What needs to be remembered Flashcards
Management by Objectives
Management by objectives involves both managers and employees collaboratively setting individual employee goals that contribute to the achievement of broader business objectives
Management by objectives and performance appraisals and employee observation advantage #1
Collaboration between manager and employees when setting objectives can foster positive workplace relations
Management by objectives and performance appraisals and employee observation advantage #2
Promotional opportunities may arise for employees who consistently achieve their objectives
Management by objectives disadvantage #1
Employees may take harmful shortcuts in their work in order to achieve their objectives
management by objectives disadvantage #2
Developing objectives that benefit both employee and business may take time
Performance appraisals
performance appraisals involve a manager assessing the performance of an employee against a set of criteria, providing feedback, and establishing plans for future improvement
performance appraisals disadvantage #1
employees may loose motivation if they receive multiple poor performance appraisals
performance appraisals disadvantage #2
This process can be time consuming as managers individually review each employee’s performance
Self-evaluation
Self-evaluation involves an employee assessing their individual performance against a set of criteria
Self-evaluation advantage #1
Employers can gain insight into the employee’s understanding of their own strengths and weaknesses and assign work accordingly
Self-evaluation advantage #2
Self-evaluation can save managers time, as employees evaluate their own performance
Self-evaluation disadvantage #1
If an employee is biased or dishonest in assessing their performance, a manager will not gain reliable information
Self-evaluation disadvantage #2
Criteria for self-evaluation process needs to be developed, and this can be time consuming for managers
Employee observation
employee observation involves a range of employees from different levels of authority assessing another employee’s performance against a set of criteria
employee observation disadvantage #1
results may be misleading as friends of employees may provide inaccurate feedback due to their relationship with the employee and therefore, the manager may receive unreliable information
employee observation disadvantage #2
The development of criteria for observers to use can be time consuming
Human resource management
HRM are individuals who coordinate the relationship between employees and management within a business
HRM role
Hire candidates with the required qualities and skills to assist the business in achieving its objectives
employer associations
employer associations are advisory bodies that assist employers in understanding and upholding their legal business obligations
employer associations role
actively make sure employers aware of any new policies, laws or regulations that must be taken into account by the business
Union
unions are organizations composed of individuals who represent and speak on behalf of employees in a particular industry to protect and improve their wages and working conditions
union role
communicate the conerns and desires of employees to employers during collective bargaining with the aim to protect and improve wages and conditions
Fair work commission
FWC is Australia’s independent workplace relations tribunal that has a range of responsibilities outlined by the fair work act
FWC role
facilitating conversations between disputing parties in a workplace to assist them in coming to a resolution, whilst offering no opinions on the dispute
Mediation
Mediation involves an impartial third party facilitating discussions between disputing parties to help each side Of the conflict reach a resolution themselves
mediation advantage #1
When parties reach decisions themselves, it promotes positive working relationships for the future
mediation advantage #2
both disputing parties have control over the final decision, meaning that they are more likely to be satisfied at the end of the resolution process
mediation disadvantage #1
mediation does not always result in a legally binding decision, meaning that parties can go back on their agreement in the future
mediation disadvantage #2
If a final decision is not reach, the mediation process can be a waste of time
arbitration
arbitration involves an independent third party hearing arguments from both disputing parties and making a legally binding decision to resolve the conflict
arbitration advantage #1
it guarantees that a final decision is made by a third party, enabling the business to move forward from the dispute
arbitration advantage #2
Employees are not coerced into agreeing to a resolution as the likelihood of a power imbalance between disputing parties is reduced
arbitration disadvantage #1
This process may harm future workplace relations if one of the disputing parties is unhappy with the final decision
arbitration disadvantage #2
Arbitration is the most expensive dispute resolution process due to the costs incurred from conducting hearings
mediation arbitration difference #1
mediation - not legally binding
arbitration - legally binding
mediation arbitration difference #2
mediation - Disputing parties have control over final decision
arbitration - independent body makes the final decision
Computer aided design
CAD is a digital software that aids the creation, modification and optimisation of a design and the design process
CAD advantage #1
customers have the flexibility to modify a design to suit their needs
CAD advantage #2
CAD software can speed up the product design process, as designs can be created and modified faster
CAD and CAm disadvantage #1
There are high initial set up costs associated with installing CAD software
CAD and CAM disadvantage #2
A business may develop a poor reputation if CAD makes employees redundant
Computer Aided Manufacturing
CAM involves the use of software that controls and directs production processes by coordinating machinery and equipment through a computer
CAM advantage #1
improved accuracy allows for high-quality products to be consistently produced, which can improve the business’s reputation
CAM advantage #2
CAM software can speed up the manufacturing process as machinery does not have to be manually reset by humans
Forecasting
Forecasting is a materials planning tool that predicts customer demand for an upcoming period using past data and market trends
Forecasting and MPS and MRP and JIT advantage #1
prevents excessive ordering of materials that may go wasted if unneeded, improving the business’s sustainable reputation
Forecasting and JIT advantage #2
Can reduce cost of storage as it prevents the need for a large space to store materials
Forecasting disadvantage #1
Quantity of materials ordered may be incorrect as historical data and market trends may not reflect future demand
Forecasting disadvantage #2
Business may need to hire forecasting specialists which increases training and wages costs
Master Production schedule
MPS is a plan that outlines what a business intends to produce, in specific quantities, within a set period of time
MPS advantage #2
By determining production targets, businesses are more likely to meet customer demand, which increases sales and hence net profit figures
MPS and MRP disadvantage #1
It can be time consuming to map out details of production
MPS and MRP disadvantage #2
Implementing and maintaining this plan can be expensive
Materials requirement planning
MRP is a process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule
MRP advantage #2
Accurate ordering of quantities of materials required avoids excess storage and therefore reduces associated expenses
Just in Time
JIT is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production
JIT disadvantage #1
If suppliers are unreliable and fail to deliver the correct materials at the right time, production may be brought to a halt
JIT disadvantage #2
Discounts from bulk buying supplies is reduced
Pull
Pull is a lean management strategy that involves a customer determining the number of products a business should produce for sales
One-piece-flow
One-piece-flow is a lean management strategy that involves processing a product individually through a stage of production and passing it onto the next stage of production before processing the next product, continuing this process throughout all stages of production
Takt
Takt is a lean management strategy that involves synchronising the steps of a business’s operation system to meet customer demand
Zero defect
Zero defects is lean management strategy that involves a business preventing errors from occurring in the operations system by ensuring there is an ongoing attitude of maintaining a high standard of quality for the final output
Lean management advantage #1
A business can improve its reputation as it is actively reducing and managing waste, which benefits the environment
Lean management advantage #2
Reduces overall use of materials, which leads to fewer production costs
Lean management disadvantage #1
Employees may be reluctant to commit to an attitude of zero defects due to the effort and commitment required
Lean management disadvantage #2
IT may be overwhelming for employees to implement lean management as there is a goal for constant improvement
CSR consideration for inputs
Sourcing inputs locally, rather than from overseas suppliers, to reduce transport emissions and minimise the business’s carbon footprint
CSR consideration for processes
Using technology that performs tasks in a precise and consistent manner to reduce the amount of defective products discarded in production
CSR consideration for outputs
providing clear labelling on a product about appropriate methods of disposal
Importance of leadership in change management
Leadership in change management is the ability to positively influence and motivate employees towards achieving business objectives during a transformation
Strong leadership example #1
Shared Vision: where they act to inspire employees and inform them of the reasons and benefits of change, as well as the consequences of not changing
Strategy to develop OCC
Policies (publishing an employee code of conduct) - outlines the business’s expectations of its employees as representatives of itself and what they stand for. If this is synonymous amongst all employees, this can help contribute towards the business’s official corporate culture as it reflects positive practices.
Strategy to develop RCC
Business rituals (organising regular celebrations of employee contributions to the business) - this unifies the business’s employees by creating regular opportunities for recognising high standards, and positively reinforcing high work ethics.
Senge’s learning organisation
Senge’s learning organisation is an organisation that facilitates the growth of its members and continuously transform itself to adapt to changing environments
Senge’s learning organisation #1
Systems thinking: a management approach that considers the interrelationship between all sectors of the business
Senge’s learning organisation #2
Mental models: the existing assumptions and generalizations that must be challenged so that learning and transformation can occur in an organisation
Senge’s learning organisation #3
Shared vision: an aspirational description of what an organisation and its members would like to achieve
Senge’s learning organisation #4
Personal mastery: the discipline of personal growth and learning, aligned with one’s values and purpose
Senge’s learning organisation #5
Team learning: the collective learning that occurs when teams share experience, insights, knowledge and skills to improve practices
management skills
planning, delegation, decision-making, leadership, interpersonal, communication
