UNIT 3 AOS 1 Flashcards
1
Q
Types of Businesses
A
- sole traders
- partnerships
- private limited companies
- public listed companies
- social enterprises
- government business enterprises
2
Q
Define Sole Traders
A
A sole trader is a business structure owned and operated by the single proprietor with the aim of making a profit, and is entitled to keep profit after personal tax and expenses but has unlimited liability over the business
3
Q
What are owners of a private limited company refereed as?
A
Owners of private limited companies own shares in the business are referred to as shareholders
4
Q
What are the pros and cons of Sole Traders?
A
Pros-
- simplest and most cost-effective
- owned and operated by a single person which reduces arguing over differing perspectives
- unincorporated and therefore keeps all profit after personal tax and does not pay company tax.
Cons-
- owned and operated by a single person which can cause an overload of work for a single individual
- unlimited liability for all business debts and may lose personal assets to pay off debt
5
Q
Define Partnership Business
A
A partnership is a type of business owned by two to 20 owners who divide profits and responsibilities within the business.
6
Q
What are the Pros and Cons of a Partnership
A
Pros:
- simple and cost-effective
- Responsibilities and profits are shared between owners
Cons:
- Disputes can occur due to differing views and opinions
- Partners are responsible for funding the business and have unlimited liability for all business debts.
- Individual partners must also pay personal income tax on their share of the profits.
7
Q
Define Private Limited company
A
is an incorporated business with at least one director and up to 50 selected shareholders. A private limited company is considered a separate legal entity to the owners.
8
Q
Reasons for the popularity of Private limited companies
A
These companies are popular for expanding sole traders and partnerships while gaining protection from creating a separate legal entity and limiting their liability for debts incurred by businesses
9
Q
What are some restrictions on Private limited companies?
A
- Shareholders- the company has a minimum of two shares and is restricted to a maximum of 50 shareholders
- Shares- can only be traded with the permission of other shareholders, which must be given before transaction takes place.
10
Q
Small vs Large Private limited Companies
A
Small vs Large Private limited Companies
11
Q
What are the pros and cons of a Private limited company
A
Pros:
1. Larger private companies can have a board made up of different individuals that have different skills, experiences which can boost management capabilities and help growth.
2. shareholders have limited liability
3. separate legal entities
4 existence is not threatened by loss of director (has perpetuity)
Cons:
- higher degree of complexity
- higher establishment cost
- higher government control and reporting requirements
- additional compliance costs
12
Q
Define Public listed companies
A
is an incorporated business that can sell shares in an open market to an unlimited number of shareholders on the ASX (Australian Securties Exchange).
13
Q
What are the pros and cons pf public listed companies?
A
Pros:
- Limited liability
- Able to gain extra capital through selling extra shares
- Separate legal entity
- Existence is not threatened by death or removal of director or shareholder (has perpetuity)
Cons:
- Highly complex structure
- High establishment costs
- Needs more accountability and compliance paperwork
- Additional compliance costs
14
Q
Define Social enterprise
A
A type of business that uses strategies to maximize improvements in human well being or the environment. there two main goals are to achieve social, cultural, community or environmental outcomes and earn revenue. They are run like businesses but redirect surplus towards social or environmental goals
15
Q
Define government business enterprises
A
is a profit-driven business that is owned by but managed separately from the government. GBE is accountable to the government and the public and has to fulfill a specific purpose outlined by the government while remaining profitable. This is often a large scale public service that aims to cater to essential public needs.
16
Q
Define the business objective: Make a profit
A
Is a business objective where profit is essential for any business to survive and grow. By generating more revenue than expenses, a business earns a profit which can then be distributed to owners and
shareholders. Profits can also be reinvested into the business to grow the business.
17
Q
Define the business objective: Increase market share
A
Market share is a business’s percentage of total sales within an industry. The business objective of increasing market share is typically to become more competitive within an industry to help increase profits and other objectives. To increase market share a business may encounter a loss such as reducing share price in order for long term gain such as acquiring new and loyal customers
18
Q
Define the business objective: Meet shareholder expectations
A
Shareholders are people who have invested a sum of their own money into a business by purchasing company shares. As they are part owners of a business, shareholders expect a return on their investment. Therefore, shareholders either expect an income from the business in the form of dividends or they hope to sell their shares at a higher price in the future after the business has grown. By meeting these expectations the company can maintain shareholders, gain shareholders and develop a positive reputation for future shareholders.
19
Q
Define the business objective: Fulfil market need and benefits
A
A business fulfills a market need by providing products and services which meet the desires of a group of customers with similar needs. By fulfilling a market need it can attract more sales and generate revenue from customers. As the customer needs are met a business can then develop a loyal customer base that generates consistent income and helps a business make a profit
20
Q
Define the business objective: Fulfil social need and benefits
A
A business fulfills a social need by improving the community and environment through its business activities. Fulfilling a social need often improves businesses’ reputations which can increase sales and therefore market share.
Additionally, as environmentally sustainable supplies usually last longer compared to unsustainable ones, a business can reduce how many supplies they use. Using fewer supplies can also increase a business’s profit by reducing expenses in the long term.
21
Q
Define Stakeholders
A
are individuals or groups that have a vested interest in the performance and activities of a business.
22
Q
Define Internal stakeholders
A
are groups who have a direct financial share or are employed by the business including owners, the board of directors, investors, shareholders, and employees.
23
Q
Define External stakeholders
A
are groups that are outside the business but are concerned or affected by its activities including customers, suppliers and the general community
24
Q
Owners/Shareholders as internal stakeholders, their role within the business and there a vested interest
A
Invest funds into a business where there invested interest is a return on there investments whether from profits, dividends or increase in share price, whilst creating and maintaining a positive impact on stakeholders.
25
Managers as internal stakeholders, their role within the business and there a vested interest
Coordinate employs and tasks to achieve business objectives where there invested interest is pay that matches the responsibility of managing a business, status, and recognition for work achievements, opportunities for career development.
26
Employees as internal stakeholders, their role within the business and there a vested interest
Complete business work tasks where there invested interest is fair pay and work expectations, opportunities for professional development and promotion and also long term job security
27
Customers as external stakeholders, their role and vested interest
Purchase and use a business's products or services with vested interest in receiving a product or service that is of quality and value for money
28
define vested interest
is a strong connection to a business that can lead to personal gain or benefit.
29
Suppliers as external stakeholders, their role and vested interest
Provide raw materials and resources with the invested interest in producing a profit through providing supplies and to maintain or increase revenue and establishing a long duration relationship with business.
30
General community as external stakeholders, their role and vested interest
Observe the impacts of the business operations with invested value on the effects and improvements on the community and environment such as the benefits from the employment opportunities created
by the business
31
Stakeholder conflicts through different invested interests examples
Manager: wants increased salaries for achieving business objectives. vs Owner/shareholder: wants to reduce managers' salaries to increase profits
Manager: wants to reduce employee wages to increase profits. vs Employee: wants increased wages and improved working conditions for completing tasks
Manager: wants to increase prices to increase profits vs Customer
wants quality products for lower prices
Manager: wants to automate production to reduce reliance on employee labor vs General community: wants increased employment rates to boost the local economy
Customer: wants quality products or services quickly at the lowest possible price. vs General community: wants high employment rates, high wages, and sustainable practices to be implemented by businesses.
Employee: wants to work for a business that uses ethical suppliers. vs Supplier: may use unethical methods to reduce
costs and increase profits.
32
Define Corporate social responsibility (CRS)
Is the ethical conduct of a business beyond legal obligations to improve the social, economic and environmental outcomes of stakeholders.
33
Examples of internal Stakeholders their legal obligations and CSR considerations:
Manager/Employees:
Legal obligations: being paid minimum wage, safe working conditions, hire and promote without discrimination.
CSR considerations: Provide flexible working shifts, provide work from home options.
34
Customer as external Stakeholders their legal obligations and CSR considerations
Customer:
Legal obligations: provide goods and services as described in promotions and packaging, honor returns and refunds.
CSR considerations: Ethical or green marketing that encourages sustainable purchasing, provide customers options that contribute to community or environment.
35
Suppliers as external Stakeholders their legal obligations and CSR considerations
Supplier:
Legal obligations: Meet all supplier agreements including payment, delivery, schedules and other terms and conditions.
CSR considerations: Provide reasonable delivery schedules and fair payment for supplies
36
General community as external Stakeholders their legal obligations and CSR considerations
General community:
Legal obligations: Waste is disposed of properly and in a timely manner.
CSR considerations: boost the local economy through local hiring, reduce or recycle waste, use renewable energy sources, donate to charitable organizations.
37
Advantages and disadvantages of CSR considerations for a business and its employee
A business can benefit from CSR as practices improve reputation and therefore may lead to increase sales. Employees also benefit from corporate social responsibility through employee satisfaction.
38
Advantages and disadvantaged of CSR considerations regarding time and money
Time: Sustainable supplies last longer compared to unsustainable supplies, reducing the time needed to source supplies repeatedly
Cons: can be time-consuming to practice CSR for multiple stakeholders at a time.
Money: CSR practices can lower costs of operations in the long term
Cons: CSR practices can be more expensive in the short term.
39
Define operations as an area of management and how it helps achieve business objectives.
Operations management is coordinating and organising the activities involved in producing the goods or services that a business sells to customers.
This area of operations can help achieve business objectives through producing a product or service for a business to sell to its customers therefore holds a significance important in a business.
*** add more
40
Operations management activities vs corresponding to CSR
Establish the facilities, machinery, and equipment required for the production of goods or services
vs using renewable energy sources or energy-efficient machinery and equipment in production to reduce emissions and benefit the environment.
Source the raw materials and resources required for
production vs sourcing from suppliers that provide fair pay and working conditions for employees to maintain satisfaction and source sustainable materials.
Manufacture products or deliver a service vs the waste is reduced or recycled during operations
41
Define human resources as an area of management and how it helps achieve business objectives.
Establishes and manages the relationship the business has with its employees, including their hiring, training and termination.
It helps a business achieve its objectives by providing all the other areas of management with employees they require. Human resources management ensures all employees have relevant skills and experience to complete work tasks and also manage the pay and support of employees. If employees are treated well they can feel motivated and increase performance which in turn can contribute to making a profit and achieve business objectives.
42
Human resource management and corresponding to CSR
Recruit and hire employees vs hiring local workers to decrease local unemployment rates and Provide internship placements community members.
Train employees vs to practice waste-reducing methods and Improve the employability through increasing their skills and experiences
Support employees vs provide flexible working hours, provide additional workplace facilities and provide employees the time to volunteer for social and environmental causes.
Terminate employees vs Providing support for employees to find further employment such as resume building or interview skills and reassign employees to other parts of the business if their previous roles are no longer required
43
Define Sales and marketing as an area of management and achieving business objectives
Promotes and sells the business's goods or services to customers.
Which contributes to business objectives by encouraging customers to purchase the business's goods or services. Attracting customers and increasing sales contributes to business objectives such as meeting shareholder expectations, as more sales can increase the business's value.
44
Sales and marketing management and corresponding to CSR
Promote the goods or services through digital television, radio or print media. vs Encourageing customers to only purchase goods or services they require. To encourage customers to purchase goods or services that use sustainable materials and provide customers with sustainable packaging or reusable bags.
Determine the purchase options for a
good or service. vs Providing options that allow customers to positively contribute to the general community or the environment.
- Reusable plastic bags at supermarkets.
- BYO packaging
Determine locations and distribution
methods for goods or services. vs Reducing the amount of packaging in the distribution process
45
Define Finance as an area of management and achieving business objectives
handles the monetary requirements of a business, contributes to business objectives by raising funds, budgeting and preparing reports of all financial matters. Therefore, the area of finance would directly affect the funding of all other areas of management that enables these areas to contribute to business objectives.
46
Finace management and corresponding to CSR
Raise funds for the business to operate or grow. vs Obtaining loans from banks that operate ethically
Allocate funds to different areas of management. Provide funds for CSR initiatives such as:
- Purchasing energy-efficient machinery or equipment.
- Research and development for sustainable products
and processes.
Monitor the revenue and expenses of a business to ensure the business is making a profit. vs Donating a portion of profits to a local charitable organization.
Produce financial reports in accordance with relevant rules and regulations. vs produce honest financial statements
47
Define Technology support as an area of management and achieving business objectives.
Installs equipment, machinery, and devices within a business and provides assistance for employees for any technical issues.
Provides the business with the smooth functioning of all equipment and devices whilst helping achieve business objectives as effective functioning and use of technology can help maximize achievement of business objectives.
48
Technology operations and corresponding to CSR
Installs and maintains equipment and machinery. vs Installing energy-efficient equipment or machinery.
Provides assistance to employees with issues with equipment and machinery vs Reduceing the use of paper in the workplace by encouraging digital
communication.
Ensure all business information is protected and secure vs Avoid exploitation of customer data for marketing purposes
49
autocratic management style
is a manager making decisions and directing employees without any input from them this allows a manager to retain centralized control over business decisions.
50
Business pros and cons: Autocratic management
Pros: Management has full control over decisions
Cons:
- no contribution from employees as management control decisions.
- Business can not benefit from the ideas of employees
51
Define centralized control
is one person having concentrated authority to make decisions.
52
Decentralized control
is multiple people having the authority to make business decisions.
53
Employee pros and cons: Autocratic style
Pros:
- Employees have less responsibility and risk as they only have to follow the manager's instructions.
Cons:
- Employee growth may be limited as there are
no opportunities for contribution.
- Employee motivation can be low as an inability to participate in decisions which can make them feel undervalued
- Employees may be more likely to leave their job due to ongoing low motivation.
54
Time pros and cons: Autrocatic style
```
Pros:
- Decision making can be quick as there
is no discussion or consultation with
employees.
- Work tasks can be completed quickly
as directions are clear and employee
compliance is immediate
```
Cons:
- none stated
55
Money pros and cons: Autocratic management
Pros:
- Production can occur quickly due to quick decision making which results in higher outputs and potentially increased sales.
Cons:
- The cost of replacing employees who may have left due to low motivation can be high. Employees may feel unmotivated as they are not included within business decisions and therefore not feel involved within the company which can reduce motivation.
56
Define persuasive management style
is where a manager makes the decisions and communicates/briefs them of the reasons the decisions were made to the employees without their input.
Informing employees of decisions while justifying why these decisions were made helps establish credibility and trust among the employees.
57
Business pros and cons: Persuasive management
Pros:
- Management has full control and may gain employee's trust and support by explaining the reasons for decisions
Cons:
- All solutions generally come from the
manager, as there is no contribution from
employees.
-Business can not benefit from the ideas of
an employee as they are not acknowledged
58
Employee Pros and Cons: Persuasive management
Pros:
- Employees have less responsibility and risk
as they only have to follow the manager's
instructions.
- Employees may feel like they are being
considered and involved when the benefits of management
decisions are explained to them.
Cons:
- Employee growth may be limited as there are no opportunities for contribution.
- Employee motivation may decrease as they can feel undervalued from being excluded from decision making.
- Employees may take more sick leave days and become more likely to leave their job due to ongoing low motivation.
59
Time Pros and Cons: Persuasive management
Pros:
-Decision making may be quick as there is no
discussion or consultation with employees.
- Work tasks can be completed quickly as
directions are clear and employee compliance
is immediate.
Cons:
- The manager has to take some time to
explain business decisions to employees
60
Money pros and cons: Persuasive management
Pros:
- Production can occur quickly due to quick
decision making which results in higher
outputs and potentially increased sales.
Cons:
- The cost of replacing employees who
may have left due to low motivation can
be high.
61
Define consultative management style
Where a manager seeking input from employees on business decisions but makes the final decision themselves. This allows the communication and involvement of employees and manager/s and also allows for employees to give feedback and be involved in the functioning of the business. However consultative managers still have centralized control over decisions.
62
Business Pros and Cons: Consultative management
Pros:
- Management can gain a variety of ideas from the suggestions of employees which can lead to better decision making outcomes.
Cons:
- Employees may make suggestions that are not suitable due to a lack of knowledge and experience of the complexity of a business situation.
63
Employee Pros and Cons: Consultative Management
Pros:
- May have increased motivation because
they can contribute to decision making
and therefore feel valued by the business.
Cons:
- Potential for employee conflict, resentment
or feelings of being undervalued if ideas
are ignored or overlooked during decision
making
64
Time Pros and Cons: Consulative management
Pros:
- None stated
Cons:
- Decision making may be slower as the
the manager consults employees for their input
65
Money Pros and Cons: Consultative management
Pros:
- Potential for increased sales and profit
as the quality of decisions and outcomes
may be improved from employee input.
Cons:
- None stated
66
Define participative management style
is a manager communicating and discussing information with employees in order to make decisions together. This encourages managers and employees to share information and the role of decision making. This allows for business decisions to be made collectively and therefore managers have decentralized control over decisions as both managers and employees agree on the business action.
67
Business Pros and Cons: Participative Management
Pros:
- May improve quality of decisions from
using various perspectives of managers and
employees.
-Can improve the relationship between
management and employees due to sharing
experiences and ideas.
Cons:
- Accommodating multiple views may
result in a compromise that decreases
the quality of decisions.
- Manager may lose some control as
employees now have decision making
power as well.
68
Employee Pros and Cons: Participative management
Pros:
- Employee motivation and productivity may
increase due to participation in decision making.
- Employees feel highly valued and can develop a
sense of ownership over decisions and meeting
business objectives.
- Potential for highly positive and supportive
work environments.
-Employee growth may increase due to more
opportunities to acquire new skills and
experiences.
Cons:
- Potential for conflict between
employees when there is disagreement
between shared views and opinions.
- Some employees prefer to follow
instructions and may not be
comfortable contributing ideas.
69
Money Pros and Cons: Participative management
Pros:
- Potential for increased sales and profit as the
quality of decisions and outcomes are improved
with manager and employee collaboration
Cons:
- None stated
70
Time Pros and Cons: Participative management
Pros:
- none stated
Cons:
-Decisions can take a long time as a
consensus between everyone has to be
reached.
71
Define laissez-faire management style
is a manager communicating business objectives to employees and allowing them to make decisions independently. Where the manager listens to the employees and their feedback on how business objectives can be achieved. Generally Employees are given the responsibility of making decisions that aim to achieve business objectives.
72
Business Pros and Cons: Laissez-Faire management
Pros:
- Creates an environment that can
encourage creative and innovative
solutions.
Cons:
- Accommodating multiple views may result in
a compromise that decreases the quality of
decisions.
-A manager may lose some control as employees
now have decision-making power as well.
73
Employee Pros and Cons: Laissez-Faire Management
```
Pros:
- May have increased motivation and
productivity due to a highly independent
work environment, high levels of trust
and empowerment.
```
- Can increase opportunities for employee
growth that are either coached or self directed
Cons:
- Potential for conflict when employees do not
cooperate and insist on implementing their
own ideas.
74
Time Pros and Cons: Laissez-faire Management
Pros:
- None stated
Cons:
- Potential for employees to spend large
amounts of time on discussions regarding
decision making.
75
Money Pros and Cons: Laissez-faire Management
```
Pros:
- Potential for increased sales and profit
as the quality of decisions and outcomes
are improved through highly innovative
solutions.
```
Cons:
- Potential for employees to allocate excessive
resources to business decisions.
76
Management style choice: Time
autocratic or persuasive management styles allow decisions to be made quickly as managers do not need to discuss or reach a consensus with employees. Work activities or solutions can be completed quickly through one-way instructions.
Whereas for extended periods of time available for a task allow the use of management styles, such as consultative, participative or laissez-faire, which have two-way communication and shared decision-making can help make beneficial decisions.
77
Management style choice: Experience of employees
Inexperienced employees who may not have relevant knowledge or experience in the business will benefit from an autocratic or persuasive style where the manager holds centralized control to help make potentially the best decisions for the business.
Whereas for more experienced or highly experienced employees managers may use 2 way communication or decentralized control type style of management to make the best decisions possible.
78
Management style choice: Nature of tasks
simple tasks can be completed sufficiently with one way communication styles where it can be completed easily. More complex tasks may be beneficial through the help of employees where they can help enhance decisions and potential outcomes of the business.
79
Management style choice: Manager Preference
A manager with a higher desire for control would prefer centralized decision making and one-way communication to complete work activities quickly with minimal disruption from employees. Conversely, a manager with a lower desire for control would benefit from management styles with employees playing a part in the decision-making process.
80
Planning and how this skill can be applied:
Planning is the manager's ability to establish objectives and strategies to achieve them.
Planning is crucial to business success as it helps a manager identify a goal or business objective. The manager then develops policies and procedures to help achieve the goal. Planning ensures that the business is able to run as smoothly as possible. Failing to plan can cause managers to have insufficient information on business decisions and then use less effective strategies.
Planning can be applied through:
• setting business objectives.
• outlining strategies that can achieve those objectives.
• searching for further information to identify alternative options.
• organising resources required to execute the strategies.
81
Define decision-making and how this skill can be applied
Decision-making is the manager's ability to determine a suitable course of action for the business from a range of alternatives.
Decision making can be applied through:
• considering relevant information.
• evaluating the advantages and disadvantages of each option.
• determining an appropriate choice that will achieve the business's objectives
82
Define communicating and how this skill can be applied
Communicating is the manager's ability to clearly exchange information with employees and relevant stakeholders.
Managers must be receptive and understanding to employees' questions and information, in order to help the business, run smoothly.
Communicating can be applied through:
• conveying desired objectives to employees.
• sharing relevant business decisions to employees.
• provide constructive feedback to employees.
• listening to employees' updates and ideas.
83
Define delegating and how this skill can be applied:
Delegating is the manager transferring authority and responsibility to employees for business tasks.
Business objectives can be achieved in a shorter period of time and even at a higher quality by spreading tasks across more people.
Delegating can be applied through:
• selecting an appropriate employee for a specific business task.
• providing clear objectives for the employees to achieve.
• giving ownership of the task to the selected employee.
84
Define Interpersonal and how this skill can be applied
Interpersonal skills is the manager's ability to interact positively with employees to create and maintain professional relationships.
By creating relationships with employees they may be more
motivated to achieve business objectives if their managers are relatable, supportive and make an effort to understand them individually.
Interpersonal as a skill can be applied through:
• praising and thanking employees.
• getting to know employees' backgrounds and personalities.
• recognizing an individual employee's motivations.
85
What are the 6 management skills?
- delegating
- communicating
- interpersonal
- planing
- leading
- decision making
86
What are the 5 management styles?
- autocratic
- persuasive
- consultative
- participative
- laisse-faire
87
Define leading and how this skill can be applied:
Leading is the manager's ability to motivate employees to work towards business objectives.
Employees are more likely to be motivated towards completing work tasks when they understand that it contributes to a wider business vision. Employees can be inspired when a manager leads by example, making them more likely to work towards the vision of the
business.
Leading can be applied through:
• Sharing the business vision with employees.
• creating a positive corporate culture that integrates the business's philosophy.
• practising the behaviours they want their employees to adopt.
88
Relevant management skills for the autocratic management style:
Planning: Only the manager can set objectives, choose strategies and organize required resources.
Decision-making: The manager must consider all alternatives and choose the appropriate course of action since they make all business
decisions.
Communication: Used to clearly deliver information, instructions and provide feedback to employees but one-way communication means the skill is not used to receive any information from employees.
Delegating: Used to assign tasks to different employees. Choosing the most appropriate employee is not as important
under this management style as tasks are usually simple or for
inexperienced employees.
Interpersonal: Employees are expected to implement decisions made by the manager which reduces the need for interpersonal
relationships.
Leading: Leading is less important as employees are expected to
implement the decisions made by the manager.
89
Relevant management skills for the persuasive management style
Planning: Only the manager can set objectives, choose strategies and organizes required resources.
Decision-making: The manager must consider all alternatives and choose the appropriate course of action since they make all
business decisions.
Communication: Used to clearly deliver information, instructions and provide feedback to employees and explain business decisions but only one way communication as they do not receive any information from employees..
Delegating: Used to assign tasks to different employees based on
their skills.
Interpersonal • Can be helpful in maintaining an employee's desire to continue working for the manager and can develop through explaining business decisions.
Leading: Can be helpful for employees to understand the purpose of
the work. Leading is less important as employees are expected to
implement the decisions made by the manager.
90
Relevant management skills for the consultative management style
Planning: Only the manager can set objectives, choose strategies and
organise required resources.
Decision-making: The manager must consider all alternatives and choose the appropriate course of action since they make all business
decisions.
Communication: Used to deliver information, instructions and provide feedback to employees. Also used to receive and respond to ideas or feedback from employees.
Delegating: Used to assign tasks to different employees based on their skills and preferences.
Interpersonal: Developing a positive relationship with employees can improve the quality of an employee's contributions to business decisions.
Leading: Motivating employees towards the business's vision can improve the quality of employee's contributions to business decisions.
91
Relevant management skills for the participative management style
Planning: Plans are made by groups which allows planning responsibilities to be shared between the manager and employees.
Decision-making: Decisions are made by all members of the group, reducing the importance of this skill on the manager.
Communication: Used to share and discuss information with employees to make business decisions together and used to receive and respond to ideas or feedback from employees.
Delegating: Decisions on the allocation of tasks may be made collectively by managers and employees.
Interpersonal: Productive and positive relationships can directly affect the quality of group discussions and decisions.
Leading: Decisions made by the group are more likely to achieve objectives if employees are genuinely motivated by the business's purpose and there is respect for the manager
92
Relevant management skills for the laissez-faire management style
Planning: Strategies most likely determined by employees.
Decision-making: Most business decisions are made by employees. Decision-making required on selecting appropriate employee
for business tasks.
Communication:Used to clearly outline the business's vision to employees. Used to be kept up to date on the progress of objectives. Used to listen to requests from employees for additional
support required to achieve business objectives.
Delegating: Used to select appropriate employees to take ownership of different areas of the business.
Interpersonal: Manager may have limited contact with employees.
Leading. A clear business purpose and respect for the manager directly affects the quality of business decisions made by employees to, achieve business objectives.
93
Corporate culture
is the shared values and behaviors practiced by managers and employees within a business.
94
Official corporate culture
is the shared values and beliefs desired by a business and expressed through elements such as formal rules and symbols.
95
Real corporate culture
is the shared values and behaviors that are practiced by employees and managers and expressed through informal rules and habits.
96
The strategies of official corporate culture and intended effect: Shared objective
Having a vision or mission statement which shows the business focus and objectives has the intended effect of showing a business's purpose, values and beliefs and gives employees a shared goal.
97
The strategies of official corporate culture and intended effect: Policies
A business policy and procedure documents have the intended effect to develop consistent behaviors and expectations among employees through written rules, regulations and processes.
98
The strategies of official corporate culture and intended effect: Training
Scheduled training programs have the intended effect to improve and develop employees' skills as they act, behave and work in a particular way.
99
The strategies of official corporate culture and intended effect: Symbols
Business name, logos, slogans have the intended effect to help employees and customers identify the business.
100
The strategies of official corporate culture and intended effect: Uniform
Compulsory uniform for employees with the intended effect to clearly identify employees and help show a professional image.
101
Strategies and indicators of real corporate culture: Hiring
Hire employees with similar views and beliefs that support corporate culture and high external employees with the intended effect of building a group of employees that match corporate culture and also introduce to ideas and skills to business
102
Strategies and indicators of real corporate culture: Promotion criteria
Promotions are made based on performance and promote internally (staff) rather than externally which has the intended effect of encouraging employee growth, experience, performance and also loyalty to the business.
103
Strategies and indicators of real corporate culture: Management style
Management styles such as autocratic, persuasive, consultative, participative and lassez-faire all have the intended effect to help complete work tasks quicker, promote employee involvement, independence and creativity within the workplace. Thus develops real corporate culture within the buisness
104
Strategies and indicators of real corporate culture: Work layout
Collaborative and closed offices with the intended effect to promote teamwork and collaboration between employees and also work individually. Which can suit individual employees to work at a high-performance level.
105
Strategies and indicators of real corporate culture: Rituals (regular work practices)
Regular work meetings and social gatherings with the intended effect to help build relationships which inturn can increase work relationships
106
Strategies and indicators of real corporate culture: Dress code
Business attire and/or Casual wear that helps show a professional image and promotes formal interactions between employees and with casual wear can shows a relaxed image and promotes creativity and diversity.
107
Strategies and indicators of real corporate culture: Celebrations
Employee of the month awards, rewards for specific achievements with the intended effect to award high performance which can increase the employee or other employees to increase performance and can also promote loyalty.
