Managing a Business

Question 1

The relationship between managing employees and business objectives

Answer 1

Effective management of employees is crucial in optimising a businesses productivity as they are a crucial resource who enable the business to run effectively.

Question 2

Productivity

Answer 2

The number of goods or services that are produced compared to the number of resources used in the production process.

Question 3

Motivation

Answer 3

An employees willingness or commitment to apply effort and accomplish activities related to work.

Question 4

Motivation Strategies

Answer 4

• performance-related pay
• Career advancement
• Investment in training
• support
• sanction

Question 5

Performance-related pay Definition

Answer 5

A salary or wage system based on how well an employee works, The greater the production, the greater the number of sales and therefore the greater the income. Motivation is directed towards the performance that earns the employee the reward.

Question 6

Performance-related pay advantages and disadvantages

Answer 6

Advantages: 
- goal focused
- powerful and motivating
Disadvantages: 
- very competitive and potentially conflicting
- hard to focus on team goals
- lose focus of broader objectives

Question 7

Performance-related pay short and long term motivation

Answer 7

short term: immediate motivation

long term: reach plateau for comfort

Question 8

Career advancement definition

Answer 8

the prospect or opportunity of developing your career through being promoted or taking on new roles. This can motivate employees to perform well and acquire new skills and knowledge.

Question 9

Career advancement advantages and disadvantages

Answer 9

Advantages:
- personal goal-focused
- broader skill and knowledge development
Disadvantages:
- selfish and competitive
- hard to focus on team goals
- demotivating if career advancement opportunities are not available.

Question 10

Career advancement short and long term motivation

Answer 10

Short term: motivation until the goal is achieved

long term: workplace culture of self-interest.

Question 11

Investment in Training definition

Answer 11

A business pays for training programs to develop the individual employees or group of employees skills and knowledge. This will make them more efficient for their role.

Question 12

Investment in training advantages and disadvantages

Answer 12

Advantages:
- very targeted at business objectives
- leads to productivity gains and quality improvements
- team training together
Disadvantages:
- financially expensive
- if employees leave they will take your investment with them

Question 13

Investment in training short and long term motivation

Answer 13

short term: employee morale up

long term: builds skills and knowledge

Question 14

Support definition

Answer 14

involves the manager meeting with the employee and verbally instilling belief and aspiration in the employee and mentoring them to help overcome problems and seize opportunities.

Question 15

Support advantages and disadvantages

Answer 15

Advantages:
- an employee feels valued and respected
- a manager gets to be directly involved with motivational focus
- financially cheaper than training
- becomes cultural
Disadvantages:
- involves a lot of time

Question 16

Support short and long term motivation

Answer 16

Short term: employee morale boosted

Long term: positive workplace culture

Question 17

Sanction definition

Answer 17

Punishments for the failure to meet or comply with a business objective. May be in the form of a pay penalty, loss of promotional opportunity etc.

Question 18

Sanction advantages and disadvantages

Answer 18

Advantages: 
- very powerful
- lead to predictable responses
Disadvantages:
- not support employees to make mistakes, learn and develop.
- short term
-negative culture

Question 19

Sanction short and long term motivation

Answer 19

Short term: fast, direct motivation

long term: fear, resentment and avoid risk-taking.

Question 20

Training

Answer 20

The process of improving an employee’s skills and knowledge so they are able to perform their job more effectively and efficiently. To determine what training is required, a training needs analysis can be conducted.

Question 21

Training needs analysis

Answer 21

Assesses the needs of the business, each job and individual employees and determines the training that is required.

Question 22

Benefits of training

Answer 22

Employee
- improved abilities - greater responsibility
- self-esteem
- increased job satisfaction
Business
- improved productivity and quality
- greater ability to achieve business objectives.

Question 23

On-the-job training

Answer 23

Where an employee learns at their workplace often while performing their actual job. This training is often conducted by an experienced employee.

Question 24

Advantages and disadvantages of On-The-Job training

Answer 24

Advantages
- learning on the equipment they’ll be working on
- cost-effective
- the employees can work while being trained
Disadvantages
- quality of the trainer can vary
- poor habits passed on
- may disrupt operations while training is conducted.

Question 25

Off-the-job training

Answer 25

Where the employee learns new skills away from the workplace. E.g. conferences, simulations, workshops, lectures, online training etc.

Question 26

Advantages and disadvantages of Off-the-job training

Answer 26

Advantages - employees will learn from those with vast qualifications - fewer interruptions for workplace - provide formally recognised qualifications Disadvantages - more expensive - may not learn on the right equipment - may use gained qualification to leave the business - lost work time

Question 27

On-the-job training techniques

Answer 27

- coaching - mentoring - job rotation - job shadowing

Question 28

Performance management

Answer 28

an assessment of employees present work performance and how this can be directed in the future to achieve both business and employee objectives.

Question 29

Business objectives

Answer 29

- make a profit - increased market share - fulfil a market/social needs - meet shareholder expectations

Question 30

Employee objectives

Answer 30

- earn an income - job security - develop skills and knowledge - career advancement

Question 31

Management by objectives (MBO) Peter Ducker

Answer 31

The employee and manger set the objective together so that employees become aware of what they are working towards.

Question 32

Advantage and disadvantage of MBO

Answer 32

``` Advantages - clear and focused - sequential and logical DIsadvantages - objectives MUST be clear and specific otherwise employees will get lost. ```

Question 33

Performance Appraisal

Answer 33

Also referred to as a performance review or performance evaluation. A method by which the job performance of an employee is documented and evaluated against pre-determined standards.

Question 34

Purpose of performance appraisals

Answer 34

- insight into an individual performance - a standardised way to make comparisons among employees for salary or promotional-based decisions - information about the employee's strengths and weakness which can become business-wide.

Question 35

Advantages and disadvantages of performance appraisal

Answer 35

Advantages - good for the business to assess employees - focused and targeted Disadvantages - making sure targets are clear and well-written

Question 36

Self-evaluation

Answer 36

To get the individual to reflect on their own performance prior to a manager/employer discussion.

Question 37

Advantages and disadvantages of self-evaluation

Answer 37

Advantages - includes employee involvement Disadvantages - employees may not see themselves ad the way they actually are.

Question 38

Employee observation

Answer 38

In order to pre-empt the discussion between the manager and the employee about the employee's present performance and how this could be developed, the employee could be observed and recorded. could be with their knowledge or without.

Question 39

Employee requirements (Roles of participants in the workplace)

Answer 39

- required to perform their duties with proper care and diligence - follow safety procedures - obey a lawful, reasonable order within the terms of the contract of employment - serve faithfully

Question 40

Union roles (roles of participants in the workplace)

Answer 40

An organisation formed to represent and protect the rights of employees in a particular industry. Shop steward locally elected union official who represents the union as a first point of contact for employees.

Question 41

Employer roles (roles of participants in the workplace)

Answer 41

- to ensure employees pay and working conditions meet national minimum standards - provide a safe and healthy workplace - comply with legal regulations - provide appropriate training

Question 42

Employer associations (roles of participants in the workplace)

Answer 42

Are groups of employers who unite to promote their common interests as well as to share information, advice and support for each other. e.g. The Australian retailers association

Question 43

Human resource managers (roles of participants in the workplace)

Answer 43

- involved with the ongoing management of the employee-employer relationship. - negotiating with employees and their representatives on issues of pay and working conditions - acting as a mediating group between the interests of employers and employees - develop grievance policies to solve disputes calmly and consistently - maintaining positive working conditions

Question 44

Fair Work Commission (roles of participants in the workplace)

Answer 44

The fair work commission is Australia's national workplace relations tribunal. It is an independent body with the power to carry out a range of functions.

Question 45

Retirement

Answer 45

When an employee chooses to permanently leave the paid workforce. Can occur with young workers, however, more likely in senior staff.

Question 46

Redundancy

Answer 46

happens when an employer or business either doesn't need that role anymore, the business becomes bankrupt, the introduction of new technology, closes down, relocation.

Question 47

Resignation

Answer 47

The act of telling your employer that you are leaving the job. Voluntary termination that occurs when an employee chooses to leave the business, usually to go to another job.

Question 48

Dismissal

Answer 48

Termination of employment by an employer against the will of the employee. The employer needs to make sure that the termination is done in a 'lawful manner.'

Question 49

Unfair dismissal

Answer 49

When an employee is dismissed from their job in a harsh, unjust or unreasonable manner. The Fair work commission decides on cases of unfair dismissal.

Question 50

Entitlement issues

Answer 50

Are the legal obligations an employee must uphold when terminating employees. E.g. redundancy pay, long service leave etc.

Question 51

Transition Issues

Answer 51

Attempt to provide social and ethical treatment to employees who have been terminated. e.g. outplacement services, farewell parties etc.

Question 52

Awards

Answer 52

A contract that provides pay rates and conditions of employment for a particular industry or occupation. There are currently 122 modern awards of general application e.g. fast food industry award.

Question 53

Advantages and disadvantages of awards

Answer 53

Advantages - wage equality and transparency - stability and predictability in the negotiation process Disadvantages - less flexible to needs of individual businesses - some strong unions can exert enormous influence.

Question 54

Agreements

Answer 54

Contracts made at business/enterprise level between employers and employees about terms and conditions of employment. This must leave an employee better off overall when compared to relevant awards.

Question 55

Advantages and disadvantages of agreements

Answer 55

Advantages - more flexible to needs of individual businesses - easier to build in individualised productivity incentives - a large incentive for good employee-employer relations. Disadvantages - less wage equality and transparency across the industry - less collective employee strength in bargaining.

Question 56

Dispute

Answer 56

a conflict between workplace participants as a result of a disagreement.

Question 57

Grievance procedures

Answer 57

1. Employee or representative present complaint to a manager 2. employee or representatives present complaint with the employer 3. matter is discussed with the HR manager as a mediator between parties 4. matter is referred to Fair Work commission for dispute resolution 5. matter is referred for arbitration

Question 58

Mediation

Answer 58

Where an independent third party (the mediator) will help parties talk about the issues and makes suggestions about how it can be resolved. They do not offer their opinion.

Question 59

Conciliation

Answer 59

Where an independent third party (the mediator) will help parties talk about the issues and make suggestions about how it can be resolved.

Question 60

Advantages and disadvantages of mediation

Answer 60

Advantages - promotes positive working relationships - the employee has control over the final decision - less expensive than the more formal processes. Disadvantages - the final decision may not be reached - may be an unbalanced power dynamic between employees and managers

Question 61

Arbitration

Answer 61

Independent third party listens to both sides of the dispute and then makes a decision based on the arguments which legally binding on parties.

Question 62

Advantages and disadvantages of arbitration

Answer 62

Advantages - guarantees a final decision will be made - the final decision is legally binding - employees aren't persuaded into agreeing to something they don't want to do. Disadvantages - the business has reduced control over the final decision - may create bad workplace atmosphere as one party is most likely going to disagree with the final decision - time-consuming and expensive