Business Management U1/2

Phases of staffing

Establishment phase, maintenance phase, termination phase

Termination phase

staffing needs when a staff member’s employment needs to be terminated. This involves management of voluntary and involuntary management, as well as entitlement and transition issues

Establishment phase

staffing needs when a staff member is just employed. Involves planning that is in lone with the business strategy, job analysis and design, recruitment and selection and employment arrangement payment

Maintenance phase

Staffing needs while a staff member is employed in a business. involves induction, training and development and performance management

Desirable staff qualities

prior knowledge/experience, qualifications, language skills, people skills, lack of criminal record, creativity, promotion/advertising skills and passion for job.

how can a business identify staffing needs?

consider business direction and goods and services they produce

why identify staffing needs?

determines number of employees required, qualifications needed and when and where they will be needed

affects of tech on staffing

• makes new jobs

• helps employee mobility

issues of new tech on staffing

• reduction in staffing requirements

• adjusting of pay to account for new skills

• tech can blur work and personal lives

Human resource planning

planning for staffing which involves picking qualities in potential staff and matching them to achieving business objectives

Job analysis

a study of each existing employees duties, tasks, and work environment. Examines actual job activities, equipment used on the job, specific work behaviours required, working conditions, degree of supervision necessary

Job design

details (for new employees the number, kind and variety of tasks that the individual employees perform in their job

Job specification

specific skills you need before applying for an employee position.

Recruitment

the process of attracting qualified job applicants by using advertisements, websites, employment agencies and word of mouth, from which to select the most appropriate person for a specific job

Internal recruitment

filling job vacancies with employees, rather than looking outside the business

External recruitment

used to find suitable applicants from outside the business

Internal recruitment methods

intranet posting, promotion, consider external records, word of mouth recommendation , staff noticeboard, or email

Methods of external recruitment

online recruitment agencies, company websites, temporary or casual recruitment agencies (schools or tafe), jobactive (gov recruitment service), social media, private employment agencies, referrals, and advertisements in media

Internal recruitment advantages

• employee is already known, reducing risk

• applicants are familiar with business culture, objectives and processes

• creates a career path within the business to reward employees

• low cost of advertising the position

Internal recruitment disadvantages

• may be no one suitable within the business

• more than one applicant can lead to conflict

• applicants may not be open to new ideas

• successful applicants original position will then need to be filled

External recruitment advantages

• wider range of applicants

• bring new ideas and fresh approaches

• different and new qualifications

• rapid growths in the business

External recruitment disadvantages

• choice may be difficult due to unknown applicants

• costs associated with advertising the position

• more applicants, more time consuming selection

• qualified employees may reject new applicants

Selection

the process of choosing the best candidate who best matches the business’ requirements

selection process

• applications received

• screen applicants

• shortlist candidates

• interviews

• reference checks

• offer job to candidate

Selection methods

• interview

• psychological testing

• work testing

• online selection

Interview

a one-on-one meeting with the employer and each candidate

psychological testing

a questionnaire which determines characteristics of the applicant

Work testing

Trialing an applicant in the working environment to test their skills

Online selection

selecting applicants without meeting them face to face

Advantages of an interview

• employer can meet candidate and assess their appropriateness for the job

• provides the applicant with an opportunity to ask questions

Disadvantages of an interview

• applicant may not be honest

• doesnt assess actual job skills

Advantages of psychological testing

• insight into applicant personality

• can assess skills such as teamwork, leadership and decision making

Disadvantages of psychological testing

• relies on honest answers

• not all tests are reliable

advantages of work testing

• Assesses actual job skills

• can test these skills in action

disadvantages of work testing

• tests technical but no broader skills

• applicants may be nervous

• could be in an artificial environment

Advantages of online selection

• convenient for both parties

• can be used of a wide variety of different types of tasks and responses

Disadvantages of online selection

• impersonal, no indication of the actual person

• may be many applicants who are difficult to sort

Employer expectations

• committed to job

• work coorperatively in teams

• demonsrate loyalty

• punctual

• excellent customer service

• provide notice when quitting

• follow reasonable requests

• complete projects on time

Conditions of employment

what an employer has agreed to give the employee in return for their work. this could include expected hours, leave entitlement and public holiday pay. Businesses can go above and beyond here.

Remuneration

the financial payment an employee receives in return for working for an employer

Wage

a from of remuneration which is an hourly or weekly rate of pay

salary

a method of remuneration which is a fixed yearly amount paid in increments.

Salary sacrifice

giving a portion of ones salary for a benefit, like a car

flexible working conditions

patterns of work that allow businesses to work more efficiently or allow employees to balance work and life

work-life balance

a healthy amount of work and personal life in ones day

job security

refers to whether an employee believes they are likely to lose their job either through being maderedundant or being dismissed.

benefits of a business which provides a good work-life balance

• reduced employee stress

• improved attendance rates and sick leave costs

• enhanced corporate image

• enhancements of workplace skills

• motivated and enthusiastic workplace

• compliance with certain legislation

• increased employee productivity

• lower employment costs due to employment retention

Induction

the process of acquainting new employees with a business and the jobs they will perform

Common methods of induction

• audiovisual presentations

• tours

• buuddy systems

• handbooks or manuals

• presentations form representatives

• quizzing

benefits of a good induction

• reduce employee stress

• builds employee confidence

• helps them feel pat of the business

• establishes good working relations

• ensures awareness of policies and procedures

CSR in staffing

• employees are treated fairly

• pay fair wages

• safe working conditions

• reward effort

• promotion processes

• dismiss staff respectfully

Job description

duties to perform on the job

Marketing

A total system of interacting activities designed to plan, price, promote, and distribute products to present to potential customers. It is finding out what customers want, and then attempting to satisfy their needs.

Marketing vs Advertising

Advertising comes under marketing

Customer base

a group of customers who repeatedly purchase the products of a business and are its main source of revenue.

Customer profile

a basic description of who the ideal customer might be. It includes behaviours, what the business can satisfy, demographics (age, gender, etc.) interests, lifestyles, opinions, values, location and environment, among other things.

Effective marketing

not just advertising, but carefully selecting the means by which a business can reach potential members of its customer base.

strategies for maximizing customer service

asking customers what they want, training staff and rewarding them for excellent customer service, anticipating market trends by conducting research and finding out what competitors are offering, and then reviewing the product mix

Performance indicators of marketing objectives

sales analysis, market share analysis and market profitability analysis

Sales analysis

uses sales data to evaluate the business’ current performance and the effectiveness of the marketing mix.

Market share analysis

evaluating how a business’ marketing strategies are working with those of their competitors, which can reveal whether their total sales have resulted from business marketing or a macro factor.

Marketing profitability analysis

a method used by a business to break down it’s total marketing costs into specific marketing activities.

Marketing plan consists of…

a production plan, financial plan and an organisational plan

Customer persona

a fictional person that represents who the business believes is it’s typical customer

Brand identity

the message that customers receive about the business and its product. This may include a name, term, symbol, design or any combination of these that identifies a specific product and distinguishes it from the products of competitors

Operating environment factors (marketing)

Customers, suppliers, and competitors

Macro environment factors (marketing)

Environmental factors (influence customer base development), technological factors (advance marketing strategies or make a product outdated), and legal and social factors (acknowledgement of these)

Internal environment factors (marketing)

Owners and managers (determine and implement), employees (reinforce) and corporate culture (considers customer preferences)

Market research (5.4)

Corporate Social Responsibility (CSR)

the notion that corporations are expected to go above and beyond following the law and making a profit

Worksafe Victoria

a government agency that aims to reduce workplace injuries and support injured workers

Codes Of Practice

sets of guidelines established by external bodies to regulate the standards of behaviour and conduct within an industry

ACCC

Australian Competition and Consumer Commission

policies and procedures

Information such as guidelines for practice and hospital regulations found online or in a manual.

Bookkeeping

the recording of business transactions

Auditing

the job of reviewing and evaluating the information used to prepare a company's financial statements

Suppliers

companies that provide material, human, financial, and informational resources to other companies

Customers

The purchasers of organizations' products; the focal point of all marketing activities

Competitors

companies in the same industry that sell similar products or services to customers

ASIC

Australian securities and investments commission

ACN

Australian Company Number

Domain name

business’ website address

Australian Domain Administration

Where a business can register a domain name, which generally costs between $10 - $100 per year.

Taxation

A means by which the government finances its expenditure by collecting money from individuals and businesses.

Federal Income tax

levied on the taxable income of an individual or a business. Companies pay a flat rate of 30% for larger businesses and 25% for businesses with a turn over of less than $50 million. Individuals pay a progressive tax rate

progressive tax rate

the more you earn the more you pay

Major federal taxes that apply to businesses

• Pay as you go (PAYG) withholding

• Goods and services tax (GST)

• Fringe Benefits Tax (FBT)

Pay as you go (PAYG) withholding

imposed on the employee - Tax that is taken directly from an employee’s salary or wage

Goods and Services tax (GST)

Broad-based tax of 10% on the supply of most goods and services consumed in Australia. Imposed on all consumers. Businesses are only required to register for GST if they earn $75000 or more in a financial year

Fringe Benefits tax (FBT)

Tax on the provision of a benefit to an employee - such as a car for private use, or a low-interest loan - in place of a wage or salary. Imposed on the employer.

State taxes that apply to businesses

• Stamp Duty

• Land tax

Stamp duty

Placed on documents that give evidence to transactions, such as the purchase of property. Imposed on the individual or business.

Land tax

Annually levied on the owner of the land

Business Activity Statement (BAS)

A form submitted to the ATO to report a business’ taxation obligations. It is lodged periodically.

Zoning

categorization of land for particular purposes, such as residential, industrial, etc.

Occupational Health and Safety Act (2004, VIC)

the principle legislation covering OH&S

The competition and consumer act 2010 (cwlth) a.k.a CCA

a federal law specifying acceptable business behaviour in relation to a wide range of issues - product safety, pricing, competing, etc. Administered by the ACCC.