Busman Exam Revision

1.

Explain 4 characteristics of an LSO:

An organisation is a structured agreement where two or more people work together to accomplish a purpose. Uses inputs (physical, human, informational and financial) to create outputs. Characteristics include: 1. Number of employees is over 200 The Australian Bureau of Statistics (ABS) 2. Substantial Total Assets Value of what the organisation owns. 3. Substantial Profit - Net profit after tax. 4. Large size of operators through multiple factories, branches, stores.

2.

Explain 4 positive contributions LSO s provide to the economy:

1: Provide Employment: Large Scale Organisations (LSO) employ 33% of the private sector work force through: Direct Employment: An employee is hired and paid by the organisation. Indirect Employment: An employee is hired and paid for by one organisation, but performs work for another organisation. Outsourcing: The process of gaining outside people to perform non -core tasks required by the organisation. Example: Telstra, a telecommunications provider, outsourced call centers to India. 2. Gross Domestic Product (GDP): GDP is the total monetary value of all goods and services provided within Australia in a one year period. The ABS reports that approximately 4 0% GDP is created by LSO s. 3. Balance of Payments (Exports): This is an annual record of Australia s trade and financial transactions with the rest of the world. LSO s through trading in the global marketplace assist in earning export income, which improv es Australia s balance of payments performance. 4. Stimulate Infrastructure Growth: Infrastructure refers to the physical resources of an area: Utilities (Gas, Water, Electricity), Communication , Roads, Transport (Trains, Busses)

3.

Explain 3 negative consequences of LSO s to the economy:

1. Outsourcing to overseas countries. Many LSO s have outsourced operations to other countries. Outsourcing is the practice of having non-core tasks completed by another organisation. Organisations may outsource as they believe it can bring positive benefits, such as cost savings and access to greater expertise. The concern is that jobs and expertise may be lost. 2. Excessive payments to senior executives. Even since the Global Financial Crisis, many organisations are still paying substantial bonuses to senior executives, and giving large payouts to those who are dismissed. The community, employees and shareholders do not believe that these payments are justified. 3. Damage to the environment. Activities of an organisation can lead to damage through pollution, or contributing to greenhouse gas emissions. Environmental damage can leave an impact on the economy in terms of cleaning up the damage. The government has placed pressure on organisations to become more aware of the damage to the environment and global warming.

4.

Outline the objective of a corporation, a charity, a Govt. Department and a foundation:

Corporation: Corporations can be privately owned by up to 50 shareholders (Pty Ltd) or publically owned (Ltd) where the y are listed on the Stock Exchange and have limited shareholders. Corporations are controlled by a board of directors. The objective of a corporation is to make a profit, accumulate assets and increase market share. Government Departments: Government Departments are owned by the government and are responsible to a minister. Their objective is to provide services to the country in order to satisfy social, or political, objectives. Charities: Provide assistance in the forms of goods, services or finance t o disadvantaged groups. Their objective is to provide a service, not make a profit.

Charities are controlled by a board of management and must be registered as a charitable organisation. Foundations: Foundations raise money for, and public awareness on i ssues within the community. They also conduct research to find cures for problems faced by the community. Their objective is to provide a service.

5.

Define Stakeholder:
Stakeholders are those individuals or groups who have a vested interest in the operations of an organisation. They may be affected by the actions of the organisation, either through its success or failure. Stakeholders have their own individual objectives in what they want to achieve in relation to the organisation.

6.

Give 5 examples of a stakeholder and describe their needs:

Shareholders: Profitability of the business, Receive dividends. Employees: Receive a fair wage or salary, work in a non - discriminatory and ethical workplace. Competitors: Ensure they gain a competitive edge over the busi ness, compare and evaluate their performance against other businesses. Suppliers: Be paid promptly, establish and guarantee long term preferred supplier relationship. Customers: Obtain quality goods or services, receive high levels of customer service.

7.

Define outsourcing. Give one advantage and one disadvantage:

Outsourcing to overseas countries. Many LSO s have outsourced operations to other countries. Outsourcing is the practice of having non-core tasks completed by another organisation. Organisations may outsource as they believe it can bring positive benefits, such as cost savings and access to greater expertise. The concern is that jobs and expertise may be lost. Telstra has outsourced its call centres to India.

8.

Define privatization:
The process of selling government owned business to the private sector. Government business enterprises have traditionally been run by governments at federal, state and local levels.

9.

Define merger. Give one advantage and one disadvantage:

A merger is an agreement between t wo or more businesses to join together to form one united business. Advantage is that a business becomes more competitive. A disadvantage is that it can lead to an organisational restructure.

10. Define takeover: A takeover occurs when one business purchases a controlling share (50.1%) in another business. Takeovers may be mutually beneficial, or may be hostile.

11. Define downsizing:

Some LSO s attract criticism when they lay off workers in an attempt to reduce costs and improve productivity. This is referred to as downsizing to gain a competitive edge.

12. Define internal environment and explain two factors from this environment:
Activities, functions and pressures which occur within the organisation. The organisation h as total control over these pressures. Policies and Procedures: Can IMPACT on the way activities are carried out in the organisation. Policies should embrace the strategic direction of an organisation. Employees: Employees exert influence as they want to work in a non-discriminatory and ethical workplace that provides flexibility options, equal employment opportunities, career development and a healthy and safe work environment. This IMPACTS on organisation as they need to develop appropriate policies, pr ocedures and work practices. 13. Define operating environment and explain two factors from this environment: The environment immediately external to an organisation over which it has close interaction when conducting its business activities. The organisation h as little or no control over this environment. Competitors: Constant monitoring must occur with regards to a competitor s products or services. Competitors what fair competition a level playing field. Suppliers: A supplier is any provider of input int o a business operations, such as materials, equipment and labour.

Businesses must ensure a steady and reliable flow of needed inputs at the lowest possible cost. It is essential to establish a stable and long term relationship with suppliers. Suppliers want to know they will be paid on time and have an ongoing relationship with the organisation. 14. Define macro environment and explain two factors from this environment: Broad operating conditions in which an organisation operates. The organisation has no contr ol over these pressures. Political/Legal: Changes in laws can affect the way in which businesses operate, e.g. GST, lowering of tariff protection and equal opportunity OHS legislation. Social: As a result of a change in social attitudes, there has been a change in attitudes towards work, with an increase in flexible working arrangements and family friendly policies. Changes in society such as an aging population and cultural diversity effect bu sinesses . 15. Explain the KPI results of a customer survey, staff survey and level of wastage: Measures how satisfied customers are with an organisations performance. A satisfied customer will remain loyal to the organisation and make repeat purchases. Custom er satisfaction relates to the level of service provided and good customer service requires staff to be adequately trained. Measures how satisfied staff are within the organisation. Members of staff who have positive attitudes towards their jobs will be mo tivated to work more productively. Staff satisfaction can be improved by the provision of training and flexible workplace arrangements., management style, corporate culture or empowering staff to become involved in making decisions. Measures the amount of waste created by a production process. An organisation manages resources more efficiently by reducing waste, which can cut production costs.

16. Define corporate culture and distinguish between official and real cultures:
Corporate culture is the key ideals, v alues and beliefs shaped by members of an organisation, which create the atmosphere and projected image of an organisation. It can be called the personality of the organisation. Having a successful corporate culture is a competitive edge. The Official Culture: How the company would like to be seen, and is determined by the advertising, slogans and mission statements of an organisation. (Policies, Rules and Dress Code) The Real Culture: The actual atmosphere within the company. It is determined by the way employees dress and interact with each other. (What actually occurs)

17. Give two indicators of corporate culture:

- Mission/Vision/Values: These are the organisations basic beliefs that are shared amongst employees. Values can include integrity, empathy, respect and optimism. -Symbols: These consist of objects that are used to represent something the organisation believes to be important. For example, a logo. - Rituals/Rights/Celebrations: Regular social gatherings can be held to develop a sense of belonging amongst employees. - Heroes: Are the organisations successful employees who reflect its values and therefore act as an example for others.

18. Explain the two advantages of a positive culture and two disadvantages of a negative culture:
Advantages: - High staff retention rates and morale - Greater Productivity Disadvantages: - Negative Working Environment - Unattractive to Stakeholders 19. Explain the features of a functional, divisional and matrix structure: Functional Structure Employees are grouped into departments according to the tasks that they perform. The Functional Structure allows for the introduction of employee specialisation which improves productivity. Each department has a separate manager. Most organisations group employees into marketing, operations, finance or human resource departments. Divisional Model Employees are based in departments through division. The likely division categories are product, service, customers and geographical. Matrix Model:

Involves bringing specialists in from different areas of the organisation to solve specific problems or undertake specific projects in teams The term matrix is used to describe the approach because a grid is created over the top of the already existing organisational structure. 20. Explain the steps required to develop a policy: A policy is an established set of guidelines to be followed by all employees in an organisation. It shows the processes, procedures, rules and regulations. Issue Identification: Issues may arise because of an internal problem or because of an external pressure. Research: This involves using expert consultants to provide advice. Analysis and discussion should occur. Stakeholder Input: Stakeholders should be informed of possible changes to policies; encouraging comments and feedback. Meetings should be held to seek stakeholder input. Policy Development: The policy writers need to comply with the legislative requirements and should consider the co mments from stakeholders. Feedback: The draft policy is communicated to senior management and stakeholders to seek comments and feedback. Policy Approval: After consideration is given to the feedback recieved, senior management approves the policy making it public through newsletters, annual reports, websites and employee handbooks. Evaluation: An evaluation measures how well the policy has assisted in the achievement of organisational goals. 21. Briefly explain the 5 management styles (APCPL). (Two sentences, one advantage, one

disadvantage):
Autocratic Style Manager makes all decisions; having full control and authority; centralised Decision making where management make decisions alone without employee input. One -Way communication from the top down; manag ement give directions to employees but do not encourage feedback. Advantage: Directions and procedures are clearly defined; there is little uncertainty. Disadvantage: No responsibility is given to lower level staff which decreases job satisfaction. Persuasive Style The manager attempts to sell decisions, with justifications given to convince employees that the decision is needed. Management make the decisions but explain why. Disadvantages: Attitudes may be negative with employees failing to support mana gement. Consultative Style Where the manager takes employee opinions into account before making a decision. Ideas are discussed in depth, allowing management to make clear and informed decisions. Advantages: With tasks being discussed, they should be completed more efficiently and effectively, with improved results. Disadvantages: When ideas are shared some may be ignored or overlooked, causing conflict or resentment. Participative Style The manager encourages employees to be part of the decision making process. The style recognises the strength and expertise of employees working together to make a joint decision. Advantages: Support for decisions made Disadvantages: Requires time and resources Laissez Faire Management set objectives but employees take full responsibility for achievements of these objectives. Employees assume full responsibility of the day to day running of the organisation. Advantages: Extremely creative and dynamic. Disadvantages: Some workers are incapable of working with this level of self -direction.

22. Explain delegation, communication, negotiation:

Communication is the process of creating and exchanging information. Effective communication involves the

manager pitching his language to t he appropriate employee level. Effective communication should include a two way process, so managers should be prepared to listen as well. As a result, many modern managers use a participative management style. Poor communication can lead to frustration a nd a loss of direction between employees and management. Delegation is where a manager gives authority to another employee to complete a set task. If anything goes wrong, the manager is still responsible for the employees and task being completed. This allows employees to develop and fully apply skills and knowledge. Negotiation is the process of reaching an agreement through discussion and compromise. The aim for effective management is a win-win outcome. 1. Objectives should be set. 2. Time limits for compromise or it becomes a lose situation. 3. Establish a positive environment. 4. Record information and confirm an understanding. 5. Know when to compromise. 6. Seal a deal with a win -win or win-lose .

23. Give two ways to develop skills:

- Through an expert role model or mentor. - Training through formal education or on the job learning. This is where an employee follows an expert who has expertise in a particular skill, or through job rotation where skill development is encouraged.

24. Define planning and explain the three levels:

Planning is the process of setting objectives and deciding on the methods to achieve them. There are three levels of planning: Strategic, Tactical and Operational (Front Line) Strategic Planning is long term planning used by an organisation to define its objectives over a 3 -5 year period. As part of strategic planning management must undertake a SWOT analysis. Eg. Globalisation or Merger/Takeover. Tactical Planning is formal medium term planning undertaken by middle -management to assist in implementing the organisations strategic plan. It ranges between 12 months and 2 years. Eg. Staff Training, management of budgets. Operational/Frontline Planning is specific planning of day -to-day operations by lower level managers and supervisors. It can be as short as a day or up to a week or months. Eg. Roster s and Stock.

25. Explain a SWOT analysis and give two benefits.

SWOT stands for the INTERNAL Strengths and Weaknesses, and the EXTERNAL Opportunities and Threats. A SWOT helps to develop strategies for the organisation and decides on priorities for the future, helping the organisation plan and meet its objectives. A SWOT is a comprehensive analysis of an organisation. Benefits of a SWOT analysis are: - Highlight successful areas and use these as a model for success. - Illustrate areas of weakness and implement strategies for success.

26. Explain the planning procedure (SADIM):

Set the Objective. Management needs to determine what they are trying to achiev e. Analyse the Environment. Management could undertake a SWOT analysis. This will identify the organisations internal strengths and weaknesses, and external opportunities and threats. Develop Alternative Strategies. Managers need to develop alternatives and then agree upon the best strategy. Implement the Strategy. The agreed strategy needs to be put into place. Monitor and seek feedback. Management must set targets and check whether they are met. If objectives are not being met the planning process would need to be repeated.

27. Explain organising:

Organising is the process of arranging resources and tasks so as to achieve organisational goals. Resources include Human Resources, Knowledge, Raw Material and Equipment. It is organising the workplace to maximi se efficiency and productivity. Organising is a process that includes: - Determining all work that must be done to achieve an organisations objectives. - Dividing the workload by assigning tasks and responsibilities to staff, delegating the authority.

- Establishing communication Channels. - Setting up departments to co-ordinate the workload. Organising is essential to an organisations ability to maintain productivity.

28. Explain controlling:

Controlling is the establishment of ways to compare the actual perf ormance with the planned performance. Controlling ensures that plans are being implemented appropriately and alerts manages to any deviations from the plan so as corrective action may be instigated. Controlling involves managers ensuring that resources are used effectively. It involves the inbuilt checks, measures and SPI s to ensure that tasks are done correctly. Controlling involves. - Establishing standards relevant to the objectives of the organisation. - Measuring the performance of the organisation against benchmarks. - Making changes when necessary to ensure objectives are met. Controlling is important as it ensures that resources are used effectively and objectives are achieved.

29. Explain leading:

Leading is the process of influencing people to work toward the set objectives. Leadership is the ability to gain individual or group confidence and empower them to achieve organisational goals. It is the motivating and directing of employees. Three qualities of an effective leader are: - Interpersonal qualities, including communicating and people skills. - Informational qualities, which involves gathering and communicating information. - Decision making qualities which involves making choices in order to solve problems, take up strategies and determine solutions. Leading is essential as motivated employees will help in achieving organisational objectives. 30. Explain three elements of an operations system: The operating system is the series of procedures and processes an organisation undertakes in order to create its outputs; goods/services. Inputs: Raw Resources that when processed become a finished product. 1. Raw materials. Resources which are used by an organisation to produce a good or provide a service. 2. Human Resources. Employee skills and expertise. 3. Information and Knowledge. Specialised knowledge required to produce specified goods and services. 4. Capital, Plant, Equipment. Buildings and Machinery. 5. Technology. Computerisation and new developments that could improve efficiency and effectiveness of an operations process. Time. If wasted will add to production costs. Processes: This is also known as a transformation. It refers to the processing of inputs into outputs. This is the activity an organisation undertakes to transform inputs into outputs. Outputs: Refers to the final provision of a service or sale of a good. It is the final product .

31. Describe 3 facilities, design and layout strategies:

Organisations must plan the design and layout of operations for efficient production. Office Layout The office layout should be designed to allow for the easy flow of traffic, the optimisation of space and the easy movement of information. Retail Layout Retail stores organise products according to the type of product and brand name. Manufacturing Layout This is where w ork stations are grouped according to function. Hospitals are set out in this way as are some factories. 32. Describe 2 materials management strategies: Materials management refers to the systems that are implemented to ensure that the right materials are available in the right numbers for the right costs when required. It is also called inventory. Total Supply Chain Management Total Supply Chain Management refers to the entire flow of materials (Goods/Services) from suppliers, through the workplace (Office/Factory/Warehouse), to the end customer.

Total Supply Chain Management optimises the relationships in the chain to reduce waste and unnecessary cost, reduce lead times and increase responsiveness. Just In Time This requires the operations manager to keep j ust enough materials on hand to get the workplace through the next production period (Fortnight). The belief behind this strategy is that it is a waste to tie up many resources that may not be used for some time. There is also the possibility that the actu al product may be changed or modified, and that the materials in stock may never be required. 33. Describe 2 management of quality strategies: Quality is the term used to describe the degree of excellence in a product or service and its ability to satisfy client/customer needs and wants. Total Quality Management (TQM) All employees are given the opportunity to work in teams and develop ideas on how to continuously improve the aspects of production they w ork on. TQM recognises that there is always room for improvement. The main aim of TQM is to improve customer satisfaction. Quality Assurance ISO 900? This is a quality assurance method that is recognised internationally. ISO900? Management System standards provide the organisation with a model to follow which incorporates the features which experts in the field have agreed upon as having best practice. Regular audits are a necessary feature of ISO 900? as inspections by internal and external auditors wi ll ensure that the standards being implemented are being implemented properly over a period of time. Many organisations advertise that they are certified for ISO 9000. This means that they have met the criteria for certification and have implemented all s teps necessary for approval.

34. Describe 3 new technology strategies:

Process technology is a term that describes the technology used to transform inputs into goods or services. This may include computer systems or robotics. Organisations have implemented va rious forms of technology to improve productivity and business competitiveness. Manufacturing technologies include: Robotics/Automation Machines that replace human effort, which are used on a production line and work from a fixed position. Robotics offers cost savings and increased efficiency as they save on labour costs and are not subject to human error, also freeing up employees from repetitive tasks. Computer Aided Design (CAD) Computers and software are used to create products and modify specif ications. This encourages other possibilities such as 3D design. Computer Aided Manufacturing (CAM) Where computers are used to design and control the production process. Production sizes and shapes can easily be changed as computers direct machinery and equipment.

35. Define Operations Management: Operations management involves the designing, planning, organising, leading and controlling functions involved in the production of a good or provision of a service. 36. Distinguish between a Service Organisation and a Manufacturing Organisation:
A manufacturing organisation will transform inputs into tangible products. Tangibles are physical products that can be handled and stored before they are sold to the consumer. There is also little customer involvement in the production. WHEREAS A service organisation will transform inputs into services. Services are intangible which means they cannot be touched. Services cannot be stored and the customer may need to be present when the service is being delivered. IN REALITY Many LSO s provide a combination of both good and services. A product such as a car may come with a warranty which is a service. 37. Describe the three elements of an operations system and support with an organisation studied: The operations system is the series of procedures and processes an organisation undertakes in order to create its outputs. In a manufacturing organisation such as CUB, the output is a good. The three key elements within a manufacturing organisation such as CUB are inputs, processes and outp uts.

Inputs refers to the raw resources that when processed become a finished product. There are a number of categories of input including that of raw materials such as bottles and cans. Human resources in the form of factory workers and management. The ca pital, plant and equipment including the tools, factory and warehouses. They also require the information and knowledge regarding the recipe and brewing techniques as well as adequate time for brewing. CUB also uses technology in the form of aut omated robots to conduct work. Processing is the activity that an organisation undertakes in order to transform inputs to outputs. Processing at CUB involves the processes of brewing, fermenting and labelling As part of processing, CUB use (facilities, design and lay out) continuous flow production for manufacturing as well as (Materials Management) just in time for the delivery of bottles and cans. (Management of Quality) They also use quality assurance to ensure that their product is of a high quality; only using suppliers that qualify for ISO 9002 accreditation. (Technology) Robots are also used to automate the production process. Outputs refer to the final provision of a good; the final product. In the case of CUB it will be a high quality beverage that is availabl e to a world market. This product will meet world s best practice.

38. Define HRM and explain its importance:

HRM is the effective management of the relationship between the employer and employee. HRM is a series of activities focused on obtaining, training an d maintaining an efficient and effective workforce that is capable of achieving organisational goals and objectives. HRM is important as people provide an organisation with a competitive edge.

39. Outline the relationship between human resource management to business objectives and strategies:
Organisations need to ensure that HRM practices/policies are linked to strategic goals. A businesses most valuable asset is its employees. It is the role of the HR department to set objectives which fit with the overall b usiness objectives (what is to be achieved) and strategies (how it is to be achieved) of the organisation.

40. Define employee expectations and give three examples:

Expectations employees have of employers in the workplace environment, with employees who have expectations met are more likely to be motivated so productivity should increase. Employees expect a flexible work environment, fair pay and conditions and Occupational Health and Safety.

41. Why is work life balance important:

Work life balance is about achi eving the right amount of time for work and for personal life. Organisations need to determine whether work life balance is a key need within their organisation. Low productivity and high absenteeism may mean an organisation is not meeting employee expecta tions.

42. Define flexible working conditions and describe two ways an organisation can meet these conditions.
Conditions that allow employees to balance work and family responsibilities more effectively. Flexible conditions include: - Variable Working Hours: Core hours are specified but flexibility is given with start and finish times. - Working from Home - Maxiflex/Flexitime: Allows employees to build up sufficient hours overtime to take time off.

43. Define OH&S and give two benefits of an organisation providing a safe working environment:
OH&S refers to the responsibility the employer has to ensure that the workplace is safe for all employees with steps taken to minimise harm. Employees expect to work in a safe environment, with this expectation supported by gov ernment policies and laws. They also expect to be give appropriate training to ensure they know how to work safely. -Workers and the public must have the highest possible protection. -Employees take an active role in promoting health and safety in the work place 44. Briefly outline the role of a HR manager: HR Managers are expected to undertake the following: PLANNING HRM planning includes developing strategies to meet the organisations future human resource needs, forecasting the future demand for employees and estimating whether supply can meet demand. ORGANISING HRM Organising can involve arranging induction and training programs. It also involves managing staff rosters, developing codes of conduct, policies and procedures.

LEADING They can motivate by meeting employee expectations through a work life balance. CONTROLLING They could measure staff absenteeism rates and retention rates.

45. Define motivation and explain the importance of the HR manager understanding individual needs:
The desire or drive to w ork well and achieve goals. Motivation may occur intrinsically or extrinsically. Motivators can include: money, family, status, peers, respect. Motivation is what drives employees to complete their job, and there are a number of factors that will motivate individual employees as everyone has different expectations, so it must be realised that what may motivate one person may not motivate another. Motivated employees are an asset to business. If employees are motivated, they will work harder and increase productivity. 46. Explain two motivational theories: Herzberg s theory is based on the idea that satisfaction and dissatisfaction are caused by separate factors; hygiene factors and motivation. The Hygiene factors refer to the environment in which people work an d include physical conditions such as pay, job security, interpersonal relations and job status. These factors will provide either dissatisfaction or no dissatisfaction but they will not motivate an employee. A second set of factors is required for employe e motivation and these are the Motivation factors, which relate to a person s type of work and include a sense of achievement, recognition, challenging work, responsibility and opportunity for advancement. Therefore the job itself motivates, provided the e mployee work environment is acceptable. Whilst Maslow believed that within all individuals exists a hierarchy of five needs that are arranged based on the importance of the need. An employee s level of need in the hierarchy must be satisfied before moving to the next level, which is then activated as a new motivator. Once a level has been satisfied it is no longer effective in motivating employee behaviour. Maslow believed that people needed to satisfy their physiological needs firstly such as food and water; this is through the wage an organisation pays to an employee. People then look to satisfy their needs for safety, shelter and clothing; organisations can satisfy this need by providing safe working conditions and job security. Once these needs have been met, employees look to satisfy social needs; Organisations need to provide a sense of belonging so that people can develop healthy relationships. Esteem needs are next met through an employee being recognised by a title or promotion. The final need is self actualisation, which refers to an employee s desire to reach their full potential. This need can be met through personal development and creative jobs that offer advancement. Maslow s theory was important as its showed that organisations needed to c reate a workplace that attempted to satisfy all the needs of an employee. Organisations that attempt to motivate workers only through pay rises or job security would only be satisfying lower level needs. Employees would not be motivated and would suffer lo w morale as they wait for the day to finish.

47. Define rewards and give two examples of financial and non financial rewards:
Rewards are recognition for a job well done can act as a motivator; either financial or non -financial. Rewards must be flexible to tak e account of individual employee needs. Financial Rewards - Performance based pay: bonuses for exceeding sales targets or production outputs. - Commission: a proportion of the sales gained usually paid in addition to a base salary. Non-Financial Rewards - Staff recognition and awards. - Job title.

48. Describe four HR strategies that may be used to improve motivation:

- Job Enrichment: Refers to making work more challenging so that employees are required to use their full capabilities to perform the job and encourage personal growth. - Job Enlargement: Involves widening the scope of the job so that it becomes more challenging through the combination of various tasks of a similar level. - Job Rotation: Workers are moved between different tasks to increase the variety of work. - Flexibility in Work Practices: Involves developing family friendly policies and practices which allow for alternative work arrangements to meet both family responsibilities and business requirements.

49. Define job satisfaction and give two factors that may affect an employees satisfaction level.
Job satisfaction is the amount of fulfilment an employee experiences from their employment and working environment. Job satisfaction is not constant, it changes depending on the situation.

50. Explain HR planning and give two affecting factors:

- HR Planning: Human Resource planning is the process undertaken by managers to ensure an adequate supply of competent motivated people are available to perform the duties and tasks required to meet an organisati ons objectives. It involves planning an organisations future personnel needs by forecasting those areas where the organisation will have an excess or shortage of staff. In some cases new positions must be created or existing positions altered. HRP may be influenced by a number of factors including: - Work patterns are changing; increasing demand for flexible working arrangements and family friendly policies. (Work Life Balance/Job Sharing/Untraditional Working Hours) - Labour shortages within the next deca de due to the ageing population. - Changes in skills and education expectations as more people now seek tertiary qualifications than skilled trades.

51. Explain the relationship between job analysis, description and satisfaction:
- Job Analysis: The process of examining a particular job to find out all that it involves, as well as the skill and expertise/experience workers require to fill the position. Methods of job analysis include: - Interviewing the current job holder. - Questionnaires that ask the present jobholder to describe their work. Questions can be written with both closed and open questions to allow for additional input. - Observation of the jobholder could be conducted, or a video made of the job being performed. - Job Description (JOB BASED): A description needs to be prepared. This is a written statement that outlines the tasks, responsibilities and activities of the job; typically describing the title, salary and duties. - Job Specification (APPLICANT BASED): A specification needs to be prepa red outlining the required skills and attributes of the person required for the job. It concentrates on the person rather than the job. Both the description and specification are used for recruitment purposes, particularly when designing job advertisements. They can also provide background material for designing interview questions when choosing between job applicants and appraising employees.

52. Define recruitment:

- Recruitment: Involves identifying, locating and attracting a pool of qualified applicants. It needs to attract the right person for the job. Recruitment is a two way process as it involves information being given by the organisation and received from the applicant.

53. How could an organisation measure the success of their recruitment methods:
Evaluation of the recruitment process provides feedback for improving recruitment performance. Organisations can look at: How many applicants applied? How many applicants were suitable or qualified for the position? What were the recruitment costs? To determi ne recruitment success. 54. Explain the selection process: Selection is the process undertaken by an organisation when deciding whether to make a job offer to a candidate. Stages of selection are as follows:

y y y

Receipt of Application: It is good business practice to acknowledge job applications. Initial Screening: This process is undertaken to eliminate applicants who do not possess the skills and expertise required for the position. A short list of applicants for interview is created. Interviews: The most common interview style is structured where a series of questions are asked based on the job description/specification. Elements of a successful interview include Planning with HR managers advising applicants of the time and location, Questioning with HRM ensurin g adequate questions are developed and that the panel is fair and non-discriminatory so that legal requirements are met. Involves all the activities undertaken by the organisation to introduce a new employee to th e business. The

55. Define induction and explain its purpose:

purpose of the induction process is to communicate organisational values, beliefs and expectations and instil a sense of belonging.

56. Give three ways and organisation can introduce a new employee to their organisation:
Induction involves empl oyees being introduced to: - Staff: It can include meeting senior managers, fellow workers or a buddy/mentor. Induction can help the new employee learn who to approach whilst working. - Environment: Can include tours of the facilities/amenities, working en vironment or factory floor. Induction can involve showing employees the new physical environment. - Culture: Can include receipt of a policy handbook, informal/formal advice or a corporate video. Inductees often need to quickly familiarise themselves wit h the real culture.

57. Give two benefits for an organisation offering an induction program:

A good induction program is important as it reduces turnover and allows employees to reach expected performance targets more quickly. After initial formal induction, many organisations use a mentoring system to further assist the employee in settling.

58. Define training and development and explain how training needs can be identified:
Training is the process in which an employee gains the knowledge or specific skills to p erform a job. HR managers should perform a training needs analysis to diagnose present and future problems that need to be overcome through training programs such as: Organisational Analysis: The entire business is analysed to determine whether training sh ould be conducted to achieve strategic goals. Task Analysis: The individual jobs to be performed are analysed to determine whether any skill deficiencies are evident. Professional Development: Refers to preparing employees often at management level, for lo nger term opportunities. It has a general focus, (not job specific) and can involve attending seminars and conferences. Personal Analysis: Each employee is assessed to determine whether training is required.

59. Define performance appraisal:

Performance Appraisal is the measuring of an individual s performance against previously set objectives, to provide feedback, and to establish plans for performance improvement.

60. Distinguish between comparative standards and absolute standards: - Comparative Standards: Comparison is made between an employee s performance and that that of another.
Employees are ranked from poor to excellent on various criteria relating to interpersonal and workplace skills. It relies on a global judgement of the employees performance an d does not highlight any strengths or weaknesses. - Absolute Standards: The manager undertakes independent evaluation of employees. It may be an essay, which requires a manager to make honest and informed statements about an employees performance and does not highlight any strengths or weaknesses.

61. Explain three performance appraisal outcomes:

Performance Appraisal Outcomes Include: Remuneration and Awards: A merit award or pay increase may be linked to exceptional performance. Training and Development: The employee may require additional training. Counselling: Advice may be needed on a range of personal or work related issues. If employee behaviour is unacceptable then disciplinary counselling may be required. Job Promotion: If an employee has performed to a high standard, then promotion to a higher position may be warranted. Termination: As a last resort for unsatisfactory performance. It is essential that written warnings, counselling and correct legal termination procedure is conducted.

62. What factors should be considered when using a performance appraisal:

Personal Bias: Opinions that should not be a part of the appraisal. The Halo Effect: Being so impressed by one aspect of performance that other aspects are ignored. Unclear Standards: Standards that are open to different interpretations. The Activity Trap: Staff become involved in specialised activities that rate highly in appraisal, ignoring organisational goals. 63. Define resignation, redundancy, retirement and termination: - Resignation: Resignation occurs when an employee voluntarily decides to leave an organisation, with a period of notice given by the departing employee to the employer. An exit interview is recommended as it helps to

highlight if there are any organisatio nal problems causing the resignation that are required to be rectified. - Retirement: Retirement occurs when an employee decides to leave the paid workforce and is a form of voluntary termination. To assist in retirement HRM should assist employees with transition services that can include providing retiring employees with financial assistance (superannuation, pension, investments), lifestyle planning and voluntary activities. - Retrenchment: The concept of retrenchment is usually linked to redundancy, whi ch is the termination of employment by an employer due to it no longer requiring a particular job type. Redundancies commonly arise when an employer is closing part/all of business, is restructuring or has introduced technology which has replaced jobs. Employees are entitled to severance or redundancy payments. - Dismissal: This is often referred to as being fired. An organisation must ensure that it has conducted appropriate counselling and disciplinary procedures before a dismissal takes place. An employer is required to provide an employee with a written notice of termination , and to provide reasons for such termination. (This is waved in the event of a criminal act, when no notice is required)

64. Benefits of effective workplace relations:

Workplace Relations refers to the relationship that exists between the employer and employees and how they work together to determine the level of pay and working conditions. Effective workplace relations helps to promote a harmonious relationship between employers, unio ns, employees and the government. Benefits include: Increased Staff Loyalty, Greater Customer Satisfaction, Higher Productivity and an Improved Public Image.

65. Examples of workplace conflict:

Strikes: Workers withdraw their labour. Stopwork Meetings: Workers meet during working hours, preventing work. Work to Rule: Workers do no more than the bare minimum and follow all rules to do the letter. Picket Lines: Workers physically demonstrate outside premise preventing deliveries. Passive Employee Resistance: Shown through absenteeism and a lack of co -operation.

66. Explain the functions of a trade union:

A trade union is an organisation representing employees in a particular industry. - Unions represent workers and negotiate on their behalf during enterprise bargaining. - Provide support to local union officials and workers in the workplace. - Act as an official salesperson to the media on behalf of the workers. 67. Give reasons an employee may join a union: - Unionised workplaces have better health and safety conditions. - Unions defended the rights of women, part -time and casual workers. - Ensure companies put people before profit.

68. Give reasons union membership is declining:

- Areas of concern such as OH&S and Equal Opportunity are now protected by law . - Increase in part-time/casual workers, with these workers often changing positions and not developing loyalty to a particular union. - The expansion of service industry, which does not have a tradition of union membership. 69. Define awards, enterprise bargaining, collective agreements, AWA: - Awards: Set out the rights and obligations of employees engaged in a particular job. (Teaching, Retail, Nursing, Hospitality) An award covers all workers in the industry to which it relates. Awards are not negotiated directly between employees and employers but employers and the unions who represent the employee. Awards are a point of reference when negotiating collective and individual agreements at the enterprise level. - Collective Agreements: Agreements establish ed as a part of enterprise bargaining or collective bargaining with or without union involvement. AWA: Individual contract negotiated between and employee and employer, introduced under Work Choices. AWA s could include conditions which are less favourab le than those covering other people already working in the same job on an award or enterprise agreement. Enterprise Bargaining: The process of negotiation generally between the employer, employee and bargaining representatives with the

goal of an enterprise agreement. The Fair Work Act 2009 established rules and obligations on how the process is to occur including those on bargaining, content and how an agreement is made and approved.

70. Define Change:

Organisational change is the process that alters the exis ting aspects of an organisation and creates a new form. Change can be either a planned or unplanned response to the internal, operating or macro environment. 71. Distinguish between a reactive and proactive response to change: Change is considered to be dynamic because it arises from sources that continually vary. Any changes may be REACTIVE (Forced Response) or PROACTIVE (Anticipated Response) 72. Explain driving and restraining forces, support with 3 examples: Driving forces are pressures that encourage change th at arise from the business environment. Driving Forces New Technology Culture that expects and welcomes change Resources to finance change Positive and capable management By identifying driving forces in the workplace managers can take full advantage of th em to overcome obstacles to change. Restraining Forces Restraining forces are the pressures that restrict change. They are forces that emerge to prevent change from occurring. - Organisational Inertia; a corporate culture that does not welcome change, su ch as staff resistance. - The financial cost of implementing change; new equipment, retraining employees. - Corporate culture; groups of employees fear change. - Management procrastination; indecision on making change. By identifying restraining forces, ma nagers can implement strategies to reduce their impact, thus allowing change to be successfully implemented. 73. Identify and explain pressures for change, referring to internal, operating and macro environments: Driving forces are pressures that drive towards and encourage change. Forces for Change come from the 3 business environments: A pressure from the internal environment can come from the employees who may want a work life balance. A pressure from the operating environment may be unions who may demand em ployers off the opportunity for work life balance. An environmental pressure from the macro environment may be increasing awareness of an organisations affect on nature. 74. Define organisational inertia: Organisational inertia is a corporate culture that does not welcome change, such as staff resistance.

75. Define force field analysis:

Managers who first identify these driving forces and then analyse their affect on change are conducting a force field analysis. A force field analysis involves balancing the drivi ng and restraining force to reach equilibrium. 76. Apply Kotters Change Model: Step 1: Establish a sense of urgency. Managers must examine the magnet identifying any threats or major opportunities and then set the change. Relate. Step 2: Form a powerful guidi ng team. Managers must form a powerful guiding team of employees who work together to manage the change process. This team must be given enough power to lead the change. Relate. Step 3: Create a vision. When managers create a vision it helps to direct the change. A goal is set for the organisation to work towards and strategies are developed to achieve the vision. Relate.

Step 4: Communicate the vision. Managers must clearly communicate the goals to staff using a variety of methods. Relate. Step 5: Empower staff to act on the vision. Managers must encourage staff to work towards change through risk taking and removal of obstacles. Relate. Step 6: Plan for and celebrate short term success. Managers must recognise and reward employees who readily embr ace the change and demonstrate progress through new behaviours. Relate. Step 7: Consolidate Improvements. Use short term success to maintain the momentum and produce change. Relate. Step 8: Institutionalise new behaviour. Managers must make uniform the s et changes and behaviours. They can do this by reinforcing them and identifying the link between the changes made and the present and future success of the organisation. Relate. 77. Explain and provide examples of low and high risk tactics to change: Low Risk Tactics Employ a change agent. These are often consultants whom specialise in the introduction of change. Communication. Management needs to communicate the changes clearly, making sure that all stakeholders are aware of the need for change and the benefits of doing so. Two way communication is wild as it gives the employees a chance to give their opinions on the change. If employees feel as though they are a part of change they will be more willing to embrace it. Negotiation. Change often involves a clash of values between opposing stakeholders. Negotiation aims to manage this conflict and create a win-win situation. Management create a culture for change. Employees must be included in the change so that they understand they are an important part of making the change work. Team work where employees meet on a regular basis to discuss the changes being implemented is important. High Risk Tactics Manipulation or threats. This could involve manipulating information and workers by means of awards or threats to job security. It is not desirable as it can create mistrust, lower morale and damage corporate culture. 78. Impact of change on internal environments: Sources of change for the Internal Environment Technology Factors New developments in ICT are becoming mainstream. This technology is taken up by business where they see the benefits of productivity gains. Societies Attitudes The emphasis on ethics has put pressure on organisations to conform to societies expectations. Legal/Political Pressures The ongoing decentralisation of employees relations has placed pressure on large organisations to introduce enterprise bargaining into the workplace. Environmental Factors Pressure rising from the natural environment including natural disasters , air pol lution and climate change issues may forces a change by encouraging sustainable practices.

79. Select a significant change issue that you have studied. Describe the key aspects of the issue and

evaluate how a large scale organisation has responded to the issue in relation to the changes it has made to its internal environment:
A change management issue is that of social responsibility. Social Responsibility relates to the moral and ethical decisions made by an organisation, with many looking to adopt behaviou rs that will achieve broad social values. In order to develop a strong relationship with stakeholders and the community, a number of key aspects must be acknowledged. It is important that organisations engage in acts of corporate philanthropy via business donations of gifts and money to community groups. Organisations may also choose to provide sponsorships for community groups or sports teams, developing sponsorship initiatives. Operational Responsibility is also important as the health and safety of staf f is paramount. Whilst organisations may also consider altering the production process in order to minimise waste, reduce packaging and increase recycling strategies. In order to determine whether an organisation is becoming more socially responsible, soc ial audits will often be conducted. Social auditing is a process that enables an organisation to assess and demonstrate its social, economic and environmental strengths and weaknesses. In this way an organisation is able to measure the extent to which they are achieving any values or objectives that have been committed to. Toyota Australia is an organisation that currently engages in demonstrating socially responsible practices. In an effort to reduce strain on the environment, Toyota is employing sustaina ble practices for the future, looking at achieving zero carbon emissions for new vehicles through the development of hybrid technology. Toyota also sponsors National Tree Day, an initiative that has seen over 1 million trees planted nationally. Toyota also actively engages in reducing total water consumption and increasing the percentage of waste that is recycled. A number of strengths for being a socially responsible organisation include that of a positive corporate image as they become a leader in hybrid technology, positive corporate culture and long term organisational sustainability with shareholders attracted to moral reputation. However socially responsible practices can be costly to implement and maintain due to plant retooling and worker retraining, they are time consuming and can also potentially lead to job losses through the usage of new technology. Changes to social responsibility policies may also have an internal impact, requiring planning, a change to the organisational vision and a change of culture. Toyota may need to review planning by conducting a social audit to evaluate its current social and environmental performance, as well as identifying any limitations. This would also require a new plan for the budget as funds need to be allocated to develop the hybrid car. A benefit of planning is that it can assist in Toyota in meeting legal requirements surrounding carbon emissions and would give a clear direction of their future in terms of sustainability. However, it may detract Toyota being a ble to produce more profitable petrol based cars. There could be an impact on corporate culture, with organisations that consider environmental issues likely to attract and retain staff and other stakeholders. Social responsibility could also impact on obj ectives, as an environmental focus becomes part of Toyota s vision and mission statements. A code of ethics could also be developed, providing an improved public image. New objectives should be communicated to stakeholders. Social responsibility can be me asured using performance indicators, specifically that of the measurement of the level of wastage, with organisations that manage resources more efficiently reducing waste and cutting production costs. With the implementation of socially responsible practi ces at Toyota, management may compare the levels of waste with those before a change to more ethical practices to those now that the change has been implemented. If the level of waste has decreased, then Toyota would be seen as successfully reaching the performance target. Triple bottom line accounting can be used by management to assess whether financial, social and environmental needs are being fulfilled by such a performance indicator. It is important that organisations such as Toyota continually change in order to remain socially responsible in a competitive business environment. In being a positive corporate citizen, Toyota may suffer profit losses in the short term, however in future environmentally friendly technology will se them remain competitive, productive and profitable.