Sadaf- Business: Unit 3 and 4

These notes include every point of the 2023 study design explained in great detail, accompanied with explanatory images and diagrams that upcoming students will find very helpful in understanding, breaking down and making use of the information needed for both these assessments and exams. Includes: Business Foundations • Types of businesses (sole trader, partnership, private limited company, public listed company, social enterprise, government business enterprise) • Business objectives (make profit, increase market share, improve efficiency, improve effectiveness, fulfil market need, fulfil social need, meet shareholder expectations) • Stakeholders (owners, managers, employees, customers, suppliers, general community + conflict and interests) • Management styles (autocratic, persuasive, consultative, participative, laisse-faire) • Appropriateness of management styles (factors= nature of task, time, experience of employees, manager preferences) • Management skills (communication, delegation, planning, leadership, decision making, interpersonal) • Relationship between management style and skills • Corporate culture (official/real) Human Resource Management • Relationship between human resource management and business objective • Theories: Hierarchy of Needs (Maslow), Goal Setting (Lock and Latham), Four Drive Theory (Lawrence and Nohria) • Motivation strategies (performance related pay, career advancement, investment in training, support and sanction + advantages/disadvantages and their effect on short- and long-term employee motivation) • Training (on the job and off the job + advantages/disadvantages) • Performance management strategies (management objectives, performance appraisals, self-evaluation and employee observation) • Termination management (retirement, redundancy, resignation, dismissal + entitlement and transition considerations) • Roles of participants in workplace (human resource manager, employees, employer associations, unions, fair work commission) • Awards and agreements as methods of determining wages and conditions of work • Dispute resolution (mediation + arbitration and advantages/disadvantages) Operations Management • Relationship between operations management and business objectives. • Key elements of an operation system: inputs, processes and outputs. • Characteristics of operations management within both manufacturing and service businesses. • Strategies to improve both the efficiency and effectiveness of operations related to technological advancements (APL, robotics, CAD, CAM AI, online services) • Strategies to improve efficiency and effectiveness of operations related to materials (forecasting, master production schedule, materials requirement planning, just in time) • Strategies to improve efficiency and effectiveness of operations related quality (quality control, assurance, TQM) • Strategies to improve efficiency and effectiveness operations through waist minimalization (reduce, recycle, reuse) • Strategies to improve efficiency and effectiveness operations relative lean management (pull, one piece flow, takt, zero defects) • Corporate social responsibility considerations for operations systems • Global considerations for operations management (global sourcing inputs, overseas manufacture, global outsourcing) Need for change • Concept of business change • Proactive and reactive approaches to change • KPI (percentage of market share, net profit figures, rate of productivity growth, number of sales, rate of staff absenteeism, level of staff turnover, level of wastage, number of customer complaints, number of website hits, number workplace accidents) • Force Field Analysis- Lewin (weighting, ranking, implementing response, evaluating a response) • Driving forces for change (owners, managers, employees, competitors, legislation, pursuit of profit, reduction of costs, globalisation, technology, innovation and societal attitudes) • Restraining forces for change (managers, employees, time, organisational inertia, legislation and financial considerations • Two key approaches (low cost and differentiation), Porters Generic Strategies Implementing change • Importance of leadership • Management strategies to respond to key performance indicators and/or seek new business opportunities, including staff training, staff motivation, change in management styles or management skills, increased investment in technology, improving quality in production, cost cutting, initiating lean production techniques, redeployment of resources (natural, labour and capital), innovation, global sourcing of inputs, overseas manufacture and global outsourcing • Corporate culture and strategies for its development • Senge’s Learning Organisation (+ need to create a positive culture for change) • Low risk strategies to overcome employee’s resistance (communication, empowerment, support and incentives) • High risk strategies to overcome employee resistance (manipulation and threats) • Lewin’s Three-Step Change Model • Effect of change on stakeholder groups (owners, managers, employees, customers, suppliers, and general community) • CSR considerations when implementing change • Importance of reviewing key performance indicators to evaluate effectiveness of business transformation.