Business Management 3/4
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Business Management 3/4 - Leaderboard
Business Management 3/4 - Details
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153 questions
| 🇬🇧 | 🇬🇧 |
| ADVANTAGES - Public Company | - Limited Liability - Perpetuity - Extra capital can be obtained by issuing more shares |
| Sole Trader | A business structure where one individual own and operates a business. |
| Patnership | A business structure which consists of between two to twenty owners who share profits and responsibilities. |
| Private Limited Company | An incorporated business structure that has at least one director and a maximum of 50 shareholders. |
| Public Listed Company | Is an incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX. |
| Social Enterprise | Is a type of business that aims to fulfil a community or environmental need by selling goods or services. |
| Government Business Enterprise | Is a business that is owned and operated by the government. |
| DISADVANTAGES - Sole Trader | - Unlimited liability for owner - More difficult to source finance to set up business -Reliant on the owners knowledge and skills |
| ADVANTAGES - Patnership | - Simple and inexpensive to set up - Risk and workload is shared between partners - Minimal government regulation |
| DISADVANTAGES - Patnership | - Unlimited liability - Potential for conflict between partners - No perpetuity |
| ADVANTAGES - Company | - Limited Liability - Perpetuity - Extra capital can be obtained by issuing more shares |
| DISADVANTAGES - Company | - Complex Structure - Needs more accountability and compliance paperwork - High establishment costs |
| ADVANTAGES - Social Enterprise | - Meeting a social need can encourage community support, increasing profits - Improved employee morale within the business as employees value the work they are doing - Can produce same goods/services as other businesses while being less harmful to environment |
| DISADVANTAGES - Social Enterprise | - Difficult to focus on both financial and social objectives and balance the two - Extra operation costs to meet social or environmental goal may increase expenses which other businesses may not need. - Difficult to obtain finance to start business |
| ADVANTAGES - Government Enterprise | - Relies on the government for the initial investment - Provides healthy competition for private sector businesses and lower prices in markets which is good for consumers |
| DISADVANTAGES - Government Enterprise | - May be inefficient in comparison to private sector businesses as governments have strict regulations and processes that can take time to be approved. - Political Interference can change direction of these businesses which can reduce employee morale and consumer satisfaction. |
| ADVANTAGES - Sole Trader | - Owner has total control over business - Simple and inexpensive to set up - Minimal government regulation |
| Autocratic Management Style | A management style where all decisions making is centralised, there is little delegated authority and communication is one way- downwards |
| Persuasive Management Style | A management style where the manager makes a decision and convinces workers of the benefits of those decisions. Decision making is centralised, and communication is one-way downwards |
| Consultative Management Style | A management style where managers ask employees for their opinions when discussing an issue using centralised decision making and two-way communication. |
| Participative Management Style | A management style with two-way communication and decentralised decision making where management and staff work together as a team to make decisions. |
| Lassez-Faire Management Style | A management style with decentralised decision making and two-way communication; management leave the majority of decision making and running of the business to employees. |
| ADVANTAGES - Autocratic | - Direction is clear with little uncertainty - Decisions are made quickly as they are centralised - Decisions are made by an experienced leader |
| DISADVANTAGES - Autocratic | - Doesn't take into account employee experience and knowledge resulting in less ideas - Decreased employee motivation as workers are not empowered, staff turnover may increase - Creates feeling of unease and being kept in the dark |
| ADVANTAGES - Persuasive | - Employees may feel valued if the selling is done effectively - Decisions are made quickly as control is centralised - Decisions are made by an experienced leader |
| DISADVANTAGES - Persuasive | - Doesn't take into account employee experience and knowledge resulting in less ideas - Decrease employee motivation as workers are not empowered staff turnover may increase - Increased potential for conflict as employees may not agree with decision |
| ADVANTAGES - Consultative | - Gain a variety of ideas which may lead to a better decision - Decisions are made. by an experienced leader who can use employees ideas to make an informed decision - Employees may feel valued if there opinion is taken into consideration, improving morale. |
| DISADVANTAGES - Consultative | - Time Consuming to consult with employees - Employees may not understand the complexity of the issue at hand - Not all ideas can be implemented and cause conflict |
| ADVANTAGES - Participative | - Gain a variety of ideas which may lead to better decisions - Employees feel sense of ownership and empowerment - Managers shares trust and faith in ability of employees, increasing employee morale. |
| DISADVANTAGES - Participative | - Time consuming to involve all employees - Can cause conflict between employees when there are varying viewpoints. - Employees may not understand complexity of the problem. |
| ADVANTAGES - Laissez-Faire | - Can promote creativity - Strong motivation, empowerment and job satisfaction for employees. - Promotes teamwork, increasing morale. |
| DISADVANTAGES - Laissez Faire | - Lack of guidance can cause employees to lose direction and lack of motivation - More people involved, greater risk of losing control - Unskilled staff may not be able to complete tasks independently, leading to decreased productivity. |
| Appropriateness of Management Styles | - The nature of the task - Time - The experience of employees - The preference of the manager |
| What do owners want? | - Make a profit for shareholders and themself - The business reputation to be positive - For the business to act in a socially responsible manner |
| What do managers want? | - Wants business to perform well financially - Will want the business to conduct itself in a socially responsible manner (lead to increase sales) - Want to satisfy as many stakeholder expectations as possible while ensuring their position in the business is secure. |
| What do employees want? | -Expect to be paid fairly, treated fairly and have fair working conditions - Want job security |
| What do customers want? | - Want the business to act in a socially responsible manner - Want good quality goods or services at a fair price - Want good quality service from the business. |
| What do suppliers want? | - Expected to be paid fairly and in full in return for quality goods being delivered reliably. - Want to maintain a good relationship with businesses to ensure secure customers. |
| What do the general community want? | - Expect that a business will give back to society, something of what they take out of their own profit - Expect businesses to show concern for the environment - Expect businesses to show concern for their future through their own employment within the business |
| Potential Conflicts between stakeholders | - Employees and Owners (desire for fair wages and profit will clash, desire for safe working conditions will also create expenses for the business) - Management and Customers ( in order to satisfy shareholders, prices may increase which will conflict with desire for reasonable prices) - Management and general community (GC's desire to be environmentally and socially aware will conflict with manager satisfying shareholder expectations of less expenses.) - Suppliers and GC ( suppliers may reduce costs by using unethical or socially irresponsible practices which can upset GC) - Management and Suppliers - ( Managers may want to reduce supplier costs however suppliers need higher prices to cover costs of ethical materials) |
| What are the business objectives? | Fulfil a Social Need, Fulfil a Market Need, To make a profit, Increase Market Share,Increase efficiency, Increase effectiveness, Meet Shareholder Expectations |
| Why is social need a BO? | DEF: relates to the role of a business in the community and how they can improve the lives of others or the environment It attracts environmentally aware consumers, which most now prefer to purchase from, which will increase sale-increase profit- increase likelihood of a business achieving financial objectives |
| Why is market need a BO? | The increase in customer demand will increase sales and therefore increase the likelihood of a business achieving financial objectives |
| Why is increase market share a BO? | When market share increases, it puts a business above competitors this is done by expanding customer base and increasing number of sales |
| Why is increase efficiency a BO? | Every business aims to be more productive with their operations and save costs in production. |
| Why is increase in effectiveness a BO? | Businesses aim to meet their goals fully but it is not always possible so the quality of their performance can be improved |
| Why is meeting shareholder expectations a BO? | Shareholders can pressure a business to make certain decisions and can therefore influence strategic objectives and direction of the business as the business wants to keep the investors as a source of finance. |
| What are the management skills? | Planning, Leading, Interpersonal, Decision Making, Communication, Delegating |
| Communication | Is a process of creating and exchanging information between people that produce the required response. |
| Delegation | Is passing of authority down the hierarchy to perform tasks or make decisions. |
| Planning | Is the process of determining objectives and devising strategies in order to achieve them. |
| Leading | Is the skill of a manager to influence and motivate employees towards the achievement of business objectives. |
| Decision Making | Is a multi-step approach whereby a selection is made between a range of different alternatives. |
| Interpersonal | Are those skills used every day to communicate and interact with other people, both individually and in groups. |
| Corporate Culture | Is the shared values, beliefs and practices of a business |
| Official culture | This can be observed in places like mission statements, logos, slogans and other symbols |
| Real Culture | The actual values and beliefs present in a company |
| Strategies to develop corporate culture | - Hiring new management - Recruitment of new employees - More team building activities, social gatherings, celebrations - Altering the management style - Offer more training - Rewards and incentive programs |
| What is the role of the human resource manager? | Coordinates all the activities involved in recruiting, training and terminating employees and refers to the effective management of the formal relationship between employees and employers. |
| Human resource managers role with the achievement of business objectivs | - Balance business objectives with the wellbeing of employees - Maintain a positive work environment and work culture - Ensure that the employment relationship should lead to an increase in productivity |
| Motivation | Refers to the individual, internal process that directs, energises and sustains a person’s behaviour. |
| Maslow's Hierarchy of Needs | Believes employees are motivated by satisfying a sequential order of the extrinsic to intrinsic needs of physiological, safety, social, self-esteem, and self-actualism. |
| Physiological with example | The need for air, food, water, health. E.g., satisfactory pay for survival |
| Safety with example | The need for safety, shelter and stability. E.g., safe working conditions, job security |
| Social with example | The need for love, belonging, inclusion. E.g., teamwork, supportive management, involvement in decision making. |
| Self Esteem with example | The need for self-satisfaction, power, control, recognition. E.g., responsibility, promotion, recognition |
| Self Actualism | The need for development, creativity, growth. E.g., advancement opportunities |
| Intrinsic and Extrinsic meaning | - Extrinsic involves doing something because you want to earn a reward - Intrinsic involves doing something for personal reward |
| Characteristics of Maslow’s Hierarchy of Needs Theory | - Has 5 needs which are considered the same for everyone. - Needs are arranged in a hierarchy of importance. - Lower order needs are extrinsic and must be satisfied before an employee can move to higher order needs, which are intrinsic motivators. |
| DISADVANTAGES - Maslows | - Assumes all employees are the same however needs may not be in same hierarchal order for everyone - Assumes needs cannot co-exist and that only one need can be focused on at once - Assumes lower needs become irrelevant when met which is not true for all. |
| Locke and Latham's Goal Setting Theory | Believes employees are driven by setting goals that provide clarity, are challenging, have the right level of task complexity, encourage commitment and provide feedback. |
| ADVANTAGES - Maslows | - Provide simple and useful summary of human needs which can be used to identify areas where people can be motivated - Accounts for both intrinsic and extrinsic motivators - Can help identify specific HR strategies that enhance motivation |
| Clarity | Goals should be clear/measurable. (Vague= confusion=limited motivation.) |
| Challenge | Employees motivate by goals that make them feel as if they are making a valuable contribution. Goals must extend employees but be achievable. |
| Commitment | Employees commit more to goals they helped develop. It allows more challenging goals to equal higher rewards and higher motivation. |
| Task Complexity | Training and support provided. Too complex = bad employee morale, motivation and productivity. |
| Feedback | Creates opportunity for employees to clarify task expectations and make necessary adjustments. |
| ADVANTAGES - Goal Setting Theory | - Employees have a clear sense of direction (clarity) - Feedback can give employees a sense of accomplishment, driving motivation - Managers have a clear way of measuring performance |
| DISADVANTAGES - Goal Setting Theory | - Time consuming process to develop and negotiate goals with all individual employees - Can be difficult to align some individual employee goals with business objectives - Constructive feedback may be taken as criticism by employee, leading to reduced motivation |
| Lawrence and Nohria's Four Drive Theory | Believes that employees are motivated by the drive to acquire bond, learn and defend. |
| Drive to Acquire (provide example) | Is the desire to own material goods, gain status, power and achievement. E.g., matching wage to other businesses, recognising good performance and tying rewards to performance improvement. |
| Drive to Bond (provide example) | Desire to form positive relationships with other individuals and have a sense of belonging. E.g., interact positively with employees, recognising collective achievement, create environment for relationships. |
| Drive to Learn (provide example) | Desire to satisfy curiosity, learn new skills. E.g., provide training, tasks are made interesting. |
| Drive to Defend (provide example) | Desire to feel safe and have trust between co-workers & managers. E.g., OH&S training, welcoming culture. |
| ADVANTAGES - Four Drive Theory | - Drives are independent allowing management and employees to be flexible in the behaviours or strategies implemented - The theory is very adaptable to complicated or intricate environments or situations |
| DISADVANTAGES - Four Drive Theory | - Other drives besides the four outlined by Lawrence and Nohria may exist - these don't necessarily explain all the individual characteristics that may motivate a person. - Some, such as drive to acquire can create competition in the workplace which can lead to a lack of cooperation |
| Performance Related Pay | Refers to a financial reward given to employees whose work performance has reached or exceeded a set of benchmarks or standard. |
| Career Advancement | Refers to being given a responsibility, level of authority, or promotion that allows for more experience and rewards. (long term) |
| ADVANTAGES - Performance Related Pay | - Provides financial reward to employees - Rewards are generally predictable and easily calculated - Should improve productivity levels of engagement and commitment to the business. |
| DISADVANTAGES - Performance Related Pay | - Other employees doing similar work may expect similar rewards even if their performance isn't as good, leading to conflict and lower morale - A business may not be able afford PRP (costly) - If the value of rewards is not maintained or increased each year, it may lead to employee dissatisfaction. |
| ADVANTAGES - Career Advancement | - Can provide a means of retaining valuable employees - Will satisfy employees who desire a sense of achievement - Should improve productivity levels of engagement and commitment to the business |
| DISADVANTAGES - Career Advancements | - Promotion positions cannot just be created and must have a purpose - Employees may have to compete for a limited amount of promotion positions creating rivalry and conflict - Employees may be promoted beyond their capacity. |
| Investment in Training | Direction of finances, or resources such as and time, into the teaching of skills to employees |
| ADVANTAGES- Investment in training | - Indicates to employees that a business values their contribution and that the business will support them in advancing their careers. - Benefits the business by improving skills of employees so that they feel more confident and perform more productively. |
| DISADVANTAGES - Investment in Training | - Costly to implement training for all employees - Waste of money if employees are trained but leave the business. |
| Support Strategies | Assistance services provided by a business to help employees cope with difficulties that may affect work performance. |
| ADVANTAGES - Support Strategies | - Many forms of support such as counselling and mentoring can be provided with little to no cost - It can help develop meaningful professional relationships. |
| Sanction Strategies | Are forms of penalties or punishments given to an employee in order to discourage specific behaviours or actions when they do the wrong thing. |
| DISADVANTAGES - Support Strategies | - May be difficult to find reasons to support and encourages some employees - Requires businesses to have positive corporate culture |
| DISADVANTAGES - Sanction Strategies | - Excessive emphasis on sanctions can reduce employees sense of belonging a and therefore having a negative impact on motivation and morale which can risk level of staff turnover increasing - Tends to act as a short term motivator |