unit 3 aos1 kk4,5,6

owners/shareholder interest

- expect to be well remunerated (through money and share options (through capital growth and dividends)

- establishing and fostering positive relationships with other stakeholders to enhance business reputation and performance

- recieving a return on their investment,often through business growth in the form of increases in share price,divends, or profits

owners csr considerations

- Managers being transparent with shareholders regarding the future prospects of the business

- Some shareholders/owners will invest in businesses that have a CSR focus

owners conflicts with other stakeholders

Owners vs employees - shareholders want more profit while employees want higher salaries,better benefits and more comfortable working conditions. Cutting costs to increase profits for the owners will make employees angry.

managers interest

- expect to be involved in decision making achieve objectives and be remunerated paid fairly with possible benefits

- being recongnised for the achievement of business objectives

- having opportunities to increase their status and engage in career

- receiving bonuses from business owners for achieving business objectives.

csr considerations

is the ability for a business to go above and beyond its legal obligations while focusing on the impacts it has on community,enivroment and employees.

managers csr considerations

CSR considerations
- They need to make decisions that consider the social and environmental impact (long term)

- Fair play and conditions for employees

managers conflicts with other stakeholders

Managers vs owners - managers and directors want better pay and benefits while shareholders think that top management is already overpaid

employees interest

- They expect fair pay and working conditions

- Ongoing training and support

- Carry out tasks that are ethically and socially responsible

- having opportunities to engage in personal and professional development as well as training to advance their career and recieve promotions

employees conflicts with other stakeholders

Employees vs owners
Employees may seek higher pay or working conditions, owners of the business may not be willing or prepared to provide this to their employees.

customers interest

- recieving high quality goods and services at affordable prices

- engaging with businesses that are ethical and sustainable

- recieving friendly and helpful customer service and assistance

customers csr considerations

- Ensure high quality products

- Value for money

- CSR focused products

- Australian made and Australian owned

customers conflict with other stakeholders

Employees may be split in their opinions. They may want the quality good/service, but not to be associated with a social responsible organisation

suppliers interest

- expect strong relationships with the business and to be paid on time

- increasing their revenue

- earning a profit from the raw materials and resources they supply

- having reliable and honest relationships with business they supply

suppliers csr considerations

- Local suppliers (pay workers fairly, good conditions, fair trade
- Ethical suppliers

suppliers conflict with other stakeholders

Suppliers vs managers - suppliers want the. Business to pay the full price in one transaction,but managers of the business would like to receive discounted prices for regular purchases in large quantities with delayed payment.

community interest

- Expect business to give back to the community

- Give employment for locals

- Minimise impact on the environment

-It is expected businesses will give back after making a profit such as a charity. Also practicingin a CSR manner.

community csr considerations

- Ethical waste disposal
- Reduce carbon footprint

community conflicts with other stakeholders

Community may not want to associate with a business who is not demonstrating corporate social responsibility in its operations

developing business startegies

- Strategies are actions a business will take to achieve objectives.
- You need to consider what you must do to achieve an objective.
- Ex. To increase market share by 10%, you may
need to: Target new customers, improve quality,
increasing output. (Consider your financial
situation as well)

stakeholder conflicts owners (shareholders) vs managers

owner wants to increase profits by decreasing the salary of managers whereas mangers want to recieve greater rewards and salaries frm the business as recongnition for the achievement of objectives

stakeholder conflicts owners vs employees

owners want to increase profits and minimise expenses by decreasing employee wages or replacing them with high quality,efficicent technology. whereas employees want increase wages for completing tasks that contribute to the achievement of objectives. as well as greater job secuirty

stakeholder conflicts owners vs customers

owners want to increase profits by increasing prices or decreasing supply costs to allow for business growth and to recieve a retun on their investment. Where as customers want the highest quality foods for the lowest prices

stakeholder conflicts owners vs suppliers

owners want to minimise business expenses to generate higher profits. whereas suppliers want to increase their profits from sourcing materials for business

stakeholder conflicts owners vs general community

owners want to decrease business expenses by sourcing cheaper materials and increase the use of automated technology. whereas general community want to minimise the enviromental impact of business activits and boost the local economy by increasing employment rates

stakeholder conflict mangers vs employees

mangers want to recieve reognition for achieving business objectives and therefore may take full control of tasks with minimal delegation. whereas employees want to have opportunities for personal growth and skill development within the workplace

stakeholder conflicts mangers vs customers

managers want to decrease expenses and therefore may purchase cheap,unsustainable, and poor quality materials to minimise supply costs. Whereas customers want to engage with ethical businesses that produce high quality products for a low price

stakeholder conflicts managers vs suppliers

managers want to minimise business expenses as much as possible to drive profit margins. Whereas supplierrs want to increase revenue to enhance their overall profits from sourcing materials.

stakeholder conflics managers vs general community

managers want to reduce wage costs by minimising employee labour in the business, and replacing it with technology. Whereas general community wants to icnrease employment in the local area to boost the local economy and avoid social consequences of unemployment such as homelessness

stakeholder conflicts employees vs customers

employees want to increase their wages and working conditions including working fewer hours and completing fewer tasks for the same pay. Whereas customers want reliable customer service and to pay minimal prices for high quality goods and services

stakeholder conflicts employees vs suppliers

employees want to take pride in the work of the business and feel reassured that sustainable and ethical supplies are used in production. Where as suppliers want to increase profits and therefore may use unsustainable and unethical methods of sourcing raw materials and resources

stakeholder conflicts employees vs general community

employees want increases wages for the tasks they complete and to work fewer hours. Whereas general community wants sustainable business activites which may cost more for a business and prevent employee wages from increasing or may increase the time taken to complete work tasks

stakeholder conflicts customer vs suppliers

customers want to recieve high quality goods and services at low prices. Whereas suppliers want to minimise costs and increase profits and therefore may source low quality raw materials and resources.

stakeholder conflicts customers vs general community

customers want goods and services that are produced in a timely manner,are of high quality and at an affordable price. Where as general community wants increase in wages for employees,local employment rates,and the level of sustainable practices within a business

stakeholder conflicts suppliers vs general community

suppliers want to minimise costs and enhance profits and therefore may utilise unsustainable methods. Whereas general community wants enviromental damage minimised and ethical practices to be upheld

stakeholder conflicts employees and shareholders

employees require safe working conditions and reasonable wages but this will reduce the business's profit and divends to shareholders

stakeholder conflicts management and customers

management could attempt to maintain profit and a high dividend to satisfy shareholders by rasing the prices of products but this will upset customers, who expect reasonably priced products

stakeholder conflicts management and community

management might decide to cut costs by neglecting maintenance, which could possibly put members of the community in danger

stakeholder conflicts suppliers and community

suppliers expect to be paid fairly and promptly, but they might reduce costs by using unethical or socially irresponsible practices, which can upset members of the community

stakeholder conflicts management and suppliers

management wishes to keep costs down to improve profit but suppliers providing ethical materials require higher prices to cover their costs

management styles LAPCP

- Laissez faire
- Autocratic
- Participative
- Consultative
- Persuasive

autocratic

Involves a manager making decisions and directing employees without any input from them and telling what decisions have been made

3 characteristics of autocratic

- Management makes decisions without employee input (centralised) : often poor motivation

- One way communication (top-down) in terms of objectives, policies and direction

- Clear direct communication employees

appropriateness of autocratic when to use

time - when time is lacking,and decision need to be made quickly

employee experience - when employees lack experience and knowledge

nature of task - simple tasks

3 advantages of autocratic (DED)

- decisions are made by an experienced manager (experience)

- employees know exactly what their tasks are

- decisions are made quickly (time efficient)

2 advantages full sentences of autocratic

time efficient - only one person is involved. No time is lost in deciison making of business organisaion as there no consultations or deliberations

experience - experienced leaders make decisions for the business. Experienced individuals have a large understanding of effective and efficient business organisations

3 disadvantages of autocratic (EEM)

- Employees can't share ideas, no skills developed which can result in low morale, motivation and employees feel they are not valued as well as having smaller pool of ideas (no motivation)

- Employees' potential for promotions may be restricted as they are not given the opportunity to contribute to decision-making.

- May increase costs associated with replacing employees as staff may leave the business due to low motivation.

-to task forced

2 disadvantages full sentences autocratic

no motivation - staff have lower motivation and job satisfaction as they are not part of the decision making in the business.

to tasked forced - little to no regard to employee satisfaction and needs + wants

persuasive

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

persuasive characteristics

- Manager or management makes decisions without employee input (centralised)

- Manager retains strong authority but attempts to persuade/convince staff of objectives/plans and policies

- Still one way communication (top-down),although more information given to the eployee

appropriateness of persuasive when to use

time - when time is lacking,and decision need to be made quickly

employee experience - when employees lack experience and knowledge

nature of task - simple tasks

3 advantages of persuasive (DCD)

- decisions are made quickly (quick)

- clear communication to employees (clear idea)

- decisions may be supported by employees are they are more informed

2 advnatages of persuasive full sentences

quick - decision making is quick and made by one person allowing for consistency throughout the business

clear idea - staff members have a clear outline and understanding of what is acceptable and unnacceptable behaviour including what they have to achieve.

3 disadvantages of persuasive (NWS)

- no opportunity for input from employees (no voice)

- workers can still have low morale/motivation due to lack of input (no staff contribution)

- small pool of ideas due to no consultation

2 disadvantages of persuasive full sentences

no voice - no inout from workers. Staff members and team members do not have a say in decision making

no staff contribution- still falls short on maximising staff contribution

consultative

a consultative management style involes a manger seeking input from employees on business decision but making the final decision themselves

characteristics of consultative

- Two way communication

- Manager makes decision (centralised). manger is prepared to consult with staff on certain issues before making a decision. discussions are encouraged

- Manager is prepared to seek feedback, listen to others and undertake two way communication

- Represents a step away from centralised management and closer to an employee centred approach

appropriateness of consultative when to use

time - when there is time available for gathering feedback

employee experience - when employees experience and knowledge that the manager can use to make a more informed decision

nature of task - more complex tasks or where problems need to be solved or something is changing

3 advantages of consultative (ETM)

- Employees may feel more motivated and involved with the business when asked to contribute their ideas, therefore improving their sense of value. (employee involvement)

- There is potential for increased sales and profit as the quality of decisions may be improved by obtaining multiple perspectives. (greater access to ideas)

- Management can gain multiple perspectives and suggestions from employees who carry out the work, which can lead to more informed decision-making outcomes.

2 advantages of consultative full sentences

greater access to ideas - managers are able to gain a variety of ideas from the suggestion of employees. This can ultimately lead to better decision making outcomes

employeement involvement - greater degree of employee involvement. The more employees are involved in the decision making the greater they are to abide by decisions/rules and implementations passed throughout the organisation

3 disadvantages of consultative (EET)

- Employees may offer unsuitable suggestions because they may not fully understand the complexity of a business situation.

- Employee conflict and resentment could arise if their ideas are ignored or overlooked when the final decision is enacted by the manager.

- The collection and consultation of different perspectives can take a significant amount of time, leading to slower decision-making processes.

participative

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

characteristics of participative

- Two way communication

- Employees are able to make decisions (decentralised) - employees not only consulted by given some responsibility in the management process

- Information is shared among employees

- Authority and power distributed through the organisation - employees are said to be empowered

appropriateness of participative when to use

time - when there is sufficient time to discuss decisions

employee experience - experienved and knowledgeable employees

nature of tasks - when problem solving is requireed or more complex tasks. Often during times of change or when creativity is required

3 advantages of participative (REE)

- Relationships between management and employees may improve due to open two-way communication.

- Employees feel empowered and can develop a sense of ownership over decisions to achieve business objectives.

- Employees may be able to grow and develop their skills and experiences due to more opportunities within the workplace

3 disadvantages of participative (TSI)

- There is potential for conflict between employees and managers when there is a disagreement between different views and opinions.

- Some employees prefer to follow directions and may feel intimidated or uncomfortable contributing ideas.

- It can be time consuming as decisions are often discussed and debated aswell as to seek the involvement oof groups or teams when making decisions

lassisez faire

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

characteristics of lassiez faire

- Two way communication/horizontal communication

- Absence of central management role and direction - employees assume total responsibility and control

-Different people assume/share the management role depending on circumstances

-Employees are empowered to make decisions (decentralised)

- Manager is only involved if asked or to set certain parameters (budgets or objectives)

appropriateness of lasissez faire when to use

time - N/A

employee experience - highly skilled employees that can be trusted to take control of

nature of tasks - high creativity required

3 advantages of lasissez faire

- Employees have a great deal of control which can help improve morale and motivation to achieve outcomes (independence)

- Encourage team work and creativity

- Communication is improved due to a team setting where ideas are constantly decreased (good communication)

3 disadvantages of laissez faire

- Employees are not monitored regularly which can lead to a loss of management control (no guidance)

- There may be misuse of company resources (not for all)

- Increased freedom may lead to some employees being less productive

2 disadvantages full sentences lasissez faire

no guidance - lacks guidance. lack of guidance can cause some employees to have a sense of loss of direction

not for all - do not suit employees who are unskilled and need structure and routine tasks