Buisness T2

What is planning

the process of setting objects and how to achieve them

types of planing

strategic —> 5 years

tactical —> 2-3 years

operational —> day to day

what is organising

structure of the organisation to put goals into action

what is leading

process of motivation to achieve a set objective

what is the aim of controlling

avoid defects in production and ensure productivity

interpersonal skills

relatability and understanding of employee needs

what is vison

clear sense of direction toward achieving a common goal

what is communication

exchange of information between people

verbal - tone and pitch

non verbal - body langue

strategic thinking

• planning for long term business survival

• identifying trends and threats

• how individuals interrelate

what is problem solving

identification of issues, analysing possible causes and implementing solutions

what is decision making

choosing a course of action after evaluating risks. Involving employees in this process will motivate them

what is flexibility

being responsive to change and adjusting to adapt to new circumstances

corporate social responsibility

accountability of businesses actions to enhance reputation and increase customer loyalty/ satisfaction

triple bottom line

interaction of economic, social and environmental sectors, aim is to combine all three effectively

what is a goal

a goal is a desired outcome a business intends to achieve within a certain time frame

what are the business goals

Please Make Gru Steal Something Else

Profits

Market share

Growth

Share price

Social

Environmental

business goal —> profits

must increase sales

business goals —> growth

internally: within the business such as new products or employees

Externally: merging, acquiring and diversification

business goals —> market share

share of total sales in a particular field. can be increased through promotion

business goals —> share price

aim to maximise returns by rising the share price and paying aqudate dividends

reasons people buy shares: income through dividends or sell to make a profit

business goals —> social goals

serve to benefit community and business finance

community service: sport/education

provision of employment: flexible working conditions

social justice: charities

business goals —> environmental goals

assisting environment through sustainable development and practices. gives businesses a positive CSR,

staff involvement

involvement of employees in the decision making process by providing necessary skills and rewards

staff involvement —> innovation

gain sustained competitive advantage through recognition and encouragement of employee innovation

intraprenure: employee who takes on the role of an entruprenure/innovator

staff involvement —> motivation

use of monetary and non monetary motivation to encourage and positively reinforce employee productivity

staff involvement —> mentoring

modelling of acceptable behaviour by ‘heroes’ for new or struggling employees

staff involvement —> training

conducting a skills audit to find gaps in knowledge and then providing training to amend them

on the job: within work hours and environment

off the job: outside work hours and environment

classical approaches

gained relevance in the Industrial Revolution and is based upon the belief that there’s one best way to do any task

managing as:

• planning

• organising

• controlling

leadership style:
- autocratic

classical scientific approach

focuses on the production line method or manufacturing. Employees have no control in decision making and are often poorly skilled and trained to do simple repetitive tasks making them specialised in that area.

classical bureaucratic approach

strict hierarchy with clear lines of communication and responsibility. impersonal evaluation of employees

KPI

key performance indicators

main functions of classical management

planning:

strategic, operational and tactical

organising:

activities that transform goals into reality

• determining the work activities

• classifying and grouping acititives

• assigning work and delegating authorities

controlling:

establishing standards, measuring performance through KPI and taking corrective action

hierarchal approach

• narrow span of control

• chain of command top —> down

• devision of labours —> simple receptive jobs

  

autocratic leadership style

makes all decisions and dictates work methods. gives punitive feedback and frequent employee evaluation

Behavioural approach

focuses on the human needs in the workplace and an employee orientated philosphy

elton mayo

the hawthorn effect - meeting peoples social needs has a significant impact on productivity he also found that worker satisifcayion is largely non-economic

functions of management:

• leading

• motivation

• communicating

leadership style:

• democratic

main functions of behavioural management

leading:

process of influencing or motivating people to work toward business objectives

motivation:

the internal process that energises, directs and sustains individuals behaviour causing them to behave in a particular way

communicating:

management must communicate relevant information to create a shared vision

what’s the importance of teams

if managers understand team dynamics and facilitate as opposed to control then the team can function and have superior performance

democratic leadership style

heavy focus on employee feedback to make them feel valued and respected whereby increasing involvement and motivation

the contingency approach

stresses the need for flexibility and requires managers to adapt plans and operations to suit changing circumstances. Managers can extract practices from a wide range

What are the 4 management processes

• operations

• marketing

• finance

• human recourses

what are operations

concerned with all the activities that create, operate and control the transformation of inputs into goods and services that satisfy consumer needs and wants

effect on business:

• establish quality

• cost of production

involves:

• production process

• quality management

what is the production process

inputs —> transformation —> outputs

production process —> inputs

transformed resources:

the inputs that changed or converted:

• materials

• information

• customers

Transforming resources:

the inputs that carry out the process

• human recourses

• facilities

production process —> transformation

The process of value adding

service:

provision of expertise/labour

good:

manufacturing or creating

production process —> outputs

outputs refer to the result of a business efforts - the final product. Must always be responsive to consumer demands

quality definition

degree of excellence and fitness for stated purpose

what are the three parts of quality management

quality control, quality assurance, total quality management

quality management —> quality control

uses inspections at various points in production process to check for problems and defects

quality management —> quality assurance

proactively prevent defects by following set standards during production such as the international organisation for standardisation (ISO)

quality management —> total qualtity management

a commitment to excellence, continuous improvement and a defect free production process by all members of a business to improve customer focus and price competivness

employee empowerment: quality circles to allow employee innovation

customer focus: keeping consumer needs and wants at forefront of decisions

continuous improvement: higher standards

marketing

a total system of interacting activities designedd to plan, price, promote and distribute products to present and potential customers

involves:

• target markets

• the marketing mix (the four Ps)

identifying a target market

mass market:

seeks a large range of customers with no product variation and products are mass produced

example: Sydney water

niche market:

narrowly selected target market segment

example: gluten free products

market segmentation:

when the total market is subdivided into 4 categories:

demographics, geogrpahics, psychographics, behavioural

allows the business to better understand consumer behaviour and create comparisons to use marketing recourses more effectively. can also determine primary and secondary markets.

what is the marketing mix

controlling the 4 Ps to reach target market

the four Ps

• product

• price

• promoting

• place

marketing mix —> Product

customers purchase products to both satisfy needs but also for security, prestige and other intangible benefits marking promotes

packaging: first impression, environmentally conscious, truthful labels

branding: logos and branding can establish intangible benefits such as prestige

marketing mix —> price

price skimming: selling products at the highest possible price

price penetration: charging the lowest possible price for a product

loss leader: product sold at or below cost price

marketing mix —> promotion

the role of promotion is to inform, persuade and remind consumers about a product

personal selling: actitivites of a sales rep directed to a customer

relationship marketing: developing long-term relationships with individual customers

publicity: free news story about a product

public relations: actinides aimed at creating and painting relationships with consumers

sales promotion: actinides used by a business to attract interest such as coupons, refunds, samples etc

advertising: paid, non-personal message communicated trough a mass medium to inform, persuade and remind consumers about a product

marketing mix —> place

activities that make the products available to customers when and where they want to purchase them

through distribution channels (which is the way of getting products to customers)

producer —> customer: used by serivces

producer —> retailer —> customer: a retailer is an intermidatery who buys bulk from the producer and resells it customers. used for bulky or perishable items

producer —> wholesaler —> retailer —> customer: most common for goods. wholesaler is an intermidtary who buys in bulk from producers then sells in smaller quantiies to wholesalers.

human management recourses

the effective management of the formal relationship between the employer and the employees

involves:

• aquisition

• development

• maintence

• seperation

HR—> acquisition

the process of attracting and recruiting the right staff for roles in a business

prior to recruiting:

1. conduct a job analysis to determine the exact nature of the job

2. create a job description —> duties + responisbilities

3. job specification —> key quailifactons needs

recruiting:

internal recruitment: within the business

external recruitment: outside the business

selection:

choosing the most suitable applicant for a vacancy through

• written application

• testing

• interviews

• background checks

HR —> development

the process of preparing employees to gain responsibilities through gaining experience

training:

process of boosting employees KSA (knowledge, skills and attitude)

ongoing training —> promote learning organisations to keep up with technology

training methods —>

• on vs off the job training

• action learning (solving real problems)

• compentcy based (skills, strengths and areas where further training is needed)

programs:

aimed at developing effective managers

job rotation: moving between roles to help managers gain wide skills

mentoring: supporting learning employees to help learn skills

HR —> maintenance

employment contracts:

legally binding agreement between employers and employees by the fair work act

employer obligation —> provide work, pay income, stagey , meeting industrial relations leglisations

employee obligation —> obey commands, use care + skill, act in interest of employe

awards:

legally binding agreement that determines minimum wages and conditions for employment

advanatges: min pay + conditions, covers employees with same job

disadvantages: inflexible, limited recognition for individual achievement

enterprise agreements:

collective agreement between an employer and a union or employee group about terms and conditions of employment .

must include:

• expired date

• producers for settling disputes

• consultation

advantages: consultation = ↑ employee empowerment, improved payment/contions = ↑ performance, flexibility

disadvantages: time consuming, admisitravltey onerous

HR —> seperation

the ending of employment relationships

voluntary separation:

retirement —> employee quits work and labour force

resignation —> leaving to pursue other work freely

voluntary redundancy —> employees job can no longer be performed and they are give the choice to leave

involuntary separation:

involuntary redundancy —> asked to leave because the job no longer exists

dissmisal —>

• summary: serious breach of contract

• dismissal on notice: not meeting KPI’s

• unfair dismissal: harsh, unjust or unreasonable