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Unit	
  3	
  
Business	
  Management	
  
	
  
Outcome	
  2	
  Part	
  B	
  
Revision	
  
2014	
  
SAC	
  DATE	
  
Monday	
  April	
  28th	
  
 
	
  	
  
This	
  assessment	
  task	
  addresses	
  the	
  following	
  key	
  knowledge	
  as	
  outlined	
  
in	
  Unit	
  3:	
  Area	
  of	
  Study	
  2:	
  (Study	
  design)	
  
	
   	
  
key	
  management	
  roles:	
  
•  planning:	
  long,	
  medium	
  and	
  short-­‐term	
  
•  organising:	
  resource	
  and	
  task	
  alloca:on	
  techniques	
  
•  leading:	
  importance	
  of	
  leadership	
  quali:es,	
  including	
  interpersonal,	
  informaJonal	
  and	
  decision-­‐
making	
  
•  controlling:	
  financial	
  and	
  non-­‐financial	
  processes	
  and	
  control	
  systems	
  	
  
•  different	
  styles	
  of	
  management,	
  including	
  autocra:c,	
  persuasive,	
  consulta:ve,	
  par:cipa:ve	
  and	
  
laissez-­‐faire,	
  and	
  their	
  appropriate	
  applica:on	
  to	
  various	
  management	
  situa:ons	
  
•  key	
  management	
  skills	
  as	
  appropriate	
  to	
  the	
  process	
  of	
  effec:ve	
  management	
  
•  the	
  rela:onship	
  between	
  management	
  styles	
  and	
  skills.	
  
The key skills that this assessment task addresses include the ability to:
	
  
• accurately use relevant management terms
• analyse business information and data
• Analyse major aspects of the internal environment of large-
scale organisations
• apply knowledge and concepts to practical and/or
simulated situations
POLC	
  
The	
  key	
  management	
  roles	
  are:	
  
POLC	
  -­‐	
  Planning	
  
•  Planning	
  is	
  the	
  process	
  of	
  defining	
  objecJves	
  and	
  determining	
  
methods	
  or	
  strategies	
  which	
  will	
  be	
  used	
  to	
  achieve	
  those	
  
objecJves.	
  	
  
•  This	
  is	
  the	
  primary	
  management	
  role.	
  It	
  provides	
  the	
  key	
  to	
  
both	
  the	
  short-­‐term	
  and	
  long-­‐term	
  success	
  of	
  an	
  organisa:on.	
  
Levels	
  of	
  planning	
  —	
  strategic,	
  tacJcal	
  and	
  operaJonal	
  
	
  
•  Strategic	
  (long-­‐term)	
  planning	
  is	
  planning	
  for	
  the	
  following	
  three	
  to	
  five	
  
years.	
  This	
  level	
  of	
  planning	
  will	
  assist	
  in	
  determining	
  where	
  in	
  the	
  
market	
  the	
  organisa:on	
  wants	
  to	
  be,	
  and	
  what	
  the	
  organisa:on	
  wants	
  to	
  
achieve	
  in	
  rela:on	
  to	
  its	
  compe:tors.	
  It	
  is	
  conducted	
  by	
  senior	
  
management.	
  
•  TacJcal	
  (medium-­‐term)	
  planning	
  is	
  flexible,	
  adaptable	
  planning,	
  usually	
  
over	
  one	
  to	
  two	
  years.	
  It	
  assists	
  in	
  implemen:ng	
  the	
  strategic	
  plan	
  and	
  
allows	
  the	
  organisa:on	
  to	
  respond	
  quickly	
  to	
  changes.	
  The	
  emphasis	
  is	
  on	
  
how	
  the	
  objec:ves	
  will	
  be	
  achieved	
  through	
  the	
  alloca:on	
  of	
  
resources.	
  It	
  is	
  generally	
  conducted	
  by	
  middle	
  management.	
  
•  OperaJonal	
  (short-­‐term)	
  planning	
  provides	
  specific	
  details	
  of	
  the	
  way	
  
the	
  organisa:on	
  will	
  operate	
  in	
  the	
  short	
  term.	
  Management	
  controls	
  the	
  
day-­‐to-­‐day	
  opera:ons	
  that	
  contribute	
  to	
  achieving	
  short-­‐term	
  ac:ons	
  
and	
  objec:ves.	
  Examples	
  of	
  opera:onal	
  plans	
  are	
  daily	
  and	
  weekly	
  
produc:on	
  schedules.	
  Conducted	
  by	
  frontline/supervisory	
  team.	
  
Planning	
  process	
  
•  Step	
  1.	
  Define	
  the	
  objec,ve.	
  	
  
	
  What	
  is	
  it	
  the	
  LSo	
  wants	
  to	
  achieve?	
  May	
  be	
  redefining	
  or	
  modifying	
  exis:ng	
  objec:ves	
  or	
  seTng	
  
new	
  ones.	
  
•  Step	
  2.	
  Analyse	
  the	
  environment.	
  	
  
	
  Managers	
  aUempt	
  to	
  work	
  out	
  exactly	
  where	
  the	
  organisa:on	
  currently	
  stands.	
  A	
  common	
  
analysis	
  technique	
  is	
  known	
  as	
  a	
  SWOT	
  analysis	
  (an	
  acronym	
  for	
  
strengths,	
  weaknesses,	
  opportuni:es	
  and	
  threats).	
  This	
  iden:fies	
  and	
  analyses	
  the	
  organisa:on's	
  
internal	
  strengths	
  and	
  weaknesses,	
  and	
  also	
  opportuni:es	
  in,	
  and	
  threats	
  from,	
  its	
  external	
  
environment	
  	
  
•  Step	
  3.	
  Develop	
  alterna,ve	
  strategies.	
  	
  
	
  In	
  response	
  to	
  the	
  ques:on	
  ‘How	
  will	
  the	
  organisa:on	
  get	
  there?’,	
  managers	
  develop	
  several	
  
strategies	
  and	
  then	
  agree	
  to	
  put	
  one	
  into	
  ac:on.	
  
•  Step	
  4.	
  Implement	
  an	
  alterna,ve.	
  	
  
	
  The	
  strategy	
  which	
  has	
  been	
  agreed	
  upon	
  needs	
  to	
  be	
  put	
  into	
  place.	
  
•  Step	
  5.	
  Monitor	
  and	
  seek	
  feedback	
  on	
  the	
  implemented	
  strategy.	
  	
  
	
  Management	
  must	
  set	
  targets	
  and	
  check	
  whether	
  they	
  are	
  met.	
  If	
  objec:ves	
  are	
  not	
  met,	
  then	
  
the	
  planning	
  process	
  would	
  need	
  to	
  be	
  repeated.	
  Any	
  plan	
  formed	
  should	
  be	
  a	
  living	
  document,	
  
regularly	
  reviewed	
  and	
  revised	
  if	
  necessary.	
  
SWOT	
  ANALYSIS	
  
POLC	
  -­‐	
  Organising	
  
•  Organising	
  is	
  the	
  process	
  management	
  goes	
  through	
  when	
  it	
  
aUempts	
  to	
  arrange	
  resources	
  (such	
  as	
  staff)	
  to	
  match	
  up	
  with	
  
tasks,	
  in	
  order	
  to	
  achieve	
  the	
  objec:ves	
  of	
  a	
  large	
  organisa:on.	
  
The	
  organisa:on	
  process	
  
•  Determining	
  the	
  work	
  ac1vi1es.	
  The	
  work	
  ac:vi:es	
  required	
  to	
  achieve	
  management	
  
objec:ves	
  must	
  be	
  determined.	
  Work	
  ac:vi:es	
  are	
  then	
  usually	
  broken	
  down	
  into	
  smaller	
  
steps.	
  
•  Classifying	
  and	
  grouping	
  ac1vi1es.	
  Once	
  the	
  work	
  ac:vi:es	
  of	
  a	
  business	
  have	
  been	
  broken	
  
down	
  into	
  smaller	
  steps,	
  similar	
  ac:vi:es	
  can	
  be	
  grouped	
  together.	
  This	
  improves	
  efficiency	
  
by	
  enabling	
  the	
  most	
  appropriate	
  alloca:on	
  of	
  resources.	
  It	
  is	
  common	
  prac:ce,	
  for	
  
example,	
  to	
  group	
  ac:vi:es	
  into	
  departments	
  or	
  sec:ons,	
  and	
  to	
  allocate	
  employees	
  and	
  
supervisors	
  to	
  each	
  sec:on	
  or	
  department.	
  
•  Assigning	
  work	
  and	
  delega1ng	
  authority.	
  The	
  next	
  step	
  in	
  the	
  organisa:on	
  process	
  is	
  to	
  
determine	
  who	
  is	
  to	
  carry	
  out	
  the	
  work	
  and	
  who	
  has	
  the	
  responsibility	
  to	
  ensure	
  the	
  work	
  is	
  
done.	
  Delega:on	
  also	
  involves	
  ensuring	
  the	
  person	
  who	
  has	
  been	
  given	
  responsibility	
  does	
  
carry	
  out	
  the	
  processes.	
  Effec:ve	
  delega:on	
  can	
  increase	
  produc:vity	
  and	
  efficiency,	
  and	
  
increases	
  job	
  sa:sfac:on	
  for	
  the	
  employee.	
  
Leading	
  
•  Is	
  the	
  moJvaJon	
  of	
  employees.	
  
•  Its	
  also	
  providing	
  direcJon	
  to	
  ensure	
  work	
  is	
  completed	
  on	
  
:me.	
  
•  Ensuring	
  organisaJonal	
  objecJves	
  are	
  met.	
  
Examples	
  
•  Management	
  must	
  ensure	
  tasks	
  are	
  delegated	
  to	
  staff	
  that	
  are	
  
competent	
  to	
  complete	
  them.	
  
•  Includes	
  training	
  staff	
  and	
  providing	
  direc:on	
  to	
  drive	
  business	
  
success.	
  
•  Recognising	
  good	
  performance,	
  correc:ng	
  poor	
  performance	
  
and	
  ensuring	
  enthusiasm	
  in	
  the	
  workplace	
  is	
  high.	
  
Leadership	
  Quali:es	
  –	
  Interpersonal,	
  Informa:onal,	
  Decision	
  Making	
  
•  Interpersonal	
  –	
  A	
  manager	
  is	
  seen	
  as	
  the	
  figurehead	
  of	
  the	
  organisa:on.	
  They	
  
set	
  the	
  example	
  and	
  their	
  behaviour	
  reflects	
  the	
  organisa:on	
  as	
  a	
  whole.	
  A	
  
successful	
  leader	
  is	
  one	
  that	
  moJvates	
  their	
  staff	
  to	
  constantly	
  improve	
  their	
  
performance.	
  
•  Informa:onal	
  –	
  Managers	
  need	
  to	
  monitor	
  and	
  collect	
  all	
  informa:on	
  the	
  
organisa:on	
  receives	
  to	
  ensure	
  they	
  have	
  up	
  to	
  date	
  knowledge	
  about	
  the	
  
industry	
  in	
  which	
  they	
  operate	
  and	
  have	
  knowledge	
  of	
  the	
  economic	
  
condi:ons	
  that	
  may	
  affect	
  the	
  organisa:on.	
  
•  Decision	
  Making	
  –	
  They	
  must	
  show	
  leadership	
  by	
  making	
  decisions	
  that	
  
improve	
  the	
  businesses	
  performance	
  and	
  brings	
  about	
  change.	
  
Controlling	
  
•  Controlling	
  sees	
  management	
  measuring	
  the	
  performance	
  of	
  the	
  LSO.	
  	
  
•  This	
  could	
  be	
  in	
  financial	
  terms,	
  resource	
  alloca:on	
  and	
  efficient	
  use	
  of	
  
resources,	
  business	
  processes	
  and	
  procedures	
  or	
  human	
  resources.	
  
•  Management	
  develop	
  standard	
  processes,	
  procedures	
  and	
  outcomes	
  for	
  
workers	
  to	
  follow	
  to	
  ensure	
  consistent	
  results	
  across	
  the	
  LSO.	
  
Examples	
  
•  Interim	
  progress	
  reports,	
  inspec:ons,	
  tes:ng,	
  audi:ng,	
  examining	
  financial	
  
reports	
  or	
  direct	
  observa:on.	
  
Controlling	
  
Controlling	
  process	
  
There	
  are	
  three	
  steps	
  in	
  the	
  control	
  process:	
  
•  Establish	
  the	
  standards	
  the	
  business	
  hopes	
  to	
  achieve.	
  
•  Monitor	
  and	
  evaluate	
  business	
  performance.	
  
•  Make	
  changes	
  when	
  necessary	
  to	
  ensure	
  objec:ves	
  are	
  achieved.	
  
EXAM/SAC	
  HINT	
  
•  Management	
  Roles	
  can	
  only	
  be	
  POLC.	
  
•  DO	
  NOT	
  CONFUSE	
  them	
  with	
  management	
  skills	
  or	
  
management	
  funcJons.	
  
SKILL: Apply knowledge and concepts to practical and/or simulated situations
LETS PRACTICE: KOKO BLACK PTY LTD
	
  
•  The	
  first	
  Koko	
  Black	
  salon	
  opened	
  in	
  2003	
  employing	
  over	
  230	
  people.	
  
	
  
•  The	
  vast	
  majority	
  of	
  Koko	
  Black's	
  finished	
  product	
  range	
  is	
  designed	
  and	
  handmade	
  in	
  
Melbourne.	
  	
  
•  Product	
  range	
  includes	
  fine	
  chocolates,	
  ice	
  cream,	
  desserts,	
  pastries,	
  drinks,	
  and	
  extensive	
  
ranges	
  of	
  seasonal	
  speciali:es.	
  	
  
•  Wherever	
  possible	
  Koko	
  Black's	
  products	
  are	
  handmade	
  using	
  local	
  ingredients.	
  	
  
•  Technology	
  is	
  u:lised	
  where	
  necessary	
  but	
  the	
  intensive	
  nature	
  of	
  the	
  product	
  means	
  focus	
  
is	
  on	
  handmade	
  design	
  and	
  quality.	
  
•  Koko	
  Black	
  is	
  a	
  niche	
  manufacturing	
  business,	
  producing	
  its	
  own	
  product	
  from	
  raw	
  
ingredients	
  and	
  selling	
  via	
  their	
  own	
  retail	
  outlets,	
  online	
  site	
  and	
  direct	
  to	
  corporate	
  
clients.	
  
Koko	
  Black	
  would	
  like	
  to	
  expand	
  their	
  business	
  into	
  Asia	
  
•  This	
  expansion	
  will	
  require	
  a	
  new	
  General	
  Manager	
  to	
  focus	
  on	
  the	
  roles	
  
of	
  planning	
  and	
  organising.	
  Define	
  each	
  of	
  these	
  roles	
  and	
  analyse	
  how	
  
these	
  roles	
  will	
  assist	
  Koko	
  Black	
  to	
  achieve	
  its	
  objec:ve	
  of	
  expansion.	
  
•  Planning	
  –	
  define	
  
•  5	
  step	
  planning	
  process	
  will	
  need	
  to	
  be	
  discussed	
  (include	
  the	
  following)	
  
•  Strategic	
  planning	
  will	
  be	
  required.	
  
•  SWOT	
  analysis	
  needs	
  to	
  be	
  undertaken	
  to	
  help	
  determine	
  whether	
  Koko	
  
Black	
  should	
  proceed	
  with	
  expansion	
  plans.	
  
•  Planning	
  decisions	
  need	
  to	
  be	
  made	
  (&	
  alterna:ves	
  evaluated)	
  eg	
  :me	
  
frame	
  for	
  seTng	
  up	
  new	
  stores,	
  loca:on,	
  how	
  expansion	
  will	
  be	
  financed.	
  
•  Other	
  levels	
  of	
  management	
  would	
  be	
  required	
  in	
  the	
  tac:cal	
  planning	
  &	
  
opera:onal	
  planning	
  ensuring	
  these	
  more	
  detailed	
  levels	
  of	
  planning	
  result	
  
in	
  strategies	
  that	
  will	
  achieve	
  specific	
  objec:ve	
  of	
  expansion.	
  
•  Organising	
  –	
  define	
  
•  Organisa:onal	
  process	
  
•  Management	
  will	
  need	
  to	
  organise	
  the	
  structure	
  of	
  the	
  Asian	
  
branches	
  and	
  how	
  they	
  will	
  operate.	
  	
  
•  Determine	
  what	
  will	
  be	
  needed.	
  
•  Establish	
  staff	
  in	
  produc:ve	
  working	
  environments	
  eg	
  seTng	
  
up	
  new	
  stores.	
  
•  Assign	
  responsibili:es	
  to	
  staff.	
  
•  Delegate	
  authority.	
  
•  Communicate	
  among	
  different	
  levels	
  and	
  departments.	
  
•  Accumula:on	
  of	
  shopfiTngs,	
  equipment	
  and	
  stock.	
  
Management	
  Styles	
  
Management	
  Styles	
  
•  Autocra:c	
  
•  Persuasive	
  	
  
•  Consulta:ve	
  	
  	
  
•  Par:cipa:ve	
  
•  Laissez-­‐faire	
  
Management	
  Style	
  
Selec:on	
  of	
  management	
  style?????	
  
	
  
Depends	
  on	
  a	
  number	
  of	
  factors:	
  (situa:onal	
  variables)	
  
	
  
•  The	
  managers	
  personality.	
  
•  Managers	
  skills.	
  
•  The	
  skill	
  level	
  of	
  employees.	
  
•  Nature	
  of	
  workforce	
  eg	
  hospital,	
  farm,	
  factory,	
  design	
  studio.	
  
•  Time	
  that	
  is	
  available.	
  
•  Any	
  changes	
  to	
  the	
  internal,	
  opera:ng	
  or	
  macro	
  environments.	
  
Autocra:c	
  Management	
  style	
  
Features	
  
•  Managers	
  make	
  all	
  the	
  decisions	
  quickly	
  
•  No	
  consulta:on	
  with	
  employees	
  
•  Management	
  gives	
  direc:ons	
  to	
  employees	
  and	
  does	
  not	
  allow	
  
feedback	
  
•  One	
  way	
  or	
  top	
  down	
  communica:on	
  
•  Ojen	
  found	
  in	
  businesses	
  that	
  have	
  a	
  very	
  hierarchical	
  
structure	
  as	
  power	
  is	
  centralised.	
  
•  Informa:on	
  is	
  given	
  on	
  need	
  to	
  know	
  basis.	
  
Autocra:c	
  :	
  Advantages	
  
•  Efficient	
  use	
  of	
  :me	
  (fast)	
  as	
  there	
  is	
  no	
  discussion	
  and	
  
instruc:ons	
  are	
  clear	
  &	
  concise.	
  
•  Clearly	
  defined	
  procedures	
  &	
  policies	
  
•  Provides	
  more	
  stability	
  &	
  consistency	
  as	
  decisions	
  are	
  only	
  
made	
  by	
  management.	
  
•  Works	
  well	
  in	
  emergency/crisis/	
  urgent	
  situa:ons	
  where	
  quick	
  
response	
  is	
  necessary.	
  
•  Provides	
  clear	
  direc:ons	
  and	
  confidence	
  to	
  inexperienced	
  
employees.	
  
Autocra:c:	
  Disadvantages	
  
•  Poor	
  rela:ons	
  between	
  management	
  and	
  the	
  employees.	
  
•  Employees	
  can	
  feel	
  threatened	
  and	
  anxious.	
  
•  No	
  employee	
  input	
  and	
  employee’s	
  ideas	
  are	
  not	
  sort	
  by	
  
management,	
  which	
  could	
  benefit	
  the	
  LSO.	
  
•  Employees	
  are	
  not	
  able	
  to	
  develop	
  skills	
  &	
  competencies	
  to	
  
enable	
  them	
  
•  Employees	
  may	
  resent	
  being	
  ordered	
  around	
  	
  
•  Morale	
  may	
  suffer	
  because	
  employees	
  do	
  not	
  feel	
  valued	
  or	
  
trusted.	
  (Consequence	
  decreased	
  produc:vity)	
  
Persuasive	
  Management	
  Style	
  
Features	
  
•  Managers	
  make	
  all	
  the	
  decisions	
  but	
  take	
  the	
  :me	
  to	
  explain	
  the	
  reason	
  
behind	
  the	
  decision.	
  (Sell)	
  
•  No	
  consulta:on	
  with	
  workers.	
  
•  One-­‐way	
  or	
  top	
  down	
  communica:on.	
  
•  Control	
  is	
  centralised.	
  
Persuasive:	
  strengths	
  
•  Employees	
  are	
  likely	
  to	
  respond	
  more	
  posi:vely	
  to	
  having	
  a	
  decision	
  explained	
  to	
  
them.	
  
•  Suitable	
  to	
  use	
  in	
  circumstances	
  that	
  need	
  quick	
  decisions	
  made.	
  
•  Provides	
  clear	
  direc:ons	
  and	
  confidence	
  to	
  inexperienced	
  employees.	
  
•  Enthusias:c	
  approach	
  can	
  excite	
  and	
  mo:vate	
  employees.	
  
•  Suits	
  situa:ons	
  where	
  the	
  decision	
  to	
  be	
  made	
  is	
  at	
  a	
  high	
  level	
  and	
  does	
  not	
  
require	
  discussion	
  –	
  eg	
  if	
  a	
  branch	
  of	
  a	
  business	
  is	
  to	
  be	
  shut	
  down	
  workers	
  will	
  be	
  
informed	
  and	
  reasons	
  explained	
  but	
  will	
  not	
  be	
  involved	
  in	
  the	
  decision.	
  
•  Managers	
  gain	
  some	
  trust/support.	
  
•  Workers	
  more	
  likely	
  to	
  accept	
  nega:ve	
  situa:ons.	
  
Persuasive:	
  weaknesses	
  
•  Employees	
  can	
  feel	
  lej	
  out	
  as	
  their	
  opinions	
  are	
  not	
  sought.	
  
•  Morale	
  may	
  suffer	
  because	
  employees	
  do	
  not	
  feel	
  valued	
  or	
  trusted.	
  
•  Employees	
  do	
  not	
  contribute	
  ideas	
  that	
  could	
  benefit	
  the	
  organisa:on.	
  
•  Employee	
  talents	
  &	
  ideas	
  not	
  u:lised.	
  
•  Employee	
  frustra:on	
  may	
  occur	
  if	
  they	
  do	
  not	
  agree	
  with	
  management	
  
decision	
  and	
  cannot	
  comment.	
  
•  Manager	
  with	
  poor	
  communica:on	
  skills	
  may	
  not	
  do	
  jus:ce	
  in	
  
explaining	
  good	
  decision.	
  
ConsultaJve	
  management	
  style	
  
Features	
  
•  	
  Manager	
  recognises	
  the	
  importance	
  of	
  good	
  personal	
  rela:onships	
  among	
  
employees	
  and	
  consults	
  with	
  staff	
  on	
  certain	
  issues	
  before	
  making	
  a	
  decision.	
  	
  
•  Two-­‐way	
  communica:on	
  process,	
  with	
  employees	
  sharing	
  their	
  ideas	
  with	
  a	
  
manager	
  who	
  is	
  willing	
  to	
  listen.	
  	
  
•  This	
  type	
  of	
  manager	
  believes	
  that	
  mo:va:ng	
  employees	
  will	
  help	
  achieve	
  
performance	
  objec:ves.	
  	
  
•  Also	
  believe	
  in	
  enhancing	
  personal	
  rela:onships	
  by	
  offering	
  job	
  security,	
  
providing	
  social	
  ac:vi:es	
  and	
  offering	
  fringe	
  benefits.	
  	
  
•  Seeks	
  opinions	
  of	
  employees,	
  holds	
  informa:on-­‐sharing	
  mee:ngs	
  and	
  
recognises	
  good	
  performance.	
  	
  
•  Employee-­‐centred	
  management	
  style.	
  	
  
•  This	
  management	
  style	
  is	
  most	
  effec:ve	
  when	
  a	
  new	
  opera:ng	
  procedure	
  is	
  to	
  
be	
  introduced	
  or	
  some	
  organisa:onal	
  change	
  implemented.	
  Provides	
  an	
  
opportunity	
  for	
  employees	
  to	
  have	
  some	
  input	
  at	
  the	
  :me	
  of	
  decision	
  making.	
  
ConsultaJve	
  -­‐	
  Strengths	
  
•  Asking	
  for	
  sugges:ons	
  from	
  employees	
  allows	
  for	
  a	
  greater	
  
variety	
  of	
  ideas,	
  and	
  should	
  improve	
  the	
  quality	
  of	
  
management	
  decisions.	
  
•  Employees	
  begin	
  to	
  have	
  some	
  ownership	
  in	
  the	
  way	
  in	
  which	
  
the	
  organisa:on	
  is	
  run,	
  so	
  they	
  take	
  more	
  of	
  an	
  interest	
  in	
  it.	
  
This	
  is	
  reflected	
  in	
  their	
  levels	
  of	
  mo:va:on	
  and	
  commitment,	
  
which	
  increase	
  substan:ally.	
  
•  When	
  decisions	
  are	
  discussed	
  and	
  fine-­‐tuned	
  before	
  
implementa:on,	
  tasks	
  are	
  completed	
  more	
  efficiently	
  and	
  with	
  
beUer	
  results.	
  
ConsultaJve	
  -­‐	
  Disadvantages	
  
•  The	
  :me	
  taken	
  to	
  consult	
  all	
  the	
  relevant	
  employees	
  can	
  slow	
  
the	
  en:re	
  process.	
  
•  Some	
  issues	
  to	
  be	
  decided	
  are	
  simply	
  not	
  suitable	
  for	
  a	
  
widespread	
  consulta:on	
  process.	
  If	
  the	
  process	
  is	
  not	
  
consistent	
  with	
  each	
  decision	
  made,	
  staff	
  can	
  become	
  
uncertain	
  and	
  confused	
  about	
  their	
  role.	
  
•  When	
  a	
  number	
  of	
  ideas	
  are	
  shared,	
  some	
  are	
  bound	
  to	
  be	
  
ignored	
  or	
  overlooked	
  in	
  the	
  final	
  decision.	
  This	
  may	
  cause	
  
conflict	
  or	
  resentment.	
  
ParJcipaJve	
  management	
  style	
  
Features:	
  
•  A	
  where	
  the	
  manager	
  not	
  only	
  consults	
  with	
  employees	
  but	
  also	
  gives	
  them	
  some	
  
responsibility	
  in	
  the	
  management	
  of	
  the	
  process.	
  	
  
•  Manager	
  shares	
  the	
  decision-­‐making	
  authority	
  with	
  employees.	
  The	
  degree	
  of	
  sharing	
  can	
  
range	
  from	
  the	
  manager	
  outlining	
  a	
  solu:on,	
  with	
  the	
  possibility	
  of	
  changes	
  being	
  
suggested,	
  to	
  allowing	
  the	
  team	
  to	
  ini:ate,	
  implement	
  and	
  monitor	
  its	
  own	
  solu:ons.	
  
•  Par:cipa:ve	
  managers	
  recognise	
  the	
  strengths	
  and	
  abili:es	
  of	
  employees	
  and	
  ac:vely	
  
involve	
  them	
  in	
  all	
  the	
  stages	
  of	
  the	
  decision-­‐making	
  process.	
  This	
  style	
  is	
  frequently	
  
prac:sed	
  in	
  those	
  organisa:ons	
  that	
  have	
  flaUer	
  management	
  structures	
  and	
  work	
  teams,	
  
and	
  especially	
  where	
  there	
  are	
  diverse	
  groups	
  to	
  be	
  coordinated.	
  The	
  contribu:on	
  of	
  the	
  
employee	
  is	
  valued;	
  in	
  turn,	
  employees	
  have	
  a	
  commitment	
  to	
  the	
  organisa:on's	
  objec:ves	
  
via	
  their	
  own	
  input.	
  
•  This	
  par:cipa:ve	
  management	
  style	
  is	
  most	
  effec:ve	
  when	
  an	
  organisa:on	
  is	
  opera:ng	
  in	
  
an	
  environment	
  undergoing	
  rapid	
  change.	
  Individual	
  employees	
  accept	
  responsibility	
  for,	
  
and	
  can	
  implement,	
  changes.	
  This	
  makes	
  the	
  organisa:on	
  more	
  responsive	
  to	
  change.	
  
Ac:vi:es	
  such	
  as	
  brainstorming	
  generate	
  a	
  range	
  of	
  opinions	
  and	
  ideas,	
  and	
  these	
  may	
  lead	
  
to	
  beUer	
  decisions	
  being	
  made.	
  
•  Two	
  way	
  communica:on.	
  
•  Power	
  is	
  decentralised.	
  
Par:cipa:ve	
  -­‐	
  Advantages	
  
•  Communica:on	
  is	
  a	
  two-­‐way	
  process.	
  
•  Employer/employee	
  rela:ons	
  are	
  posi:ve	
  and	
  there	
  is	
  reduced	
  likelihood	
  
of	
  industrial	
  disputes.	
  Employees	
  are	
  more	
  likely	
  to	
  accept	
  management	
  
decisions.	
  
•  Mo:va:on	
  and	
  job	
  sa:sfac:on	
  are	
  op:mal	
  because	
  employees	
  feel	
  they	
  
have	
  played	
  an	
  ac:ve	
  role	
  in	
  alloca:ng	
  tasks	
  and	
  implemen:ng	
  ac:ons	
  to	
  
meet	
  objec:ves.	
  
•  Employees	
  have	
  a	
  greater	
  opportunity	
  to	
  acquire	
  more	
  skills.	
  
•  There	
  are	
  opportuni:es	
  for	
  employees	
  to	
  put	
  forward	
  ideas.	
  This	
  power-­‐
sharing	
  approach	
  encourages	
  the	
  development	
  of	
  work	
  teams,	
  and	
  
employees	
  display	
  high	
  levels	
  of	
  commitment.	
  
•  There	
  is	
  a	
  high	
  level	
  of	
  trust,	
  ojen	
  resul:ng	
  in	
  improved	
  employee	
  
performance	
  
Par:cipa:ve	
  -­‐	
  Disadvantages	
  
•  Reaching	
  decisions	
  and	
  introducing	
  tasks	
  can	
  be	
  :me	
  consuming	
  when	
  
differing	
  views	
  have	
  to	
  be	
  considered.	
  The	
  quality	
  of	
  decisions	
  may	
  also	
  
suffer	
  because	
  compromises	
  are	
  made	
  rather	
  than	
  decisive,	
  clear	
  
direc:ons	
  given.	
  
•  The	
  role	
  of	
  management,	
  and	
  the	
  control	
  of	
  the	
  manager,	
  may	
  be	
  
weakened	
  and	
  undermined,	
  with	
  employees	
  given	
  too	
  much	
  power	
  in	
  
some	
  cases.	
  
•  Internal	
  conflict	
  can	
  arise	
  with	
  so	
  many	
  views	
  and	
  opinions	
  being	
  shared.	
  
More	
  involvement	
  may	
  bring	
  about	
  disagreement.	
  
•  The	
  importance	
  of	
  the	
  organisa:onal	
  structure	
  may	
  be	
  minimised,	
  leading	
  
to	
  an	
  informal	
  system	
  that	
  could	
  result	
  in	
  a	
  complete	
  collapse	
  in	
  
management.	
  
•  Not	
  all	
  employees	
  may	
  want	
  to	
  contribute.	
  
Laissez-­‐faire	
  management	
  style	
  
Features	
  
•  Where	
  employees	
  are	
  responsible	
  for	
  workplace	
  opera:ons.	
  Management	
  
has	
  no	
  central	
  role	
  and	
  power.	
  	
  
•  Management	
  has	
  no	
  role	
  in	
  the	
  day-­‐to-­‐day	
  running	
  of	
  the	
  organisa:on.	
  
Management	
  will	
  set	
  the	
  objec:ves,	
  but	
  the	
  employees	
  take	
  full	
  
responsibility	
  to	
  implement	
  the	
  means	
  of	
  achieving	
  them.	
  In	
  so	
  doing,	
  
employees	
  are	
  responsible	
  for	
  their	
  decisions	
  and	
  accountable	
  for	
  the	
  
results.	
  	
  
•  Decentralised	
  organisa:onal	
  structure,	
  with	
  employees	
  opera:ng	
  
individually	
  or	
  in	
  small	
  groups	
  to	
  complete	
  projects.	
  
•  Most	
  effec:ve	
  for	
  crea:ve	
  work	
  or	
  research,	
  with	
  employees	
  who	
  are	
  
highly	
  talented	
  or	
  qualified	
  in	
  the	
  tasks	
  to	
  be	
  performed	
  and	
  where	
  
minimal	
  supervision	
  and	
  direc:on	
  is	
  required.	
  
Laissez-­‐faire	
  -­‐	
  Advantages	
  
•  Employees	
  feel	
  a	
  sense	
  of	
  ownership,	
  which	
  can	
  promote	
  
outstanding	
  results.	
  
•  There	
  is	
  con:nual	
  encouragement	
  for	
  crea:vity,	
  which	
  is	
  
conducive	
  to	
  a	
  dynamic	
  working	
  environment.	
  
•  In	
  a	
  flat	
  structure,	
  communica:on	
  is	
  completely	
  open	
  and	
  
ideas	
  are	
  both	
  discussed	
  and	
  shared.	
  
Laissez-­‐faire	
  -­‐	
  Disadvantages	
  
•  There	
  is	
  a	
  complete	
  loss	
  of	
  control	
  by	
  management.	
  No	
  control	
  
or	
  direc:on	
  means	
  there	
  is	
  poten:al	
  for	
  misuse	
  of	
  the	
  
organisa:on's	
  resources,	
  including	
  :me	
  and	
  money,	
  because	
  
these	
  have	
  been	
  placed	
  in	
  the	
  hands	
  of	
  the	
  employees.	
  
•  This	
  style	
  can	
  breed	
  personal	
  conflicts,	
  whereby	
  individuals	
  do	
  
not	
  cooperate	
  or	
  wish	
  to	
  implement	
  only	
  their	
  own	
  ideas.	
  In	
  
these	
  cases,	
  management	
  is	
  not	
  there	
  to	
  direct	
  or	
  nego:ate.	
  
•  The	
  focus	
  on	
  mee:ng	
  organisa:onal	
  objec:ves	
  can	
  be	
  easily	
  
eroded.	
  Management	
  may	
  find	
  themselves	
  with	
  a	
  failed	
  
organisa:on	
  and	
  nothing	
  to	
  manage.	
  
Management	
  Skills	
  
•  Communica:on	
  skills	
  involve	
  the	
  ability	
  to	
  create	
  and	
  exchange	
  informa:on	
  between	
  people	
  to	
  ensure	
  
that	
  the	
  required	
  response	
  is	
  produced.	
  	
  
•  Delega1on—the	
  process	
  of	
  passing	
  authority	
  down	
  the	
  hierarchy	
  to	
  perform	
  tasks	
  or	
  make	
  decisions.	
  
Responsibility	
  remains	
  with	
  the	
  person	
  delega:ng.	
  
•  Decision-­‐making	
  and	
  problem-­‐solving—the	
  systema:c	
  approach	
  (mul:-­‐step	
  approach)	
  to	
  finding	
  and	
  
implemen:ng	
  a	
  course	
  of	
  ac:on	
  to	
  overcome	
  a	
  problem	
  or	
  correct	
  an	
  unsa:sfactory	
  situa:on.	
  
•  Nego1a1on—the	
  process	
  by	
  which	
  one	
  party	
  seeks	
  to	
  obtain	
  something	
  wanted	
  from	
  another	
  party,	
  
ending	
  either	
  in	
  a	
  resolu:on	
  or	
  a	
  compromise.	
  
•  Team	
  leadership—the	
  ability	
  to	
  func:on	
  as	
  a	
  coach	
  or	
  mentor	
  to	
  team	
  members,	
  encouraging	
  team	
  
members	
  to	
  contribute,	
  and	
  build	
  a	
  cohesive	
  and	
  trus:ng	
  team.	
  
•  Time	
  management—the	
  process	
  of	
  planning	
  and	
  exercising	
  conscious	
  control	
  over	
  the	
  amount	
  of	
  :me	
  
spent	
  on	
  a	
  par:cular	
  task,	
  in	
  order	
  to	
  increase	
  effec:veness	
  or	
  efficiency.	
  
•  Stress	
  management—the	
  skill	
  required	
  by	
  a	
  manager	
  to	
  reduce	
  their	
  level	
  of	
  stress	
  or	
  anxiety	
  	
  and	
  that	
  
of	
  their	
  subordinates.	
  
•  Analy1cal	
  skills—the	
  ability	
  to	
  examine	
  the	
  elements	
  of	
  something	
  or	
  study	
  the	
  nature	
  of	
  a	
  given	
  
situa:on	
  or	
  set	
  of	
  circumstances.	
  	
  
•  Technical	
  skills—the	
  ability	
  of	
  a	
  manager	
  to	
  perform	
  par:cular	
  tasks,	
  such	
  as	
  accoun:ng	
  skills,	
  skills	
  in	
  
the	
  use	
  of	
  computer	
  technology,	
  and	
  skills	
  in	
  human	
  resources	
  prac:ces	
  and	
  law.	
  
•  Emo1onal	
  intelligence—a	
  set	
  of	
  competencies	
  that	
  allow	
  managers	
  to	
  perceive,	
  understand	
  and	
  
regulate	
  emo:ons	
  in	
  themselves	
  and	
  others.	
  
Problem	
  solving	
  
Problem	
  solving	
  means	
  finding	
  and	
  then	
  implemen:ng	
  a	
  course	
  of	
  ac:on	
  to	
  correct	
  an	
  
unworkable	
  situa:on.	
  	
  
There	
  are	
  six	
  steps	
  in	
  a	
  typical	
  problem-­‐solving	
  process.	
  
•  1.	
  The	
  first	
  step	
  is	
  to	
  clearly	
  idenJfy	
  what	
  the	
  problem	
  is	
  and	
  what	
  has	
  caused	
  it.	
  The	
  
problem	
  might	
  be	
  an	
  industrial	
  dispute	
  or	
  a	
  need	
  to	
  develop	
  a	
  more	
  socially	
  responsible	
  
organisa:on.	
  	
  
•  2.	
  Gather	
  relevant	
  informaJon.	
  	
  All	
  of	
  the	
  facts	
  and	
  informa:on	
  that	
  are	
  relevant	
  to	
  the	
  
problem	
  must	
  be	
  gathered.	
  Some	
  methods	
  to	
  use	
  might	
  be	
  simply	
  talking	
  to	
  people	
  or	
  
comple:ng	
  ques:onnaires	
  or	
  surveys.	
  
•  3.	
  Develop	
  alternaJve	
  soluJons.	
  Management	
  will	
  need	
  to	
  develop	
  alterna:ve	
  solu:ons	
  so	
  
that	
  the	
  problem	
  can	
  be	
  solved	
  with	
  an	
  open	
  mind.	
  A	
  list	
  of	
  possible	
  solu:ons	
  should	
  be	
  
made,	
  including	
  the	
  seemingly	
  ridiculous	
  ones.	
  	
  
•  4.	
  Analyse	
  the	
  alternaJves.	
  Ajer	
  analysing	
  each	
  of	
  the	
  alterna:ves	
  for	
  their	
  advantages	
  and	
  
disadvantages,	
  the	
  best	
  op:on	
  should	
  be	
  chosen.	
  	
  
•  5.	
  Choose	
  one	
  alternaJve	
  and	
  implement	
  it.	
  The	
  solu:on	
  to	
  the	
  problem	
  will	
  then	
  be	
  
implemented	
  and	
  subsequently	
  evaluated.	
  	
  
•  6.	
  Evaluate	
  the	
  soluJon.	
  If	
  the	
  solu:on	
  does	
  not	
  work,	
  the	
  process	
  would	
  have	
  to	
  start	
  again.	
  
Management	
  styles:	
  When	
  would	
  you	
  use???	
  
	
  
Management	
  Style	
   When	
  you	
  would	
  use:	
  example	
  
Autocra:c	
  style?	
   Instant	
  dismissal	
  
Persuasive	
  style?	
   Change	
  in	
  procedure	
  due	
  to	
  a	
  change	
  in	
  legisla:on.	
  
Consulta:ve	
  style?	
   Change	
  in	
  procedure	
  or	
  policy	
  
Par:cipa:ve	
  style?	
   Enterprise	
  bargaining	
  
Laissez-­‐Faire	
  style?	
   Research	
  
The	
  rela:onship	
  between	
  management	
  styles	
  and	
  skills	
  
•  Manager	
  develops	
  their	
  own	
  management	
  style	
  based	
  on	
  
experience,	
  knowledge	
  &	
  personality.	
  
•  The	
  specific	
  skills	
  that	
  relate	
  to	
  different	
  management	
  styles	
  
Management	
  styles	
   Skills	
  needed	
  
Authoritarian/Persuasive	
   Communica:on,	
  Decision	
  making	
  
Consulta:ve/Par:cipa:ve	
   Communica:on,	
  nego:a:on,	
  problem	
  solving	
  
Laissez-­‐Faire	
   Delega:on,	
  Communica:on,	
  People	
  skills	
  
PAST	
  VCAA	
  exam	
  ques:ons	
  	
  
Ques:on	
  2B	
  	
  2013	
  	
  
	
  ZX	
  Bank	
  is	
  a	
  large	
  retail	
  bank	
  that	
  operates	
  in	
  all	
  states	
  in	
  Australia.	
  
	
  In	
  response	
  to	
  a	
  recent	
  market	
  survey	
  of	
  its	
  customers,	
  it	
  is	
  considering	
  opening	
  its	
  branches	
  on	
  
Saturdays	
  and	
  Sundays.	
  
	
  Currently,	
  the	
  bank’s	
  employees	
  feel	
  that	
  their	
  expecta1ons	
  regarding	
  condi1ons	
  of	
  employment	
  and	
  
work-­‐life	
  balance	
  are	
  being	
  met.	
  
	
  The	
  employees	
  have	
  been	
  asked	
  about	
  the	
  proposed	
  change	
  in	
  opening	
  hours	
  and	
  70	
  per	
  cent	
  said	
  that	
  
they	
  would	
  prefer	
  not	
  to	
  work	
  on	
  weekends	
  but,	
  if	
  they	
  had	
  to,	
  they	
  would	
  expect	
  higher	
  pay	
  rates	
  on	
  
those	
  days.	
  
	
  The	
  Human	
  Resource	
  Manager	
  has	
  responded,	
  saying	
  that	
  an	
  increase	
  in	
  pay	
  rates	
  might	
  make	
  opening	
  
on	
  weekends	
  unprofitable.	
  The	
  bank	
  execu1ves	
  are	
  hoping	
  to	
  reach	
  an	
  agreement	
  with	
  the	
  employees	
  
that	
  keeps	
  pay	
  rates	
  at	
  current	
  levels.	
  
	
  Both	
  sides	
  believe	
  that	
  it	
  is	
  important	
  to	
  discuss	
  this	
  issue	
  further.	
  
To	
  resolve	
  the	
  issue	
  regarding	
  the	
  proposed	
  change	
  in	
  opening	
  hours	
  and	
  the	
  employees’	
  expectaJons	
  	
  
of	
  higher	
  pay	
  rates	
  on	
  weekends,	
  the	
  bank	
  execuJves	
  will	
  need	
  to	
  apply	
  a	
  range	
  of	
  management	
  skills.	
  
	
  Describe	
  two	
  management	
  skills	
  and	
  jusJfy	
  their	
  use	
  in	
  this	
  situaJon.	
  (4	
  marks)	
  
	
  
PAST	
  VCAA	
  exam	
  ques:ons	
  	
  
QuesJon	
  3	
  (2013)	
  
Alice	
  Smith	
  has	
  read	
  the	
  biographies	
  of	
  many	
  great	
  business	
  leaders.	
  She	
  would	
  like	
  to	
  follow	
  in	
  	
  
the	
  footsteps	
  of	
  these	
  successful	
  leaders.	
  Alice	
  has	
  just	
  taken	
  over	
  as	
  the	
  CEO	
  of	
  The	
  Traveller’s	
  	
  
Helpmate,	
  a	
  business	
  that	
  publishes	
  print	
  and	
  online	
  travel	
  guides.	
  Her	
  observa1on	
  is	
  that	
  her	
  staff	
  are	
  	
  
professional,	
  highly	
  educated	
  and	
  independent.	
  In	
  private	
  conversa1ons,	
  some	
  staff	
  have	
  said	
  that	
  they	
  felt	
  	
  
underappreciated	
  by	
  the	
  previous	
  CEO	
  as	
  posi1ve	
  feedback	
  was	
  rarely	
  provided.	
  
	
  
a.  Define	
  the	
  following	
  leadership	
  qualiJes	
  that	
  Alice	
  will	
  need	
  in	
  order	
  to	
  be	
  an	
  effecJve	
  leader.	
  	
  
	
  (3	
  marks)	
  
	
  •	
  interpersonal	
  
	
  •	
  informaJonal	
  
	
  •	
  decision-­‐making	
  
2013	
  QuesJon	
  3A	
  –	
  Examiners	
  report	
  
	
  Few	
  students	
  were	
  able	
  to	
  define	
  all	
  three	
  leadership	
  quali1es.	
  While	
  most	
  students	
  appeared	
  to	
  have	
  a	
  general	
  idea	
  
of	
  what	
  leadership	
  quali1es	
  were,	
  they	
  were	
  unable	
  to	
  explain	
  all	
  three	
  to	
  a	
  sa1sfactory	
  standard.	
  	
  
	
  The	
  interpersonal	
  leadership	
  quality	
  involves	
  liaising	
  or	
  dealing	
  with	
  people.	
  The	
  informa1onal	
  leadership	
  quality	
  	
  
	
  involves	
  gathering	
  and	
  communica1ng	
  or	
  sharing	
  data	
  and	
  knowledge,	
  and	
  the	
  decision-­‐making	
  leadership	
  quality	
  	
  
	
  involves	
  making	
  choices	
  in	
  order	
  to	
  solve	
  problems	
  or	
  take	
  up	
  opportuni1es.	
  	
  
The	
  following	
  is	
  an	
  example	
  of	
  a	
  high-­‐scoring	
  response.	
  	
  
•  Interpersonal	
  –	
  Interpersonal	
  refers	
  to	
  having	
  people	
  and	
  social	
  skills	
  such	
  as	
  communicaJon,	
  emoJonal	
  
intelligence	
  (the	
  ability	
  to	
  recognise	
  and	
  understand	
  feelings)	
  and	
  so	
  on	
  in	
  order	
  to	
  operate	
  effecJvely	
  in	
  a	
  social	
  
secng.	
  	
  
•  InformaJonal	
  –	
  InformaJonal	
  refers	
  to	
  obtaining	
  the	
  required	
  knowledge	
  and	
  being	
  effecJve	
  in	
  the	
  
communicaJon	
  of	
  this	
  knowledge.	
  For	
  example,	
  being	
  able	
  to	
  communicate	
  an	
  appropriate	
  answer	
  to	
  an	
  
employee	
  if	
  they	
  have	
  a	
  quesJon.	
  	
  
•  Decision-­‐Making	
  –	
  Decision-­‐Making	
  is	
  the	
  ability	
  to	
  idenJfy	
  and	
  evaluate	
  possible	
  available	
  opJons	
  in	
  response	
  
to	
  a	
  situaJon,	
  and	
  choose	
  the	
  course	
  of	
  acJon	
  that	
  is	
  the	
  most	
  appropriate	
  and	
  effecJve.	
  
PAST	
  VCAA	
  exam	
  ques:ons	
  	
  
Ques:on	
  2B	
  	
  2012	
  exam	
  
	
  By	
  nature,	
  Ms	
  Glass	
  is	
  a	
  consulta:ve	
  manager.	
  	
  
	
  Iden:fy	
  two	
  characteris:cs	
  of	
  this	
  management	
  style,	
  and	
  explain	
  one	
  advantage	
  and	
  one	
  
disadvantage	
  of	
  using	
  this	
  style.	
  	
  (4	
  marks)	
  
Ques:on	
  2C	
  2012	
  exam	
  
	
  Ms	
  Glass	
  has	
  iden:fied	
  that	
  she	
  will	
  have	
  to	
  use	
  the	
  management	
  roles	
  of	
  organising,	
  leading	
  and	
  	
  
	
  controlling.	
  
	
   	
  Define	
  each	
  role	
  and	
  explain	
  how	
  the	
  use	
  of	
  these	
  roles	
  will	
  contribute	
  to	
  the	
  success	
  of	
  her	
  new	
  	
  
	
  na:onal	
  parcel	
  delivery	
  service.	
  (6	
  marks)	
  
	
  
PAST	
  VCAA	
  exam	
  ques:ons	
  	
  
Ques:on	
  2B	
  &	
  2F,	
  2011	
  exam	
  
	
  Freda	
  Campbell	
  is	
  seTng	
  up	
  a	
  new	
  business	
  in	
  Melbourne	
  that	
  will	
  manufacture	
  
and	
  sell	
  furniture.	
  
b.	
  	
  Many	
  large-­‐scale	
  organisa:ons	
  use	
  a	
  mul:stage	
  planning	
  process	
  in	
  order	
  to	
  
achieve	
  their	
  objec:ves.	
  
	
  	
  Explain	
  each	
  of	
  the	
  steps	
  in	
  this	
  process.	
  (5	
  marks)	
  
f. 	
  	
  Describe	
  and	
  jus:fy	
  two	
  management	
  skills,	
  other	
  than	
  communica:on,	
  that	
  Freda	
  
could	
  use	
  while	
  establishing	
  her	
  business.	
  (4	
  marks)	
  
	
  
PAST	
  VCAA	
  exam	
  ques:ons	
  	
  
Ques:on	
  2,	
  2010	
  exam	
  
	
  Wonderful	
  Toys	
  Company	
  manufactures	
  wooden	
  blocks	
  that	
  were	
  found	
  to	
  contain	
  
small	
  amounts	
  of	
  lead	
  paint	
  that	
  can	
  be	
  poisonous	
  to	
  children.	
  The	
  company	
  recalled	
  
all	
  of	
  this	
  product.	
  
	
  What	
  management	
  style	
  could	
  Wonderful	
  Toys	
  use	
  in	
  this	
  crisis?	
  Explain	
  why	
  you	
  have	
  
chosen	
  this	
  management	
  style.	
  Refer	
  to	
  two	
  features	
  of	
  this	
  style	
  in	
  your	
  explana:on.	
  
	
  (5	
  marks)	
  
	
  

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Unit 3 outcome 2b revision pp

  • 1.   Unit  3   Business  Management     Outcome  2  Part  B   Revision   2014   SAC  DATE   Monday  April  28th  
  • 2.       This  assessment  task  addresses  the  following  key  knowledge  as  outlined   in  Unit  3:  Area  of  Study  2:  (Study  design)       key  management  roles:   •  planning:  long,  medium  and  short-­‐term   •  organising:  resource  and  task  alloca:on  techniques   •  leading:  importance  of  leadership  quali:es,  including  interpersonal,  informaJonal  and  decision-­‐ making   •  controlling:  financial  and  non-­‐financial  processes  and  control  systems     •  different  styles  of  management,  including  autocra:c,  persuasive,  consulta:ve,  par:cipa:ve  and   laissez-­‐faire,  and  their  appropriate  applica:on  to  various  management  situa:ons   •  key  management  skills  as  appropriate  to  the  process  of  effec:ve  management   •  the  rela:onship  between  management  styles  and  skills.  
  • 3. The key skills that this assessment task addresses include the ability to:   • accurately use relevant management terms • analyse business information and data • Analyse major aspects of the internal environment of large- scale organisations • apply knowledge and concepts to practical and/or simulated situations
  • 4. POLC   The  key  management  roles  are:  
  • 5. POLC  -­‐  Planning   •  Planning  is  the  process  of  defining  objecJves  and  determining   methods  or  strategies  which  will  be  used  to  achieve  those   objecJves.     •  This  is  the  primary  management  role.  It  provides  the  key  to   both  the  short-­‐term  and  long-­‐term  success  of  an  organisa:on.  
  • 6. Levels  of  planning  —  strategic,  tacJcal  and  operaJonal     •  Strategic  (long-­‐term)  planning  is  planning  for  the  following  three  to  five   years.  This  level  of  planning  will  assist  in  determining  where  in  the   market  the  organisa:on  wants  to  be,  and  what  the  organisa:on  wants  to   achieve  in  rela:on  to  its  compe:tors.  It  is  conducted  by  senior   management.   •  TacJcal  (medium-­‐term)  planning  is  flexible,  adaptable  planning,  usually   over  one  to  two  years.  It  assists  in  implemen:ng  the  strategic  plan  and   allows  the  organisa:on  to  respond  quickly  to  changes.  The  emphasis  is  on   how  the  objec:ves  will  be  achieved  through  the  alloca:on  of   resources.  It  is  generally  conducted  by  middle  management.   •  OperaJonal  (short-­‐term)  planning  provides  specific  details  of  the  way   the  organisa:on  will  operate  in  the  short  term.  Management  controls  the   day-­‐to-­‐day  opera:ons  that  contribute  to  achieving  short-­‐term  ac:ons   and  objec:ves.  Examples  of  opera:onal  plans  are  daily  and  weekly   produc:on  schedules.  Conducted  by  frontline/supervisory  team.  
  • 7. Planning  process   •  Step  1.  Define  the  objec,ve.      What  is  it  the  LSo  wants  to  achieve?  May  be  redefining  or  modifying  exis:ng  objec:ves  or  seTng   new  ones.   •  Step  2.  Analyse  the  environment.      Managers  aUempt  to  work  out  exactly  where  the  organisa:on  currently  stands.  A  common   analysis  technique  is  known  as  a  SWOT  analysis  (an  acronym  for   strengths,  weaknesses,  opportuni:es  and  threats).  This  iden:fies  and  analyses  the  organisa:on's   internal  strengths  and  weaknesses,  and  also  opportuni:es  in,  and  threats  from,  its  external   environment     •  Step  3.  Develop  alterna,ve  strategies.      In  response  to  the  ques:on  ‘How  will  the  organisa:on  get  there?’,  managers  develop  several   strategies  and  then  agree  to  put  one  into  ac:on.   •  Step  4.  Implement  an  alterna,ve.      The  strategy  which  has  been  agreed  upon  needs  to  be  put  into  place.   •  Step  5.  Monitor  and  seek  feedback  on  the  implemented  strategy.      Management  must  set  targets  and  check  whether  they  are  met.  If  objec:ves  are  not  met,  then   the  planning  process  would  need  to  be  repeated.  Any  plan  formed  should  be  a  living  document,   regularly  reviewed  and  revised  if  necessary.  
  • 9. POLC  -­‐  Organising   •  Organising  is  the  process  management  goes  through  when  it   aUempts  to  arrange  resources  (such  as  staff)  to  match  up  with   tasks,  in  order  to  achieve  the  objec:ves  of  a  large  organisa:on.  
  • 10. The  organisa:on  process   •  Determining  the  work  ac1vi1es.  The  work  ac:vi:es  required  to  achieve  management   objec:ves  must  be  determined.  Work  ac:vi:es  are  then  usually  broken  down  into  smaller   steps.   •  Classifying  and  grouping  ac1vi1es.  Once  the  work  ac:vi:es  of  a  business  have  been  broken   down  into  smaller  steps,  similar  ac:vi:es  can  be  grouped  together.  This  improves  efficiency   by  enabling  the  most  appropriate  alloca:on  of  resources.  It  is  common  prac:ce,  for   example,  to  group  ac:vi:es  into  departments  or  sec:ons,  and  to  allocate  employees  and   supervisors  to  each  sec:on  or  department.   •  Assigning  work  and  delega1ng  authority.  The  next  step  in  the  organisa:on  process  is  to   determine  who  is  to  carry  out  the  work  and  who  has  the  responsibility  to  ensure  the  work  is   done.  Delega:on  also  involves  ensuring  the  person  who  has  been  given  responsibility  does   carry  out  the  processes.  Effec:ve  delega:on  can  increase  produc:vity  and  efficiency,  and   increases  job  sa:sfac:on  for  the  employee.  
  • 11. Leading   •  Is  the  moJvaJon  of  employees.   •  Its  also  providing  direcJon  to  ensure  work  is  completed  on   :me.   •  Ensuring  organisaJonal  objecJves  are  met.   Examples   •  Management  must  ensure  tasks  are  delegated  to  staff  that  are   competent  to  complete  them.   •  Includes  training  staff  and  providing  direc:on  to  drive  business   success.   •  Recognising  good  performance,  correc:ng  poor  performance   and  ensuring  enthusiasm  in  the  workplace  is  high.  
  • 12. Leadership  Quali:es  –  Interpersonal,  Informa:onal,  Decision  Making   •  Interpersonal  –  A  manager  is  seen  as  the  figurehead  of  the  organisa:on.  They   set  the  example  and  their  behaviour  reflects  the  organisa:on  as  a  whole.  A   successful  leader  is  one  that  moJvates  their  staff  to  constantly  improve  their   performance.   •  Informa:onal  –  Managers  need  to  monitor  and  collect  all  informa:on  the   organisa:on  receives  to  ensure  they  have  up  to  date  knowledge  about  the   industry  in  which  they  operate  and  have  knowledge  of  the  economic   condi:ons  that  may  affect  the  organisa:on.   •  Decision  Making  –  They  must  show  leadership  by  making  decisions  that   improve  the  businesses  performance  and  brings  about  change.  
  • 13. Controlling   •  Controlling  sees  management  measuring  the  performance  of  the  LSO.     •  This  could  be  in  financial  terms,  resource  alloca:on  and  efficient  use  of   resources,  business  processes  and  procedures  or  human  resources.   •  Management  develop  standard  processes,  procedures  and  outcomes  for   workers  to  follow  to  ensure  consistent  results  across  the  LSO.   Examples   •  Interim  progress  reports,  inspec:ons,  tes:ng,  audi:ng,  examining  financial   reports  or  direct  observa:on.  
  • 14. Controlling   Controlling  process   There  are  three  steps  in  the  control  process:   •  Establish  the  standards  the  business  hopes  to  achieve.   •  Monitor  and  evaluate  business  performance.   •  Make  changes  when  necessary  to  ensure  objec:ves  are  achieved.  
  • 15. EXAM/SAC  HINT   •  Management  Roles  can  only  be  POLC.   •  DO  NOT  CONFUSE  them  with  management  skills  or   management  funcJons.  
  • 16. SKILL: Apply knowledge and concepts to practical and/or simulated situations LETS PRACTICE: KOKO BLACK PTY LTD  
  • 17. •  The  first  Koko  Black  salon  opened  in  2003  employing  over  230  people.     •  The  vast  majority  of  Koko  Black's  finished  product  range  is  designed  and  handmade  in   Melbourne.     •  Product  range  includes  fine  chocolates,  ice  cream,  desserts,  pastries,  drinks,  and  extensive   ranges  of  seasonal  speciali:es.     •  Wherever  possible  Koko  Black's  products  are  handmade  using  local  ingredients.     •  Technology  is  u:lised  where  necessary  but  the  intensive  nature  of  the  product  means  focus   is  on  handmade  design  and  quality.   •  Koko  Black  is  a  niche  manufacturing  business,  producing  its  own  product  from  raw   ingredients  and  selling  via  their  own  retail  outlets,  online  site  and  direct  to  corporate   clients.  
  • 18. Koko  Black  would  like  to  expand  their  business  into  Asia   •  This  expansion  will  require  a  new  General  Manager  to  focus  on  the  roles   of  planning  and  organising.  Define  each  of  these  roles  and  analyse  how   these  roles  will  assist  Koko  Black  to  achieve  its  objec:ve  of  expansion.  
  • 19. •  Planning  –  define   •  5  step  planning  process  will  need  to  be  discussed  (include  the  following)   •  Strategic  planning  will  be  required.   •  SWOT  analysis  needs  to  be  undertaken  to  help  determine  whether  Koko   Black  should  proceed  with  expansion  plans.   •  Planning  decisions  need  to  be  made  (&  alterna:ves  evaluated)  eg  :me   frame  for  seTng  up  new  stores,  loca:on,  how  expansion  will  be  financed.   •  Other  levels  of  management  would  be  required  in  the  tac:cal  planning  &   opera:onal  planning  ensuring  these  more  detailed  levels  of  planning  result   in  strategies  that  will  achieve  specific  objec:ve  of  expansion.  
  • 20. •  Organising  –  define   •  Organisa:onal  process   •  Management  will  need  to  organise  the  structure  of  the  Asian   branches  and  how  they  will  operate.     •  Determine  what  will  be  needed.   •  Establish  staff  in  produc:ve  working  environments  eg  seTng   up  new  stores.   •  Assign  responsibili:es  to  staff.   •  Delegate  authority.   •  Communicate  among  different  levels  and  departments.   •  Accumula:on  of  shopfiTngs,  equipment  and  stock.  
  • 22. Management  Styles   •  Autocra:c   •  Persuasive     •  Consulta:ve       •  Par:cipa:ve   •  Laissez-­‐faire  
  • 23. Management  Style   Selec:on  of  management  style?????     Depends  on  a  number  of  factors:  (situa:onal  variables)     •  The  managers  personality.   •  Managers  skills.   •  The  skill  level  of  employees.   •  Nature  of  workforce  eg  hospital,  farm,  factory,  design  studio.   •  Time  that  is  available.   •  Any  changes  to  the  internal,  opera:ng  or  macro  environments.  
  • 24. Autocra:c  Management  style   Features   •  Managers  make  all  the  decisions  quickly   •  No  consulta:on  with  employees   •  Management  gives  direc:ons  to  employees  and  does  not  allow   feedback   •  One  way  or  top  down  communica:on   •  Ojen  found  in  businesses  that  have  a  very  hierarchical   structure  as  power  is  centralised.   •  Informa:on  is  given  on  need  to  know  basis.  
  • 25. Autocra:c  :  Advantages   •  Efficient  use  of  :me  (fast)  as  there  is  no  discussion  and   instruc:ons  are  clear  &  concise.   •  Clearly  defined  procedures  &  policies   •  Provides  more  stability  &  consistency  as  decisions  are  only   made  by  management.   •  Works  well  in  emergency/crisis/  urgent  situa:ons  where  quick   response  is  necessary.   •  Provides  clear  direc:ons  and  confidence  to  inexperienced   employees.  
  • 26. Autocra:c:  Disadvantages   •  Poor  rela:ons  between  management  and  the  employees.   •  Employees  can  feel  threatened  and  anxious.   •  No  employee  input  and  employee’s  ideas  are  not  sort  by   management,  which  could  benefit  the  LSO.   •  Employees  are  not  able  to  develop  skills  &  competencies  to   enable  them   •  Employees  may  resent  being  ordered  around     •  Morale  may  suffer  because  employees  do  not  feel  valued  or   trusted.  (Consequence  decreased  produc:vity)  
  • 27. Persuasive  Management  Style   Features   •  Managers  make  all  the  decisions  but  take  the  :me  to  explain  the  reason   behind  the  decision.  (Sell)   •  No  consulta:on  with  workers.   •  One-­‐way  or  top  down  communica:on.   •  Control  is  centralised.  
  • 28. Persuasive:  strengths   •  Employees  are  likely  to  respond  more  posi:vely  to  having  a  decision  explained  to   them.   •  Suitable  to  use  in  circumstances  that  need  quick  decisions  made.   •  Provides  clear  direc:ons  and  confidence  to  inexperienced  employees.   •  Enthusias:c  approach  can  excite  and  mo:vate  employees.   •  Suits  situa:ons  where  the  decision  to  be  made  is  at  a  high  level  and  does  not   require  discussion  –  eg  if  a  branch  of  a  business  is  to  be  shut  down  workers  will  be   informed  and  reasons  explained  but  will  not  be  involved  in  the  decision.   •  Managers  gain  some  trust/support.   •  Workers  more  likely  to  accept  nega:ve  situa:ons.  
  • 29. Persuasive:  weaknesses   •  Employees  can  feel  lej  out  as  their  opinions  are  not  sought.   •  Morale  may  suffer  because  employees  do  not  feel  valued  or  trusted.   •  Employees  do  not  contribute  ideas  that  could  benefit  the  organisa:on.   •  Employee  talents  &  ideas  not  u:lised.   •  Employee  frustra:on  may  occur  if  they  do  not  agree  with  management   decision  and  cannot  comment.   •  Manager  with  poor  communica:on  skills  may  not  do  jus:ce  in   explaining  good  decision.  
  • 30. ConsultaJve  management  style   Features   •   Manager  recognises  the  importance  of  good  personal  rela:onships  among   employees  and  consults  with  staff  on  certain  issues  before  making  a  decision.     •  Two-­‐way  communica:on  process,  with  employees  sharing  their  ideas  with  a   manager  who  is  willing  to  listen.     •  This  type  of  manager  believes  that  mo:va:ng  employees  will  help  achieve   performance  objec:ves.     •  Also  believe  in  enhancing  personal  rela:onships  by  offering  job  security,   providing  social  ac:vi:es  and  offering  fringe  benefits.     •  Seeks  opinions  of  employees,  holds  informa:on-­‐sharing  mee:ngs  and   recognises  good  performance.     •  Employee-­‐centred  management  style.     •  This  management  style  is  most  effec:ve  when  a  new  opera:ng  procedure  is  to   be  introduced  or  some  organisa:onal  change  implemented.  Provides  an   opportunity  for  employees  to  have  some  input  at  the  :me  of  decision  making.  
  • 31. ConsultaJve  -­‐  Strengths   •  Asking  for  sugges:ons  from  employees  allows  for  a  greater   variety  of  ideas,  and  should  improve  the  quality  of   management  decisions.   •  Employees  begin  to  have  some  ownership  in  the  way  in  which   the  organisa:on  is  run,  so  they  take  more  of  an  interest  in  it.   This  is  reflected  in  their  levels  of  mo:va:on  and  commitment,   which  increase  substan:ally.   •  When  decisions  are  discussed  and  fine-­‐tuned  before   implementa:on,  tasks  are  completed  more  efficiently  and  with   beUer  results.  
  • 32. ConsultaJve  -­‐  Disadvantages   •  The  :me  taken  to  consult  all  the  relevant  employees  can  slow   the  en:re  process.   •  Some  issues  to  be  decided  are  simply  not  suitable  for  a   widespread  consulta:on  process.  If  the  process  is  not   consistent  with  each  decision  made,  staff  can  become   uncertain  and  confused  about  their  role.   •  When  a  number  of  ideas  are  shared,  some  are  bound  to  be   ignored  or  overlooked  in  the  final  decision.  This  may  cause   conflict  or  resentment.  
  • 33. ParJcipaJve  management  style   Features:   •  A  where  the  manager  not  only  consults  with  employees  but  also  gives  them  some   responsibility  in  the  management  of  the  process.     •  Manager  shares  the  decision-­‐making  authority  with  employees.  The  degree  of  sharing  can   range  from  the  manager  outlining  a  solu:on,  with  the  possibility  of  changes  being   suggested,  to  allowing  the  team  to  ini:ate,  implement  and  monitor  its  own  solu:ons.   •  Par:cipa:ve  managers  recognise  the  strengths  and  abili:es  of  employees  and  ac:vely   involve  them  in  all  the  stages  of  the  decision-­‐making  process.  This  style  is  frequently   prac:sed  in  those  organisa:ons  that  have  flaUer  management  structures  and  work  teams,   and  especially  where  there  are  diverse  groups  to  be  coordinated.  The  contribu:on  of  the   employee  is  valued;  in  turn,  employees  have  a  commitment  to  the  organisa:on's  objec:ves   via  their  own  input.   •  This  par:cipa:ve  management  style  is  most  effec:ve  when  an  organisa:on  is  opera:ng  in   an  environment  undergoing  rapid  change.  Individual  employees  accept  responsibility  for,   and  can  implement,  changes.  This  makes  the  organisa:on  more  responsive  to  change.   Ac:vi:es  such  as  brainstorming  generate  a  range  of  opinions  and  ideas,  and  these  may  lead   to  beUer  decisions  being  made.   •  Two  way  communica:on.   •  Power  is  decentralised.  
  • 34. Par:cipa:ve  -­‐  Advantages   •  Communica:on  is  a  two-­‐way  process.   •  Employer/employee  rela:ons  are  posi:ve  and  there  is  reduced  likelihood   of  industrial  disputes.  Employees  are  more  likely  to  accept  management   decisions.   •  Mo:va:on  and  job  sa:sfac:on  are  op:mal  because  employees  feel  they   have  played  an  ac:ve  role  in  alloca:ng  tasks  and  implemen:ng  ac:ons  to   meet  objec:ves.   •  Employees  have  a  greater  opportunity  to  acquire  more  skills.   •  There  are  opportuni:es  for  employees  to  put  forward  ideas.  This  power-­‐ sharing  approach  encourages  the  development  of  work  teams,  and   employees  display  high  levels  of  commitment.   •  There  is  a  high  level  of  trust,  ojen  resul:ng  in  improved  employee   performance  
  • 35. Par:cipa:ve  -­‐  Disadvantages   •  Reaching  decisions  and  introducing  tasks  can  be  :me  consuming  when   differing  views  have  to  be  considered.  The  quality  of  decisions  may  also   suffer  because  compromises  are  made  rather  than  decisive,  clear   direc:ons  given.   •  The  role  of  management,  and  the  control  of  the  manager,  may  be   weakened  and  undermined,  with  employees  given  too  much  power  in   some  cases.   •  Internal  conflict  can  arise  with  so  many  views  and  opinions  being  shared.   More  involvement  may  bring  about  disagreement.   •  The  importance  of  the  organisa:onal  structure  may  be  minimised,  leading   to  an  informal  system  that  could  result  in  a  complete  collapse  in   management.   •  Not  all  employees  may  want  to  contribute.  
  • 36. Laissez-­‐faire  management  style   Features   •  Where  employees  are  responsible  for  workplace  opera:ons.  Management   has  no  central  role  and  power.     •  Management  has  no  role  in  the  day-­‐to-­‐day  running  of  the  organisa:on.   Management  will  set  the  objec:ves,  but  the  employees  take  full   responsibility  to  implement  the  means  of  achieving  them.  In  so  doing,   employees  are  responsible  for  their  decisions  and  accountable  for  the   results.     •  Decentralised  organisa:onal  structure,  with  employees  opera:ng   individually  or  in  small  groups  to  complete  projects.   •  Most  effec:ve  for  crea:ve  work  or  research,  with  employees  who  are   highly  talented  or  qualified  in  the  tasks  to  be  performed  and  where   minimal  supervision  and  direc:on  is  required.  
  • 37. Laissez-­‐faire  -­‐  Advantages   •  Employees  feel  a  sense  of  ownership,  which  can  promote   outstanding  results.   •  There  is  con:nual  encouragement  for  crea:vity,  which  is   conducive  to  a  dynamic  working  environment.   •  In  a  flat  structure,  communica:on  is  completely  open  and   ideas  are  both  discussed  and  shared.  
  • 38. Laissez-­‐faire  -­‐  Disadvantages   •  There  is  a  complete  loss  of  control  by  management.  No  control   or  direc:on  means  there  is  poten:al  for  misuse  of  the   organisa:on's  resources,  including  :me  and  money,  because   these  have  been  placed  in  the  hands  of  the  employees.   •  This  style  can  breed  personal  conflicts,  whereby  individuals  do   not  cooperate  or  wish  to  implement  only  their  own  ideas.  In   these  cases,  management  is  not  there  to  direct  or  nego:ate.   •  The  focus  on  mee:ng  organisa:onal  objec:ves  can  be  easily   eroded.  Management  may  find  themselves  with  a  failed   organisa:on  and  nothing  to  manage.  
  • 39. Management  Skills   •  Communica:on  skills  involve  the  ability  to  create  and  exchange  informa:on  between  people  to  ensure   that  the  required  response  is  produced.     •  Delega1on—the  process  of  passing  authority  down  the  hierarchy  to  perform  tasks  or  make  decisions.   Responsibility  remains  with  the  person  delega:ng.   •  Decision-­‐making  and  problem-­‐solving—the  systema:c  approach  (mul:-­‐step  approach)  to  finding  and   implemen:ng  a  course  of  ac:on  to  overcome  a  problem  or  correct  an  unsa:sfactory  situa:on.   •  Nego1a1on—the  process  by  which  one  party  seeks  to  obtain  something  wanted  from  another  party,   ending  either  in  a  resolu:on  or  a  compromise.   •  Team  leadership—the  ability  to  func:on  as  a  coach  or  mentor  to  team  members,  encouraging  team   members  to  contribute,  and  build  a  cohesive  and  trus:ng  team.   •  Time  management—the  process  of  planning  and  exercising  conscious  control  over  the  amount  of  :me   spent  on  a  par:cular  task,  in  order  to  increase  effec:veness  or  efficiency.   •  Stress  management—the  skill  required  by  a  manager  to  reduce  their  level  of  stress  or  anxiety    and  that   of  their  subordinates.   •  Analy1cal  skills—the  ability  to  examine  the  elements  of  something  or  study  the  nature  of  a  given   situa:on  or  set  of  circumstances.     •  Technical  skills—the  ability  of  a  manager  to  perform  par:cular  tasks,  such  as  accoun:ng  skills,  skills  in   the  use  of  computer  technology,  and  skills  in  human  resources  prac:ces  and  law.   •  Emo1onal  intelligence—a  set  of  competencies  that  allow  managers  to  perceive,  understand  and   regulate  emo:ons  in  themselves  and  others.  
  • 40. Problem  solving   Problem  solving  means  finding  and  then  implemen:ng  a  course  of  ac:on  to  correct  an   unworkable  situa:on.     There  are  six  steps  in  a  typical  problem-­‐solving  process.   •  1.  The  first  step  is  to  clearly  idenJfy  what  the  problem  is  and  what  has  caused  it.  The   problem  might  be  an  industrial  dispute  or  a  need  to  develop  a  more  socially  responsible   organisa:on.     •  2.  Gather  relevant  informaJon.    All  of  the  facts  and  informa:on  that  are  relevant  to  the   problem  must  be  gathered.  Some  methods  to  use  might  be  simply  talking  to  people  or   comple:ng  ques:onnaires  or  surveys.   •  3.  Develop  alternaJve  soluJons.  Management  will  need  to  develop  alterna:ve  solu:ons  so   that  the  problem  can  be  solved  with  an  open  mind.  A  list  of  possible  solu:ons  should  be   made,  including  the  seemingly  ridiculous  ones.     •  4.  Analyse  the  alternaJves.  Ajer  analysing  each  of  the  alterna:ves  for  their  advantages  and   disadvantages,  the  best  op:on  should  be  chosen.     •  5.  Choose  one  alternaJve  and  implement  it.  The  solu:on  to  the  problem  will  then  be   implemented  and  subsequently  evaluated.     •  6.  Evaluate  the  soluJon.  If  the  solu:on  does  not  work,  the  process  would  have  to  start  again.  
  • 41. Management  styles:  When  would  you  use???     Management  Style   When  you  would  use:  example   Autocra:c  style?   Instant  dismissal   Persuasive  style?   Change  in  procedure  due  to  a  change  in  legisla:on.   Consulta:ve  style?   Change  in  procedure  or  policy   Par:cipa:ve  style?   Enterprise  bargaining   Laissez-­‐Faire  style?   Research  
  • 42. The  rela:onship  between  management  styles  and  skills   •  Manager  develops  their  own  management  style  based  on   experience,  knowledge  &  personality.   •  The  specific  skills  that  relate  to  different  management  styles   Management  styles   Skills  needed   Authoritarian/Persuasive   Communica:on,  Decision  making   Consulta:ve/Par:cipa:ve   Communica:on,  nego:a:on,  problem  solving   Laissez-­‐Faire   Delega:on,  Communica:on,  People  skills  
  • 43. PAST  VCAA  exam  ques:ons     Ques:on  2B    2013      ZX  Bank  is  a  large  retail  bank  that  operates  in  all  states  in  Australia.    In  response  to  a  recent  market  survey  of  its  customers,  it  is  considering  opening  its  branches  on   Saturdays  and  Sundays.    Currently,  the  bank’s  employees  feel  that  their  expecta1ons  regarding  condi1ons  of  employment  and   work-­‐life  balance  are  being  met.    The  employees  have  been  asked  about  the  proposed  change  in  opening  hours  and  70  per  cent  said  that   they  would  prefer  not  to  work  on  weekends  but,  if  they  had  to,  they  would  expect  higher  pay  rates  on   those  days.    The  Human  Resource  Manager  has  responded,  saying  that  an  increase  in  pay  rates  might  make  opening   on  weekends  unprofitable.  The  bank  execu1ves  are  hoping  to  reach  an  agreement  with  the  employees   that  keeps  pay  rates  at  current  levels.    Both  sides  believe  that  it  is  important  to  discuss  this  issue  further.   To  resolve  the  issue  regarding  the  proposed  change  in  opening  hours  and  the  employees’  expectaJons     of  higher  pay  rates  on  weekends,  the  bank  execuJves  will  need  to  apply  a  range  of  management  skills.    Describe  two  management  skills  and  jusJfy  their  use  in  this  situaJon.  (4  marks)    
  • 44. PAST  VCAA  exam  ques:ons     QuesJon  3  (2013)   Alice  Smith  has  read  the  biographies  of  many  great  business  leaders.  She  would  like  to  follow  in     the  footsteps  of  these  successful  leaders.  Alice  has  just  taken  over  as  the  CEO  of  The  Traveller’s     Helpmate,  a  business  that  publishes  print  and  online  travel  guides.  Her  observa1on  is  that  her  staff  are     professional,  highly  educated  and  independent.  In  private  conversa1ons,  some  staff  have  said  that  they  felt     underappreciated  by  the  previous  CEO  as  posi1ve  feedback  was  rarely  provided.     a.  Define  the  following  leadership  qualiJes  that  Alice  will  need  in  order  to  be  an  effecJve  leader.      (3  marks)    •  interpersonal    •  informaJonal    •  decision-­‐making  
  • 45. 2013  QuesJon  3A  –  Examiners  report    Few  students  were  able  to  define  all  three  leadership  quali1es.  While  most  students  appeared  to  have  a  general  idea   of  what  leadership  quali1es  were,  they  were  unable  to  explain  all  three  to  a  sa1sfactory  standard.      The  interpersonal  leadership  quality  involves  liaising  or  dealing  with  people.  The  informa1onal  leadership  quality      involves  gathering  and  communica1ng  or  sharing  data  and  knowledge,  and  the  decision-­‐making  leadership  quality      involves  making  choices  in  order  to  solve  problems  or  take  up  opportuni1es.     The  following  is  an  example  of  a  high-­‐scoring  response.     •  Interpersonal  –  Interpersonal  refers  to  having  people  and  social  skills  such  as  communicaJon,  emoJonal   intelligence  (the  ability  to  recognise  and  understand  feelings)  and  so  on  in  order  to  operate  effecJvely  in  a  social   secng.     •  InformaJonal  –  InformaJonal  refers  to  obtaining  the  required  knowledge  and  being  effecJve  in  the   communicaJon  of  this  knowledge.  For  example,  being  able  to  communicate  an  appropriate  answer  to  an   employee  if  they  have  a  quesJon.     •  Decision-­‐Making  –  Decision-­‐Making  is  the  ability  to  idenJfy  and  evaluate  possible  available  opJons  in  response   to  a  situaJon,  and  choose  the  course  of  acJon  that  is  the  most  appropriate  and  effecJve.  
  • 46. PAST  VCAA  exam  ques:ons     Ques:on  2B    2012  exam    By  nature,  Ms  Glass  is  a  consulta:ve  manager.      Iden:fy  two  characteris:cs  of  this  management  style,  and  explain  one  advantage  and  one   disadvantage  of  using  this  style.    (4  marks)   Ques:on  2C  2012  exam    Ms  Glass  has  iden:fied  that  she  will  have  to  use  the  management  roles  of  organising,  leading  and      controlling.      Define  each  role  and  explain  how  the  use  of  these  roles  will  contribute  to  the  success  of  her  new      na:onal  parcel  delivery  service.  (6  marks)    
  • 47. PAST  VCAA  exam  ques:ons     Ques:on  2B  &  2F,  2011  exam    Freda  Campbell  is  seTng  up  a  new  business  in  Melbourne  that  will  manufacture   and  sell  furniture.   b.    Many  large-­‐scale  organisa:ons  use  a  mul:stage  planning  process  in  order  to   achieve  their  objec:ves.      Explain  each  of  the  steps  in  this  process.  (5  marks)   f.    Describe  and  jus:fy  two  management  skills,  other  than  communica:on,  that  Freda   could  use  while  establishing  her  business.  (4  marks)    
  • 48. PAST  VCAA  exam  ques:ons     Ques:on  2,  2010  exam    Wonderful  Toys  Company  manufactures  wooden  blocks  that  were  found  to  contain   small  amounts  of  lead  paint  that  can  be  poisonous  to  children.  The  company  recalled   all  of  this  product.    What  management  style  could  Wonderful  Toys  use  in  this  crisis?  Explain  why  you  have   chosen  this  management  style.  Refer  to  two  features  of  this  style  in  your  explana:on.    (5  marks)