Business Management 2019 Exam Bible

Disadvantages of JIT

Hugely reliant on suppliers to deliver on time, all of the time. If this fails, it very quickly shuts down the whole production line.

How can Maslow's Motivate

Identify where an employee is on the hierarchy and then provide strategies to move them up to the higher order needs A range of strategies need to be used at any one time

Materials Requirement Planning (MRP)

Is an inventory control system that provides an intemised list of materials needed to produce specific forecasts or orders. The MPS outlines what is to be produced, in what quantities and when. The MRP will then be used to determine the exact materials to meet the MPS.

Employer Associations

Is an organisation that provides advice and support to member organisations to help them better understand their obligations in the workplace, as well as provide more generic assistance in their dealing with stakeholders more generally.

Government Business Enterprise

Is owned by the government but runs as a commercial business that seeks to make a profit, while delivering essential community services

Change in management styles or management skills

Management styles are the way in which a manager makes decisions and communicates with employees. This can increase morale and productivity.

Step 3

Manager is to work on an action plan to overcome or neutralise the restraining forces and promote the driving forces

Management by Objectives

Manager sets specific objectives collaboratively with an employee, with feedback given on progress toward them. This allows the manager to align individual goals with business objectives.

Managers

Managers are employees holding some form of responsibility within a business

Managers

Managers are employees holding some form of responsibility within the business. They can set goals and ways to achieve them.

Differences of Manufacturer

Manufacturing is tangible, Goods can be stored, production and consumption rarely linked, customer does not need to be present during production. Often more capital/machine intensive.

Positives for the General Community

Successful businesses are more likely to employ more workers reducing the unemployment rates, boosting social wellbeing. Successful businesses generate more company tax which benefits the community.

Positives for Suppliers

Suppliers may gain additional contracts or volume order from the host business as they become more successful

Inventory

Supplies that are unused or discarded or idle supplies.

Advantages of Support

Support is immediate and ongoing, can reduce absenteeism and staff turnover.

Supply Chain Management

The flow of supplies from point of origin, through the management of the operations system all the way to the end consumer.

Self Actualisation

The top level of Maslow's hierarchy and is where employees are motivated to achieve their best and achieve their full potential. The business can provide opportunities of for career advancement and challenging work.

Communicating

The transfer of information form sender to receiver and the ability to listen to feedback

Communication

The transfer of information from sender to receiver.

Redeployment of Resources

The transfer of resources from one place to another so they can be used more effectively and efficiently. This means that a business is able to extract more value or output from these resources.

Locke and Latham's Goal Setting Theory

Theory which states that employees will be motivated to achieve goals that are specific and challenging but not overwhelming that are in line with the business goals

Niche Market Advantages

Uses differentiation strategy which builds brand and customer loyalty. Can allow a business to charge premium price and gain higher profits. Allows the business to market its uniqueness.

Reactive Change

Where a business is impacted by the business environments and is forced to change in order to protect or preserve their position in the market

Support

Where a business provides individual assistance and services designed to help employees cope with problems which negatively effect their work and lives.

Porter's Differentiation Strategy

Where a business seeks to be unique in its industry in some way that it is valued by consumers.

Global Outsourcing

Where a business uses organisations from around the world to undertake some of the business functions.

Automated Production Lines

Where a series of machines and workstations are arranged in sequence to perform tasks automatically, with little to no employee involvement.

Shared Vision

Where all the people within a business are inspired to achieve its future goals. This helps empower all employees to learn and excel because they want to not because they are told to do so. It is imperative that the vision empowers employees and fosters a genuine commitment rather than a simple compliance to the cause.

Resignation

Where an employee decides to leave the business

Performance Related Pay

Where an employee's pay is tied to their performance within a business. Often the employee will be given pre-arranged objectives of performance targets they need to hit on order to increase the money they earn.

Mediation

Where and independent third party will aim to facilitate a conversation between the two disputing parties. A solution would not be legally binding.

Empowerment

Where employees are given the power or authority to be involved in the change.

Acquire

Where employees are motivated to acquire both material goods and status. Managers can set up recognition and rewards programs that help employees to work towards their goal of acquiring more material possessions and enhancing their status in life. However this can become an expensive drive for the business to satisfy

Just it Time (JIT)

Where materials are delivered just as they are needed in the production process.

Investment in Training

Where the business denotes resources to the process of enhancing the skills and knowledge of their employees. This enables the employees to improve their abilities and perform their job at a higher level.

Systems Thinking

Where the business has information systems that evaluates the business as a whole, rather than separate parts. It allows individuals to understand the interrelationships between different parts of the business. This will enable them to make better decisions that will have a positive impact on the business.

Improving Quality

Where the business looks to enhance its processes so that the products are produced to a higher standard.

Manipulation

Where the business or change agent will use covert tactics to influence employees.

How does Finance achieve Business Objectives?

Will achieve objectives related to profit, CSR can be achieved through budgeting. Ensures money is available for all business activities.

Dispute Resolution Process Step 2-

Will bring the dispute to an internal mediator such as the HR manager to resolve the issue.

SWOT Analysis

Will consider the strengths, weaknesses, opportunities and threats in relation to the business. It will make it clearer which strategy is likely to become the most effective for a business.

How will HR achieve objectives?

Will develop employees skills and motivate them to ensure they can perform at a high level. Will allow a business to accomplish objectives targeted at training and boosted performance.

How will Operations achieve Business Objectives?

Will help achieve objectives of delivering a high quality output.

How will Technology Support achieve Business Objectives?

Will improve processes and reduce costs. Better productivity.

How does Rate of Productive Growth analyse performance?

Will indicate how efficient a business is and whether its productivity is increasing or decreasing

How does the Number of Sales analyse performance?

Will indicate when sales are declining

How does Net Profit Figures analyse performance?

Will show expenses and revenue and whether to increase revenue or reduce expenses

How does the Number of Workplace Accidents analyse performance?

Will show how safe the workplace is and show the cost as fewer accidents mean fewer costs for the business

High Risk Disadvantages

high risk strategies have a greater risk of failure. may in fact reduce their levels of motivation and actively work against the change

How can Lawrence and Nohria's 4 Drive Theory Motivate?

unk

Business Objective

A goal or aim for the business

What is a Learning Organisation?

A learning organisation is one that facilitates the learning of its employees and looks to continuously transform.

Award

A legally binding agreement that sets out the minimum wages and conditions for employees within a particular industry.

Use of Lean Production Techniques

A management philosophy which looks at reducing wastage at all levels of the operations system and improving quality. Essentially, lean production looks to reduce wastage in each key area of the operations system, while producing a higher quality good or service for the consumer.

MBO Disadvantage

Can be time consuming and arduous for a manager to set goals and provide feedback with each employee

Explain Locke and Latham's Goal Setting Theory

A manager can improve employee motivation by setting clear and specific goals that provide a challenge for the employee but are not overwhelming. It helps if the goals are set collaboratively which can help the employee become more committed to achieving the goal.

Time

A non-renewable resource that a business must make the best use of

Sanctions

A penalty for poor performance or behaviour.

Customers

A person who buys goods and services from a shop or business

Social Enterprise

A private sector of the business that operates to generate revenue with the objective of fulfilling a social need by distributing profits amongst the community rather than shareholders

Dispute Resolution

A process of resolving conflict or potential conflict between an employee and employer over work conditions or treatment in the workplace.

Percentage of Market Share

A representation of the portion of sales that a business has compared to the total sales for the industry or product, expressed as a percentage

Autocratic Disadvantage

No opportunity for input from employees. May result in lower morale/motivation. Smaller pool of ideas. Very task focused

Radical Change

A result of a major alteration of the business, these changes are often initiated by critical events such as a dramatic drop in financial performance, a merge/takeover or a competitor that disrupts the industry

Characteristics of a Partnership

No separate legal entity to owners

Advantages of Forecasting

Reduces Waste as you don't overstock. Can anticipate changes and adjust orders to save costs. Can manage the amount of employees.

Role of Employer Associations

Advise in areas related to disputes between the business and employees as well as workplace regulations. Offer support and advice on how to adapt to changes in law. Offer training for their members or even provide recruitment support.

Advantages of Career Advancement

Reduces staff turnover as employees are moving up in the business rather than leaving the business for better jobs. Helps build a positive culture as employees feel valued.

Advantages of the MRP

Reduces waste. Reduces storage space. Reduction of idle machines.

Waste Minimisation

The process of reducing the amount of resources that are misused or discarded by the business during its operations.

Differentiation Disadvantage

A business can be negatively impacted on profitability if the additional costs incurred from differentiating the product does not lead to an equivalent increase in sales revenue. Another drawback is that charging a premium price limits the segment of the market that might be attracted to the product.

Fulfil a Social Need

A business fulfilling a need within society that makes the world a better place

Performance Appraisals

The process that evaluates how well an employee has performed in their job, provides feedback and helps develop new goals and objectives for the individual.

Proactive Change

A business that is foreseeing alterations in the business environment and looks to implement their own changes in order to gain or maintain a competitive advantage

Sole Trader

A business that is owned and operated by one person

Partnership

A business that is owned by 2-20 people

Legislation

A change in the law as to what is legal/illegal

Grievance Procedure

A formalised set of steps whereby the employee and employer can resolve matters relating to complaints.

Exporting

A function of international trade where goods and services from one country are shipped to another country for sale or trade.

Advantages of Website Development

24/7 availability, labour costs reduced. only start making the product once order has been taken. more convenient as orders can be accessible all the time.

Niche Market

A gap in the market where there is a demand for a good or service.

Agreements

A set of conditions between an employer and their employees which are based on but better than an award.

Computer Aided Design

A software system that enables a product to be created in digital form, modified, analysed and tested before it is put into production.

High Risk Strategy

A strategy aimed to reduce resistance that will have a greater chance of generating negative outcomes and therefore a higher chance of failure.

Porter's Low Cost Strategy

A strategy where a business aims to become the low cost producer in its industry

Difference between a tangible and intangible good

A tangible good can be touched whereas an intangible good can not

Role of Unions.

A unions's aim is to get the best wage and conditions for its members without jeopardising the financial future of the business. A union can recommend its members take industrial action. A union representative may be used in a workplace dispute to ensure an employee is treated fairly. A union may also offer legal representation or advice in situations where the employee requires it.

Advantages of Global Outsourcing

Access to cheaper labour which means lower costs. Business is not directly responsible for non-core services and their employees and entitlements. Works well with IT based services where internet and phone developments mean they could be based anywhere in the world.

Advantages of Global Sourcing of Inputs

Access to cheaper materials. Access to materials not occurring in the domestic country. Can specialise in production not sourcing.

Pursuit of Profits

Aiming to maximise revenue and minimise expenses

Differentiation Advantage

Allows a business to charge for premium product. A business can set themselves apart creating uniqueness.

Advantages of Agreements

Allows for difference, encourages hard work, allows for reward for achievement.

Public Company

An incorporated business owned by 5 to unlimited people whose shares are listed on a stock exchange

Private Limited Company

An incorporated business that owned by 2-50 people whose shares are not made available to the public.

Arbitration

An independent third party listens to both parties then makes a legally binding decision on the outcome.

Stakeholders

An individual or group who has a vested interest in the operations of a business.

Unions

An organisation that aims to preserve and/or advance the wages and working conditions of employees in a particular industry as well as protect the rights of workers during their period of employment.

Low Cost Disadvanges

Any reductions in cost production may have a negative impact on the quality of the good or service. Some customers may see lower costs as a sign of lower quality

Performance Appraisals Disadvantages

Appraisal must be conducted fairly. Manager must put all personal feelings aside and only look at work performance.

Role of the FWC

Approve enterprise agreements, approve or disapprove of industrial action. Resolve disputes through mediation, conciliation or arbitration. Set the minimum pay and conditions for all employees. Remedy unfair dismissal claims.

Dispute Resolution Process Step 4-

Arbitration occurs and the outcome is decided through a legally binding decision

Cost Drivers

Areas of the business that generate costs. If a cost driver can be reduced then costs will fall.

Disadvantage of Performance Related Pay

Assessment is subjective and employees may not agree. Outcome is rewarded despite effort or process used. Creates a competition based culture which can cause conflicts between workers.

Fair Work Commission

Australia's national workplace relations tribunal hat settles disputes between emplo

What is the quality control process?

Benchmarks set. Inspections conducted on a regular basis. Comparisons made between the product and set benchmark. Corrective action in the event that product quality is deemed to be below the benchmark.

Incentives

Benefits that are provided to employees as a way of gaining support for the change.

Similarities between Manufacturing goods and Delivering a service.

Both businesses aim to process a range of inputs into a finished product for consumption.

Negatives for the General Community

Business change can lead ot redundancy damaging unemployment rates, supplier closures and detrimental to the social wellbeing.

Explain the relationship between Managing Employees and achieving Business Objectives

Business objectives are the outcomes that a business wishes to achieve. One of the most important stakeholders in terms of business plans and objectives is the employees. It is therefore important that a business creates positive relationships between managers and employees so that it can achieve all of its objectives successfully. It is vital that a business ensures that it has the right employees who are in the best positions, and have the skills and abilities to complete the tasks they are required to do. If the relationship between employees and management is poor, then it is likely that productivity will be low and the business may not be able to achieve its objectives

Competitors

Businesses in the same market who offer a similar product or service

Niche Market Disadvantages

Can be exposed if the Niche market declines. If it is successful then major players may try to move into your niche.

Exporting Disadvantages

Can be exposed to exchange rate fluctuations, quotas, tariffs. May have to deal with language and cultural barriers. Exposed to global competition.

Disadvantages of Lassiez-Faire

Can be misuse of company resources. Increased freedom may lead to less productivity

Explain the Importance of Reviewing KPIs

By reviewing KPIs after a period of business transformation is vitally important to see whether the business has achieved what it set out to achieve. By reviewing this data, management can assess the size and extent of any change to celebrate its success, or identify the areas where there was success and identify the ones which require additional effort or time to be achieved. However, it is probably of more importance of the goals haven't been achieved as it may indicate where further change needs to occur.

Disadvantages of Support

Can be expensive for the business.

Disadvantages of Quality Assurance

Can be expensive to achieve the certification. Can take time to prepare for documentation.

Disadvantages of Career Advancement

Can be expensive to provide ongoing training, can be difficult to promote everyone which means some employees may miss out on promotions. This can cause resentment between employees.

Disadvantages of Investment in Training

Can be expensive to provide ongoing training. Loss of productivity whilst employee is being trained.

Disadvantages of Off the Job

Can be expensive. Loss of productivity as daily work is not being completed. Business does not control what is presented so all may not be relevant.

Drawback of Locke and Latham's Goal Setting Theory

Can be time consuming to set goals with employees and then provide ongoing feedback. Can be difficult for the manager to find the balance between setting a challenging goal and setting a goal that is not too complex for the employee. Employees will have different attributes and character traits which mean that a challenging goal for one employee may not be as challenging for another. If the goals set are too easy, or too complex, the result may be demotivation.

Why not to use Communication

Can be time consuming when there are lots of employees to communicate with.

Disadvantages of Participative

Can be time consuming. Conflicts if there are disagreements about decisions. Some employees may not want to be involved in decision making.

Disadvantages of Consultative

Can be time consuming. Some employees may not feel valued if their ideas are overlooks. Some employees may not want to be consulted regularly

Why not to use Threats

Can have a negative impact on morale, work ethic, and the performance of a business over time. Can harm relationships or create nasty conflicts. It can lead to fear, resentment and a loss of motivation.

How does support motivate?

Can help motivate as employees may feel loyal toward business and an employee without problems can work better.

Disadvantages of Global Sourcing of Inputs

Can lengthen delivery/supply times. Exposed to changes in exchange rates. Language barriers when dealing with suppliers. Supplier's country may have different ethical, environmental and legal standards. Risk of damage with shipping increases. Local job losses which means negative CSR.

How do sanctions motivate?

Can motivate employees to prove boss wrong for pride, can also motivate as employees may be fearful of sanctions.

Advantages of Sanctions

Can motivate quick action for fear of being sanctioned. Some are motivated more by sanctions than incentives.

Why use Threats

Can quickly overcome resistance to implement change.

How does Level of Staff Turnover analyse performance?

Can show how satisfied staff are with regard to the tasks and workplace environment

How does the Number of Customer Complaints analyse performance?

Can show the quality of the output and also how well you are fulfilling the customer's needs

Dismissal Transition Issues

Career Transition services. This will boost CSR as it is going above their legal obligation.

Positives for Managers

Change can lead to new opportunities, success may be linked to a financial bonus.

Positives for Employees

Change may mean reduced safety risks, boredom and removed repetitive tasks. Change can have more success for the business which builds long term job security.

How does legislation act as a Driving Force?

Changes in legislation will initiate change in a business as they need to update their practices and be in line with new legislation, otherwise they may be acting illegally

Why use Communication

Communicating reasons for the change for employees will help understand the need for the change. Employees will feel valued if managers listen to and act on their concern.

Benchmarking

Comparing your business's performance against a set standard either internally or externally

Disadvantages of a Public Company

Complex and hard to establish. Large reporting requirements. Loss of control over who owns shares in the company. Financial performance is published

Why not to use Empowerment

Conflict when there are differing ideas and time consuming due to lots of discussions about the best way to move forward.

Fulfil a Market Need

Consumer have wants and needs, and if enough people have similar wants and needs it creates a market that a business can try and satisfy, by setting objectives to satisfy the needs of the market

3 TQM Principles

Continuous improvement, Employee Empowerment, Customer Focus.

Advantages of On the Job

Cost effective. Allows for usual work to continue and existing equipment to be used.

Advantages of Overseas Manufacture

Cost of manufacturing is less, lower wages, and lower cost to comply with government laws or regulation. This allows for lower prices, increased competitiveness and higher profit. Also can access new markets.

How do Financial Considerations act as a Restraining Force?

Costs associated with change may not be viable or may put the business under financial pressure. The cost benefit might show the change is not worthwhile.

Innovation Advantages

Creates a new market and/or product to expand sales. Generates a consumer buzz around the new idea. Can extend product life cycle.

Long term impact of Sanctions

Creates poor culture and a potential division between managers and employees.

Long term impact of support

Creates supportive environment which means good culture

Positives for Customers

Customers can experience better prices, better quality goods that are better suited to their needs. May feel happier that CSR behaviours have been practiced.

Negatives for Customers

Customers may feel that the quality has been sacrificed for the price or vice versa. Customers may feel that their brand loyalty has been taken advantage of and change their buying preferences.

Advantages of Persuasive

Decisions are made quickly. Clear communication to employees. Decisions may be supported by employees as they are informed. Employees are clear about what it is they need to achieve

Autocratic Advantage

Decisions are made quickly. Clear communication with employees. Employees know exactly when their tasks are. Decisions are made by an experienced manager

Defects

Defective products that need to be fixed or go to waste.

Master Productions Schedule (MPS)

Details what is to be produced and when it is to be produced. MPS sets out the quantity for each item and the time it is the be completed by. How much to order and how much to order on an ongoing basis.

Threat of Substitution

Determines the ability and likelihood of customers finding another way to either make or provide the services or products a company offers

Advantages of Investment in Training

Develops a learning culture, employees perform better which helps to achieve business objectives. Employees feel valued as the business is investing in them.

Self Evaluation Disadvantages

Difficult to give themselves a fair assessment. Employees may feel is they are too good to themselves they will look cocky, and if they are too harsh it will effect their chances of promotion.

Dispute Resolution Process Step 3-

Dispute is escalated to an independent external mediator

Learn/Comprehend

Drive to satisfy their curiosity and develop a deeper understanding f their work and environment. Create new challenges and provide opportunities to grow. Training programs, job sharing and involvements in decision-making

Bond

Drive to seek relationships with others in the workplace. Managers can encourage teamwork and create opportunities for social interactions.

Step 2

Each force is given a numerical value 1-5

Explain 4 Drive Theory

Each of the four drives can occur at the same time. Individuals may have a drive that is more dominant than others, and the more dominant drive can change over time.

Self Esteem

Employee is looking for a sense of competence, achievement and respect. Business can do this by providing a recognition and rewards system to show their appreciation for good work.

Social

Employee is motivated to have a sense of belonging and wants to build strong relationships within a business. Business can provide opportunities for employees to meet and interact with each other, like social gatherings and encourage teamwork.

MBO Advantage

Employee will be clear about what they need to achieve and business will achieve objectives if the individual does.

Employee Observation

Employee's performance is witnessed and assessed so feedback can be provided to the employee.

Employee Empowerment

Employees are given responsibility to improve the quality of the business

Dismissal Entitlements

Employees entitled to full pay and leave

Advantages of Participative

Employees feel trusted and valued. Improved morale and motivation due to involvement. Increased ideas pool so better decisions made. Employees gain experience to decision making which helps career development

Why not to use Incentives

Employees may only be supporting the change because they have been given something in return. It can also be expensive.

Long term impact of Investment in Training

Employees may remain loyal to business due to the use of this strategy.

Managers

Employees who hold some form of responsibility within a business

Drawback of Maslow's Hierarchy of Needs

Employees will be on different stages of the hierarchy. Can be difficult to identify where each employee sits on the hierarchy, especially when there are a large group of employees.

How does Investment in Training motivate?

Enables employees to perform better at their job.

Advantages of Awards

Ensures a consistent minimum. Protects weaker workers. Publicises minimum to all workers.

Redundancy Entitlements

Entitled to a Redundancy Package which is a financial payment based on how long they have worked for the business. Entitled to time of work to attend new job interviews.

What happens during the change?

Essentially, the business is moving to its new position. Employees must be supported and guided and this works best with open and honest two-way communication. Managers will ensure people are trained, resources are in place and obstacles are removed.

CSR considerations Processes

Ethical disposal of waste, waste minimisation strategies, job rotations, implement extra quality checks to ensure a high quality output.

Negatives for Suppliers

If the change process went badly or the market changed, the supplier may feel vulnerable as their fortunes are tied to the host business. Bug successful business that dominate the market and the supplier may feel vulnerable to meet their demands

Disadvantages of TQM

Every employee needs to be positively involved, can be time consuming.

Motion

Excess movement of people, machines, materials or the product.

Wait Times

Excessive wait times between production and distribution or waiting between processes.

Use of Communicating

Explain tasks and roles to employees, listen to feedback, inform stakeholders of business objectives

CSR considerations Inputs

Fair negotiations with suppliers. Local suppliers. Environmentally sustainable inputs. Use renewable energy in facilities.

One-Piece Flow

Focussing one piece at a time.

How does the Reduction of Costs act as a Driving Force?

Reduction of costs allows a business to maximise profits as the business will be more efficient and will help improve competitiveness

Restraining Forces

Forces that are keeping the business in its current state

Driving Forces

Forces that will drive the business towards the new desired state

Relationships

Forming relationships with high profile personnel that are associated with the product

Level of Waste

Refers to the amount of resources discarded by the business during the production process

Resignation Entitlements

Give notice

Retirement Entitlments

Give notice, Pay for the work they have conducted, long service.

Advantages of Quality Assurance

Good marketing, gives a competitive advantage, reduces waste as errors are fixed before production begins.

Long term impact of Career Advancement

Greater long term impact as will develop good work habits and act as incentive for other employees.

Characteristics of a Public Company

Has a separate legal entity. Listed on the ASX. Limited liability

Characteristics of a Social Enterprise

Reinvest over 50% of the profits into the fulfilment of the mission. Owned by Private Individuals

Advantages of the MPS

Helps determine very accurate ordering quantities and timings allowing them to avoid wastage, time and costs. Very clear to all staff of processes and their sequence. Very good for standardised production. Easy for new staff to learn routine. Reduced general wastage.

Performance Appraisals Advantages

Helps manager to make decisions about promotions, transfers and terminations. Helps highlight how well a business is performing in achieving its objectives. Gives feedback to staff on areas they can improve on.

What happens during this phase Unfreezing?

Here the business will identify what needs to change, looking at all aspects of the business and create a sense of need for change amongst employees. They will work to reduce resistance to the change.

Marketing

Highly effective sales and marketing campaigns can help highlight or showcase a products uniqueness

Threat of New Entry

How easy it is for another business to start up to compete against yours

Efficiency

How many resources were used to achieve set goals

Effectiveness

How well a business achieve's its objectives.

Performance Management

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

Why should a business seek new opportunities?

If a business isn't looking to grow it is likely to be left behind and lose any competitive edge it might have had in the market.

How do Competitors act as a Driving Force?

If a competitor introduces change, this can cause a rival business to respond by initiating change if their own. It is important that a business keeps an eye on what others are doing so they are able to implement strategies that will maintain any market edge they have.

How do Managers act as a Restraining Force?

If a manager does not believe in change then they may inhibit it from occurring. A manager with poor communication skills may not allow for the change process to be understood. Poor leading skills will inhibit the change from occurring.

Negatives for Managers

If change is not smooth, it can result in a long simmering resentment and distrust residing in employees. Substantial business change can come at the expense of high stress.

Why use empowerment?

If employees are responsible for implementing change, they are more likely to support it and therefore a higher chance of success. Can generate fresher ideas on how the change should be implemented.

Why not to use Manipulation

If employees discover that they have been manipulated, it can not only cause resistance to change, but damage relationships with management to the longer term detriment of the culture and performance of the business. It can result in a loss of distrust in the manager and lead to greater staff turnover.

Why use Incentives?

If employees see a material benefit they will support the change that brings them benefits therefore there is a higher chance of success. Employees will also feel more valued.

Why use Support?

If staff are feeling emotionally and physically supported through the change with training they are more likely to adopt the new ways and therefore there is a higher chance of success. Also develops a positive culture.

How is Societal Attitudes a Driving Force?

If you do not change to reflect society's attitudes, you can lose market share and gain a bad reputation. Also allows a business to access new markets.

Short term impact of support

Improved confidence as employees feel they are supported.

Advantages of Lassiez-Faire

Improves morale and motivation. Encourage teamwork and creativity. Employees feel empowered

Increase Market Share

Increasing The proportion of the market controlled or owned by a particular business or product

Information

Includes information on customer trends, market or information on how to make a product

Advantage of CAM/CAD

Increase quality. Practice and review design features before manufacture. Reduces wastage as variable are tested before being put into production. more precise which means less wastage. more consistent which can help improve customer experience.

Short Term Effect of PRP

Increased Motivation, quick pay rise.

Disadvantages of Overseas Manufacture

Increased initial cost as it is expensive to set up in a foreign country. Time consuming to set up.

Transportation

Inefficient movement of materials or products.

Advantages of a Sole Trader

Inexpensive to set up. Owner has complete control. Owner can keep all profits. Business can be sold without partner's consent

Advantages of a Partnership

Inexpensive to set up. Workload is shared amongst partners. Debts and obligations are shared among partners. If partner leaves the business it can continue to operate

Disadvantages of MRP

Initially expensive to set up a dedicated system which can accurately track the materials through the site.

Disadvantages of the MPS

Initially time consuming and expensive to track, record and write up the manual. Hard to account for every situation. Not very flexible.

Disadvantage of Automated Production Lines

Initially very expensive. If system breaks down major suspension so the production. Requires technical training. Can lead to large scale redundancy.

Disadvantages of Website Development

Initially very expensive. If system breaks down major suspension to production. Requires technical training. Can lead to large scale redundancy.

Disadvantage of CAM/CAD

Initially very expensive. Requires technical training. May replace labour.

How is Innovation a Driving Force?

Innovation allows a business to gain a competitive advantage, cut costs, provide new products or services

Quality Control

Inspections at various points in the production process to check for defects in the product. The aim of quality control is to identify problems early so they can be rectified quickly

Difference of Service

Intangible, services can not be stored. Production and consumption are closely linked. Customer often must be present during delivery of service. Often more labour intensive.

Innovation

Introducing new or revised innovative processes

Lawrence and Nohria's 4 Drive Theory

Is a drive-based motivational theory which states that employees are motivated by 4 drives.

Self Evaluation

Is a form of self evaluation where the employee evaluates their own performance against set objectives.

Cost Cutting

Is a management strategy that focuses on reducing expenses within a business

Rate of Productive Growth

Is a measure of efficiency for a business and compares the amount of outputs produced to the amount of inputs used in production and the rate in which grows over time

TQM (Total Quality Management)

Is a whole organisation approach to achieving quality based on continuous improvement in the area of quality. With a TQM strategy, quality is embedded into the culture and every employee understands that they have a role to play in improving quality

Personal Mastery

Is the discipline where the business will only learn through individuals that learn. Every person in the organisation should be given the opportunity to learn and reflect on their learning. If each individual learns then the organisation has learnt more. Thus employees will be able to build on their strengths and improve their weaknesses.

Leadership

Is the process of positively influencing and encouraging individuals to set and achieve goals.

Drawbacks of Lawrence and Nohria's 4 Drive Theory

It can be difficult to satisfy each of the drives for all employees, career advancement may not be available for everyone. If a business relies too heavily on one drive, employees are less likely to be motivated.

Why not to use support

It can be time consuming and sometimes expensive to provide this support.

How does Rate of Staff Absenteeism analyse performance?

It can show how motivated and supported employees feel and how safe the workplace is

Force Field Analysis

It is a decision making tool used to compare forces for and against a particular change so that an informed decision can be made

Why use Manipulation

It may be a drastic situation where change is immediately required and therefore this may be used to reduce the resistance. Change can be implemented exactly as the manager required.

Overseas Manufacture

The production of a good in a country that is different to the location of the business's headquarters.

How does Percentage of Market Share analyse performance?

It will indicate how competitive a business is and therefore how its marketing and operations strategies have been

Disadvantages of Global Outsourcing

Language and cultural barriers can sometime result in customer frustration. Reliance on internet connections. Business will lose some control over the processes they outsource.

Advantages of Consultative

Larger ideas pool. Increased motivation as employees are involved. Employees are more likely to take ownership due to involvement in decision making

How does Legislation act as a Restraining Force?

Law making can make a change illegal, would therefore restrain the change. Legislation might mean they are not allowed to change.

Explain the Importance of Leadership in change management.

Leadership occurs when managers influence, motivate or encourage employees within a business to set and achieve objectives. Effective leadership is vital to the success of a business, especially during times of change as many employees may be uncertain about their futures or what they should be doing. During change, a leader needs to model accepted practices and behaviours, encourage and reward good employee performance and remain calm in the face of conflict that inevitably arises during times of change. The leader will be responsible for driving the change, and would focus on building positive relationships with employees and other stakeholders, communicate the vision of change to their employees and support them, which will lead to a higher chance of employees accepting the need for change.

Explain Lean Management

Lean management is where a business establishes systems that aim to eliminate waste and inefficiencies in the operations system and maximise customer value. Lean management aims to create more value for the customer while using fewer inputs. Lean management is based around continuous improvement where small, on-going incremental changes are made to processes in order to improve the end quality for the customer along with improved efficiencies throughout the business.

Advantages of a Public Company

Limited Liability. Capital can be raised easily

Advantages of a Private Company

Limited liability. Has perpetuity. Capital can be raised by offering shares to investors.

Long term impact of PRP

Longer incentive is there, more effort and to continue to get more earnings. May lose its benefit in the long term and need to use other strategies to continue motivation

Low Risk Strategy

Low risk strategies are strategies for reducing resistance that have a lower risk of backfiring and causing large amounts of resistance.

Low Risk Advantages

Low risk strategies have a greater chance of success

Organisational Inertia

The tendency for a business to continue on its current path with people unenthusiastic towards change

How will Sales and Marketing achieve Business Objectives?

Marketing attracts and alerts consumers to purchase the goods or services. Will boost objectives around sales and profitability.

Explain Maslow's Hierarchy of Needs

Maslow says that everyone has needs/wants that need to be fulfilled. Motivation comes from trying to fulfil this need. Once it has been met, it will no longer motivate, there is a need to re-motivate. To re-motivate a higher-level need is aimed for

Maslow's Hierarchy of Needs

Maslow's sequence of human needs in order of importance which one level must be achieved before moving on

What should be included in an Award?

Maximum hours of work per week. Overtime, breaks, rosters, penalty rates, leave.

How do Employees act as a Restraining Force?

May be fearful or anxious about job security or having their tasks changed. They may not have the skills to implement change.

Disadvantages of Agreements

May disadvantage weaker workers, may encourage industrial action, may lead to increased disputes

Disadvantages of Awards

May encourage businesses to pay the minimum. May discourage hard work. May limit diversity in pay and conditions.

Disadvantages of Sanctions

May not motivate employees. Can create conflict and resentment.

Number of Sales

Measure the number of products sold over time

Dispute Resolution Process Step 1-

Meeting will occur between the two disputing parties.

Defend

This drive shows employees want to defend themselves and their accomplishments as well as the business when they are threatened.

Reduction of Costs

Minimising expenses in all business activities

Use of Delegation

More efficient use of time and resources, gives employees more experience and higher morale, more specialised use of people

Disadvantages of Private Company

More expensive to set up. Restricted number of shareholders. Shares cannot be traded freely.

Short term impact of Sanctions

Motivates employees to immediately do the correct thing.

How does career advancement motivate?

Motivates employees to put more effort into their work so they can further their career and take on greater responsibility.

How does Performance Related Pay motivate?

Motivates employees to work harder so they get more done and therefore earn more.

Short term impact of Career Advancement

Motivates employees to work harder toward promotion.

Exporting Advantages

Much bigger markets to tap into and increase the number of sales. Can use Austrade support programs.

What should be included in an Agreement?

Must be agreed to by a majority of employees. Must have a specific expiry date and a flexibility clause. Enterprise agreements are determined through enterprise bargaining.

Disadvantages of Persuasive

No opportunity for employee input. Workers can still have low morale. Small pool of ideas. Task focused with lack of employee development.

Innovation Disadvantages

Need to constantly innovate to stay in front of the next idea. Often requires heavy marketing to get the idea out to consumers.

Roles of the HR Manager

Negotiates employee arrangements while representing interests of employers. Implements agreements ensuring that all managers are aware and implement agreement carefully. Resolves disputes between managers and employees. Takes disciplinary action. Ends working relationship between employees and employers.

Retirement Transition Issues

New lifestyle, business can offer counselling, reduced hours before retirement to make transition easier.

Resignation Transition Issue

Not much as they made decision to leave

Self Evaluation Advantages

Opens up communication between managers and employees. Shows employee's view on themselves.

Describe the relationship between Operations Management and Business Objectives

Operations management is concerned with the coordination of resources within a business to achieve the efficient and effective output of finished goods and services. To achieve this operations management will seek to use strategies to improve quality, manage materials, use technology and reduce waste. As a result of these strategies operations management aims to increase productivity rates and improve the quality of the goods and services they produce. This will in turn hopefully lead to a better reputation with customers, higher quantities of products to be sold, lower costs per unit and a higher profit margin. This will then hopefully lead to greater profits, increased market share and fulfilling markets need thereby achieving the business's objectives.

Supply Chain Importance

Optimising the supply chain can help a business to gain a sustainable competitive advantage.

Takt

Outlines how fast a business needs to produce a good or service to meet demand. Allows a business to have a continuous flow of production rather than starts and stops.

Redundancy Transition Issues

Outplacements services to help find a new job, assistance with resume writing. Ways to make them more employable such as training.

Characteristics of a Government Business Enterprise

Owned by the Government. Keeps Profits

Characteristics of a Private Company

Owned by up to 50 shareholders. Proprietary limited after their name. Legal separate entity to owner

Characteristic of a Sole Trader

Owner has full responsibility. No separate legal entity to owners.

How does the Pursuit of Profits act as a Driving Force?

Owners initiate change so they can improve the profitability

CSR considerations Outputs

Packaging decisions, good value for money, ethical dealing with customers regarding returns

How is Quality Assurance an advance on Quality Control?

Sets up error free production. More efficient use of resources. Corrective action can be taken earlier.

Over-processing

Performing operations on the product that do not add value.

PDCA cycle

Plan, planning processes to meet quality expectations of the customer. Do, once the processes are planned, they need to be carried out according to the plan. Check, regularly checking the processes of the quality management system. Act, taking corrective action and preventative actions where necessary.

Advantage of Performance Related Pay

Potential to weed out lazy workers, Attracts highly skilled employees as they believe they can comfortably achieve targets and be rewarded for it.

Advantages of Quality Control

Prevents poor quality goods from reaching the customer

Overproduction

Producing more than the customers demand.

Advantage of Automated Production Lines

Productivity rates increase so cost per unit can fall. 24/7 production. Accuracy/precision increase. Removed dangerous or repetitive tasks. Reduced wastage.

Benefits of positive Corporate Culture

Reduce staff turnover, increase productivity, higher morale, employer of choice which allows business to select best employees.

Compare L&L to Maslow

Rewards and recognition however Maslow groups vs LandL individual

Compare L&L to 4DT

Rewards and recognition, Training and development however L&L must always be individual where as 4DT can be groups or individual

Compare Maslow to 4DT

Rewards, training and development, and social bonds, however maslow is sequential whereas 4DT any order

Strategies to Develop the Culture

Role model, reward, re-enforce, recruit.

Technology

Scientific application to new products and processes

How does Level of Waste analyse performance?

Shows how efficiently a business is using their resources in both inputs and processes

Negatives for Employees

Skills and demand of their new positions may cause some fear and angst requiring support, counselling or retraining. Change could potentially reduce the need for employees and result in redundancies

Disadvantages of Quality Control

Some inferior products may get through. Wastes resources as product is rejected. May not isolate the issue.

Key Performance Indicators

Specific Criteria used to measure the business's performance in achieving their objectives over a certain period as it compares planned performance with actual performance

Zero Defects

Striving to have zero defects.

When should Participative be used?

Tasks are complex and require discussion, lots of time so discussions can occur, employees have high level of experience

When should Consultative be used?

Tasks are more complex, more time available, higher level of employee experience

When should Lassiez-Faire be used?

Tasks are simple or complex, when there is time available, high level of experience so they can make their own decisions

How does Technology act as a Driving Force?

Technology allows a business to keep up with its competitors, it allows the business to decrease costs and increase services.

Investment in Technology

Technology is new applications of scientific knowledge which aim to optimise the operations of a business.

Interpersonal

The ability for a manager to communicate with a range of people while building strong relationships

Decision Making

The ability for a manager to make a choice on a course of action from a range of alternatives.

Leading

The ability for a manager to motivate, inspire and enable employees to achieve business objectives

Buyer Power

The ability of buyers to affect the price they must pay for an item

Planning

The ability to set objectives and determine the strategies to achieve them

Value Chain

The activities performed to design, produce, deliver and support a product. If any of these can be done more efficiently then costs will fall.

Processes

The activities used to transform inputs into outputs. The processes at this business are often more labour/capital intensive as...

Real Corporate Culture

The actual values and beliefs present in the company, observable from dress, behaviour and the way employees and managers relate to each other

Money

The amount of capital needed to provide the good or service

Number of Customer Complaints

The amount of customers that are unhappy with the business and/or its products and have expressed their concern to the business

Net Profit Figures

The amount of money that is left after expenses have been deducted from revenue earned

Number of Workplace Accidents

The amount of unplanned or uncontrolled events that result in personal injury or property damage at a business

Pull

The amount that is produced is determined by demand from customers. Allows business to stop over-producing so waste is greatly reduced.

Finance

The area of management responsibility that encompasses the activities around the management fo money and other assets.

Sales and Marketing

The area of management responsibility that promotes and publicises the product or service of a business using a range of strategies to increase sales.

Technology Support

The area of management responsibility that works to ensure the technologies used by a business are maintained and developed to assist a business to achieve its objectives.

Human Resources

The area of the business that manages the relationships between employees and the business.

Operations

The area of the business that produces the good or service.

Incremental Change

When a business responds to external pressures frequently and less drastically which is considered part of its natural development

Globalisation

The breaking down of barriers that inhibit the free movement of goods and services

Continuous Improvement

The business uses regular evaluation to have an ongoing improvement into the future

Website Development

The continual improvement of the online presence of a business.

Financial Considerations

The cost of the change

Innovation

The creation of a new idea in the form of a new product, process or method

Mental Models

The deeply ingrained assumptions and generalisations about the world and how we respond to it. A business needs to challenge these assumptions about itself and these structures to allow for more openness, inquiry and trust. Employees will then feel empowered to create new and better ways of operating.

Quality

The degree of excellence in the production or provision of a product or service

Customer Focus

The entire focus of TQM is on the customer.

Capital equipment

The equipment used during the production process as well as the facility or buildings used.

Competitive Rivalry

The more competitors offering a similar product or service the less power a business will have

Effectiveness

The extent to which a business is achieving its set goals and objectives

Outputs

The final product produced by a business. The output of a this kind of business are (in)tangible as it is a service/manufacturer

Refreeze

The final stage of the planned process and is designed to maintain momentum for the change and ensure it is implemented for the long term.

Disadvantages of Forecasting

Unexpected events can catch you out and there may be excess or not enough stock. Requires a lot of time to anticipate, track and analyse the potential impacts on the supply chain.

Motivation

The individual, internal process that energises, directs and sustains a person's behaviour

How does Organisational Inertia act as a Restraining Force?

The large size of a business can make it more difficult to change due to the complexity of change. It is easier to continue doing what you are doing rather than changing.

Productivity

The level number or amount required to produce an output. This aim is to maximise outputs by minimising inputs.

Productivity

The level number or amount required to produce and output. The aim is to maximise inputs whilst minimising outputs.

Staff Motivation

The level of energy, commitment and creativity that employees bring to their jobs. If KPIs are not meeting benchmarks, then a manager might decide that they need to motivate their employees to improve performance.

Efficiency

The level or resources used to produce an output.

Safety

The level the employee is motivated by being safe at work and having a sense of job security. Can offer longer term contracts or ongoing training. Training will provide a sense of job security as the business is likely to want a return on their investment. Ensure business is abiding OH&S

Operations Management

The management function that produces goods and/or services

Operations management

The management of the function that produces the goods and/or services

Step 1

The manager identifies the forces for and against the change

Labour

The managers and employees that work to produce a final good or service

Low Risk Disadvantages

can take longer to implement which can take the change longer to occur, and be more costly.

CSR

The obligations a business has over and above its legal requirements to the wellbeing of its stakeholders and the environment

CSR

The obligations a business has over and above its legal requirements to the wellbeing of its stakeholders and the environment.

Staff Training

The process of improving an employee's skills and knowledge so they are able to perform their job at a higher level. It emphasises immediate improvements in job performance by enhancing specific knowledge and skills of the employee

Delegation

The passing of authority and responsibility from a manager to employee to achieve tasks

Employees

The people who work for the business in exchange for remuneration

HR Manager

The person who manages the relationship between employees and the business

Materials Management

The planning, organising and controlling of a business's supplies.

Global Sourcing of Inputs

The practice of seeking the most cost efficient materials and other inputs, including from overseas.

Team Learning

The process of building and developing a team's capacity to create results that its members truly desire. It builds on personal mastery and shared vision. As individuals learn and grow through personal mastery, the team begins to learn from each other. Team learning creates and environment where problem solving is improved as knowledge and experience is shared amongst the team.

Off the Job

The process of enhancing the skills and abilities away from the workplace.

On the Job Training

The process of improving an employee's skills and abilities within the workplace, often whilst they are performing their job.

Training

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

Support

The provision of emotional and functional assistance/support to employees that are facing hardships due to the change.

Level of Staff Turnover

The rate in which employees are leaving the business and need to be replaced

Rate of Staff Absenteeism

The rate in which employees fail to attend work on a given day when they are scheduled to be there

Inputs

The resources used to create a good and/or service. This can include the labour, capital equipment, time, information, raw materials and money.

Corporate Culture

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

Supplier Power

The suppliers' ability to influence the prices they charge for supplies

Raw materials

The supplies used to make a product

Computer Aided Manufacturing

The use of software to control the manufacturing process.

Official Corporate Culture

The values and beliefs a business is trying to convey to the public. Usually observed in mission statements, logos, slogans

Societal Attitudes

The views, values and beliefs of the community

Disadvantages of a Partnership

Unlimited Liability. Profits shared amongst partners. It can be difficult to find suitable partners. Disputes can occur

Time

There may be insufficient time to implement the change. It can be the wrong time to implement the change.

Physiological

These are the most basic human needs that consist of food, water and shelter. A business can offer basic pay and working conditions

How do Managers act as a Driving Force?

They can allocate resources to help achieve these goals. They can be supportive of their employees in a time of change. Self-interest to keep the business successful will encourage managers to drive change

How do Employees act as a Driving Force?

They can have the experience and knowledge to know how change could benefit the business. If employees can see a benefit for themselves and their tasks, they will be more supportive.

Low Cost Advantages

This allows a business to either cut the price of the goods for consumers or cut costs of their production so they can keep the price the same and increase the profits of each sale

Disadvantages of Sole Trader

Unlimited liability. Business often heavily relies on the owner. Owner usually puts up capital. Capacity to raise capital is difficult

What happens during refreezing?

This step is vital to ensure that the change has been finalised and institutionalised in the business's culture. This step may include developing ways to sustain the change, providing support and training to the affected employees and celebrating the success of the change process. They will evaluate the results of the change and adjust if necessary.

Step 4

This will highlight whether the change is worth pursuing or not

Employees

Those that work for the business in exchange for remuneration

Employees

Those who work for the business in exchange for remuneration

Short term impact of Investment in Training

Training increases confidence and performance as skills are improved.

Advantages of Off the Job

Training is provided by specialist, knowledgeable trainers. Helps focus as employees only have to focus on training. Employees may receive certifications from training.

Disadvantages of On The Job

Training may be provided by an inexperienced trainer. Can disrupt usual routine.

Negative of FFA

Using Lewin's theory, however, is a subjective task. biases may be expressed by the person completing the analysis, and the restraining forces may not be weighted accurately, or the driving forces exaggerated. The presence of bias in this process can lead to the business undertaking change when the business isn't ready for it, or when the forces aren't adequately understood.

Forecasting

Using factors such as historical data and seasonal fluctuations to try and predict a demand for a business's products.

Business Change

When a business moves from one way of operations to another as it responds to internal and external pressures

Consultative

When a manager seeks the ideas and opinions of employees before making a final decision themselves

Redundancy

When an employee is forced to leave the business because their job no longer exists.

Dismissal

When an employee is forced to leave the business for issues such as poor performance or breach of conduct.

Retirement

When an employee leaves the business because they no longer want to be part of the labour force.

When should Persuasive be used?

When tasks are simple, when there is little time and employees are inexperienced

When should Autocratic be used?

When there is little time, little employee experience, simple tasks

Advantages of JIT

When working perfectly, this should lead to an elimination of all waste. There would be no raw material wastage, no idle machines and no storage space required.

Quality Assurance

Where a business achieves a standard of quality in the production of a good or service as assessed by an independent body before production begins. All processes are assessed, and once it is determined that the processes meet the required standard, this certification is awarded.

Lean Management

Where a business establishes systems that aim to eliminate waste and inefficiencies in the operations systems and maximise customer value.

Career Advancement

Where the business provides employees with the opportunity to develop their skills and take on a new position in the business, one that involves increased responsibility. Career advancement is a strategy that aims to motivate employees as the employee becomes driven to further their career and take on this greater responsibility.

Change

Where the change actually takes place and is implemented

Unfreeze

Where the management prepare the people and the business for change.

Participative

Where the manager and employees join together to make decisions as a team

Lassiez-Faire

Where the manager leaves the majority of the decision making and authority with employees.

Autocratic

Where the manager makes decisions and tells employees what tasks to perform.

Persuasive

Where the manager makes decisions and then explains to employees why the decision has been made.

Threat

Where the manager will use force to get employees to accept the change by enforcing negative consequences for resisting the change.

High Risk Advantages

Work quickly and they are relatively inexpensive and easy to implement

Roles of Employees

Work toward implementing workplace agreements. Vote for or against industrial action during negotiating periods. Votes on proposed agreements.

How is Globalisation a Driving Force?

You are competing for market globally, and against global players. It allows a business to sell globally and access resources globally

Advantages of TQM

Zero defects, reduced wastage, higher customer satisfaction.