Академический Документы
Профессиональный Документы
Культура Документы
• Management roles
Interpersonal
o Involves relating to people within and outside the business
o Figure Head – represents the public face of the business eg.
Manager announces new campaign (Richard Branson)
o Leader – manager motivates and directs their subordinates
(staffing, training, maintaining, discipline)
o Liaison – developing networks with people within and outside the
business
Informational
o Monitoring – manager collects and understands information
relating to internal/external environment
o Disseminator – transferring information to subordinates within the
business
o Spokesperson – communicating the organisations plans, policies
and results to the public
Decisional
o Entrepreneurial - able to coordinate the factors of production to
improve the organisations performance
o Disturbance Handler – able to deal with unexpected disturbances
o Resource Allocatur – manager is responsible for allocating
resources mainly human, monetary and physical. Involves setting
budgets
o Negotiators – responsible for acting on the businesses behalf in
negotiating with suppliers, distributors and unions
Skills of management
• People skills
o Active Listening Skills – concerned with an active search for
meaning in what a person is telling you eg making eye contact,
asking questions
o Feedback skills – giving subordinates feedback on who well
they are performing their job
o Delegation Skills – giving the authority or responsibility to
complete a task or activity to another person
o Discipline skills – necessary to enforce business standards
such as absenteeism, lateness and theft
• Strategic Thinking
o Concerned with thinking about the future of the business
o Involves finding, choosing and implementing business activities
that will make the business stronger and better in the future
• Vision
o What the business wants to achieve in the future
o Sets the direction of the business, purpose and character
• Flexibility and adaptability to change
o Managers must be flexible and be able to adapt to changes in
order to be successful
• Self –Management
o Self managed groups where no leader is appointed
o Members responsible for making sure the business achieves its
goals
• Teamwork
o There has to be effective teamwork between various functions of
the business
o Teamwork results in higher productivity
• Complex Problem solving
o Follows this method:
Define the Problem > Generate alternative solutions >
implement and follow up on the solution
• Decision Making
o A choice made from two or more possibilities
o Manager needs to follow processes in order to be successful
• Ethical and social Responsibility
o Global trend towards social and ethical rights
o Managers can employ people with high personal
standards and ethics for the business
o Financial
Deregulation of the financial sector and the entry of
foreign banks
Compulsory superannuation on businesses by adding to
costs and pool of funds is source for growth
o Geographical
Businesses target customers in certain areas eg.
Metropolitan areas
Moving to different country may encounter problems such
as language, customs, business ethics, regulations,
currencies and high costs
Drought has impacted on production and employment
o Social
Australians worried about environment
Ageing population
Changing role of women in society
Trend towards healthier lifestyle
Population becoming multicultural
o Legal
Laws regulate businesses in relation to location,
ownership, incorporation, what they make/sell, who they
sell to, cessation, provision of credit, protection of
consumers, licensing and taxation
o Political
Views of different political parties have potential to create
significant change for a business (Taxation, consumer
protection)
Managers have to be aware what each political party is
proposing to do
o Technology
Developments make machines and software more
efficient and productive
– Internal influences – sources of change that come from within the
business
o The Effects of Accelerating Technology
The innovations in technology make it essential for a
business to introduce new equipment – cost
Impacts on job design, training, development of new
relationships between workers
o E-commerce
Greater use of the internet to buy or sell products
Still small percentage of total commerce
o New Systems and procedures
Businesses need to adopt worlds best practice (doing things
in the business at a standard achieved by the most
competitive business in the industry the business is part of)
o New Business Cultures
Shared values, attitudes and beliefs of people in a business
– Structural responses to Change
o Changing conditions often require changes in the structure of
the business and include:
Outsourcing
• The partial contracting out of a business activity,
usually non-core activities. ie. Accounting and
finance, employment relations, marketing
• Increasing trend in businesses in order for businesses
to specialise in core activities and reduce costs
Flat Structures
• Reducing levels of management giving greater
responsibility to individuals in the organisation
• Shorter chain of command and wider span of control
• Enables businesses to adapt to change in
environment easily
• Reasons for resistance to change
– Financial costs — purchasing new equipment, redundancy payouts,
retraining, reorganising plant layout
– Inertia of managers, owners – Unaware of changing environment, lack
skills or leadership to implement change
– Cultural incompatibility in mergers/takeovers - loss of status and power,
having to adopt new ethics and values, changing cultures
– Staffing — de-skilling, acquiring new skills, loss of career
prospects/promotional opportunities
• managing change effectively
– identifying the need for change
• Technology – updating equipment to maintain competitive advantage
• Products may be loosing their appeal as fashion evolves
• Return on investment is falling
• Community attitudes and expectations change
• Hierarchical structures may be unresponsive/slow to respond to customer
needs
• Mergers or takeovers > new work cultures
– setting achievable goals
• It is necessary to set plans on how to achieve goals once the goals are
identified
• Successful change takes place in stages with objectives set for each stage
– creating culture of change (encouraging teamwork approach using
change agents)
• Change Agents – the key group of influential people in a business who
must be convinced to support change and who then manage the change
process
• Managers may need to:
o Convince employees of the need to change
o Get employees to agree with the nature of the changes that will
happen
o Give these people the power to implement the change
effectively
– Change models — force-field analysis, Lewin’s
unfreeze/change/refreeze model
• Unfreeze – managers explain why there is a need to
change and try to gain acceptance for the need to
change as widely as possible
• Change implementation – change implemented into
the workers behaviour or actions and they have to
adopt new values or actions
• Refreeze – consolidating these changes by providing
support systems, resources, and skills needed to
ensure the changes behaviour continues
Change and social responsibility
Ecological Sustainability
• The ability of current businesses to achieve their needs without
compromising the ability of future businesses to meet their needs
Quality Working Life
• Important aspect of job satisfaction and affects productivity,
participation and absenteeism
• To create a working life that is enjoyable, active or friendly;
businesses could offer teamwork, self directed projects, flexible
working hours, ect…
Technology
• Businesses have a social responsibility towards its work force
which regards the rate of technological development and how its
implemented
• Accelerated technological development can be detrimental to the
moral and productivity of the work force
Globalisation
• The move towards the situation where individual businesses
compete in a global market
• Running businesses in different countries mean you have to
accept different values and thus must be sensitive towards
countries cultures
Managing Cultural Diversity
• Concerned with using the skills and talents of Australia’s
multicultural workforce
E-commerce
• Buying and selling of products through the internet
• Businesses operating with e-commerce have social responsibilities
in terms of honesty, confidentiality, accuracy of information
provided, and quality products.
Management of funds
• Sources of funds
• Internal
o Owners Equity – usually the first source of funds for a
business. When an owner puts his own money into the
business, it shows a level of commitment and conveys a
belief that the business will become successful
Retained Earnings – money kept by the business
after taxation and expenses are taken out and
dividends issued. Source of funds for future
business operations
• External
Advantages Disadvantages
• If return on funds is • Risk of the company
bigger than the interest rate being unable to repay the debt
then the business gets to keep (insolvent) leads to
the difference administration > receivership >
• Interest paid on debt is liquidation
treated as a tax deduction
• Gearing
o A measure of how reliant the business is on debt financing
relative to equity financing
o Highly geared means more reliant on debt financing relative to
equity financing
Using financial information – financial reports attempt to meet general
interests of all its users. Each group of users need to develop skills to extract
specific information from financial reports
• The accounting framework – refers to the principles and standards used
to prepare financial reports and present financial reports. A common
accounting framework leads to:
Consistent and logical set of accounting standards
Allows comparison with international businesses – AASB
similar to international rules
o Revenue statements – provides a financial summary of the
businesses operation results for the accounting period
Sales – COGS = gross profit
Gross profit – profit from trading before expenses.
Indicated difference between what you pay for your
stock and what you sell it for “mark up”
Gross profit – expenses = net profit
o Balance sheet – summary of the businesses financial
position at a given point of time
Assets = liabilities = owners equity
o The Accounting equation and relationships
Illustrates the relationship between the assets a
business uses to conduct operations and the way
assets have been financed
Current assets – short-term assets expected to be
turned into cash within the year
Non-current assets – long-term assets that will
provide economic benefits for a period longer than a
year
Liabilities – debits owed to people of institutions
other then the owner. Delivered in Current/non-
current liabilities
• Types of financial ratios
– Liquidity
• Refers to the ability of owners to pay short term debts as they fall due
o Current ratio : current assets/current liabilities
Ratio of 2:1 means that for every $1 of debt, the business
has $2 to service this debt
– Solvency
• Indication of the long term stability of the business. Gearing ratio
indicates the relationship between long-term funds and owners equity
o Gearing ratio : Total debt/owners equity х 100/1
Presented in a percentage. Anything below a benchmark
of 60% is considered satisfactorily geared.
– Profitability
• Difference between profit and sales. Helps managers determine how
well each dollar of sales generates profit
o Gross profit ratio : gross profit/sales x 100/1
A GPR of 40% means that for every dollar of sales, 40
cents is generated. Refers to margin of ‘mark up’
between businesses purchasing and selling price
o Net profit ratio : Net profit/sales x 100/1
A net profit of 5% means that for each dollar of sales, the
business generates a net profit of 5 cents
o Return on owner’s equity – indicates how much the owners
investment in the business is earning.
o Return on owners equity : net profit/owners equity x 100/1
A percentage of 20% indicates that every dollar of owners
equity earns 20 cents
– Efficiency
• Measures and analyses the efficiency of various aspects of the
business
o Total operating expenses ratio :
Operating expenses/net sales x 100.1
A reading of 30% means that every dollar of sales is
taken up by 30 cents of expenses
o Accounts receivable turnover ratio :
Accounts receivable/average sales ÷ 360
A reading of 60 means that it takes an average of 60
days to collect an accounts receivable
• Comparative ratio analysis
• Over Time
o Shows changes in bus liquidity, solvency, profitability &
efficiency over a number of time periods. Can show trends in
pos & neg aspects of the bus.
• With Similar Businesses
o Ratios can evaluate the performance of the bus against similar
bus in industry. Often by comparing the bus to the best bus in
the industry (benchmark), the bus can work out where needs to
improve.
Marketing Mix
• place/distribution
• Place refers to the distribution of the product. This process starts
with the producer and ends with the consumer
• Distribution channels – business or group of business involved in
moving goods from the manufacturer to the point of final use.
Common distribution channels include:
o Manufacturer > Consumer
o Manufacturer > Wholesaler > Consumer
o Manufacturer > Retailer > Consumer
o Manufacturer > Wholesaler > Retailer > Consumer
o Manufacturer > Agent > Retailer > consumer
o Manufacturer > Agent > Wholesaler > Retailer >
Consumer
• Reasons for intermediaries – intermediaries are independently
owned businesses that move products from producers to find
users.
o Intermediaries are used because:
Ensure efficiency of distribution
They match supply and demand by providing
customers with a variety of products from different
producers
Reduce contact lines between manufacturers and
customers, which removes cost
• Distribution intensity – number of locations through which a
business sells its products
o Intensive distribution – product available at every possible
location (coke)
o Selective distribution – where a manufacturer wants to
widely distribute its product, but does not want to use
intensive distribution. (Ripcurl will not sell their product
through cheap department stores such as Target, but may
sell it through upper market stores such as David Jones or
Surfection)
o Exclusive distribution – limits supply of products to
particular stores or outlets (Bentley’s sold only to exclusive
car dealers)
• Physical distribution issues – physical distribution involves all
the activities involved in moving products from the manufacturing
point to the final consumer.
o Order processing – involves all activities used to handle
and fill sales orders
o Warehousing – the storing of goods while they wait to be
moved onto another area or be sold. Businesses need to
decide weather to have lots or small warehouses to improve
distribution efficiency, or have one large warehouse to
reduce costs.
o Materials handling – deals with the equipment used to
physically handle the products (forklifts, conveyor systems,
trucks). Ensures products are delivered quickly and safely
to customers.
o Inventory control – overseas the quantity of product that is
available for sale at any given point in time. Having too
much stock is expensive and it may perish or be stolen,
having too little will loose sales.
o Transportation – movement of products by air, land, sea.
The type of transportation will depends on what type of
product it is, where it needs to go, how quickly it needs to be
delivered.
• environmental effects on distribution
• Technology
o Technology has changed the way people shop and has thus
affected marketing as businesses are required to adopt their
marketing strategies to adopt this change. (internet has
enabled businesses to market and make sales easier and
more efficiently)
• Local Government
o Local government regulations such as zoning regulate the
positioning of businesses to certain zones (residential,
industrial, commercial). It also regulates what sort of
business activities are allowed to be undertaken, hours of
operation, and the size of the sign outside their business.
Employee Contractors
Workers Compensation Law requires employees Expected to provide
to provide compensation own coverage through
coverage private insurance
Tax Employer liable for Expected to arrange
payroll tax, compulsory own taxes
superannuation
entitlements, fringe
benefits tax, and PAYE
tax deductions for
employees
Leave Entitlements Entitled to statutory or Self-employed and
award leave entitlements must make allowances
that are made up of for the various leave
annual leave plus loadings
loading, long service
leave, statutory holidays
and a set number of
days for illness
• Duties of employers/rights and obligations
o Employers have certain obligations under common law
including:
Duty of care – obligation to take reasonable care for
the safety of employees by providing safe
equipment, safe system of work, warning employees
of risk and training employees thoroughly
Duty to pay remuneration – employers must pay
correct wages as set in awards and agreements and
reimburse employees for expenses
Duty to provide work – employers must provide
work except in casual employment contracts.
Right to dismiss – employers have the right to
dismiss any worker on the spot in particular
situations where employees have failed to:
• obey lawful instructions
• perform duties over a period of time
• perform duties with necessary safety
• meet conditions of the employment contract
• Duties of employees
o Employees have certain obligations to:
Duty to obey employers lawful, reasonable and
safe standards – employees must follow all lawful
and reasonably commands of their employers and
comply with award agreements
Duty to work with skill, competence, and care –
employees have a duty to use care and skill under
the OH&S legislation
Duty of good faith and confidentiality –
employees must not give out private information or
trade secrets which is private property and must
account for all money/materials received or lost
Duty to disclose information relevant to the
employer – the employee must disclose information
requested by the employer is specifically asked and
of directly relevant tot the employment activities.
• Regulating the relationship between employer/employee
o Statutes – there are numerous pieces of legislation that
are designed to regulate the relationship between
employers and employees (1996 WRA)
o Awards – legal documents made by industrial tribunals that
set the minimum wages and working conditions that must
be provided to employees. The WRA 1996 has set the
awards to 20 allowable matters, further legislation will
simplify this to sixteen.
o Agreements – agreements between employers and
employees can be formal or informal
Informal Agreements: agreements that are not
registered by an authority or tribunal. Informal
agreements can not undercur awards or formal
agreements
Formal Agreements – written agreements made
under legislation and are registered under the AIRC.
They can be collective (certified agreement) or
individual (AWA)
o AWA’s – individual agreements between employees and
employers about terms and conditions of employment.
AWAs have no role for unions or other third parties. They
must be approved by the employment advocate who apply
a no disadvantage test
o Certified agreement – an agreement made between an
employer and an group of employees or between an
employer and a union representing employees. Certified
agreements are generally for:
small businesses
geographically distinct part of a business
organised unit within a business
• types of employment contract
• Permanent and part time – the number of hours worked per week
will determine the type of employment. Both full and part time
workers have an arrangement of contract to work specified hours
per week
• Casual employment contract – casual employees are employed
for short term irregular or seasonal work. There is no promise to
provide work or to be available for work on other occasions.
Casual employees are paid above the award as a result of not
having access to annual or sick leave.
• Fixed term employment contracts – fixed term employees are
often employed for a specific project or to replace employees who
are absent on long service leave. They are not covered by federal
legislation
• Apprenticeships and traineeships – agreements between
employers and trainees/apprentices for training and employment.
They are educated in on-the-job and off-the-job in structured
training and are guaranteed work at the end.
• Tradespeople – include motor mechanics, fitters, hairdressers,
and chefs. State legislation requires the employer does not
employ anyone under 21 unless they are an apprentice or have
completed an apprenticeship.
industrial conflict
• definition and causes
• Industrial conflict is defined by the ABS as withdrawal from work
by a group of employees or a refusal by employer to allow them to
work. Industrial disputes are a result from disputes concerning
wages, working conditions, leave and managerial policy.
o Wage demands – demand by employees for an increase in
wage rates
o Working Conditions – include protective clothing, first aid
services, uncomfortable working conditions, poor equipment
o Management policy – caused by:
Terms and conditions of employment
New awards and agreements
Discipline matters
Disagreement with managerial decisions
o Political goals and social issues – unions have become
more involved in political and social issues. These include
conscription, urban development, rainforest conservation.
• perspectives on conflict
• Unitary view – assumes all employees within a business share
goals of the business as defined by senior management
• Pluralist view – pluralists are made up of many parts and have
many stakeholders; as a result they will not share the same views.
Managers need to develop an effective system of communication
that allows employees to express their views and resolve them
• Radical view – focuses on the imbalance of power between
employers and employees. This imbalance is believed to be so
great that employees believe they have to overthrow their
employers.
• Traditionalist view – views conflict as bad and would always have
a negative impact on an organisation (associated with violence,
destruction)
• Human Relations View – believed conflict was natural and
unavoidable occurrence in all organisations and it sometimes may
benefit the organisation
• Interactionist view – view encourages conflict on the grounds that
a harmonious, peaceful, tranquil and cooperative organisation is
likely to become static and non-responsive to the need for change
in an organisation
• types of industrial action
– overt
o Lockout – action taken by employers where employees are not
allowed to enter the workplace
o Pickets - Striking workers gather outside and do not allow
anyone to enter the workplace
o Strikes – where employees withdrawal their labour (most
common form)
o Ban – where employers refuse to take certain action
o Work to Rule – where employees work to the strict letter of
their award or agreement and refuse to do anything else
– covert
o Absenteeism – dissatisfied workers mar take more sick days
as a form of industrial action
o Sabotage – deliberate damage/vandalism to company property
o Labour turnover – some employees may leave the workplace
if they are dissatisfied with their work
o Exclusion from decision making in business – conflict can
arise if employees believe they have not had their fair say
• roles of stakeholders in resolving disputes
• The main stakeholders in disputes are employers and employees.
Australia’s industrial relations system has encouraged growth in
unions and employer associations. The federal government acts
as a reference and a judge in disputes, providing the framework
and the rules which workers and management negotiate. The
centre of most industrial relations disputes is usually a grievance:
o Small business – grievance are negotiated directly
between employer and employee
o Medium business – grievance are represented by human
resource managed
o Large organisation – usually a full time human resource
manager and department and industrial relations specialist
• Employer Association – represents individual employee who are
their members. They provide information to their members and
often this is enough to enable a dispute to be resolved at the
workplace level
globalisation
• nature and trends
• World Wide Level – globalisation is the growing economic
interdependence between countries. The world has become a
single market as a result where cross border trade in goods and
services and capital is increasing
• Specific country level – globalisation refers to the link between
countries economy and the rest of the world. (price rises in
commodities may have impacts on prices of goods in another
country)
• Company Level – globalisation refers to the way businesses can
expand sales and assets across countries. Companies can now
obtain labour and capital from foreign countries.
• Growth of the global economy – globalisation has increased due
to improvements an communication and transport technologies,
liberation of trade policies and through the activities of TNCs
• Changes in Markets
o Changes in financial/capital markets – one of the major
driving forces of globalisation is the development of Global
Financial Markets
International equity market – made up of all bonds
bought and sold outside the issuers home country
International bong market – market of all bonds
bought and sold outside the issuers country
Foreign exchange market – the market for the
exchange of all foreign currencies
o Changes in Labour markets – Labour markets have
become more globalised despite barriers to entry to foreign
countries (immigration, language, culture). This has
occurred due to:
TNCs accessing foreign markets by locating in
different countries
Creation of trading blocs (EU, NAFTA, CERTA)
o Changes in consumer markets – consumer mkts have
changed due to:
Product standardisation by TNCs (McDonalds,
Subway, MTV)
Use of e-commerce has allowed consumers to buy
products from around the world
Reduction of trade barriers have not only reduced
prices, but also given consumers a wider choice of
goods and services to choose from
• trends in global trade since World War II
• Over the past 50 years there has been a tremendous growth in the
volume of goods and services trade, financial flows between
countries.
o 1991 > 2000 volume of trade in goods and services rose by
6.7%
o 2000 – total exports of goods and services values at $7.3
trillion, in 1953 this was only $53 billion
• drivers of globalisation
• Role of TNC – the increased activities in TNCs have increased the
integration of national economies
o Multinational – involves foreign subsidiaries that act
independently each with full production facilities in the
countries in which the operate
o Global Strategies – comprises a parent country and
subsidiaries which are part of the integrated production
chain
o TNC – combination of multinational and global strategies.
TNCs have key resources and activities spread around the
globe. Resources integrated into an interdependent
network of world-wide operations.
• Impact of Global Consumers – there has been a growing
similarity between global consumer tastes and preferences around
the world. Increase in telecommunications has allowed cultures
and values of different countries to influence each other. This has
allowed TNC to take advantage through large scale production and
marketing
• Impact of technology – improvements in technology has
contributed to the growth of globalisation. Improvements include:
o Cheaper air transport and shipping (containerisation)
o Improvement in telecommunications
o E-mail
o E-commerce
• The role of government – governments have contributed to the
growth of globalisation through:
o Trade agreements – over the past 50 years trade
agreements between countries has reduces barriers to
trade (tariffs, subsidiaries, quotas). The WTO has been
introduced to manage this trend. EU, NAFTA, CERTA are
trading blocs that contribute to the liberalisation of trade
o Political changes – in particular, the decline of the
communist regimes in Russia have opened up more
countries to free trade.
• Deregulation of financial markets – over the last 30 years
governments have moved or relaxed regulations regarding their
financial sector. As a result:
o Fixed exchange rates have become less common, replaced
with floating exchange rates.
o Overseas investors can invest on a countries capital
markets
o FDI is able to enter and leave a nations economy
• interaction between global business and Australian domestic business
• Australian businesses rely on Australian domestic businesses to
provide raw materials, finished goods and intermediate goods
• FDI in Australian businesses link Australian domestic businesses
with foreign businesses
• Australian business managers have become prominent in the
senior management of the worlds global growth (Rupert Murdoch)