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Economics > business topic 2 (chap 5-8.6)) > Flashcards

business topic 2 (chap 5-8.6)) Flashcards

1
Q

5 important characteristics of management

A
  1. ability to analyse info, attend meetings & communicate with wide range of ppl inside & outside business
  2. possessing skills to manage change effectively
  3. having vision to see how future could be than accepting as they are
  4. leadership through desire to encourage, motivate & guide employees
  5. understanding employee roles & responsibilities to achieve goals of business
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2
Q

management

A

coordinating bus’ resources to achieve its goals while working with/through others to achieve goals in changing environment

crucial to have effective & efficient use of limited resources

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3
Q

manager

A

one who coordinates the business’ limited resourcecs to achieve specific goals

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4
Q

management requires (5)

A
  1. working through others
    -fail to communicate well with employees fail to achieve high lvls staff commitment
  2. achieving goals of the business
    -lose direction, employees wouldn’t understand purpose of their work & managers unable to measure performance (EFFECTIVENESS)
  3. getting most from limited resources
    -managers need to coordinate resources efficiently (EFFICIENCY)
  4. balancing efficiency & effectiveness
    -correct balance between is key to achieve competitive position in challenging bus environment
  5. coping with rapidly changing environment
    -very imp, can anticipate & adjust changing circumstances
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5
Q

effectiveness

A

measures degree goal been achieved

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6
Q

efficiency

A

compares resources needed to achieve goal (costs)
against what actually achieved (benefits)

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7
Q

effective manager needs to be good at (POLC):

A

Planning
-prepare predetermined course of action for bus
-process setting objectives & deciding methods to achieve em

Organising
-structing org to translate plans & goals to action

Leading
-motivating ppl to work towards achievement of org’s objectives

Controlling
-evaluating performance & taking corrective action to ensure set objectives achieved

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8
Q

role of effective management

A

ensure joint efforts of employees directed towards achieving bus goals

-major factor influencing success/failure of business

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9
Q

whether goals of business achieved largely depends on

A

skills & expertise of management team in coordinating bus’ resources

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10
Q

skill

A

ability comes from knowledge, pratcie & talent to do something well
-complete task EFFECTIVELY

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11
Q

manager skills required to operate effectively ISVPDFAR

A

Interpersonal
Strategic thinking
Vision
Problem Solving
Desicion making
Flexibility
Adaptability to change
Reconciling conflicting interests of stakeholders

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12
Q

interpersonal skills

A

skills needed to work & communicate with others & understand their needs
-abiliy to build positive relationships with staff

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13
Q

why are interpersonal skills important

A

through others that managers achieve business objects
-to identify & recognise others perspectives and use them in a logical, understanding manner is effective in achieving objectives
-inspire staff while overcoming conflict, creating workplace of respectand collaboration

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14
Q

5 interpersonal skills most crucial to success of managers/leaders SCSMC

A

SELF MANAGEMENT
COMMUNICATION
SUPPORTIVENESS
MOTIVATION
CONFLICT RESOLUTION

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15
Q

itnerpersonal skill of self management

A

(self awareness)
-able to see how their actions influence emotions & actions of staff –> modify behaviour accordingly
-alternative to traditional HIERARCHICAL approach to management (total responsibility for POLC)
-M delegates responsibility for POLC to staff, each employee responsible for planning own work, coordinating actions with colleagues, acquiring resources & corrective action when needed

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16
Q

interpersonal skill of communication

A

what ISNT said than whats SPOKEN
-listen to employees & learn from ppl who work for them

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17
Q

interpersonal skill of supportiveness

A

most managers extremely time poor, often unaware of employees needs, consumed by myriad tasks
-effective M creates atmosphere employees know they’re supported
-need to send messages acknowledging efforts of employees & their needs
-exhibit empathy, non-judgemental, work together with staff to seek common solution during conflict

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18
Q

interpersonal skill of motivation

A

customise interactions to suit diff employee needs to find ways to influence behaviour

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19
Q

interpersonal kill of conflict resolution

A

help parties engaged in disagreement find a resolution
-ability to view problems & issues from multiple perspectives, strong problem solving skills, active listening, critical & objective thinking, ability to empathise & compromise

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20
Q

why do managers use communication skills and

A

to explain vision, outline possible changes to business, staff expectations,

answer questions when introducing new policy, listen to feedback from stakeholders, maintain healthy relationships

essential for long term survival of business

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21
Q

methods of communication

A

ultimately send message to another
-verbal (spoken, written)
-nonverbal (smile, body language {most important})

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22
Q

strategic thinkin

A

allows manager to see business as whole to take broad, long term view
-complex parts depend & interact with each other
-think of bus’ future direction & goals to achieve

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23
Q

benefits of strategic thinking VUIC

A
  1. visualise how work teams & individuals interrelate
  2. understand effect of actions to business
  3. gain insights into uncertain future
  4. see business in context of events & trends, identify opp/threats
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24
Q

overall what will adopting strategic thinking do for a business

A

help maintain competitive position iwth constantly changing business environment

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25
Q

vision

A

shared direction allows ppl attain common goal

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26
Q

why do effective leaders need a clear vision

A

clearly define vision & communicate in way to foster enthusiasm & commitment throughout business
-clear & well communicated vision essential for manager to gain support of staff

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27
Q

leadership

A

ability to influence ppl to set & achieve specific goals
-bridge existing ideas into new, unfamiliar territory

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28
Q

skills of management ICSVPDFAR

A

interpersonal
communication
strategic thinking
vision
problem solvnig
decision making
flexibility
adaptability to change
reconciling conflicting interests of stakeholders

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29
Q

problem solving

A

activities involved in search for, identifying & implementing course of action to correct unworkable situation

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30
Q

steps of problem solving process IGDACE

A
  1. identify problem & causes
  2. gather relevant info
  3. develop alternative solutions
  4. analyse alternatives
  5. choose 1 alternative and implement it
  6. evaluate the solution

if doesn’t work start process again

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31
Q

decision making

A

process of identifying options available and choosing specific course of action to solve problem
-make decisions under time constraints
-adequately asess risk involved if decision implemented

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32
Q

flexible

A

responsive to change, able to adjust to changing circumstances

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33
Q

proactive

A

management style incorporated DYNAMIC action and forward planning to achieve objectives
-&raquo_space;> reactive

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34
Q

last 40 yrs philosophical shift in business conduct to meet society’s expectations (shareholders)

A

-increasingly expects businesses to accepts accountability & responsibility toward all stakeholders for promotion & management of change
-expected to be enterprising, comply with law, socially just, ecologically sustainable operations

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35
Q

conflicting interests of stakeholders

A

place competing demands upon business,
-some compatible (quality products at reasonable prices), sales increase, greater profits, rewarded with higher dividends for owners

incompatible
-satisfying 1 = dissatisfying other
eg. employees & unions require safe working conditions & reasonable wages, forced to raise prices but customers want reasonably prices products

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36
Q

conflicting interests between employees & shareholders

A

employee: safe working conditions & reasonable wages

shareholder: reduce bus profit and dividends to shareholders

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37
Q

conflicting interests of management & customers

A

management: maintain profit & high dividend to satisfy shareholders by raising prices of products

customers: upset customers who expect reasonable pricesconf

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38
Q

conflicting interests of management & broader community

A

management: cut costs by neglecting maintenance

community: danger

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39
Q

conflicting interests between suppliers and broader community

A

suppliers: expect to be paid fairly
community: reduce costs through unethical practices, upset

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40
Q

conflict between management & suppliers

A

management: keep costs down to improve profit
suppliers: higher prices to cover costs of providing ethical materials

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41
Q

triple bottom line

A

economic, social, enviro performance of business
-shareholder value increases through careful management of stakeholder value ensuring long term growth
-businesses socially responsible rewarded with improved business performance

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42
Q

hardships of being socially responsible

A

expensive, time consuming
-damage reputation
-reduce competitive advantage

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43
Q

how can businesses reconcile conflicting interests between shareholders and employees
ESAS

A
  1. employee share acquisition schemes
    -opp for eligible employees to purchase shares in bus at (often) reduced price
  2. offer training & proof development to employees
    -educated, skilled workforce more efficient –> reduce prod costs –> rising profits –> please shareholders (high quality product to satisfy customer expectations)
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44
Q

how can businesses reconcile ocnflicting interestes of various stakeholders

A

stakeholder engagement (business shares info with & seeks input from stakeholders, involving them in decision making)

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45
Q

management approaches influence AOLM

A

organisation and ALLOCATION of tasks to staff
ORGANISATIONAL structure
LEVELS of management
MANAGEMENT styles

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46
Q

mass production (Industrial Revolution)

A

manufacturing standardised goods on huge scale by automation

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47
Q

problems of mass production

A

-training employees
-organising managerial structure
-scheduling complex manufacturing processes
-worker dissatisfaction

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48
Q

industrial revolution generated 2 perspectives of approaches

A
  1. scientific approach
    -how best to organise workers & production methods in factory
  2. classical bureaucratic approach
    -business organisation /structure
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49
Q

classical appraoch to management

A

how to best manage and organise workers to improve productivity (output)

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50
Q

scientific management

A

studies job in great detail to discover best way to perform it

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51
Q

industrialised countries in early 70s Frederick Taylor management approach 4 principles

A

scientific management approach
1. scientifically examine each part of task to determine most efficient method for performing task
2. select suitable workers and train them to use scientifically developed work methods
3. cooperate with workers to guarantee they use scientific methods
4. divide work and responsibility so management responsible for planning, organising, controlling scientific work methods & workers responsible for carrying planned work

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52
Q

what did frederick taylor believe

A

to improve efficiency, systemise way job completed
-poorly skilled workforce can train to perform simple repetitive tasks effectively (divide task to smaller specific activities improve productivity)

employees follow self-interest and display natural desire to avoid work
-tight control by supervisors & managers
-management to control workers and ensure followed instructions by rigid rules & regulations based on hierarchy & authority

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53
Q

what dod frederick taylor use to analyse performance of certain task

A

TIME and MOTION STUDIES to reduce task to effective minimum standard
-reduce tasks to most simple format

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54
Q

classical bureaucratic appraoch was pioneered by

A

Max Weber and Henri Fayol

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55
Q

time and motion studies

A

examining each step in production procedure and time taken to perform them

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56
Q

according to WEBER, BUREAUCRACY organisation should have 6

A
  1. strict hierarchical organisational structure
  2. clear lines of communication & responsibility
  3. specialisation (jobs break down to simple tasks)
  4. clearly defined job roles
  5. rules & procedures
  6. impersonal evaluation of employee performance to avoid favouritism & bias
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57
Q

Fayol 5 principles to assist managers

A
  1. discipline as feature of leadership
  2. org’s goals should take precedence over employee’s omdovodial interests
  3. rewards for effort should be fair
  4. security for employment is essential
  5. teamwork should be encouraged
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58
Q

4 adv of classical approach to management

A
  1. shorter decision making time
  2. improved efficiency
  3. increased productivity
  4. clear command chain
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59
Q

4 disadv of classical appraoch to management

A
  1. specialisation & repetitive tasks –> employee boredom
  2. less job satsifaction –> increased staff turnover
  3. discourage innovation, creativity
  4. inflexible organisation, lower ability to adapt to changing conditions
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60
Q

planning

A

preparation of predetermined course of action for business
-how business achieves its goals & objectives
-short & long term success of business

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61
Q

3 different types of planning STO

A
  1. strategic (long term) planning
  2. tactical (medium-term) planning
  3. operational (short term planning)

management coordinates these plans are achieved, in the pyramid of hierarchy shit

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62
Q

strategic (long term) planning

A

-plan following 3-5 yrs
-determine where in market business wants to be
-what business wants to achieve in relation to competitors

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63
Q

tactical (medium term) planning

A

-flexible, adaptable 1-2 yrs
-implement strategic plan to respond quickly to changes
-how goals achieved through ALLOCATION of resources

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64
Q

operational (short term) planning

A

-specific details wy business operates short term
-daily management controls of operations for short term goals
-eg. daily/weekly production schedules

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65
Q

organising

A

structuring of ord to translate plans & goals to action
-determine WHAT is done, WHO does it and HOW it’s done
-organise financial, human, material resources to achieve goals of business

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66
Q

organisation process 3 steps DCA

A
  1. Determine work activities
    -to achieve management activities, broken down to steps
  2. classifying & grouping activities
    -into steps, similar activities grouped
    -improve efficiency by enabling appropriate allocation of resources
  3. assigning work & delegating authority
    -who carries out work, who has responsibility to ensure work carried out
    -person given responsibility carries out processes (delegation)
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67
Q

controlling

A

management attempts to evaluate performance & take corrective action to ensure objectives achieved
-compares what intended to happen with what occurred
-discrepancy between performance and goals, improvements can be made

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68
Q

control process 3 steps EMC

A
  1. ESTABLISH standards with firm’s goals & influences from employees, management, industry & GVT
  2. MEASURE performance and determine how comparisons will be made against standards
  3. take CORRECTIVE ACTION
    -change activities, processes & personnel to ensure goals of business met
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69
Q

management gierarchy

A

arrangement provides increasing authority at higher levels of hierarchy
-senior managers have greater accountability, responsibility & authority compared to lower lvls of pyramid

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70
Q

characteristics of pyramid organisational structure

A

group ppl according to specialised functions they perform

-rigid lines of communication
-numerous lvls of management (up –> down)
-distinguished organisational positions and responsibilities
-hierarchical flows of info directed downwards
-SPECIALISATION OF LABOUR (tasks divided into separate jobs)
-CHAIN OF COMMAND shows who responsible to whom
-centralised control with all strategic decisions made by senior management

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71
Q

autocratic/authoritarian leadership style

A

makes all decisions & tells employees what tasks to do & how to do them
-high task/low process
-dictates work methods
-limits worker knowledge about what needs to be done and next step performed
-frequently checks employee performance
-sometimes punitive feedback

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72
Q

participative/democratic leadership style

A

manager consults with employees to ask suggestions and considers them when decision making
-presents problems, asks for suggestions & works together to make decision
-share decisionmaking authority with their subordinates
-flatter management structures & diverse groups

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73
Q

whatleadership stylel would managers with a strict classical-scientific approach display?

A

autocratic

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74
Q

when can autocratic leadership style be effective

A

time of crisis when immediate compliance with procedure needed/meeting unexpected deadline where speed important

individuals lack skills and knowledge, but doesn’t encourage best performance from employees

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75
Q

4 advantages of autocratic leadership style

A
  1. directions & procedures clearly defined, less chance of uncertainty
  2. employee roles & expectations plainly set so management can monitor performance
  3. hierarchical structure provides stable & consistent enviro, outcomes always match management objectives
  4. control centralised at top-lvl management so time used efficiently & problems dealt with quickly bc no discussion/consultation
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76
Q

4 disadvantages of autocratic leadership style

A
  1. no employee input allowed,, ideas arent encouraged/shared
    -employees don’t get chance to develop skills/feel valued
  2. ignores importance of employee morale & motivation
    -if no responsibility given to lower staff, job satisfaction decreases –> absenteeism & staff turnver
  3. potential for conflict increases
    -workers often competing for approval of managers, tension between employees
  4. lack of employee input, resentment
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77
Q

main features of classical scientific & bureaucratic management approaches

A

time & motion studies to reduce inefficiencies
-production line methods/procedures
-hierarchical organisational structure
-chain of command
-autocratic leadership style

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78
Q

behavioural management approach

A

stresses employees should be main focus of way business organised
-successful management depended largely on manager’s ability to understand & work with diverse ppl
-Mayo ‘Hawthorne effect’ meeting ppls social needs sig impacts productivity
-managers needed skills in communication, social motivation & democratic leadership

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79
Q

major contributor to behavioural management

A

Elton Mayo

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80
Q

2 sig results from Mayo’s experiment

A
  1. worker satsifaction to large extent have social needs in addition to economic needs
  2. feeling part of a team increases job satisfaction & input
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81
Q

3 advantages of behavioural approach

A
  1. increased empowerment of employees as they can take ownership of their work
  2. worker recognition & appreciation –> increased motivation
  3. improved relationships betw managers & staff
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82
Q

3 disadvantages of behavioural approach

A
  1. lack control
  2. communication confusion may arise
  3. difficult to accurately predict employee behaviour
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83
Q

qualities of a successful leader

A

-open mind, seeks new ideas & freely shares info
-confidence in others, shares credit & recognition
-builds & communicates clear vision to workers & motivate them
-demonstrates flexibility in dealing with conflict

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84
Q

teamwork

A

ppl interact regularly & coordinate their work towards common goal

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85
Q

importance of teamwork

A

-understanding group dynamics of teamwork vital for managers
-foster sense of cohesion betw members instead of working separately with no common purpose of sense of belonging to org
-flatter organisational structures (Google), eliminating 1/+ management levels, greater responsibility to individuals in business

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86
Q

how can managers foster teamwork

A

balancing needs of team with thoseo f business
-understand views of others
-handling disagreements honestly & directly
-persuading others to adopt new ideas
-TRUST to develop common goal
-participative/democratic leadership style

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87
Q

when is participative/democratic leadership style most effective

A

diverse groups , when business operating in environment undergoing rapid change
-business more responsive to change through improved decision making

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88
Q

5 advantages of participative/democratic leadership style

A

-employer & ee relations positive, reduced likelihood of industrial disputes (employees more likely to accept management decisions)

-motivation & job satisfaction optimal (employees active role allocating tasks & actions to meet objectives)

-greater opp to acquire more skills for employees
-development of work teams with high lvls commitment
-high lvl trust –> high performance

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89
Q

5 disadvantages of participative/democratic leadership style

A

-reaching decisions time consuming, differing views to consider
-control of manager weakened & undermined
-internal conflict as opinions shared, disagreement
-informal system may collapse management
-not all employees want contribution

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90
Q

main features of behvioural management style

A

-humanistic appraoch (employees are business’ most important resource)
-employee participation in decision making
-team based structure
-managers need interpersonal skills
-participative/democratic leadership style

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91
Q

for behavioural management approach, main management functions are LMC

A

LEADING
MOTIVATING
COMMUNICATING

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92
Q

flatter organisational structures result in 3
(manager controller –> facilitator)

A
  1. delayering of traditional hierarchical structures
  2. establishment of market-focused work teams
  3. each work team responsible for wide range of production functions
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93
Q

contingency approach to management 70s

A

need for flexibility & adaptation of management practices and ideas to suit changing circumstances

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94
Q

contingency for managers 4

A

-managers borrow wide range of management approaches and practices
-managers need adaptable and flexible techniques to problem solving
-extract most useful ideas & practices from range to suit bus requirements
-appropriate management response to one set of circumstances inappropriate to another

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95
Q

3 advantages of contingency appraoch

A
  • acknowledge impact of changes in bus environment, enabling bus flexibility in reacting to change
  • recognises multiple approaches to management, not one best
  • diff situations demand diff approaches
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96
Q

disadvantages of contingency approach

A
  • adapting to constant changes in bus enviro challenging for management
  • selecting alternative courses of action depending on situation costly in time and money
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97
Q

managers using ocntingency approach need to adopt 10 commandments for the modern manager, which are

A
  1. share vision with stakeholders
  2. manage relationships & coalitions, not employees
  3. manage emotions & help others maintain emotional balance
  4. thrive on diversity, not conformity
  5. lead than simply managing, by inspiring trust & motivation
  6. cultivate ability to adapt to changing circumstances
  7. use appropriate info and manage knowledge effectively
  8. be aware how tech developments can improve effectiveness & efficiency
  9. recognise and use experiences & expertise of all employees
  10. encourage ethical behaviour to promote pride commitment in employees
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98
Q

3 approaches to management

A

classical
behaviorual
contingency

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99
Q

interdependence

A

mutual dependence key bus functions (OMFH), rely on others to perform effectively, work best when overlapping and employees work towards common goals.
-each function area to performance depends on support of others
-unified approach to achieve objectives
-depends on bus goals and size

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100
Q

why do large businesses separate OMFH in diff divisions by separate managers?

A

require diff skills & knowledge for each
-as bus grows, needs more complicated, require more ppl to perform each function with specialists for each

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101
Q

division

A

separation of business functions OMFH into separate departments
-enables specialisation but coordination more challenging

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102
Q

for small businesses, does OMFH overlap or separate?

A

overlap

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103
Q

business functions should 2

A
  1. work towards fulfilling bus goals
  2. coordinated to have common purpose
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104
Q

operations

A

business processes involve transformation/production
-applies manufacturin and services sector

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105
Q

operations management

A

activities where managers engage to produce g/s

-creating, operating, controlling transformational process takes inputs from variety of resources & produces outputs of g&s needed by consumers
-shaped by range and type of g&s produced
-differ for businesses producing goods opposed to services
-influence quality ,cost, availability of bus’ g/s for goals (maximise profits & growth, increase market share, reasonable return for investors)

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106
Q

how do businesses cope with enormous costs in operations processes

A

try gain compeititve advantage through COST LEADERSHIP
-lowest costs in market by finding ways to minimise costs

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107
Q

why does operations management directly affect bus’ competitive position?

A
  1. establish lvl quality of g/s
  2. influence overall cost of production (operations function responsible for largest part of bus’ capital and human expenses)
  3. determines if sufficient products available to satisfy consumer demand
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108
Q

characteristics of operations management in manufacturing businesses

A
  • produce tangible goods
  • manufactured goods can be stored for later use
  • little customer involvement in production
    -manufactured goods usually homogenous/standardised
109
Q

characteristics of operations management in service businesses

A
  • produce intangible services
  • customer involved in production, present during
  • PP and consumption occur same time
    -services differentiated/tailored to individual customers
110
Q

3 key elements of PP in businesses

A

inputs
processes
outputs

differ betw manufacturing & service businesses
-operations management determines how efficiently business produces g/s to meet needs of customers

111
Q

inputs

A

resources used in PP(transformation)
-from suppliers or already owned
-can divide into transformed & transforming resources

112
Q

transformed resources

A

inputs changed/converted in operations process

113
Q

3 transformed resources MIC

A

Materials
-basic elements used in PP

Information
-knowledge gained from research, investigation for increased understanding

Customers
-transformed resources when choices shape inputs

114
Q

transforming resources

A

inputs that carry out transformation process
-enable change and addition of value

115
Q

2 transforming resources

A

HUMAN RESOURCES (employees)
FACILITIES (factory/office and machinery used in PP

116
Q

transformation

A

conversion of inputs (resources) to outputs (g/s)

117
Q

3 reasons why transformation processes by service businesses differ from manufacturing

A
  1. outputs of service cannot be physically in stock
  2. service bus rely on interaction w/ customer in determining output
  3. service bus more labour-intensive
    -skilled employees crucial, affecting quality of service
118
Q

5 difference betw manufacturing & service operations

A

tangible vs intangible outputs
-standardised, mass produced
- customised to suit customer requirements

located close to suppliers of raw materials (transport costs) vs close to markets (proximity to customers)

high capital costs in operations vs high training/edu costs
- achieve economies of scale
-operate with low capital costs

more risk vs less risk
-manufacturer makes product and awaits sale, risking unsold stock
-server acts once demand identified less risk

durable vs non-durable
-goods last beyond time paid for
-actual work may have lasting effects tho

119
Q

outputs

A

result of business’ efforts (g/s provided to customer)
-responsive to consumer demands (quality, efficiency, flexibility balanced against resources & strategic plan of bus)

120
Q

subtle outputs

A

customer service (how well business meets customer expectations)

warranties (Promises made by business to correct defects in g/s)

121
Q

quality

A

product: reliable, easy use, durable, well designed, delivered on time, after-sales services

high deg of excellence and achieve stated purpose

122
Q

quality management

A

strategy bus uses to ensure products meet customer expectations

123
Q

CAM quality approaches

A

quality CONTROL
quality ASSURANCE
total quality MANAGEMENT

124
Q

quality control

A

use inspections at various points in PP to check defects
-performance measured in relation to set standards
-minimise waste and errors
-performance compared to established criteria to meet consumer expectations

125
Q

quality assurance

A

use system where business achieves set standards in production
-PROactive approach to quality management
-aims to prevent problems occurring
-assures customers products fit for purpose, safe, reliable by achieving standards THROUGHOUT PP

126
Q

total quality management

A

ongoing, business-wide commitment to excellence applied to every aspect of operations
-aim to create defect-free PP & maintain customer focus in operations
-improve price competitiveness and product quality to attain competitive advantage
-quality circles (up to 10 workers) solve process, design, quality problems to improve performance

127
Q

what 2 aspects does quality improvement focus on?

A
  1. total quality management
  2. continuous improvement
128
Q

continuous improvement

A

ongoing commitment to achieving perfection
-constant evaluation and improvement in operations

129
Q

marketing

A

system of interacting activities designed to plan, price, promote & distribute products to potential customers
-if poor at marketing, fail despite revolutionary product

130
Q

successful marketing involves

A

bringing buyer & seller together and make a sale
-finding what consumers want and satisfying needs (utility)
-need to undertake some form of marketing regardless of bus size otherwise customers not informed of bus’ products

131
Q

contemporary marketing/

A

strategies that stress importance of customer orientation

132
Q

how do businesses with customer-oriented(market concept) approach base their marketing decisions & practices?

A

needs and wants of customers

133
Q

relationship marketing

A

develop long term, cost-effective relationships with customers
-continuously strive to exceed customer expectations
-establish positive relationships with customers for customer satisfaction

134
Q

3 approaches when selecting target market MSN

A
  1. MASS MARKETING appraoch
  2. MARGET SEGEMENTATION approach
  3. NICHE MARKET appraoch
135
Q

market segmentation

A

total market subdivided into groups of ppl share 1/+ common characteristics based on 4 elements DGPB (demo, geo, psycho, behavioural)
-better direct marketing strategies to specific groups of customers
-AIM: increase sales & profits by understanding & responding to desires of target customers

136
Q

marketing mix (main marketing strats) 4 P’S

A

PRODUCE
PRICE
PROMOTION
PLACE (distribution)

137
Q

3 Ps added after service sector grown (extended marketing mix)

A

PEOPLE
PROCESSES
PHYSICAL EVIDENCE

138
Q

function of packaging PIPP

A

PRESERVE
INFORM
PROTECT
PROMOT product

139
Q

3 methods bus can use for calculating price CMC

A

COST based
-calculate total cost of producing and adding mark-up for profit
MARKET based
-price according to price mechanism (lvl of supply & demand)
COMPETITION based pricing
-below, equal or above competitors

140
Q

promotion + 3 aims

A

methods to inform, persuade, remind customers abt its products

  1. attract new customers by raising awareness of product
  2. increase brand loyalty by reinforcing product image
  3. encourage existing customers to purchase more of product
141
Q

main forms of promotion RSPA

A

personal selling and RELATIONSHIP marketing
-activities sales representatives direct to customer to make sale(1)

SALES promotion
-activities/materials to attract interest & support for g/s (free samples, coupons)

PUBLICITY & PUBLIC RELATIONS
-publicity: free news story abt business’ products
-public relations: activities to create & maintain favourable relations betw bus & customers

ADVERTISING
-mass media (print/electronic) to communicate message abt product
-ads to attract potential customers, create demand for product & reveal essential info

142
Q

PLACE (distribution channels)

A

way of delivering product to customer
-no. intermediaries eg wholesaler/retailer

143
Q

4 traditional distribution channels + 2 new ones

A

producer –> retailer
producer –> retailer –> consumer
producer –> wholesaler –> retailer –> consumer

e-commerce
-buying & selling g&S via internet
m-commerce
-buying & selling g&s via WIRELESS HANDHELD DEVICES eg. mobile phones

144
Q

6 tips for marketing driven custoemr-oriented business

A
  1. place customers NOT products centre of actions
  2. communicate with customers, for feedback (with present and potential customers)
  3. build loyalty with em
  4. DIFFERENTIATE product
  5. unique brand reflects special qualities of bus
  6. always deliver whats promised
145
Q

mass market

A

seller mass-produces, mass distributes and mass promotes 1 product to all buyers

146
Q

mass marketing

A

large range of customers
-develops single marketing mix and directs entire market for product
-1 type of product with little/no variation, 1 promotional program aimed at everyone, 1 price, 1 distribution system to reach customers

147
Q

DGPB elements of market segmentation

A

DEMOGRAPHIC (population characteristics)
-income
-age
-occupation
GEOEGRAPHIC
-urban/suburban/rural
PSYCHOGRAPHIC (personality characteristics)
-lifestyle
-socioeconomic group
BEHAVIOURAL (loyalty to product)
-socioeconomic group
-price sensitivity

148
Q

how does market segmentation bestter satisfy targeted group of business? 4

A
  1. use marketing resources more efficiently
  2. understand CONSUMER BUYING BEHAVIOUR (decisions & actions of consumers when purchasing for household use) of target market
  3. collect data effectively & make comparisons within target market over time
  4. refine marketing starts to influence consumer choice
149
Q

primary target market

A

market segment most of marketing resources directed

150
Q

secondary target market

A

smaller/less important market segment

151
Q

steps of marketing plan

A
  1. establish marketing goals (what bus expects to achieve through marketing)
  2. select target market
  3. develop market strats to achieve goals (examine 4 Ps depending on product life cycle)
152
Q

marketing strategies

A

actions to achieve bus marketing goals using marketing mix

153
Q

product life cycle

A

life of product over 4 stages
introduction
growth
maturity
decline

154
Q

product in 4 P’s

A

determine product’s
-quality, packaging, design,name, exclusive features
-warranty & guarantee
-differentiate!
-intangible benefits (prestige, satisfaction)

155
Q

product packaging (4 p’s)

A

well designed –> positive impression of product & encourage customers to purchase , promotion

156
Q

product branding

A

differentiate from competitors, powerful marketing tool
-brand logo, name ,term

157
Q

product price (4 p’s)

A

too low: ‘low quality’
too high: lose sales unless superior customer service

158
Q

3 main advantages of social media advertising/digital marketing

A
  1. inexpensive compared to traditional marketing methods
  2. easy to use & monitor
  3. effectively gain exposure

deliver specific messages to target markets, small businesses opp for promotional activities

159
Q

PLACE of distribution (4 p’s)

A

activities make products available to customers when & where they wanna purchase

160
Q

3 common channels of distribution

A
  1. PRODUCER to CUSTOMER
    -simplest channel, involved no intermediaries
    -virtually all services use this method
  2. PRODUCER to RETAILER to CUSTOMER
    -bulky/perishable products eg fruit, furniture
  3. PRODUCER to WHOLESALER to RETAILER to CUSTOMER
    -producers use wholesaler when large no. retailers sell product and finds diff to deal with all of it
161
Q

retailer

A

intermediary who buys from producer and resells to customers

162
Q

wholesaler

A

intermediary who buys in BULK from producer –> sells in smaller quantities to RETAILERs

163
Q

non-store retailing

A

retailing activity conducted away from traditional store

164
Q

people

A

everyone involved in product of a business (direct contact w/ customers/indirect connection) who all himact marketing mix

165
Q

processes

A

flow of activities/mechanisms take place with any interaction betw customer & business
-delivery of product
-how customer finds out abt product, selects and makes purchase
-purchasing experience important for customer satsifaction

166
Q

physical evidence

A

everything customer sees when interacting with bus
-features of selling product
-physical enviro experienced eg. design
-customer feedback

167
Q

accounting

A

financial management tool involved with recording business’ financial transactions so a summary of what happened to business money can be traced
-provides valuable info (financial status, financing info, cash flows, profitability & ROI, trends in earnings, borrowings, sales for risks)

168
Q

finance

A

where business sources its funding
-lenders, costs, risks, benefits of diff types borrowings

169
Q

main purpsoe of accounting

A

provide useful, accurate info presented in clear, concise form to encourage ACCOUNTABILITY (bus acts in best interests of owners, honest, true transactions)

170
Q

what types of borrowing should a business manage

A

types that match its earning stream & capital/asset structure
-manage cost and risk of finance for successful financial management

171
Q

who are the 8 stakeholders interested in the ACCOUNTING info given by business

A

Society
Owners/SHAREHOLDERS
Competitors
Suppliers
GVT
Lenders (bank)
Customers
Employees

172
Q

process of accounting 3 steps

A
  1. each financial transaction recorded
  2. records entered into accs (computer/manual)
  3. info in accs summarised into financial reports & statements that provide valuable info abt trading period

manager knows financial status!

173
Q

management of cash flow involved

A

anticipating cash expenditure & ensuring enough income earned comes in form of money for CONTINGENCIES needs to be set aside

174
Q

contingency

A

unanticipated event can lead to financial difficulty, bus needs to save money for this prepare for unexpected financial pressure

175
Q

financial transactions are summarised into ___ ____. 3 main ones are CIB

A

financial statements

CASH FLOW statement
INCOME statement
(aka revenue/profit & loss statement
-financial performance)
BALANCE SHEET
-aka statement of financial position

176
Q

balance sheet

A

business’ assets & liabilities at PIT (in money), represent bus’ NET WORTH

177
Q

cash flow statement

A

shows movement of CASH RECEIPTS (INFLOWS) and CASH PAYMENTS(OUTFLOWS) over PIT
-3 categories OIF

178
Q

liquidity

A

describes whether business has adequate cash flow

179
Q

why are cash flow reports vital?

A

for info they give on timing payments & receipts of income
-help predict future cash flows & make provision for payments
-control finances and plan starts for financial benefit
-CF statements vital to assess whether money inflows can match money outflows

180
Q

t does it mean when a business is liquid

A

it has cash available to meet due payments

181
Q

3 examples of cash inflows

A

cash sales
credit sales when paid
other income (interest from investments)

182
Q

3 examples of cash outflows

A

payments for stock

payments for expenses (Wages, insurance)

payments for NON-OPERATING expenses
-outflows tends to follow trends with variations over time

183
Q

3 categories of cash flow statements for large businesses & public companies OIF

A
  1. cash flows from OPERATING activities
    -main activity of bus (provision of g&S)
  2. cash flows from INVESTING activities
    -purchase & sale of non-current assets & investments
  3. cash flows from FINANCING activities
    -acquisition and repayment of debt & equity finance
184
Q

income statement

A

summary of incoem earned & expenses incurred over trading period with resultant profit/loss
-helps see how much money came into bus as revenue and how much gone as expenditure and how much derived as profit

shows
-amt of revenue earned
-expenses incurred earning revenue
-profit/loss incurred in period
-how effective funds contributed by owners been generating profit

185
Q

important features of an income statement

A
  1. heading stating PIT (usually 1 yr)
  2. 5 main categories (revenue, COGS, gross profit, expenses, net profit)
  3. revenue stated at TOP

-service businesses don’t calculate cost of goods sold, so doesn’t show gross profit

186
Q

to deduct expenses from revenue on income statement 4

A
  1. calculat total revenue
  2. calculate COGS and gross profit
  3. itemise other expenses (admin, selling, financial)
  4. calculate net profit
187
Q

net sales

A

amt revenue bus earned from sales after sales returns deducted

188
Q

gross profit = ? why is it important

A

gross profit = revenue - COGS (cost of goods sold)

how much its mark-up is on the cost price of goods sold ~50-100% (enormous 800-1000%, would attract other bus to compete in market)

-COGS is expense not grouped with others bc mark-up on COGS determines lvl overall income
-service based bus, no markup bc no stock so income & gross profit SAME

189
Q

COGS = ?

A

COGS = operning stock + purchases - closing stock

190
Q

opening stock

closing stock

A

value of stock that business has at start of financial year

value of stock on hand at end of financial yr

191
Q

COGS meaning

A

value of stock business sold to customers

192
Q

selling expenses

A

from selling g/s, directly traced to need for sales

193
Q

administration expenses

A

costs directly related to general running of bus

194
Q

finance expenses

A

costs from borrowing money from lenders & minimising business risk

195
Q

expenses

A

costs can be broken down into SAF (selling, administrative, financial)
-costs incurred in process of manufacturing/acquiring g/s to sell and direct/indirect costs of managing all sales of that g/s

196
Q

net profit = ?

A

net profit = gross profit - expenses
difference betw gross profit and NON OPERATING expenses

net profit > gross profit cause gross just measures mark-up

197
Q

main items in balance sheetity ALE

A

assets
liabilities
owners’ equity

198
Q

assets

A

items of value owned by business (corrent/non current/intainglbe)

199
Q

liabilities

A

debt owed to other orgs/bus borrowing (current/non-current)
-loans, mortgages, credit card debt etc

200
Q

owner’s equity(capital)

A

funds contributed by owner/s to establish & build business, liability from POV of business
-retain profits
-owner’s claim increase as success increases, reward for risking money and why ppl invest in stockmarket long term

201
Q

balance sheet equation

A

assets = liabilities + owner’s equity
A = L + OE
LHS = RHS

202
Q

3 types of assets

A

CURRENT
-assets bus excpet to use up/turn over within 12 months
-stock, cash

NONCURRENT
-assets expected life >12months
-large physical items (buildings, machinery, land, tech)

INTANGIBLE
-worth but no physical substance
-trademarks, copyright, reputation

203
Q

current and non-current liabilities

A

CURRENT
-debt expected to be repaid in ≤ 12 months
-credit card debts, creditors, accrued expenses

NON CURRENT
-long term debt items up to 30 yrs
-mortgages, leases,

204
Q

analysis of balance sheet indicates if: 4

A
  1. business has enough assets to cover debts
  2. any money borrowed can be repaid
  3. assets of business used to maximise profits
  4. owners of business making good ROI
  5. ability to meet short & long term financial commitments
  6. sufficient assets to continue making profits
  7. compare to competitors
205
Q

main functions of staffing to achieve bus goals. what is this called?

A

-attract & acquire
-train & develop
-reward
-maintain & separate ppl needed

HUMAN RESOURCE CYCLE

206
Q

human resource cycle 8 stages

A

all stages in process of employing staff (initial planning –> recruitment –> selection –> induction –> training & development –> performance management –> separation of employment)

207
Q

4 main elements of the human resource cycle (staffing process) ADMS

A
  1. ACQUISITION
    -planning, recruiting & selecting ppl to work for bus
  2. DEVELOPMENT
    -train & develop employees
  3. MAINTENANCE
    -monetary & non-monetary benefits
  4. SEPARATION
    -voluntarily (retirement/resignation
    -involuntarily (dismissal)
208
Q

ACQUISITION 1(HIRING NEW EMPLOYEES)
human resource cycle

A

PLANNING
-identify staffing needs
-job analysis (determine natureo f position to be filled)

RECRUITMENT
-attract ppl to apply for position
-internal & external

SELECTION
-hiring most qualified ppl
-interviewing

209
Q

DEVELOPMENT 2 (improving employee skills & abilities)
human resource cycle

A

INDUCTION & TRAINING
-teaching employees new skills
-help learn tasks for job

DEVELOPMENT
-improving skills, abilities, knowledge of staff

210
Q

MAINTENANCE 3 (motivating employees to remain with business)
human resource cycle

A

MONETARY BENEFITS
-reward employees efforts through financial compensation
-pay rates

NON-MONETARY BENEFITS
-rewards (fringe benefits)

211
Q

SEPARATION 4 (employees leaving business)

A

VOLUNTARY
-employees leave on own accord
-retirement, resignation

INVOLUNTARY
-employees leave against will (ask)
-retrenchment, dismissal

must accommodate working parents with childcare needs, diverse backgrounds, etc

212
Q

human resource management HRM

A

management of formal relationship between employer & ees

213
Q

how can a business make best use of employees to achieve goals and improve profit, growth and market share

A
  1. selectively hire workers
  2. develop cooperative working relationships
  3. motivate staff
  4. provide employees with oops for training & development
214
Q

why are human resources so important?

A

achieve bus goals and improve profit & growth, increase market share

without dedicated, trained and motivated employees, best organised plans never achieved for long term success (expansion, profit)

face of business & living representatives of bus’ brand
-differentiate brand from competitors to project right image

dynamic nature of business, staffing changes over time as bus expand/employees resign or retire, new positions created

215
Q

acquisition

A

attracting & recruiting right staff for suitable roles in a business

216
Q

job analysis

A

(1st stage of human resource cycle)
systematic study of each employee’s duties & work enviro
-comprises job description & specification

217
Q

info provided by job analysis for certain position used to develop 2 things:

A

JOB DESCRIPTION
-written statement describing employee duties, responsibilities
-summary of role in bus
-purpose, placement within business, activities performed, working conditions, performance standards,

JOB SPECIFICATION
-list of key qualifications to perform job
-education, skills, knowledge, experience
-personal attributes necessary
-required lvls training/edu, work experience, personal qualities, areas of expertise

218
Q

recruitment

A

finding right ppl to apply for job vacancy
-within business/seek new applicants from outside sources
-recruitment method (internal/external) depends on SIZE of bus, TYPE of position, NATURE of labour force in bus’ area

performed systematically
1. identify need to fill vacancy
2. analyse requirements of position
3. select appropriate source (internal/external recruitment) & method of attracting potential applicants

219
Q

main methods of internal & external recruitment

A

promotion
recommendation
exiting staff records & resumes

advertisements(SMEs), employment agencies
-expensive but effective
-outsource recruitment process/hire agencies to decrease time involved searching new employee
-agencies paid to interview applicants and rec list of potential suitable employees

220
Q

internal recruitment

A

filling job vacancies with present employees than looking outside business

opp to take diff duties (promotion to take greater responsibilities)
-popular, less risk, employer knows person

221
Q

advantages of internal recruitment

A
  • employees known already, easier choice
  • applicants familiar with business & objectives, processes, culture
  • managerial/supervisory position, career path to reward valued employees within business
  • advertising costs reduced, no external agencies paid
222
Q

disadvantages of internal recruitment

A
  • may no one suitable within bus
  • 1+ applicant may lead to conflict between employees
  • applicant possibly unopen to new ideas
223
Q

external recruitment

A

find suitable applicants from outside business
-need new position/resigned/retired/promoted

224
Q

advantages of external recruitment

A
  • wider range of applicants to choose
  • new ideas, fresh approaches to tasks
    -allows rapid growth of bus (increase in actual staff members)
225
Q

disadvantages of external recruitment

A

-choice diff cause applicants unknown
- costs for advertising position
- selection process time-consuming (larger field)

226
Q

employee selection

A

employer chooses most suitable applicant for vacancy
-identify skills, qualifications, experience of applicant and relating to job specification for match

227
Q

methods for employee selection

A

WRITTEN/ONLINE APPLICATION
-for basic personal info, details of qualifications & experience, names of referees
-can submit own and include resume

TESTING
-assess aptitude, intelligence, ability
-psychological(character, personality with ability to perform tasks)
-work testing (specific skill to carry tasks)

INTERVIEWS
-well structured, cover common questions to ensure consistency between applications, very important procedure

228
Q

aim of training and development

A

long term change in employee skills, knowledge, behaviour to improve work performance in bus
-maintain bus sustainable competitive advantage
-benefits for both parties
-critical due to rapid tech change and global competition (promote LEARNING ORGANISATION!)

229
Q

development

A

activities prepare staff to take greater responsibility in future by acquiring better knowledge, skills, gaining more experience in certain area

230
Q

LEARNING ORGANISATION

A

monitors & interprets its enviro to improve understanding of relationship betw actions & enviro

231
Q

training & development benefits for employee

A
  • opp for promotion & self improvement
  • ^ job satisfaction (better job performance)
    -greater ability to adapt & cope with changes
232
Q

benefits for employer (training and development)

A

-higher productivity, more efficient use of human resources
-reduced costs (less labour turnover, absenteeism, accidents)
-mobile, capable workforce

233
Q

training

A

teaching staff how to perform their job mroe efficiently by boosting knowledge and skills
-personal & business growth

234
Q

common training methods 6

A

(FORMAL) OFF-the job training
(INFORMAL) ON the job training
action learning
COMPETENCY based training
CORPORATE universities
ONLINE training

235
Q

off the job training

A

employees trained AWAY from workplace
-send employees to specialised training institution/specialist provider (uni, tafe) for qualification to perform efficiently

236
Q

on the job training

A

employees learn specific skills to perform certain tasks in workplace
-within work environment using its equipment, documents present in workplace
-while employee performing regular duties at regular workstation/special setting eg. conference room
-by experienced coworker/manager with specific expertise/external provider

237
Q

action learning

A

lean by experience solving real workplace roblems

238
Q

competency based training

A

identify skill strengths and weaknesses for further training

239
Q

corporate universities

A

businesses form partnerships with academic institutions to develop training

240
Q

online training

A

deliver training through electronic devices (computers) connected to internet
-easy to learn anytime, anywhere, few restrictions

241
Q

programs aimed specifically at developing effective managers focus using JMF

A

JOB ROTATION
-employee experiences many diff aspects of bus
-manager may move from 1 section of bus to another with management skills & apply in diff situation

MENTORING
-mentor supports employee as they learn, gain experience and skills from another

FORMAL BUS TRAINING
-programs eg. Masters of Business Administration MBA

242
Q

employment contracts governed by provisions of

A

Fair Work Act 2009 (Cwlth)

243
Q

employment contract

A

legally binding, formal agreement between employer & ee
-under common law, both have basic rights & obligations in any employment relationship
-expectation of employee to adhere to policies & procedures of business
-name of immediate supervisor
-specific duties undertaken, hrs work, rates of pay, leave & super arrangements
-NES and conform to conditions for relevant award/enterprise agreement

244
Q

common law is developed by

A

courts and tribunals
-judges make deisions based on facts of case, guided by precedent (decisions from past)

245
Q

employee & er obligations under common law for employment relationship 4,3

A

EMPLOYER
-provide work
-payment of income
-provide reasonable care for safety of employees
-meet requirements of industrial relations legislation

EMPLOYEE
-obey lawful commands
-use care & skill
-act in good faith in interests of employer

246
Q

NES intro and summary

A

legislated by federal gvt 2010 for ALL FULL and PART time employees, permanent/fixed term (not casual)
1. HRS OF WORK
-full: 35-38 hrs/week
-need special provision for penalty rates if working longer hrs
2. PARENTAL LEAVE
-employees entitled 12 months unpaid parental leave
3. FLEXIBLE WORK FOR PARENTS
-caring responsibilities for child school age entitled to request flexible working arrangements after working for employer >12 months
-reduced hrs, diff start/finish times, home-working arrangements
4. ANNUAL LEAVEA
-4 weeks
-part time pro rata amount
-casual no entitlement
5. PERSONAL, CARERS AND COMPASSIONATE LEAVE
-full time 10 days paid personal & carers leave for every yr of service with org
-part time pro rate amt
6. COMMUNITY SERVICE LEAVE
-jury service & emergency service duties (volunteer work)
-entitled to absence to provide community service
-unpaid leave
7. PUBIC HOLIDAYS
-if employer request to work on public holiday, entitled to pentaly rate/other compensation
8. INFO IN WORKPLACE
-supply ‘fair work info statement’
-gvt doc with info of NES
9. NOTICE OF TERMINATION & REDUNDANCY
-min periods of notice of termination of employment based on period of continuous service
-fixed & casual not included
10.LONG SERVICE LEAVE
-permanent (full/part) entitled after qualifying period varies betw diff occupations & industries

247
Q

award advantages

A

-set min for pay & conditions
-cover all employees performing similar job

248
Q

award disadvantages

A

-inflexible, not suit all employees/businesses
-prevent recognition of individual initiative bc all employees guaranteed min pay & conditions regardless of productivity

249
Q

modern awards have a ‘flexibility term’ which allows

A

employers & ees to negotiate changes to some conditions in MA called Individual Flexibility Arrangements (IFA)
-allow employer & ee to agreement varies MA/Enterprise A to address individual circumstances

250
Q

above-award payments

A

bus wanna attract more workers o firm/hold to existing staff

251
Q

10 matters covered by awards

A
  1. minimum wages (disability & training inc)
  2. types of employment (full,part)
  3. arrangements for hrs of work
  4. overtime rates where applicable
  5. penalty rates
  6. annualised wages & salaries
  7. allowances
  8. details of leave (eg leave loading)
  9. superannuation arrangements
  10. procedures for consultation, representation & dispute settlement
252
Q

award

A

legally binding agreement sets minimum wages & conditions for group of employees

253
Q

enterprise agreements

A

collective agreements made at workplace lvl betw employer & UNION on behalf of its employees/employer and group of employees abt terms and conditions of employment
-opp to negotiate set of conditions to improve standards in award

254
Q

what must enterprise agreements include 4

A

10 NES
-nominal expiry date (~2-3 yrs after agreement)
- procedures for settling disputes arising from agreement
-terms allow individual flexibility so arrangements can be made betw employer & ees
-provisions of consultation with employees on workplace change

255
Q

steps for negotiation with enterprise agreements

A
  1. parties conclude negotiations
  2. agreement submitted to FWC for approval before commencing operation
  3. signed by employer & bargaining representatives on behalf of employees to certify agreement entered voluntarily by both sides
  4. FWC examines to ensure no unlawful content included and employees better off entering agreement than covered by relevant award
256
Q

enterprise agreement advantages

A
  • consultation & involvement of employees if conducted successfully, greater employee empowerment
  • possible improved pay & conditions –> workplace performance
    -greater flexibility, agree conditions satisfy employer & ee
257
Q

enterprise agreement disadvantages

A

-time consuming from need to conduct agreement meetings at individual workplace level
-administratively onerous, as agreement must comply with existing laws regarding employee rights & entitlements

258
Q

retirement

A

employee decides to give p full/part time work, no longer part of labour force
-trend to retire mid to late 50s
-consider whether they repaid mortgage, amassed enough super, and if retirement savings fund intended lifestyle

bus may lose firm-specific knowledge, damage to productivity & workforce morale
-cost of replacing uniquely skilled worker ~1.5-2x employees annual salary

259
Q

resignation & 4 reasons why ppl resign

A

voluntary ending of employment relaionship
-needs sufficient notice for employer, according to employee’s award/employment contract/agreement

  1. offered promotion with another bus
  2. start own bus
  3. boredom with present job
  4. desire for changed lifestyle
260
Q

volunatry redundancy

A

one’s job no longer exists due to tech changes, org restructure, merger/acquisition
-unless retrained for another job, retrenched (employee lose job, not offered another)

VOLUNATRY: informed of situation and given opp to nominate themselves for voluntary redundancy

261
Q

final stage in employment cycle

A

SEPARATION stage
-employees leave workplace on VOLUNTARY/INVOLUNTARY basis
-must be handled sensitively by human resource manager

262
Q

voluntary separation

A

employee decides to give up full/part time work
includes
-retirement
-resignation
-redundancy

263
Q

involuntary separation

A

employee ASKED to leave business AGAINST WILL
includes
-dismissal
-redundancy(involuntary)

264
Q

involuntary redundancy

A

employee asked to leavebusiness against will cause job no longer exists
-not employee’s fault, based on ongoing needs of business
-retrenched employees offered redundancy package (payout of sum of money)

265
Q

unfair dismissal

A

employee dismissed by employer & believe action harsh, unjust, unreasonable
-can lodge unair dismissal claim wit industrial tribunal (FWC)
-FWC takes account procedures followed, whether grounds unreasonable, circumstances of business, if human resources expertise available, whether employee were provided opp to respond/support

266
Q

dismissal

A

behaviour of employee unacceptable, necessary for bus to terminate employment contract

267
Q

most serious form of dismissal

A

SUMMARY DISMISSAL
-employee commits serious breach of employment contract (eg criminal drunk at work)
-no notice required

268
Q

dismissal on notice

A

employee not performing job satsifactorily
-notice depends on whether employee governed by award/contract, age, how long worked for employer on continual basis

269
Q

why is selecting staff for dismissal risky

A

requires awareness of legislation & industrial agreements to avoid litigation & industrial action
-employees need given proper notice
-employers must comply with procedures established in law (fair work act 2009 unfair dismissal laws)

avoid misunderstandings & lengthy unfair dismissal case by
-writing warnings/notice
-written confirmation of resignation > verbal statements

Economics (12 decks)

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