaluated against pre-determined standards

Purposes -

  • Gives insight into an individual’s performance
  • Standardised way to make comparisons among employees for salary or promotional based decisions
  • Provides information about its employees strengths and weaknesses, which can then be translated into individual or company-wide development initiatives
80
Q

Self-evaluation

A

Get the employee / individual to reflect on their performance prior to a manger / employee discussion

81
Q

Employee observation

- Ways to observe

A

In order to pre-empt the discussion between the manager and the employees present performance and how this could be developed, the employee could be observed and recorded either;

  • with their knowledge - pre-organised observation period
  • without their knowledge e.g mystery shopper survey
82
Q

Termination

A

When the working relationship ceases

83
Q

Legal obligations in relation to termination management

A
  • Failure to follow correct procedures can result in disputes and litigation
  • Protected by Fair Work Act
  • Need to allow time for redundancies
84
Q

Retirement

  • Define
  • Entitlements
  • Transition
A

Where the employee leaves the business and plans to no longer be part of the labour force

Entitlements -

  • Employees paid a minimum of 9.5% superannuation during their time of employment
  • Superannuation accessible once they turn 65 years of age
  • Some may be entitled to a pension

Transition -

  • Organisations need to help in the transition period by offering services such as counselling, superannuation, or investment advise and lifestyle planning
  • Employers may allow employee to reduce number of hours worked in lead up to retirement
  • Businesses should plan as if large number or workplace is retiring, many years of experience / skills also leave - hence succession planning is crucial to fill vacant roles
85
Q

Resignation

  • Reasons
  • Entitlements
  • Exit interviews
A

Where the employee decides to leave the business

Reasons -

  • Unhappy with current job
  • Moving location
  • Better offer from another organisation
  • Starting own business
  • Change of career

Entitlements -
- Need to give notice, amount stipulated in the award or Enterprise Bargaining Agreement (EBA)

Exit interview -
Should be conducted to determine reasons why employees leave

86
Q

Redundancy

  • Define
  • Types
  • Reasons
  • Entitlements
  • Transition
A

When a job no longer exists and the people who held those jobs are retrenched (forced to leave the business)

Types -
Voluntary - Employees are given the option to leave (e.g thinking of retiring or leaving the business anyway)

Involuntary - Occurs if there’s still positions that need to be made redundant - employees told to leave and forced to leave

Both receive the same payout

Entitlements -

  • Receive redundancy package which is a financial payment based on how long they’ve been working at the organisation
  • Amount received outlined in workplace agreement
  • Entitled to time off work to attend job interviews or searching for employment

Transition -

  • Major emotional change for employees
  • Organisations should offer support with such a transition such as counselling, career counselling, assistance with resume writing, extra training to enhance employability and outplacement services
87
Q

Dismissal

  • Define
  • Types
  • Entitlements
A

Where the employee is forced to leave the business for reasons such as poor performance or serious breach of conduct

Types -

  • Summary dismissal
  • On notice dismissal

Entitlements -

  • Employees entitled to full pay for the work completed
  • Employees still receive their entitlements such as annual leave
  • Amount of notice is usually 1-5 weeks
  • Employees who have been employed by the business are entitled to apply for unfair dismissal
88
Q

Summary dismissal

  • Define
  • Reasons
A

Where the employee can dismiss an employee without notice or warning for serious breach of conduct

Reasons -

  • Theft
  • Harassment
  • Fraud
  • Breathing safety standards
89
Q

On notice dismissal

  • Define
  • Regulations
A

Where the employer can dismiss an employee on notice due to breach of policy or underperformance

Regulations -

  • Employees given warning on performance, it is recorded and they are given the opportunity to improve
  • Reoccurrences results in termination
  • How much notice is set out in workplace agreement
90
Q

Unfair dismissal

A

Where employees have been dismissed from their job in a harsh, unjust or unreasonable manner

91
Q

Participants in the workplace

A
  • Human resource managers
  • Employees
  • Employer associations
  • Unions
  • Fair Work Commission
92
Q

Role of Human resource manager

  • Define
  • Their roles
A

The person that manages the relationship between the business and employees.

Roles -
- Planning for future staff
sourcing the best candidates for the job/s
- Sourcing and developing staff through training, performance management, recognition, reward, etc
- Negotiating with employees and/or their representatives on issues of pay and woking conditions
- Act as a mediating group between interests of employers and employees
- Develop grievance policies to solve disputes calmly and consistently
- Ensuring legal minimums for wages, conditions and safety are met
- Maintaining positive working conditions so that the opportunities for disputes to develop are reduced

93
Q

Role of employees

  • Define
  • Roles
A

Those that work for the business

Roles -

  • Performing duties with proper care and diligence
  • Follow safety procedures
  • Obey a lawful, reasonable order within the terms of the contract of employment
  • Serve faithfully
  • Account for all money or property received
  • Not to misuse the confidential information acquired while at work
  • Employees are able to vote on the terms and conditions contained in the proposed agreement
94
Q

Role of employer associations

  • Define
  • Roles
  • Member services
A

Groups of employers who unite to promote their common interests as well as to share information, advice and support for each other

Roles -
- Offer advice or a representative employer during collective bargaining period

Member services -

  • Business consulting
  • Policy development
  • Advocacy and education
95
Q

Roles of unions

  • Define
  • Roles
  • Aims
  • Further actions
  • Define shop steward
A

An organisation formed to represent and protect the rights of employees in a particular industry.


Roles -
- Unions often represent employee during new agreement negotiations

Aims -
- To get the best wages and conditions for its members without jeopardising the financial future of the business

Further actions -
If negotiations are not going well, union can recommend to its members to take industrial action

Shop steward -
locally elected union official who represents the union at the workplace as a first point of contact for employees for: representation, advice, contact, bargaining , united action.

96
Q

Role of the Fair Work Commission

  • Define
  • Roles
  • In place to (5)

Fair work ombudsman

  • Define
  • Roles in relation to determining new wages and conditions (3)
A

Australia’s national workplace relations tribunal. Its role is to assist employees and employers to maintain fair and productive workplaces. The FWC is an independent body that operates under the Fair Work Act 2009

Roles -

  • Provides a safety net of minimum conditions, including minimum wages in awards.
  • Facilitating good faith bargaining and making enterprise agreements
  • Dealing with applications in relation to unfair dismissal
  • Regulating how industrial action is taken
  • Resolving a range of workplace disputes, through conciliation, mediation and in some cases public tribunal hearings

In place to -

  1. Approve enterprise agreements
  2. Approve or disapprove industrial action
  3. Resolve disputes
  4. Provide a safety net of minimum conditions
  5. Remedy unfair dismissal

Fair work ombudsman -
Provides advice to employers and employees on pay rates and other issues regarding our Workplace relations system.

Roles in relation to determining new wages and conditions -

  • Bargain in good faith
  • Approve the agreement
  • “better off test” (ensure the agreement makes the employees better off then those who are in an award)
97
Q

10 National Employment standards (NES)

A
  1. Maximum of 38 hours of work - plus reasonable additional hours
  2. Requests for flexible working arrangements - in certain circumstances employees can request a change in their working arrangements
  3. Parental leave and related entitlements - up to 12 months unpaid leave for each employee, plus a right to request an additional 12 months unpaid leave, plus other for of maternity, paternity, and adoption-related leave
  4. Annual Leave - 4 weeks paid leave per year plus an additional week for certain shift workers
  5. Personal carers leave / compassionate leave - 10 days paid personal / carers leave, 2 days unpaid carers leave as required, 2 days compassionate leave (unpaid for casuals) as required
  6. Community service leave - Unpaid leave for voluntary emergency activities and up to 10 days of paid leave for jury service
  7. Long Service leave - a transitional entitlement for employees as outlined in an applicable pre-modernised award, pending the development of a uniform national long service leave standard
  8. Public Holidays - a paid day off on each public holiday, except where reasonably requested to work
  9. Notice of termination and redundancy pay - up to 4 weeks notice of termination and up to 16 weeks severance pay on redundancy, both based on length of service
  10. The Fair Work Information statement is available from the Fair Work Ombudsman. This must be given by employers to all new employees and outlines their rights at work.
98
Q

Industry Award

  • Define
  • Advantages and disadvantages
  • Examples
A

Provide pay rates and conditions of employment for a particular industry or occupation.

  • There are currently 122 modern awards of general application.
  • Acts a safety net as employees can not be paid under the award

Advantages -

  • Wage equality and transparency across an industry
  • Stability and predictability in negotiation process
  • Employees can be represented by people skilled in negotiations, including unions

Disadvantages -

  • Less flexible to needs of individual businesses
  • Hard to build individualised productivity incentives
  • Some strong unions can exert enormous influence
  • No incentives for local employee - employer relations

Examples -

  • Fast food industry award
  • Building and construction
99
Q

Agreements

  • Define
  • Features
  • Fair work commissions role in agreements
  • Advantages and disadvantages
A

Contracts made at a business / enterprise level between employers and employees about terms and conditions of employment.

Features -
Agreements can be tailored to meet the needs of particular businesses. An agreement must leave an employee better off overall when compared to the relevant award or awards.

Fair work commissions role -
The Fair Work commission can provide information on the process of making enterprise agreements, as well as assess and prove agreements. They can also deal with disputes that occur about the terms of agreements.

Advantages -

  • More flexible to needs of individual businesses
  • Easier to build individualised productivity incentives
  • Large incentive for good employee - employer relations

Disadvantages -

  • Less wage equality and transparency across industry
  • Less collective employee strength in bargaining
100
Q

Enterprise bargaining agreement

A

wages and conditions negotiation conducted at workplace level

101
Q

Awards and agreements similarities and differences

  • Similarities
  • Differences in awards
  • Differences in agreements
A

Similarities -

  • Both set out minimum conditions for employees
  • Both contracts are legally binding
  • Both overseen by the Fair Work Commission (FWC)
  • Both include the 10 National Employment Standards (NES)
  • Both have a dispute resolution process

Differences Awards -

  • Wages and conditions are set out by the Fair Work Commission (FWC) which covers entire industries
  • An award sets out the minimum wages and conditions
  • Awards do not reward individual productivity gains

Differences Agreements -

  • Wages and Conditions are negotiated between employees and employers at a workplace level
  • Have better wages and conditions than an award
  • Agreements reward productivity through rewards and improved conditions
102
Q

Individual contracts

A

An agreement between an employer and employee that sets out the terms and conditions of employment for an employee of the business

103
Q

Dispute

A

Industrial disagreement between employees and employers

104
Q

Forms of industrial action

A
  • Strike
  • Lockout
  • Picket lines
  • Work bans
  • Work-to-rule
  • Go-slow
105
Q

Strike

A

Withdrawal of labour by employees in pursuit of improvements in their employment

106
Q

Lockout

A

When employers refuse employees work

107
Q

Picket lines

A

Protests that take place outside the workplace - usually associated with a strike

108
Q

Work bans

A

A refusal to work overtime, handle certain products or equipment or refusal to work with particular individuals

109
Q

Work-to-rule

A

Employees refuse to perform duties that are additional to their usual work

110
Q

Go-slow

A

Employees adopt a practice that restricts, limits or delays the work performance resulting in poor productivity

111
Q

Dispute resolution

  • Purpose
  • Methods
A

Purpose -
To try and force the other part to concede (admit or agree), either in full or part

Methods -
Grievance procedure > Mediation > Conciliation > Arbitration

112
Q

Grievance procedure

  • Define
  • Benefits
  • 5 Steps
A

A formal procedure where where internal disputes can be addressed, in the workplace

Benefits -

  • Disputes resolved at workplace level
  • Clearly outlined for all employees
  • Handled in the same way - fair & equal

Steps -

  1. Employee and / or representative (shop steward) present complaint to manager
  2. Employee and / or representative (shop steward) present complaint to employer
  3. Matter is discussed with Human Resource Manager as mediator between parties
  4. Matter is referred to Fair Work Commission for dispute resolution
  5. Matter is referred for arbitration
113
Q

Mediation

  • Define
  • Benefits
A

A dispute resolution process where an independent third party aims to facilitate a resolution between disputing parties

                   or

Where an independent third party (mediator) will help the parties talk about the issue and arrive at their own agreement / resolution

Benefits -
- Come to a resolution themselves

114
Q

Conciliation

  • Define
  • Benefits
A

Where and independent third party aims to facilitate a resolution between disputing parties, however the third party can make suggestions on how to move forward

                    or

Where an independent third party will help the parties talk about the issue and make suggestions about how it can be solved

Benefits -
- If an agreement is reached, both parties have agreed to the outcome

115
Q

Arbitration

  • Define
  • Benefits
  • Disadvantages
A

Where an independent third part hears arguments from both disputing parties and makes a binding decision on the outcome

                    or

A method of industrial dispute resolution where an independent third party listens to both sides of a dispute and then makes a decision based on the arguments which is legally binding on both parties

Benefits -
- Outcome is guaranteed

Disadvantages -
Final decision is taken out of the hands of disputing parties, possibly resulting in party/ies being unhappy with the outcome

116
Q

Centralised system

  • Define
  • Years
A

One central body in control of setting wages and employment conditions of all employees in Australian workforce
1904 - 1990s

117
Q

Decentralised system

  • Define
  • Years
A

allows for contracts to be negotiated in each workplace

Late 1980s

118
Q

The relationship between operations management and business objectives

A

To make a profit by aiming to maximise effectiveness and efficiency. It is the operations manager’s role to achieve this, therefore everything to do with operations contributes to the achievement of business objectives.

119
Q

Key elements of the operations system

A
  • Inputs
  • Processes
  • Outputs
120
Q

Inputs

  • Define
  • Types of inputs
A

Resources used in the production process.

Types -

  • Raw materials
  • Component parts
  • Utilities
  • Labour
  • Capital resources
  • Entrepreneurial resources
  • Information and knowledge
  • Time
121
Q

Processes

A

Transformation of inputs into outputs, to create the end good or service

122
Q

Outputs

A

The completed good or service

The final product presented to the consumer either as goods or services

Are the end results of the business’s efforts

123
Q

Raw materials

  • Define
  • Examples in relation to making bread
A

Unprocessed resources taken directly from the environment
such as; unprocessed minerals or farm products

Examples -
Bread - water, flour, yeast

124
Q

Component parts

  • Define
  • Examples in relation to making a car
A

Processed materials usually purchased from another producer or manufacturer

Examples -
Car - windscreens, engine parts, tyres

125
Q

Utilities

  • Define
  • Examples
A

Basic services used in the production process

Examples -
Gas, water, electricity

126
Q

Labour

  • Define
  • Examples
A

Work, efforts and skills of people utilised during production

Examples -
Human resources

127
Q

Capital resources

  • Define
  • Examples
A

Human made objects that contribute to the production of finished products

Examples -
Machinery, vehicles, buildings

128
Q

Entrepreneurial resources

A

People known as entrepreneurs who posses the skills required to successfully start and manage a business

129
Q

Information and knowledge

  • Define
  • Examples
A

Specialised knowledge and skills required in order to enact the operations system and produce the final products

Examples -
Knowledge of computer programs

130
Q

Time

A

A non renewable resource, which, if wasted will add to production costs and cause productivity to fall

131
Q

Characteristics of operations management within a manufacturing business

A

Tangible outputs, that can be stored, touched and handled. Production and consumption occur separately. The product can be easily standardised and hand minimal customer contact during production

132
Q

Characteristics of operations management within a service business

A

Intangible output, that cannot be stored, however there can be records of service. More labour intensive processes, the product can be customised with the production and consumption closely linked

133
Q

Operations management

A

The management of resources and functions within a business to achieve efficient output of finished goods or services in a way that adds value to customers and creates a profit margin for the business

134
Q

Strategies to improve the efficiency and effectiveness of operations related to technological developments

A
  • Automated production lines
  • Computer aided design
  • Computer aided manufacturing
  • Website development
135
Q

Automated production lines

  • Define
  • What it is
  • Hard automation
  • Soft automation
A

Process where raw materials enter and leave with little to no human intervention.

What it is -
Its a series of workstations linked via an electric control system (ECS).

Hard automation -
Uses machines/robots built for specific purposes.

Soft automation -
Uses re-programmable machines/robots, that can produce various outputs

136
Q

Computer aided design

A

Computer program that facilitates the creation and modifications of a design. It speeds up process of product design and increases accuracy

137
Q

Computer aided manufacturing

A

Use of software to control the manufacturing process. Faster and more efficient, and allows for products to be more consistent

138
Q

Website development

A

Implementing new technology to quicken or lower production costs. Improves communication with customers and makes info readily available

139
Q

Manufacturing v Service Businesses
(differences)
- Characteristics of a manufacturing businesses
- Characteristics of a service business

A

Goods -

  • Tangible
  • Production and consumption occur separately
  • Stored as inventory
  • Can be standardised and mass produced
  • Minimal customer contact
  • Produced capital-intensive production process

Services -

  • Intangible
  • Production and consumption often occur simultaneously
  • Difficult to store
  • Can be customised to meet individual client/customer requirements
  • High degree of customer contact
  • Performed labour-intensive production process
140
Q

Strategies to improve the efficiency and effectiveness of operations related to materials

A
  • Forecasting
  • Master production schedule
  • Materials requirement planning
  • Just in time
141
Q

Forecasting

A

Prediction of future supply demands based off of historical data and seasonal fluctuations to plan for future demand

142
Q

Master production schedule

A

Statement of what business intends to produce in what quantities over a set period of time. It sets out production and breaks it into stages

143
Q

Materials requirement planning

A

Computer based inventory management system designed to assist the operations manager with scheduling and planning orders for materials. It ensures sufficient amount of supplies and minimises inventory costs

144
Q

Just in time

A

Involves small quantities of inputs being delivered more frequently for manufacturing goods as they’re needed. It reduces the need for storage and helps employees to identify wasteful practices

145
Q

Strategies to improve the efficiency and effectiveness of operations related to quality

A
  • Quality control
  • Quality assurance
  • Total quality management
146
Q

Quality

A

The degree of excellence in a good or service and its ability to satisfy the customer

147
Q

Technological developments

A

The equipment and knowledge available to assist a business to function and create products

148
Q

Quality control

A

Involves inspections at various points in the production to check for defaults. If defaults are detected there will need to be a product recall. It identifies problems early on so that they can be rectified quickly

149
Q

Quality assurance

A

Business achieves a standard quality of goods and services assessed by an independent body, set for their industry in order to receive quality assurance.

150
Q

Total quality management

  • Define
  • Aims
A

Concept whereby all staff in the business are responsible for it’s processes and outputs.

Aims-
It aims to improve performance as a whole by using continuous improvement, employee empowerment and customer focus.

151
Q

Strategies to improve the efficiency and effectiveness of operations through waste minimisation in the production process

A
  • Lean management

Focus on waste reduction, address high raw material prices, rising costs of hazardous waste treatment and disposal

152
Q

Lean management

  • Define
  • Steps
A

establishment of systems that aim to eliminate waste and inefficiencies in operations and maximise customer value

Steps -

  1. Identify what customers will pay for product
  2. Identify all steps taken in the operations system
  3. Make everyone responsible for identification of areas of waste
  4. Implement improvements
  5. Empower workers, make them responsible
  6. Partner with suppliers
153
Q

Corporate social responsibility considerations in an operations system

  • Define CSR
  • Relate to operations system
A

The commitment made by organisations to conduct their business in an ethical manner, to take responsibility for the economic, social and environmental consequences of their activities, and to be accountable to a wide range of stakeholders

In relation to operarations system -
Inputs -
prompt payment and fair negotiation, simplifying supply chains and using local suppliers and using renewable energy.

Processes -
efficient use of resources, ethical waste disposal and job rotation to motivate employees

Outputs -
Honest marketing, ethical dealings with customers and minimise packaging and make it environmentally friendly

154
Q

Global considerations in operations management

A
  • Global sourcing of inputs
  • Overseas manufacture
  • Global outsourcing
  • Supply chain management
155
Q

Global sourcing of inputs

  • Define
  • Why businesses may do this
A

Sourcing inputs from overseas countries

Why businesses may do this -

  • Makes sense if the quality is better and also cheaper.
  • Something may not be able to be manufactured or grown in the country of the business hence needing to source from elsewhere
  • Machinery and equipment may be brought over to improve productivity
156
Q

Overseas manufacture

  • Define
  • Why businesses may do this
A

Producing products internationally

Why businesses may do this -
As the costs of manufacturing in Australia is high, many businesses move their manufacturing overseas.

157
Q

Global outscoring

A

Where a business uses organisations from overseas to undertake some of the businesses functions, both manufacturing and service organisations can do this

158
Q

Supply chain management

A

Meeting consumer demands for goods and services while making the most efficient use of input and resources in both the production process and the distribution of the finished product to the customer

             or  Managing a range of suppliers from which inputs are obtained. It concerns the flow of materials from suppliers through the workplace and on to the end customer
159
Q

Globalisation

A

The process of increasing interdependence between countries.

  • It involves the increasing integration of business and economies.
  • It removes economic boundaries, which creates free international trade and movement of capital between countries

Business Management Unit 3 (1 decks)

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