business topic 2 (chap 5-8.6)) Flashcards
(227 cards)
1
Q
traditional vs contemporary management
A
primary role of a manager is to achieve the business’s goals in a changing environment by coordinating LIMITED resources while working with others
* traditional definition, by coordinating business resources.
* contemporary definition, management is a process of working with, and through, other people.
o human resources are the focus of management.
2
Q
management requires (5) NEED TO BALANCE THE E’s
A
- working with & through others (interpersonal skills)
- communicate well with employees to achieve high staff commitment - achieving goals of the business
-employees have purpose
-measure performance
(EFFECTIVENESS) - getting most from limited resources
-managers need to coordinate resources efficiently
-benefits > costs
(EFFICIENCY) -
balancing efficiency & effectiveness
- competitive position in challenging bus environment - anticipate & adjust with rapidly changing environment
3
Q
effectiveness
A
measures degree goal been achieved
4
Q
efficiency
A
compares resources needed to achieve goal (costs)
against what actually achieved (benefits)
5
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
6
Q
role of effective management
A
ensure joint efforts of employees directed towards achieving bus goals
7
Q
whether goals of business achieved largely depends on
A
skills & expertise of management team in coordinating bus’ resources
8
Q
manager skills required to operate effectively FARDPIVS
A
Interpersonal
Strategic thinking
Vision
Problem Solving
Desicion making
Flexibility
Adaptability to change
Reconciling conflicting interests of stakeholders
9
Q
interpersonal skills
A
skills needed to work & communicate with others & understand their needs
-abiliy to build positive relationships with staff
10
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
11
Q
5 interpersonal skills most crucial to success of managers/leaders SCSMC
A
- self-management: the ability to delegate responsibility to staff
- actions affect staff behaviour and modify accordingly
- unlike hierarchical management approach (total responsibility for POLC)
-
communication: the ability to listen to employees and learn from them
-vision, staff expectations, listen to feedback from stakeholders, healthy relations
-long term survival of bus -
supportiveness: the ability to create an atmosphere in which employees know they are supported
-acknowledge efforts * needs , empathy, work wtih staff for common solution during conflict - motivation: the ability to customise interactions with employees to suit each individual’s needs in the hope of finding ways to influence their behaviour
-
conflict resolution: the ability to help parties engaged in disagreement find a resolution.
-view problems in multiple perspectives
-acitve listening, critical thinking, empathise & compromise
12
Q
methods of communication
A
ultimately send message to another
-verbal (spoken, written)
-nonverbal (smile, body language {most important})
13
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
14
Q
benefits of strategic thinking VUIC
A
- see business in context of events & trends, identify opp/threats
- help maintain competitive position iwth constantly changing business environment
15
Q
vision
A
shared direction allows ppl attain common goal
-provides cooperation & commitment to achieve
-eg. manager communicates goals to employees
16
Q
leadership
A
ability to influence ppl to set & achieve specific goals
-inspires, guides & supports employees to achieve
17
Q
skills of management ICSVPDFAR
A
interpersonal
communication
strategic thinking
vision
problem solvnig
decision making
flexibility
adaptability to change
reconciling conflicting interests of stakeholders
18
Q
steps of problem solving process IGDACE
A
set of activities to search, identify and implement course of action to correct situation
-most vital skill to develop is ability to decide which problem give full attention & which issues priority over others
-identify causes & problem, info for alternatives, analyse them and choose one –> evaluate solution
19
Q
decision making
A
identifying options available and choosing course of action to solve problem
-manager evaluates risk involved if decision implemented (& other options)
-part of problem solving process
20
Q
proactive
A
management style incorporated DYNAMIC action and forward planning to achieve objectives
- »_space;> reactive
21
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
22
Q
major stakeholders and conflicting interests
A
- customers: pressure bus to satisfy needs, act ethically, socially responsible
- employees:
- interactions with customers influences bus reputation
-motivation & skills influence quality of g&s - shareholders/owners
-demand ^profits affect strategies of bus - society/enviro
-adopt enviro sustainable practices
-conserve use of natural resources (energy, water) –> avoid pollution
-recycle products to reduce waste
-reduce electrical consumption by installing solar panels
23
Q
conflicting interests between employees & shareholders
A
employee: safe working conditions & reasonable wages
shareholder: reduce bus profit and dividends to shareholders
24
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
25
conflict between management & suppliers
management: keep costs down to improve profit
suppliers: **higher prices** to cover costs of providing **ethical materials**
26
triple bottom line
**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
27
hardships of being socially responsible
**expensive, time** consuming
**-reduce competitive advantage**
28
how can businesses reconcile conflicting interests between shareholders and employees
ESAS
1. employee share acquisition schemes
-opp for eligible **employees** to **purchase shares** in bus at (often) **reduced price**
2. offer **training** & proff development to employees
-educated, skilled workforce more efficient --> **reduce prod costs** --> rising **profits** --> please shareholders** (high quality product to satisfy customer expectations)**
29
how can businesses reconcile ocnflicting interestes of various stakeholders
stakeholder engagement (business shares info with & seeks input from stakeholders, **involving them in decision making)**
30
problems of mass production
-**training** employees
-organising managerial structure
-scheduling complex manufacturing processes
-**worker dissatisfaction**
31
why managers should focus on triple bottom line
* increased **customer loyalty** — **socially responsible** **reputation** **likelier to continue buying** from the business.
* **new customers**, since **existing** customers **refer** the business
* increased **sales and profits.**
* **lower staff turnover reducing costs of replacing staff and increasing productivity**.
* **competitive advantage**.
32
goal
desired outcome bus intends to achieve within time frame
33
industrial revolution generated 2 perspectives of approaches
1. **scientific** approach
-how best to organise workers & production methods in **factory**
2. **classical bureaucratic** approach
-business **organisation /structure**
factories ^ prod --> hire & coordinate ppl to maintain prod lvls
34
classical appraoch to management
how to best manage and organise workers to improve productivity (output)
35
scientific management (frederick taylor
studies job in **great detail** to discover best way to perform it (max efficiency)
-**strict hierarchical structure** outline responsibilities of each management lvl
-clear lines of communication, **procedures, rules
-specialisation** of work/force,
-impersonal evalusation
36
industrialised countries in early 70s Frederick Taylor management approach 4 principles
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
37
what did frederick taylor believe (scientific from classical approach)
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**
38
what dod frederick taylor use to analyse performance of certain task
**TIME and MOTION STUDIES** to reduce task to effective minimum standard
-reduce tasks to most **simple** format
-**examining each step** in production procedure and **time taken to perform** them
39
according to WEBER, BUREAUCRACY organisation should have 5
1. strict **hierarchical** organisational structure
2. **clear lines of communication & responsibility**
3. **specialisation** (jobs break down to simple tasks)
5. rules & procedures
6. **impersonal evaluation** of employee performance to**avoid favouritism** & bias
40
Fayol 5 principles to assist managers
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**
41
3 adv of classical approach to management
1. shorter decision making time
3. increased productivity
4. clear chain of command
42
4 disadv of classical appraoch to management
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**
43
planning organising and controlling
preparation of **predetermined course of action** for business
-**short & long term success** of business
1. **vision & goals**for bus
2. **methods** to achieve
3. **anticipate** **future changes**
-set goals and decide methods to achieve
ORGANISING
-determines **what**s done, ***who*** does, **how** completed
-**coordinates** financial, human, material **resources to achieve goals**
CONTROLLING
**evaluate and modify tasks to ensure goals achieved**
-what's **intended** to happen with what **occurred**
44
3 steps of organisation process
1. **determine work** to complete
2. **group similar activities to smaller steps**
improve efficiency by enabling appropriate **allocation of resources**
3. **assign work, delegate** authority (who does, who ensures done)
45
similarities betw taylor (scientific) and fayol (bureaucratic)
managers responsible for planning organising controlling
46
3 lvls of planning STO
1. strategic (long term) planning (top management)
2. tactical (medium-term) planning (middle management)
3. operational (short term planning)
(frontline management)
47
strategic (long term) planning
-plan following **3-5 yrs**
-determine **where in market** business wants to be
-what business wants to achieve in **relation to competitors**
48
tactical (medium term) planning
-flexible, adaptable 1-2 yrs
-implement strategic plan to **respond quickly to changes**
-how goals achieved through **ALLOCATION of resources**
49
operational (short term) planning
-**specific details** wy business operates short term
-**daily management controls of operation**s for short term goals
-eg. daily/weekly production schedules
50
controlling
management attempts to **evaluate performance** & take **corrective action** to ensure **objectives achieved**
-compares what intended to happen with what occurred
-management **check progress, make improvements** to achieve **goals**
51
control process 3 steps EMC
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
52
management hierarchy
arrangement provides increasing authority at higher levels of hierarchy
-**senior managers** have **greater accountability, responsibility & authority** compared to lower lvls of pyramid
1. senior management team (CEO)
2. MID MANAGEMENT TEAM (department head)
3. frontline management team (team supervisor)
-taller hierarchy --> **more lvls management --> LONG CHAIN OF COMMAND,**
53
characteristics of pyramid organisational structure
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**
54
autocratic leadership style
decisions made by management, where **staff have no input in decision-making process**
-**high task/low process**
-dictates work methods
-frequently **checks employee performance**
-motivate through **disciplinary action** for **compliance & obedience**, negative feedback
55
democratic leadership style
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
-**flatter management structures & diverse** groups
56
whatleadership stylel would managers with a strict classical-scientific approach display?
autocratic
57
when can autocratic leadership style be effective
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
58
4 advantages of autocratic leadership style
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. **centralised control** at top-lvl management so **time** used **efficiently** & **problems** dealt with quickly bc **no discussion/consultation**
59
4 disadvantages of autocratic leadership style
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
60
main features of classical scientific & bureaucratic management approaches
**time & motion** studies to reduce inefficiencies
-***production line*** methods/procedures
-**hierarchical** organisational structure
-**chain of command
-autocratic leadership** style
61
behavioural management approach
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' 1. **worker satisfaction,** employees social AND eco **needs**, positive **supportive** supervision and the impact of **teamwork**. 2. team **participation ^ job satisfaction & output**
-managers needed skills in **communication, motivation & democratic leadership**
62
3 advantages of behavioural approach
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**
63
3 disadvantages of behavioural approach
1. lack control
2. communication confusion may arise
3. difficult to accurately predict employee behaviour
64
qualities of a successful leader
-**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**
65
# ppl interact regularly & coordinate their work towards common goal
importance of teamwork
**vital for managers**
working separately** with **no common purpose/sense of belonging** to org
-**flatter organisation**al structures, eliminating 1/+ management levels, **greater responsibility** to individuals in business
66
how can managers foster teamwork
**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**
-**democratic** leadership style
67
when is participative/democratic leadership style most effective
**diverse** groups , when business operating in environment **undergoing rapid change**
-business **more responsive** to change through improved **decision making**
68
5 advantages of participative/democratic leadership style
most important is involvement of team members in the decision-making process.
-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** to meet objectives)
-greater **opp to acquire more skills** for employees
-development of work **teams** with high lvls **commitment**
-high lvl** trust** --> high **performance**
69
5 disadvantages of participative/democratic leadership style
-reaching **decisions time consuming**, **differing views to consider**
-**control of manager weakened** & undermined
-internal conflict as opinions shared, disagreement
-**informal system** may **collapse management**
70
main features of behvioural management style
-**humanistic** appraoch (**employees** are business' **most important resource)**
-**employee participation** in **decision making**
**-team** based structure
-managers need **interpersonal skills**
-participative/**democratic** leadership style
71
for behavioural management approach, main management functions are LMC
LEADING
MOTIVATING
COMMUNICATING
72
self-directed work teams destructuring traditional heirarchical structure
* mix ppl and functions; **teams take some roles and responsibility of managers (problem solving issues)**
* manager’s role from **controller to facilitator**
* away from an autocratic leadership style to participative democratic system.
73
flatter organisational structures vs traditional hierarchy
***** A flat structure has f**ewer levels of management.**
* A **hierarchical** structure has a **long chain of command (lots of managerial levels)** and a **narrow span of control** (the **lower** you are in the management levels, the **less responsibility** you have).
* The flat organisational structure has a shorter chain of command (fewer levels of management) and **wider span of control (managers are responsible for a larger number of employees**).
* The hierarchical pyramid implies that employees have very little say in how the business is run, as **communication travels down the chain of command with little to no feedback from employees**.
* A flat organisational structure is for **teams**. E**veryone is responsible**for completing the business’s **objectives** and is included in **decision making** by making **suggestions/implementing changes.**
74
contingency for managers 4
-managers borrow wide range of management approaches and practices
-managers need **adaptable and flexible techniques to problem solving**
-extract mos****t useful ideas & practices from range to suit bus requirements
-**appropriate management response to one set of circumstances inappropriate to another**
75
3 advantages of contingency appraoch
- acknowledge changes in bus environment, enabling **bus flexibility in reacting to change**
- recognises **multiple approaches to management,** not one best
- diff situations demand diff approaches
76
disadvantages of contingency approach
- adapting to constant changes challenging for management
- selecting **alternative courses of action** depending on situation **costly in time and money**
77
managers using ocntingency approach need to adopt 10 commandments for the modern manager, which are
1. share **vision with stakeholders**
2. **manage relationships** 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**
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 commitment in employees
78
interdependence
**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**
79
why do large businesses separate OMFH in diff divisions by separate managers?
require **diff skills & knowledge** for each
-as bus grows, needs more **complicated,** require **more** ppl to perform **each function** with **specialists** for each
-separate departments enables **specialisation but coordination more challenging**
80
for small businesses, does OMFH overlap or separate?
overlap
81
business functions should 2
1. work towards fulfilling bus goals
2. **coordinated to have common purpose**
82
operations
-applies manufacturin and services sector
business’s processes that involve **transformation (production).**
83
how will operations management directly affect bus' comp adv
* quality of g&s
* prod costs
* determining if sufficient products available to satisfy customer demand.
84
operations management
-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
85
how do businesses cope with enormous costs in operations processes
**COST LEADERSHIP**: establishing a **competitive advantage** by having the **lowest cost of operation** in the **market (minimsie)**
86
why does operations management directly affect bus' competitive position?
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**
87
characteristics of operations management in **manufacturing** businesses
- produce **tangible goods**
- manufactured goods can be **stored for later use, durable**
-** little customer involvement in production**
-manufactured goods usually **homogenous/standardised**
88
characteristics of **operations** management in **service** businesses
- produce **intangible services**
- **customer involved in production,** present during
- **PP and consumption** occur **same time**
-services ***differentiated/tailored*** to individual customers
89
3 key elements of PP in businesses
inputs
processes
outputs
differ betw manufacturing & service businesses
-**operations management** determines how efficiently business **produces g/s to meet needs of customers**
90
inputs
****resources used in PP(transformation)
-from suppliers or already owned
-can divide into **transformed & transforming resources**
91
3 transformed resources MIC
**Materials**
-basic elements used in PP
**Information**
-knowledge **gained from research**, investigation for increased **understanding**
**Customers**
-transformed resources when choices shape inputs
92
2 transforming resources
**HUMAN RESOURCES** (employees)
**FACILITIES** (factory/office and machinery used in **PP**
93
transformation
conversion of inputs (resources) to outputs (g/s)
94
2 reasons why transformation processes by service businesses differ from manufacturing
1. outputs of service cannot be physically in **stock (not durable)**
2. service bus rely on **interaction w/ customer in determining output**
95
5 difference betw manufacturing & service operations
**tangible vs intangible (& customised)** outputs
-**standardised, mass produced
- customised to suit customer requireme**nts
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
96
outputs
result of business' efforts (g/s provided to customer)
-responsive to consumer demands (quality, efficiency, flexibility balanced against resources & strategic plan of bus)
97
subtle outputs
**customer service** (how well business meets **customer expectations)**
**warranties** **(Promises** made by business to **correct defects** in g/s)
98
quality
product: reliable, easy use, durable, well designed, delivered on time, after-sales services
high deg of excellence and achieve stated purpose
99
quality management
-understanding and **exceeding customer expectations**
-making sure that **products comply with regulations.**
-quality product has **high degree of excellence** and achieve **stated purpose.**
100
CAM quality approaches
quality CONTROL
quality ASSURANCE
total quality MANAGEMENT
use **IOS (international org for standardisation guidelines for quality assurance**
101
quality control
use **inspections at various points in PP to reduce defects**
-**minimise waste and errors**
-performance **compared to established criteria** to meet **consumer expectations (more competitive)**
102
quality assurance
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**
IOS
103
total quality management + 3 approaches
**ongoing**, business-wide **commitment** to **excellence** applied to **every aspect of operations**
-improve **price competitiveness** and **product quality**to attain **competitive advantage**
* **employee empowerment.** **Quality circles teams** of employees that meet regularly to solve problems for **process, design or quality**.
* **continuous improvement**. constant **evaluation**
* **customer focus.
Quality** is the **responsibility of every employee**, realise they are servicing a customer — both **internal and external.**
104
what 2 aspects does quality improvement focus on?
1. **total quality** management
2. **continuous** improvement
105
marketing
system of **interacting activities** designed to **plan, price, promote & distribute products** to **potential customers**
-if poor at marketing, ***fail despite revolutionary product***
106
successful marketing involves
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**
BUT **selling just getting rid of existing stock**
107
contemporary marketing/
strategies that stress importance of **customer orientation**
puts the **needs** of the **customer over** the needs of the **business**. Customer-oriented companies understand that the business **won't thrive unless** it c**onsistently improves customer focus**. It's a way of thinking that **aligns** your **business goals with** your **customers' goals.**
108
how do businesses with customer-oriented(market concept) approach base their marketing decisions & practices?
needs and wants of customers
109
relationship marketing
develop **long term, cost-effective relationships with customers**
-**continuously** strive to **exceed customer expectations**
-establish **positive** relationships with customers for **customer satisfaction**
110
3 approaches when selecting target market MSN
1. **MASS MARKETING** appraoch
2. **MARGET SEGEMENTATION** approach
3. **NICHE MARKET** appraoch
111
market segmentation
**total** market sub**divided 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**
112
marketing mix (main marketing strats) 4 P'S
PRODUCE
PRICE
PROMOTION
PLACE (distribution)
113
3 Ps added after service sector grown (extended marketing mix)
PEOPLE
PROCESSES
PHYSICAL EVIDENCE
114
function of packaging PIPP
PRESERVE
INFORM
PROTECT
PROMOT product
115
3 methods bus can use for calculating price CMC
**COST** based
-calculate **total prod costs + profit**
**MARKET** based
- according to **price mechanism** (lvl of supply & demand)
**COMPETITION** **based pricing**
-**below, equal or above** competitors
116
mark-up
**difference** between the **selling price** of a g/s and its **cost**.
-profit maxing for marketing
-**'cost plus margin**' method, **margin (%) maxed** for largest profit
117
promotion + 3 aims
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
118
main forms of promotion RSPA
**personal selling** and **RELATIONSHIP marketing**
-activities **sales representatives direct to customer to make sale**
-time consuming/expensive
-develop long term, cost-effective relations with customers
**SALES promotion**
-activities/materials to **attract interest 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
-enhance image, highlight features
**ADVERTISING**
-**mass media** (print/electronic) to **communicate message** abt product
-ads to **attract potential customers, create demand for product & reveal essential info**
119
PLACE (distribution channels)
way of delivering product to customer
-no. intermediaries eg wholesaler/retailer
120
4 traditional distribution channels + 2 new ones
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
121
6 tips for marketing driven custoemr-oriented business
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
-unique brand reflects **special qualities** of bus
6. always **deliver whats promised**
122
mass market
seller **mass-produces,** mass **distributes** and mass **promotes 1 product to all buyers**
123
mass marketing
large range of customers
-develops **single marketing mix** and **directs entire market** for **product**
* **same product, price, promotion and distribution system** to appeal whole market
124
DGPB elements of market segmentation
**DEMOGRAPHIC**
pop characteristics
-income
-age
-occupation
**GEOEGRAPHIC**
-urban/suburban/rural
**PSYCHOGRAPHIC** **(personality** characteristics)
-lifestyle
-socioeconomic group
**BEHAVIOURAL (loyalty to product)**
**price sensitivity**
125
how does market segmentation bestter satisfy targeted group of business? 4
1. use **marketing resources** more **efficiently**
2. **understand CONSUMER BUYING BEHAVIOUR of target market**
4. **refine marketing starts to influence consumer choice**
126
primary target market
market segment most of marketing resources directed
127
steps of marketing plan
1. establish goals 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)**
128
product life cycle
life of product over 4 stages
introduction
growth
maturity
decline
129
product in 4 P's
determine product's
-**quality, packaging, design,name**, exclusive features
-**warranty** & guarantee
-**differentiate!**
-**intangible benefits** (prestige, satisfaction)
130
product branding & brand logo
**name, symbol or design** that **identifies product and diifferentiates from competitors**.
-helps businesses **increase market share** through **reputation**.
- **easier to introduce new products** with the same brand name , readily available consumer market.
A ‘brand logo’ is a **graphic representation** that **identifies **a **business or product.**
for **MARKETING**
-reflect (**intangible) aspect** of product
-develop with **target market** in mind
131
product price (4 p's)
too low: 'low quality'
too high: lose sales unless superior customer service
132
3 main advantages of social media advertising/digital marketing
1. **inexpensive** compared to **traditional marketing methods**
2. **easy to use & monitor**
3. brand **awareness** (grow **online presence)**
deliver specific messages to **target markets**, **small bus**inesses opp for promotional activities
133
PLACE of distribution (4 p's)
**where** the product should be **available**—and **how** it will be **displayed**
in front of the **consumers who are the most likely to buy**them
134
3 common channels of distribution
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
135
retailer
intermediary who buys from producer and resells to customers
136
wholesaler
intermediary who buys in **BULK** from producer --> **sells in smaller quantities** to RETAILERs
137
processes
****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**
138
accounting
**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)
139
finance
where business sources its funding
-management knowledge of lenders, costs, risks, benefits of diff types borrowings
140
3 factors affecting types of borrowing should a business manage
types that **match** its **earning stream** & **capital/asset structure**
-**manage** **cost and risk** of finance for successful financial management
-good **CREDIT RATING** (assess **capacity of bus to repay debt & manage finances**) so lenders readily pro****vide funds
141
who are the 6 stakeholders interested in the financial situation of bus
INTERNAL and EXTERNAL
INTERNAL
1. owners/**shareholders
-profits, sales, liquidity,** solvency of bus
2. **employees
-prod costs, profit margins, how much bus worth** (gain % of profit)
EXTERNAL
1. **suppliers
-credit rating (bus liquid, can pay debts)
-lenders**: banks, credit rating (if bus solvent)
2. **GVT: tax
3. competitors:
-market share, profits
4. public:
-ethical, responsbile**
142
process of accounting 3 steps
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!**
143
management of cash flow involved + main reasons of small bus have neg cash flow
**anticipating** cash **expenditure** & ensuring **enough income** earned comes in form of **money** for **CONTINGENCIES** needs to be set aside
-main reasons **neg for small bus is LATE PAYMENTS from CUSTOMERS**, have to **take out loans/use credit to pay** own expenses if **not paid on time.**
144
contingency
**unanticipated event** can lead to **financial difficulty,** bus needs to **save money** for this **prepare** for unexpected financial pressure
145
financial transactions are summarised into ___ ____. 3 main ones are CIB
financial **statements**
**CASH FLOW** statement
**INCOME** statement
(aka revenue/**profit** & loss statement
**-financial performance)**
**BALANCE SHEET**
-aka statement of **financial position**
146
balance sheet
business' **assets & liabilities** at **PIT (in money)**, represent bus' **NET WORTH**
-watch debt & equity lvls
-compare financial position with previous periods
-LHS assets =(balance) RHS liabilities & owner's equity (T-FORMAT)
147
cash flow statement
shows movement of ***CASH RECEIPTS (INFLOWS)*** and **CASH PAYMENTS(OUTFLOWS)** over **PIT**
-3 categories OIF
148
effect of recession on bus financial management
infleunces **price charged to custoemrs**
-**banks stricter** on **lending policies**, bus diff to **borrow** funds
-suppliers shorten timeframe of accs as cash flows slows
-new bus diff developing credit policy, most ask for immediate pay rather than establish acc
-**less sales**
-retain profits > reinvest/pay as dividends so positivce cash flow in contingency
149
effects on bus carrying too little cash, problems if too much
TOO LITTLE
-not capable paying **current liabilities/short term debts**
-paid on **regular basis** to suppliers
-if not, **bus penalised, credit rating** affected & reputation damaged
TOO MUCH
-money sit in bank ACC **not generating** more, should use to **pay long-term debt/invested into short term deposits** to access when needed
150
delays in receipt & payment of cash on bus cash flow
accs payable: money that your business owes to suppliers,
accs receivable: money owed to your business by customers.
-**creditors/accs payable** need **paid on time** otherwise bus charged **interest/penalised**
-**^ expenses,** reduce profits
should **spread repayments throughout mont**h & **check credit policies of suppliers**, pay when due
-**debtors (accs receivable)** collected on regular basis to **convert into cash**, pay debts
-failure to collect --> bus deficit, unable to pay short term debts
151
liquidity
**amt** cash bus has **access** to and how **readily** can **convert assets to cash to pay debt**
152
why are cash flow reports vital?
****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**
153
3 examples of cash inflows
**cash receipts from sales,**
154
effect of short vs long term bank loan on bus cash flow
depends on **amt **of loan & **length time** of loan
-short term allows access to funds, **repaid quickl**y
-long term **repaid on regular basis,** bus needs **sufficient funds** to cover r****epayments when due
155
3 examples of cash outflows
payments for **stock**
payments for **expenses (Wages,** insurance)
payments for **NON-OPERATING expenses**
(unrelated to core operations) eg. **investment payments on debt**
156
3 categories of cash flow statements for large businesses & public companies OIF, main diff
1. cash flows from **OPERATING** activities
-main trading operations
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**
main **diff is where generated**. cash through sales from operations, money from dividends for investment
157
income statement
**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
-profit/loss incurred in period
-how **effective funds contributed by owners** been generating profit
-**before balance sheet bc details net profit** earned
158
important features of an income statement
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**
159
to deduct expenses from revenue on income statement 4
1. calculat total revenue
2. calculate **COGS and gross profit**
3. itemise **other expenses** (admin, selling, financial)
4. calculate **net profit**
160
net sales
amt revenue bus earned from sales after sales returns deducted
161
# service businesses
gross profit = ? why is it important
(ADD PRICE TO MAKE MONEY)**gross profit = revenue - COGS (cost of goods sold)**
- **exclude fixed/indirect costs eg. marketing**
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**
162
COGS = ?
COGS = operning stock **+ purchases** - closing stock
163
opening stock
closing stock
**value** of stock that business has at start of financial year
value of stock **on hand** at end of financial yr
164
COGS meaning
value of stock business sold to customers
165
finance expenses
costs from borrowing money from lenders & minimising business risk
166
expenses + 3 categories
costs incurred in process of **manufacturing/acquiring g/s to sell and direct/indirect costs of managing all sales** of that g/s
**SELLING**
-selling g/s, directly trace to need for sales **(ads)**
**ADMIN**
-direct to running bus **(rent)**
**FINANCIAL**
-**borrow money** & minimise risk **(interest)**
167
net profit = ?
net profit = gross profit - expenses
difference betw gross profit and ***NON OPERATING expenses***
**net profit > gross profit cause gross just measures mark-up**
168
assets
items of **monetary value owned** by business (corrent/non current/intainglbe)
**CURRENT**
-value **expected to turn over within 12 months (cash)**
NON-CURRENT
-expected life **3-5 yrs or longer**
-**large physical** items ( land, machinery)
169
liabilities
**debt owed to other** orgs/bus borrowing (current/non-current)
CURRENT
-debt expect **repaid 12 months/less (credit card** debts)
NON-CURRENT
-**long term** debts (mortgage,)
170
owner's equity(capital)
**funds contributed by owner**/s to establish & build business, **liability from** POV of **business** (eventually pay back)
-owner's claim **increase as success** increases, **reward for risking money**
-owner's investment is money for bus by owner **(internal debt)**
-**ROI** debt bc owner receive compensation for investment
171
balance sheet equation
assets = liabilities + owner's equity
A = L + OE
LHS = RHS
172
3 types of assets
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**
173
current and non-current liabilities
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,
174
analysis of balance sheet indicates if: 4
1. business has enough **assets to cover debts & maximise profits**
2. any money **borrowed** can be **repaid**
4. owners of business making good **ROI**
5. ability to meet **short & long term financial commitments**
7. compare to **competitors**
175
main functions of staffing to achieve bus goals. what is this called?
-**attract & acquire
-train & develop
-reward**
-maintain & separate ppl needed to achieve GOALS
**HUMAN RESOURCE CYCLE**
176
4 main elements of the human resource cycle (staffing process) ADMS
1. ACQUISITION
-planning **(job analysis), recruiting** & selecting ppl to work for bus
2. DEVELOPMENT
-**train** & develop employees **skills**
3. MAINTENANCE
-**monetary & non-monetary benefits
-motivate** employees
4. SEPARATION
-**voluntarily** (retirement/resignation, own accord)
-**involuntarily** (dismissal, restrenchemnt - organisational structure changes)
177
ACQUISITION 1(HIRING NEW EMPLOYEES)
human resource cycle
**PLANNING**
-**job analysis** (determine **natureo f position** to be filled)
**RECRUITMENT**
-**attract ppl to apply** for position
**-internal & external **
**
SELECTION**
-hiring most qualified ppl
**-interviewing**
-* Written application.
-filling out **job application** with information regarding their **skills and experience**,
- presenting their **résumé**
178
DEVELOPMENT 2 (improving employee skills & abilities)
human resource cycle
INDUCTION & **TRAINING**
-teaching employees **new skills**
-help **learn** tasks for job
**SKILLS INVENTORY**
-improving **skills, abilities, knowledge** of staff
179
MAINTENANCE 3 (motivating employees to remain with business)
human resource cycle
MONETARY BENEFITS
-**reward** employees efforts through **financial compensation
-pay rates**
NON-MONETARY BENEFITS
-rewards (fringe benefits)
180
SEPARATION 4 (employees leaving business)
VOLUNTARY
-employees leave on own accord
-retirement(old), resignation (quit)
INVOLUNTARY
-employees leave against will (ask)
-retrenchment, dismissal
must accommodate working parents with childcare needs, diverse backgrounds, etc
181
human resource management HRM
management of formal relationship between employer & ees
182
how can a business make best use of employees to achieve goals and improve **profit, growth and market share**
1. selectively hire workers
2. develop **cooperative working relationships**
3.** motivate** staff
4. provide employees with opps for **training & development**
183
why are human resources so important?
achieve bus **goals** and improve **profit & growth**, increase **market share**
need dedicated, **trained and motivated** employees, for **long term success **
face of business & living **representatives** of **bus' brand**
-**differentiate** brand from competitors to project right image
184
job analysis
systematic study of employee's **tasks & work enviro** (nature of position)
1. **job description**
**written statement** describe employee's **tasks at specific times, responsibilities** of job
-tasks can be **specialised/general**
-responsibilities can have **diff lvls control** depending on **seniority** lvl of position
2. **job specification**
-**identify tpe of person** to carry duties
-**lvl edu & training** completed & **knowledge**, **skills, exp** gained through **training/previous employment**
185
recruitment
**attract qualified job applicants**, select **most appropriate** ppl for jobs
-promote through **ads (SMEs), employment agencies expensive but effective**
-recruitment method (**internal/external)** depends on **SIZE of bus, TYPE of position, NATURE of labour force in bus' area**
INTERNAL
-fill **job vacancies** with **existing employees**
-find ppl from outside company
**-less risk**
EXTERNAL
-use **internet to advertise vacant positions**
-**outsource**
186
how will bus recruitment and selection affected by position filled
-based on amt **experience & knowledge required** for each role
-**higher position in hierarchy, more detailed job description** and more **specific qualifications for complicated roles**
-sales assistant only minimal advertising but CEO ads in newspapers, internet, **extensive reference checks and at least 2 interviews**
187
how to correct problems of HR having high staff turnover and low morale through recruitment and selection procedures
1. identify capable employees
-conduct **skills inventory to determine skills & exp of current employees**
-conduct **job analysis** to determine **tasks, work enviro for position**
-ads for new staff with required job skills
-**attract interested** and knowledgable finds
2. **screening process**
-thoroughly read **resume
-interveiws
-check references**
188
advantages of internal recruitment
- applicants **familiar with business & objectives, processes, culture**
- managerial position, **career path to reward valued employees** within business
- **recruitment costs reduced,**
189
disadvantages of internal recruitment
- may no one suitable within bus
- conflict between employees
190
advantages of external recruitment
- **wider range of applicants** to choose
-allows **rapid growth of bus (increase staff members)**
191
disadvantages of external recruitment
-choice diff cause applicants unknown
- **costs for advertising** position
- **selection process time-consuming** **(larger** field)
192
4 steps employee selection
gather **info abt each applicant** for position, using to choose most **appropriate** one
1. **WRITTEN APPLICATIONS**
-1st step
-read it (**resume)** and cover letter
-**qualifications, experience, suitability** for job
2. **TESTING**
-test
-**psychological, personality, aptitude, knowledge**
3. **INTERVIEWS!!!!!!**
-questions, **suitability assessed**, consistency
4. **BACKGROUND CHECKS**
-**referees contacted** to **verify accuracy of applicant's experience**
193
sources of employee recruitment available for a bus and effective
* **Ad**vertisements in the **media**.
- **accessible** to a wide range of people;
-receive a **large number of applications** to choose from.
* **Private recruitment agencies. **
agency does **preliminary screening of candidates**,
-**checks experience and references.**
- only the people that are suitable for the position.
- very **effective but expensive.**
* **TAFE colleges or universities**.
**-train** method of conducting business.
-**New graduates** **motivated** and eager **to learn.**
194
aim of training and development
**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!)**
195
development
**activities prepare** staff to take **greater responsibility** in future by acquiring **better knowledge, skills, gaining more experience** in certain area
-often **training**
196
training & development benefits for employee
- **opp for promotion** & self improvement
- **^ job satisfaction** (better job performance)
-greater ability to **adapt** & cope with **changes**
197
benefits for employer (training and development)
-higher **productivity,** more efficient use of **human resources**
-**reduced costs** (**less turnover, absenteeism, accidents)**
-***mobile***, workforce
198
training
teaching staff how to perform their job mroe **efficiently by boosting knowledge and skills**
-**personal & business growth**
199
common training methods 6
**(FORMAL) OFF-the job** training
-**outside the workplace**;
-conducted by people outside the business, but **related to the industry of bus**
**(INFORMAL) ON the job** training
-**while** the person is **working**
-**conducted by experienced workers** through coaching or mentoring
-learning new skills.
**COMPETENCY based** training
**CORPORATE uni**versities
**ONLINE** training
200
off the job training
****employees trained AWAY from workplace
-send employees to **specialised training institution**/specialist provider **(uni, tafe) for qualification** to perform efficiently
201
on the job training
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
202
common law contracts governed by provisions of
Fair Work Act 2009 (Cwlth)
203
employment/common law contract
**legally binding, formal agreement between employer & ee covering pay & conditions**
-under common law, both have basic rights & obligations
-**employee to adhere to policies & procedures of business**
- **hrs work, rates of pay, leave & super** arrangements
-**NES** and conform to **conditions for relevant award/enterprise agreement**
-cover employees who are **not under any award or enterprise agreements.**
-more common at the professional and managerial level
204
common law is developed by
**courts and tribunals**
**-judges make deisions** based on facts of case, guided by precedent (decisions from past)
205
employee & er obligations under common law for employment relationship 4,3
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**
206
NES intro and summary
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 rata 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
207
award advantages
-set min for pay & conditions
-cover all employees performing similar job
208
# 2
award disadvantages
-inflexible, **not suit all employees/businesses**
-**prevent recognition of individual initiative bc all employees guaranteed min pay & conditions regardless of productivity**
209
**modern awards** have a '**flexibility term'** which allows
**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
210
aim of offering above-award payments
bus wanna attract more workers o firm/hold to existing staff
211
10 matters covered by awards
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. **super**annuation arrangements
10. procedures for consultation, representation & **dispute settlement**
212
award
**legally binding agreement** sets minimum wages & conditions for group of employees
213
enterprise agreements (awards for industry, enterprise for ind firm)
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**
214
what must enterprise agreements include 4
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
215
steps for negotiation with **enterprise agreements**
2. agreement submitted to **FWC for approval** before commencing
4. FWC examines to ensure no unlawful content included and **employees better off entering agreement than covered by relevant award**
216
enterprise agreement advantages
- consultation & involvement of employees if conducted successfully, greater employee empowerment
-**possible improved pay & conditions --> workplace performance
-greater flexibility**, agree conditions satisfy employer & ee
217
enterprise agreement disadvantages
-**time consuming** from need to **conduct agreement meetings at individual workplace**
-administratively onerous, as agreement must comply with existing laws regarding employee rights & entitlements
218
retirement
**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
219
resignation & 4 reasons why ppl resign
**voluntary quit employment** relaionship
-**needs sufficient notice for employer, according** to employee's **award/common law contract/enterprise agreement**
1. **offered promotion** with **another bus**
2. **start own** bus
3. **boredom** with **present job**
4. desire for **changed lifestyle**
220
volunatry redundancy
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
221
final stage in employment cycle
**SEPARATION** stage
-employees **leave workplace** on **VOLUNTARY/INVOLUNTARY** basis
222
voluntary separation
employee decides to give up full/part time work
includes
1. retirement
-decides give up full/part time work
2. resignation
-'quit', give notice
3. (voluntary) redundancy
-**volunteer for redundancy**
-offered **redundancy package (payout of sum of money)**
223
involuntary separation
employee ASKED to leave business AGAINST WILL
includes
1. dismissal
-**terminate contract** due to behaviour
2. redundancy(involuntary)
-employers decide who made redundant, **no longer needs job to be done by anyone.**
3. **retrench
-remove from job to reduce costs**
224
unfair dismissal
employee dismissed by employer & believe action **harsh, unjust, unreasonable**
-can ***lodge unfair 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**
225
dismissal
**behaviour** of **employee unacceptable,** necessary for bus to **terminate employment contract
ON NOTICE** depend on **award, age, length of employment**
226
most serious form of dismissal
**SUMMARY DISMISSAL
-employee commits serious breach of employment contract** (eg criminal **drunk at work)
-no notice** required
227
why is selecting staff for dismissal risky
awareness** industrial legislation to avoid industrial action**
-employees need **proper notice**
-employers must **comply with procedures** established **(fair work act 2009 unfair dismissal laws)**
**avoid** misunderstandings & **lengthy unfair dismissal case** by
-writing **notice**
-**written confirmation of resignation > verbal** statements
