Unit 3/4 Notes

[Baiku]

Hello to anyone studying BM 3/4 this year or next. In this thread I will post the notes that I collated towards the end of last year in preparation for the November Exam.

I will fix it all up in July during the semester break from university when I have time to look through it. For now, I will post up the bulk of my notes, some sections are a bit incomplete and what not, so bear with me for that, or if you want to write those sections up - feel free.

Please note that this is MY understanding of the course, not the OFFICIAL understanding of the course. I have used the study design published by VCAA to structure these notes to the course as accurately as possible, using resources such as my textbook, study guides and online resources...

To start with I'll post up each outcome in a different post so that you can see the contents of each outcome. Formatting is a bit messy, some of it isn't completed - basically these are just my personal notes from before the exam.

It isn't a textbook, so you can't expect it to be perfect. I guess consider this a free set of notes that you can use, or not use, as it suits you.
I just tried to set out the dotpoints of what you need to know - and this is definitely more than you need to know for the VCE exam. This is what I went in with in my head and scored a 50 in 2005.

I chose to do a summary like this instead of doing practice questions, it just depends what works for you. I find that if I have all of the information at arms reach then I can always answer the question - that may or may not work for you.

Any queries or contrasting views are welcome and I'll try to get back to you as quickly as I can. Goodluck.

[Baiku]

Outcome 1: Contents
1.1 Characteristics of Large Scale Organisations
1.2 Variations in Large Scale Organisations
1.3 Typical management functions
1.4 Contribution of Large Scale Organisations
1.5 Environments impacting Large Scale Organisations
1.5.1 Operating (Internal) environment
1.5.2.1 External environment (Operating)
1.5.2.2 External Environment (Macro)
1.6 Performance Indicators
1.7.1 Stakeholders
1.7.2 Ethics, conflicts


1.1 Characteristics of Large Scale Organisations

- Large organisations are complex structures that have many different work activities within them.
• They require a number of levels of management
• Generally concerned with productivity

Within an organisation, employees performing similar functions are grouped together, functions include:
1. Production (Operations)
2. Personnel (Human Resources)
3. Finance (Accounting)
4. Marketing

Defining an organisation as large:
• Number of employees
Most commonly used – Number of employees. Coles Myer employs 165,000 Australians and is Australia’s largest organisation by number of employees.
• Revenue (gross income)
By revenue – News Corporation is largest with $31 billion per year turnover.
• Total assets (Value of what the organisation owns)
National Australia Bank have more assets than any other Australian company, $397 billion.

• Transnational (or multinational) corporations are owned and based in one country, but have branches or subsidiaries operating in other countries.

Three main types:
• Corporations (or companies)
Aim to make a profit to improve financial worth.
Private (Up to 50 shareholders) or Public (numerous shareholders) or Government owned, a Government Business Enterprise (GBE)
• Government departments
Aim to provide a high level of service
• Charities & Foundations
Non-Government organisations aim to provide goods and/or services for the alleviation of specific social problems or for the broader benefit of the community.

• Strategies are courses of action aimed at achieving organisational objectives.

1.2 Variations in Large Scale Organisations


Variations occur in large-scale organisations. These include variations in size and type.
As previously described, Large-scale organisations exist in the form of corporations, government departments, and charities.

The objectives of different large-scale organisations will differ –
• Corporations – Aim to make profit and increase assets.
• Government departments – Aim to provide service.
• Charities & foundations – Aim to alleviate social problems.

The strategies undertaken by the organisation will also differ. A private company will often be less confined to acting in the most ethical and socially responsible ways. A large public company will have to report on their operations, due to the transparent operating environment, they must be seen to be acting responsibly.

A government department will often come under pressure from voters if the level of service is unacceptable, or the service is provided at a fee that the public feels is unreasonable.

A charity can only spend a certain percentage of the money they collect on the management of the organisation, otherwise they cannot describe themselves as a charitable organisation. People would not donate to a charity that was using money unethically; subsequently public image is paramount for any successful charity.

1.3 Typical management functions


Typically management functions include production, personnel, finance, marketing, research and development, etc.

• Production/Operations – The work that the organisation does, transforming resources into a product of value in the form of goods or services.
• Personnel – The management of people and the human resources within an organisation. Includes paying employees, negotiating contracts, etc.
• Finance/Accounting – Involves the management of monetary resources, taking loans from creditors, paying suppliers, etc.
• Marketing – Selling the product to clients, often includes advertising, for example in newspapers or on television.
• Research & Development – Driving the company forward by creating better products, new designs that may benefit the company in terms of profit, etc.

1.4 Contribution of Large Scale Organisations


Due to their size, a large-scale organisation can make significant contributions to society.

• Provision of employment, directly, and indirectly through purchase of goods and services.
• Development of Australia’s industrial base, bringing new technology, practises, ideas, etc. to Australia.
• Stimulate infrastructural development through the generation of need.
• Earn export income through sale of goods and services overseas, earning foreign currency and improving the balance of trades (exports vs. imports). In this regard the sale of secondary or manufactured goods is more beneficial than raw materials.

Some criticisms of large-scale organisations exist –
• Heartless, self-serving, only exist to generate profit at society’s expense
• Criticised for importing foreign goods where an Australian-made alternative exists.

1.5.1 Operating (Internal) environment


• Management has control over the internal environment

• Includes aspects such as staff, structure and policies

• Management can expect predictability among these outcomes


1.5.2.1 External environment (Operating)

The external environment of the organisation is made up of the macro (broad) environment, and operating (task) environment.

The external environs within which an organisation operates is both dynamic and complex.
It presents management with threats to their plans and offers opportunities for success.


The operating (task) environment:
• Four main factors – Customers, suppliers & creditors, competitors, special interest groups.

1. Customers – Customer satisfaction is essential, customers demands are dynamic, always asking for better quality at a lower price. Customer service is also important, including after-sale services and guarantees.
2. Suppliers & Creditors – Require a reliable supply of inputs such as raw materials, machinery and services. Strong trend towards outsourcing. Finance is essential to fund activities and growth. Trend towards obtaining finance from overseas lenders.
3. Competitors – Trend towards more intense competition, especially as globalisation opens up markets to multinational organisations. Competition is always changing, potential for new competitors to emerge putting pressure on an organisation, etc.
4. Special Interest Groups – Three groups that can impact on the activities of an organisation. Trade unions represent employees in many industries. Consumer Groups represent customers in areas such as pricing, advertising, packaging and safety. Special issue groups often pressure organisations into acting in a way that assists the community, for example anti-smoking lobbies and church groups



1.5.2.2 External Environment (Macro)


The macro (broad) environment includes factors that are beyond the control of the organisation, such as economic conditions, legal conditions, technological factors, education and training conditions, and society’s attitudes.

1. Economic Conditions – The state of the economy, evident through consumer spending, unemployment levels, wage rates, interest rates, foreign exchange rates, etc. have significant impact on organisations. When consumer spending is at a low level, companies may struggle to make a profit.
2. Legal-Political Conditions – Organisations must operate within the confines of the law. Government regulation, or deregulation, may impact on the way an organisation operates. Taxation policies also have huge impact. Always uncertainty in political policies.
3. Technological Factors – New technology constantly drives change, competitiveness is often lost if an organisation fails to adopt new technology. For example e-commerce, doing business on the internet.
4. Education & Training – Organisations need highly trained workers, generally can’t afford to train “from scratch” and subsequently will rely on national education systems, especially schools and universities.
5. Social Attitudes – General opinions on what is “right” and “wrong”, for example the importance of small environmental impact, and expectations of ethical practises. Equal opportunity and other social values also impact how an organisation can operate.


Environments changing due to globalisation –
As the world goes through a process of globalisation, international markets continue to open up. Worldwide communication systems are becoming increasingly important. The impact of globalisation will continue to increase over the next few years.


1.6 Performance Indicators


Organisational performance consists of two important dimensions –
These are effectiveness and efficiency.

Effectiveness is a reference to an organisation’s ability to formulate and achieve objectives. An organisation is effective to the extent that it achieves stated objectives.
Efficiency refers to the use of resources in achieving objectives. An organisation is efficient to the extant that it achieves its objectives at the lowest cost, using minimum resources.

These two concepts are used as a basis for the evaluation of organisational performance.

Specific performance indicators provide more precise and measurable date to evaluate performance and improvement, fundamentally most indicators refer back to either effectiveness or efficiency. Indicators are also referred to as Key Performance Indicators (KPIs) or key result areas.

Quality is often measured by an organisation, data on rejects, the percentage of rework, or perhaps the percentage of waste could be used to indicate the organisational performance in this regard.

Performance indicators can be expressed in dollar (Financial) or real (Non-Financial) terms.

Benchmarking refers to the process of comparing organisational work outcomes with similar work outcomes of other organisations. Companies will often seek out the international benchmark, or best practice, in a particular process to compare their own performance with. This ensures that the organisation is comparing itself with the highest levels of performance within a specific process.

The process of performance review can be applied to the entire organisation, departments, teams, work-groups, or individuals. It is recommended that employees should choose their KPIs and work towards them, this removes the thought that management is making it too hard for employees to achieve their objectives. This is a fundamental principle of management by objectives (MBO).

Performance areas and examples of associated indicators –
Industrial relations – Hours lost due to industrial action, time taken to resolve disputes, value of production lost due to industrial action, compliance with resolution procedures.
Safety – Rate of injury, number of safety breaches per month, OH&S knowledge and skill levels.
Environment – Rates of spills, results of audits, expenditure on environmental improvement.
Financial Performance – Return on investment, profit or loss, average debt collection period
1.7.1 Stakeholders

• Stakeholders are groups or individuals that have an interest in the performance or activities of an organisation.
• Exist as financial interest, or issues such as environmental impact.

Owners & Shareholders

Managers

Investors & Lenders

Suppliers

Customers

Government

Local Community

International Community



1.7.2 Ethics, conflicts

Usually involve ethical considerations – what is “fair”?

Ethics are the moral standards and principles that guide people’s decisions and actions. Ethical people do what they believe is the “right thing”. Modern business ethics are expected to include a sense of social responsibility, a concern for the condition of society at large.

The significance to an organisation depends on corporate culture.

o Responsibilities to stakeholders
o Commitment to ethical practices
o Policies on employment and human-resource issues
o Statements about organisation’s social responsibility

Social responsibility & the “Triple Bottom Line” continue to increase in importance in the corporate world.

Transparency and company image are big issues

The strength of an organisation’s social responsibility will affect its public image and subsequently its business opportunities. Today it should be viewed as a form of investment to act in a socially responsible manner.

[Baiku]

Outcome 2: Contents
2.1 Management Structures
2.2 Corporate Culture
2.3 Management roles
2.3.1 Planning
2.3.2 Organising
2.3.3 Leading
2.3.4 Controlling
2.4 Policy development and application
2.5 Management styles
2.5.1 Autocratic style
2.5.2 Persuasive style
2.5.3 Consultative style
2.5.4 Participative style
2.5.5 Laissez-faire approach
2.5.5 Contingency/situational approach
2.6 Corporate management theory
2.7 Management skills
2.7.1 Communication
2.7.2 Negotiation
2.7.3 Time-management
2.7.4 Delegation
2.7.5 Problem-solving and decision-making
2.7.6 Stress management
2.7.7 Emotional Intelligence (EQ)
2.8 Relationship between management styles and skills
2.9 Ethical & socially responsible management

2.1 Management Structures

Management structure – A system employed by the management of an organisation that outlines roles and responsibilities of staff, and the major functions of its business, in a mode that allows effectiveness and efficiency in achieving business objectives to be maximised.

Factors effecting establishment of change in management structure:
• Clear definition of management roles at all levels
• Outlining who has authority and decision-making power
• The level of supervision required over staff
• Division of labour and task allocation
• Effective lines of communication

It is essential that the benefits of any new structure outweigh the disadvantages of not just the new structure, but also outweigh the costs of its implementation.

Vertical specialisation – The hierarchy of authority and decision-making power, reflecting the organisational chain of command.

Horizontal specialisation – How the organisation is grouped into specialised departments.

Functional structure – Departments based on the major functions or activities of an organisation. Functions include sales, marketing, operations, finance, HR, etc.

Divisional structure – Departments based on major products, services or markets of an organisation. Each department operates as a separate business. Divisions may include soft drinks, confectionary, snacks, etc.
* A move towards the divisional structure leads to improved responsiveness to market dynamics.

Matrix structure – A combination of the functional and divisional structures, any unit within the matrix would report to two managers.

Organic structure – Functions or divisions are facilitated by a central administrative body.

• Management structure must serve strategy
• Structure should be evaluated regularly against the purpose it is intended to serve.


2.2 Corporate Culture


Corporate Culture – The shared values and beliefs that underpin an organisation.

Organisational culture refers to the organisation’s way of life. It includes elements such as the work ethic, the management style employed, leadership methods, communication processes, language acronyms and worker evaluation methods.

There are two types of culture – The official culture and the prevalent culture

The organisational corporate culture can be determined/realised through observations to physical signs, as well as publish aspects.

Some examples of physical signs include: dress code, location and layout of offices, noise levels and building design.

Examples of published aspects include: mission statements, annual reports, slogans, codes of ethics and advertising.

Sustaining and creating the desired organisational culture can be achieved through the following means:
• Offering incentives and creating reward systems
• Recruitment and promotion
• Role-models
• Communication channels
• Training
• Organisational events

Cultural shifts are facilitated by the occurrence of a crisis, a change in leadership, the creation of a new organisation, or where the prevailing culture is weak.

A change in corporate culture is justified when:
• Values no longer fit the environment
• Highly competitive or fast moving industry
• Company has a poor track-record
• Amalgamation with another company
• Existing company is growing fast


2.3 Management roles


The four roles of management are planning, leading, organising and controlling. These do not stand alone; there is an interrelationship between the elements of each role in regard to successful management.


2.3.1 Planning


Planning – The process of deciding where a team, department, or whole organisation should be heading, and how it intends to get there.

Planning adds predictability to future corporate function.

Three levels of planning exist:
• Frontline
• Operational
• Strategic

The longer the term of the plan, the greater the uncertainty involved.

The Five Stages of Planning (Acronym SADIM):
Stage 1 – Setting objectives
Stage 2 – Analysing the present situation and future objectives *
Stage 3 – Developing and evaluating alternatives
Stage 4 – Implementing the plan
Stage 5 – Monitoring and reviewing results.

* During stage 2 a SWOT (strengths, weaknesses, opportunities, threats) analysis may be employed by the organisational planner.

SWOT Analysis –
The strengths and weaknesses of an organisation are internal.
The opportunities and threats to an organisation are external.









2.3.2 Organising


Organising – The process of defining relationships between staff and tasks, so that all resources are working towards organisational objectives.

Organising encompasses:
• Establishing the structure of an organisation
• Determining what is needed
• Establishing staff in productive environments
• Assigning responsibilities to staff
• Delegating authority
• Communication among different levels and departments
• Accumulation and arrangement of infrastructure

2.3.3 Leading


Leading – The process of influencing staff to do what an organisation wants done.

Leading involves communication, negotiation, motivation, and the human capacity to have a vision.

Good leadership needs the support of the other management roles to be effective.


2.3.4 Controlling

Controlling – The establishment by management of ways to compare actual performance with planned performance.

Controlling encompasses:
• Establish performance standards or benchmarks
• Determining methods of measuring performance
• Measuring actual performance
• Comparing actual performance with the established standards
• Taking corrective action where necessary
• Reviewing performance standards.


2.4 Policy development and application


Policy – A general guide to decision-making and action. Policy makes up the framework for an organisation’s activity.

Procedure – Practical ways for putting policy into action. Procedure is more detailed and routine in nature than policy.

Therefore, procedure is the method in which policy is put into action by an organisation.

Both must be plainly expressed and communicated if they are to be implemented effectively by an organisation.

Evaluation of policy –
• Environments are dynamic, policy must always be subject to review
• Must be proactive, to foresee changes

Forward looking policy goes hand-in-hand with planning.

2.5 Management styles


Autocratic Persuasive Consultative Participative Laissez-faire

(Total management control) (Increased employee control)



Situational or contingency approach –
In some situations it may be appropriate for a manager to use a combination of management styles for decision making, depending on the issue. Different styles are used in different situations to achieve different objectives.

2.5.1 Autocratic style


Decision-making:
Management makes all decisions and informs employees

Control:
Centralised, that is, manager controls all activities

Staff participation:
Limited to implementing a decision

Communication:
Top-down


Advantages:

Disadvantages:





2.5.2 Persuasive style


Decision making:
Manager makes decisions and persuades employees that it is a good decision

Control:
Management control of processes

Staff participation:
Limited

Communication:
Top-down


Advantages

Disadvantages

2.5.3 Consultative style

Decision making:
Manager discusses decisions with staff for feedback

Control:
Ultimate decision making rests with manager

Staff participation:
Staff input at time of decision making

Communication:
Two-way

Advantages

Disadvantages

2.5.4 Participative style

Decision making:
Open discussion on issues for consensus

Control:
Management and staff have joint responsibility for decision-making

Staff participation:
High level staff participation in process

Communication:
Two-way

Advantages

Disadvantages


2.5.5 laissez-faire approach

Decision making:
Manager gives all issues to staff for resolution

Control:
Total employee control of decision making

Staff participation:
Limited management guidance and participation

Communication:
Two-way
2.5.5 Contingency/situational approach


In some situations it may be appropriate for a manager to use a combination of management styles for decision making, depending on the issue. Different styles are used in different situations to achieve different objectives.

Advantages

Disadvantages




2.7.1 Communication

Effective communication means getting the intended message across to the receiver

There are two important aspects – Transmission of information
Maintenance of good personal relationships

As an indirect result of communication - Value of employees
Expectations of employees

Many forms of communication, including:
• One-to-one personal communication
• Written communication
• Committees
• Conferences
• Networks


Noise in communication – A message that is distorted or blocked.
Might be caused by physical distractions, ineffective or unsuitable communications technology, the words used, cultural differences, etc.

2.7.2 Negotiation

During negotiations, a combination of discussion and bargaining among the negotiating parties aims to produce an outcome satisfactory to all involved.

Key to success – Don’t take a fixed position too early!

Five-stage process of negotiation:
• Preparation – each party prepares
• Opening – each party presents to the other
• Bargaining – parties negotiate terms
• Closing – parties agree on mutually agreeable terms
• Implementation – the agreement is implemented

A win-win outcome (mutually-agreeable outcome) is desirable in all negotiations. Both parties should walk away happy with the terms.
2.7.3 Time-management

“Time is the scarcest resource; and unless it is managed, nothing else can be managed”

Skilled time management requires a combination of a systematic approach and the self-discipline to stick to the system.

A systematic approach involves –
• Setting out tasks to be done (goals to be achieved)
• Delegating tasks
• Establishing priorities among remaining tasks
• Allocating time to particular tasks
• Building in deadlines and other controls (must be realistic!)
• Periodically review the plan in operation

Factors that may negatively impact time management include –
• A culture in which crises tend to upset established plans
• Poor communication
• Delayed, incomplete or inaccurate information
• Unnecessarily slow decision making
• Unnecessary or poorly planned meetings
• Inadequate training to complete a task
• Lack of staff familiarity with the organisation and its activities
• Insufficient staff to complete a task


2.7.4 Delegation


Delegation – Takes place when significant tasks are handed over to a subordinate in the organisation.

Advantages of delegation include –
• Time-saving for management. Management get more done, can delegate less important tasks or time-consuming tasks to a subordinate to spend more time elsewhere.
• Contribution to employee skill development – Management allows a subordinate to take over a task that is extending the skill-level of the subordinate.
• Improved job-satisfaction – The subordinate will feel more valuable when a manager relies on them to achieve work outcomes.

Generally, employees are given an opportunity to show initiative and challenge their capacities at handling work objectives. They may display a capability to take on a more responsible position, and this may be an opportunity to develop such a capability.

Effective delegation requires that –
• The job is analysed and a clear understanding of what needs to be done is clear
• A standard of reasonable performance is set
• Realistic deadlines are set, as checkpoints as well as completion dates
• Appropriate subordinates must be selected
• Tasks must be clearly communicated to a subordinate
• The delegated task should be assessed upon completion, and feedback given












2.7.5 Problem-solving and decision-making


Decision-making – involves making choices among possible courses of action.

Problem solving – consists of making a series of decisions in a logical manner to assist in resolving an organisational issue.

Six-Step approach – DODDSE
• Define the objective
• Outline the facts
• Decide on the causes of the problem
• Develop several feasible solutions
• Select the preferred alternative and implement it
• Evaluate the effectiveness of the solution

Decision-making becomes more complex as greater levels of uncertainty exist and there is more risk.

Certainty may exist where the outcome of each alternative course of action is known in advance, this is usually an exception in the dynamic organisational environment.

Risk refers to a situation where the outcome of each alternative is not completely certain. Management are commonly forced to make decisions that involve some level of risk.

Uncertainty entails not knowing the outcome a course of action may lead to. Commonly exists at strategic-level of planning, for longer term plans and dynamic environments especially.


Different management styles will approach this management skill in different ways. An autocratic manager would simply make a decision, while a participative manager would be much more open to discussion and suggestion.




2.7.6 Stress management


Certain levels of stress can be beneficial in achieving goals and outcomes – However too much stress can exist and lead to subsequent reduced capacity to function effectively.

Negative stress is termed ‘dystress’, it exists when the demands of the environment are in excess of an employee’s capacity to cope. This will vary significantly between individuals, where one employee may “rise to the challenge” another may see the task as being too challenging and not know where to start.

Everybody therefore has a unique stress threshold.

Management stressors include –
• Losing one’s own job
• Long hours
• Change associated with a merger or acquisition
• Strike action
• Workplace change
• New technology
• Deadlines
• Working to budgets
• Working to quality standards

Management is responsible for managing and monitoring stress so that it does not become dystress, with all the negative consequences that are associated with excess levels of stress.

Methods of reducing stress may include –
• Obtaining and providing reliable information
• Clarifying work roles in the organisation
• Redesigning particular tasks to make them more accessible
• Improving worker morale and sense of being valued at work
• Develop new ways of “seeing” the situation
• Establish a support program
• Promote importance of physical exercise, mental relaxation: work-life balance

2.7.7 Emotional Intelligence (EQ)


EQ refers to the way people handle their emotions and their relationships.

It is centred on:
o Self Restraint
o Compassion

A manager of strong emotional intelligence will control their own emotions to manage the situation in the best manner. It is rarely productive to simply “let-fly” with a bout of rage.

Compassion requires that managers consider things from other people’s position, and also requires them to present to employees as caring people (and not threatening).

There are four levels of mastering EQ –
• Level 1 – Perception of one’s own emotions
• Level 2 – Empathy with the emotions of others
• Level 3 – Capacity to consider emotional information when decision-making
• Level 4 – Ability to regulate and manage emotions in oneself and others


There are many ways in which managers with EQ will be advantaged. Productivity is fundamentally increased.

Specifically a higher level of EQ should result in better teamwork, reduced levels of stress and heightened motivation to achieve objectives.












2.8 Relationship between management styles and skills

Managers of different style employ management skills differently and with different purposes.

• Autocratic and persuasive styles involve predominantly “top-down” communication.
• Managers with better understanding of emotional intelligence will be more effective in persuasion.
• Negotiation will be more existent in the participative style where the manager may need to convince staff of a decision.
• Problem-solving is tackled very differently between autocratic style and participative style, autocratic style might simply say “do this”, participative managers would discuss things with employees to decide a fair course of action.

2.9 Ethical & socially responsible management


When a person is behaving ethically, their decision-making and action show a concern for morality and personal principles. In the corporate context it includes acting in a socially responsible manner.

For the most part, ESM is automatic and intuitive.

ESM situations may exist in human resource management, operations management, marketing management, and financial management.

Human Resources:
Because HR involves dealing with people, ESM usually refers to the fair treatment of staff
• Recruitment and selection methods and practices
• Medical and psychological testing
• Pay and responses to employee-relations
• Training and promotion (equal opportunity?)
• Health and safety (including bullying)
• Privacy and confidentiality practices

Operations:
Issues arise in relation to responsible treatment of the natural environment, relationships with suppliers, and who suppliers are.
• Suppliers exploit workers or abuse human rights
• Suppliers are not environmentally concerned


Marketing Function:
Issues arise in regard to methods of promotion and advertisement of products, particularly in regard to honest advertising.
• Honest advertising
• Product safety and security
• Response to customer complaints
• After-sales service
• Price-setting
o Elimination of competitors (Jet-Star)

Accounting Function:
• Accounting and financial practices
• Independence of auditors
• Public disclosure
• Remuneration of executives and directors
• Protection of employee entitlements (superannuation)

CONFLICTS OF INTEREST – Often arise between stakeholders in regard to ethical and socially responsible management and the extent that it determines courses of action.

2.9 Ethical & socially responsible management (continued)

ESM Guidelines:
• Obey the law
• Tell the truth
• Show respect for all people
• Treat people fairly in all cases
• Above all, do no harm
• Practice participation
• Always act when you have responsibility.

It is unacceptable for managers to remain silent about ethical malpractice. It is unacceptable for management to break any socially accepted standards in regards to ethics and social responsibility.

[Baiku]

Outcome 3: Contents
3.1 Operations function
3.2 Characteristics of operations function
3.3 Productivity and competitiveness
3.4 Key elements of an operations system
3.5 Strategies to optimise operations
3.5.1 Facilities design and layout
3.5.2 Materials management
3.5.3 Management of quality
3.5.4 Use of Technology


3.1 Operations function

• Operations management involves the transformation of inputs into outputs through organised processes.

• All lage organisations must manage their operations. This is regardless of their objectives, core business, or whether they have a manufacturing or service focus.

• Operations managers are responsible for all production activities within the organisation and must apply strategies for the efficient production of goods and/or services.


Operations refer to the transformation of inputs into outputs through a series of processes.



Inputs:
• Raw materials
• Human resources
• Buildings & equipment
• Information Technology (IT)
Transformation Processes:
• Products & facilities
• Organisation structure
• Control processes
Outputs:
• Products
• Services


Transformation processes –

Products and facilities: product/service design, facilities design and layout, production/service processes and work-flow, transportation/logistics.

Organisation structure: teams and reporting relationships, the lines of authority and communication between employees and managers.

Control processes: inventory management, productivity and quality.
3.2 Characteristics of operations function

For service oriented organisations:
(Example: banking)

Inputs:
• Human resources
• Financial resources
• Computer equipment
• Offices

Processes:
• Layout of service counters, waiting areas, etc.
• Location, such as CBD or online (e-banking)
• Service teams / call centres
• Quality control

Outputs:
• Financial services



For product oriented organisations:
(Example: motor-vehicle manufacturing)

Inputs:
• Human resources
• Financial resources
• Manufacturing plant, equipment, raw materials
• Components of the motor-vehicle

Processes:
• Layout of machinery, tasks in sequences steps, automated production line
• Use of teams
• Just In Time (JIT) Inventory control system

Outputs:
• Motor vehicles



3.3 Productivity and competitiveness


Productivity – A measure of the efficiency of operations over time

An equation for productivity:

Goods produced $(Output)
-------------------------------------------------------------------------------
Human + Financial resources + Raw materials + Capital (Inputs)



Increased productivity is achieved through the reduction of inputs needed to produce a given amount of output
Or
Increased productivity is achieved through increased output produced from a given amount of resources

• Improvements to organisational productivity can be achieved through either a reduction in the inputs required to produce outputs, or a increased output from the same amount of resources.


Business competitiveness refers to an organisation’s ability to perform to a standard of efficiency equal to or better than its rivals within the industry.

A competitive edge over other organisations can be gained in areas such as:
• Quality
• Customer service
• Delivery
• Cost

Productivity strategies ensure efficient and effective use of human and non-human resources by:
• Using technology to increase output
• Developing more efficient work practices and worker effectiveness
• Improving management ability to plan, lead, organise and control
Downsizing – systematic reduction of workforce to become more cost-effective





3.4 Key elements of an operations system


The process of operations involves three key elements:
• Inputs
• Processes
• Outputs

Inputs –
Refers to the resources used by an organisation in the development of products and services, includes:
• Human skills and effort
• Raw materials
• Facilities
• Machinery and equipment

Processes –
Refers to the activities that occur to transform or convert the inputs into outputs that hold value to customers.
• Medical operations (surgery)
• Statistical analysis (business)
• Plastic moulding (toys)
Processes are generally very specific to different businesses.

Outputs –
The goods and services through which the organisation generates revenue.
• CD players
• Textbooks
• Entertainment
• Education



3.5 Strategies to optimise operations


Productivity and business competitiveness rely inherently on the operations function. By increasing productivity business competitiveness is improved, and this generally occurs at an operational level.

Productivity improvements can occur due to:
• Facilities Design & Layout
• Materials Management
• Management of Quality
• New Technology
3.5.1 Facilities design and layout


When considering the location of facilities, consideration should be given to the proximity to:
• Customers
• Raw materials
• Labour force
• Competitors
• Infrastructure

When considering the design and layout of facilities, the following factors should be considered
• Job flow
• Materials flow
• Equipment movement
• Capacity outputs and requirements

Two common layouts include the process layout and the fixed-position layout.

The process layout refers to a layout based on different processes, where in each areas a different process takes place. This is common in the mass-production of goods, such as cars. When cars are produced, the cars flow along a production line and processes occur in the same area, while goods move from one process to the next

On the other hand, the fixed-position layout refers to a layout based around the goods, where the goods remain in their location and processes work around the goods. This is common in the production of large immobile goods, such as aeroplanes. The aeroplane is built from the ground up on the same location while employees responsible for different processes work around the aeroplane, and each other, to complete the finished product.

3.5.2 Materials management


• The goal of materials management is for customers to receive their orders accurately and on time.

Process:
• Efficient management of production processes
• Effective coordination of the acquisition of materials
• Effective control of use of materials and resources

Problems:
• Late supply of materials
• Inefficient work practices
• Machinery breakdowns

Strategies for effective materials management:
• Control of inventory flow
• The introduction of JIT practices
• Evaluation and analysis of total project time requirements


Just In Time (JIT) materials management –
Refers to a system through which the resources (or inputs) required for productions of goods are delivered immediately before they are required by a process. Through this method of materials management, organisations do not have to store resources, saving money on facilities such as warehouses.
3.5.3 Management of quality

Customers expect a quality output. If this does not happen, an organisation may lose its customers to more efficient producers of high-quality services or products.

Quality output can be achieved using quality assurance methods:
• Quality control systems
• Total Quality Management (TQM)
• Continuous improvement schemes (Kaizen)
• Quality circles and team involvement
• Benchmarking on a global scale
• Use of world’s best practice
• Use of key performance indicators for quality such as:
- Reduced per cent of product return due to malfunction
- Reduced rejection rate at end of the production process


3.5.4 Use of Technology


Rapid advances in technological development have led to increased productivity.

Operations managers use a range of tools, techniques and activities.

• Computer systems in production processes include:
- Computer Aided Design (CAD)
- Computer Aided Manufacturing (CAM)

• Mass production: most physical work completed by machinery with human intervention and participation in the process

Continuous process production: workflow is continuous and mechanised with no human input

[Baiku]

Outcome 4:
4.1 Managing human resources
4.1.1 In relation to objectives and strategy
4.1.2 Employee expectation
4.1.3 Motivational theories
4.1.4 Ethical & socially responsible management
4.2 Management of the employment cycle
4.2.1 Planning human resources in relation to strategy
4.2.2 Job analysis and job design
4.2.3 Recruitment and selection
4.2.4 Employment arrangements
4.2.5 Induction, training and development
4.2.6 Recognition and reward
4.2.7 Performance management
4.2.8 Termination
4.3 Management of employee-relations
4.3.1 Characteristics of employee-relations
4.3.2 Relationship to objective and strategy
4.3.3 The role of HRM managers in decentralised environments
4.3.4 Management styles and skills in relation to conflict resolution

4.1 Managing human resources


The human resource function is a fully integrated function of the organisation.

Human resources are managed within four contexts –
• Workplace attitudes
• Developments in technology
• Legislation
• Ethical and socially responsible management

Human Resource management – The management of the employment relationship that exists between an organisation and the employee.

Establishing
- Plan human resource needs
- Recruit staff
- Select staff

Maintaining
- Induction
- Motivation and reward
- Training
- Career development
- Working relationships

Terminating
- Retirement
- Resignation
- Dismissal
- Redundancy and retrenchment


Evidence of effective human resource management:
• Good work performance
• Job satisfaction among staff
• Low absenteeism
• Low staff turnover


4.1.1 In relation to objectives and strategy




4.1.2 Employee expectation


Expectations, i.e. Fairness & Job security
Satisfaction, i.e. Pay, Supervision
Motivation, i.e. Financial, recognition

Diversity re3fers to all of the ways that people differ. The advantages of diversity include:
• Improves job satisfaction and performance
• Reduces costs associated with absenteeism and legal battles
• Skills, experience, ideas
• Cross-cultural capabilities

Productivity is increased when staff operate in diverse, friendly environments.

4.1.3 Motivational theories


Maslow:
Needs are ordered in a hierarchical nature.
Basic physical Safety Social Esteem Self actualisation


Alderfer:
ERG theory, yet no order or hierarchy of needs.
o Existence – Basic physical needs
o Relatedness – Social needs and esteem
o Growth – Self actualisation and esteem


Herzberg:
Two sets of factors, maintenance and motivational
o Maintenance – pay, job security, working conditions, relationships, rules and policies
 Cause dissatisfaction, NOT motivating factors
o Motivational – achievement, work itself, recognition, responsibility, opportunity for advancement
 Factors that really impact on performance


McClelland:
Behavioural consequences of needs
 Achievement – self actualisation
 Affiliation – social needs or relatedness
 Power esteem
 Matching jobs to people, the responsibility of management



4.2 Management of the employment cycle





Human Resource Planning



Recruitment



Selection



Induction



Training & Development


CYCLE
Performance Review



Remuneration / Promotion



Termination


4.2.2 Job analysis and job design

In order to establish an employment relationship, an analysis of human resource needs must take place.

Analysing human resource needs – Determining human resource needs is an ongoing process for HR managers in large organisations. Staff retire, resign or are promoted; and new positions are created as business needs change. HR managers must forecast and plan to meet the organisation’s future need for employees.

Job Analysis – A determination of employee need for the organisation
Job Descriptions – What the job entails
Job Specifications – An outline of qualities, experience, skills and knowledge required to achieve successful completion of tasks




4.2.1 Planning human resources in relation to strategy


Through Job-Analysis and other methods of planning, human-resource management must plan human resources for effective organisational function.

If the organisation suddenly doesn’t have enough tasks for all staff, redundancy may occur.

If the organisation suddenly has too many tasks for staff, staff will be overworked, stressed and tasks will go uncompleted.

It is therefore imperative that HR managers plan carefully to maintain smooth operation of all business functions towards organisational objectives.
4.2.3 Recruitment and selection

Recruitment – Activities which are intended to find a pool of potential applicants that are qualified for a vacant position within the organisation

Selection – The process of choosing the most appropriate recruit for a position and informing all recruits of the outcome of the process.


Recruitment involves two steps –
 Informing potential applicants of the job vacancy
 Initial contact with those applicants


Management is responsible for defining the position, whether it will be full time, part time, casual or temporary, etc. These decisions will be made during a job analysis.

The company will in most cases appoint an interview panel to be involved in all aspects of the recruitment process. The choice open to management is to recruit internally or externally.

Factors influencing a decision to recruit internally or externally –
 The nature of the industry
 The management’s philosophy and culture
 The state of the labour market
 The employee balance needed within the organisation
 The importance of the position itself

Internal Recruitment:
 Advantages include existing familiarity, boost to staff morale and motivation, reduced costs of recruitment and selection, the strengths and weaknesses of applicants are well known
 Disadvantages include unrest and resentment amongst overlooked applicants, training costs will be higher, the pool of applicants is restricted, cultural change which may be desired will not occur.

External Recruitment:
 Advantages include new ideas and cultural change, a broadened pool of applicants, reduced costs of training, a newcomer may be headhunted from a competing organisation bringing competitive knowledge.
 Disadvantages include the time taken to adjust to new culture, morale affected due to overlooking internal staff, outside personnel are an unknown – you never know exactly what you’re getting, the cost of recruitment and selection is increased.






4.2.4 Employment arrangements


There are numerous variations to employment relationships between employees and employers.

Some include:
• Working hours
o Full Time
o Part Time
o Casual
• Location of work
o From Office
o From Home via communications technology


Arrangements should be flexible so that the organisation is capable of facilitating a high level of productivity from their employees.

4.2.5 Induction, training and development


Induction – The process of introducing a new employee into an organisational environment.

Induction involves (includes) –
• Pre employment administration
• Workplace familiarisation and introductions
• A mentor program


Training – Employee participation in formal external courses or internal on-the-job training to improve skill levels and performance.

Development – Ongoing development to assist employees to accept more responsibility and be more accountable by working with a mentor or on short-term projects.

Benefits of Training and Development –

For the employees – Promotion, multi-skilling, flexible job-opportunity.

For the organisation – Increased productivity, reduced staff turnover, flexible workforce, achievement of organisational goals.






4.2.6 Recognition and reward


Using a performance review, management can determine where recognition and reward are due.

By employing a system of recognition and reward an organisation may be able to retain staff and limit employee turnover.

Rewards exist as Financial Rewards as well as Non-Financial Rewards. Generally rewards are based around quantifiable performance indicators to ensure fairness.

Financial Rewards may include: pay, bonuses, profit sharing, share bonus schemes, fringe benefits.

Non-Financial Rewards may include: the intrinsic reward of work itself, increased responsibility, additional challenges, positive feedback, official recognition of appreciation.

Management must use its forms of reward and recognition judiciously. It should avoid creating resentment among the organisation’s staff. Management should consider rewarding teams rather than individuals, wherever possible.


It is the role of HR managers to:
• Show respect for individuals
• Operate with procedures that are fair to all
• Be transparent about basis of decisions made







4.2.7 Performance management








4.2.8 Termination

The role of human resource management in regard to the process of terminating the employment relationship…

Employee initiated – Retirement & Resignation

Retirement – The employee desires to cease paid employment
 Management should monitor upcoming retirees
 Consultation should occur over suitable date of retirement
 Pre-retirement counselling and training should occur

Resignation – The decision of employee to cease employment relationship
 Management should monitor staff turnover
 Exit interviews should be conducted to determine the reason for leaving
 Reasons for resignation should be analysed

Employer initiated – Dismissal & Retrenchment

Dismissal – Termination of contract due to poor performance or behaviour
 Staff should be kept informed, using a warning system
 Counselling
 Accurate records of events leading up to dismissal must be recorded

Retrenchment – Termination due to surplus of workers
 Plan accurately to avoid involuntary redundancy
 Locate job transfers for employees where possible
 Address morale among remaining staff

Human resource managers must manage the termination process to the benefit of both the organisation, and the employee.


4.3.1 Characteristics of employee-relations


Workplace Relations Act (1996)

Award – A set of minimum conditions and pay for employees of a certain industry and specific occupation

Enterprise Bargaining Agreement (EBA) –
A collective agreement by employees of an organisation regarding working conditions and remuneration, registered with the employment advocate.

Australian Workplace Agreement (AWA) –
Negotiated between individuals and employers and may contradict some award conditions, but presently must past no-disadvantage test.

Individual Contracts of Employment –
These contracts predominantly exist where there is no award in existence for a specific occupation, must follow all laws, is a common-law contract.

[Baiku]

Outcome 5:
5.1 Organisational change
5.2 Dynamic nature of internal and external environments
5.3 Driving and restraining forces for change
5.4 Theories of effective change management
5.5 The role of leadership
5.6 Impact of change on internal environment
5.7 Globalisation


5.1 Organisational change


Organisational change is essential and inevitable due to the dynamic external environment, and changing internal requirements of business.

Changes occur in the following:
- Values, Objectives & Goals - Changing products or services
- Corporate culture - Processes and practices
- Organisation structure - Introduction of new technology
- Core business

Change Responses:
• Refocusing on core business
• Downsizing (or rightsizing)
• Merger or acquisition
• Diversification: increasing the product/service/market range
• Outsourcing: contracting out non-core activities
• Corporatisation: a public organisation taking a corporate management approach
• Privatisation: transferring ownership from the public to the private sector


5.2 Dynamic nature of internal and external environments


External Factors: Internal Factors:
• Social - Corporate culture
• Technical - Changed objectives
• Economic - New alliances
• Ecological - New technology
• Political - Inefficient practices
• Legal
• Ethical

Positive change results in:
1. Achievement of objectives
2. Increases to productivity
3. Heightened business competitiveness

Such positive changes result in the survival of an organisation within the dynamic environments of its operation.


5.3 Driving and restraining forces for change


Driving forces include:
• Changed demand
• Legislative changes
• Increased competition
• Political unrest or instability
• Changing Markets
• New Technology
• Trend towards outsourcing
• Environmental issues

Restraining forces include:
• Union resistance
• Employee skills
• Management inertia
• Cost
• Organisational inertia
• Organisational insecurity
• Management procrastination
• Financial costs


Effective change management will decrease the impact of resistance and respond to driving forces. Thus, effective change management includes the facilitation of organisational change, allowing business survival and competitiveness.




5.4 Theories of effective change management


Two Theories: The Kotter change process (8 steps) or Lewin change process (3 steps)

Kurt Lewin’s change process:
• Unfreeze – employees made aware of problems and the need for change (possible use of outside change agent for increased effectiveness)
• Change – introduction to and move towards new skills and behaviours
• Refreeze – employees acquire and use new skills and behaviours; rewards for positive behaviour

It is important to note that “refreezing” doesn’t mean solidifying the organisational practice, but rather an acceptance of the need for change due to dynamic environments. As such the “refrozen” situation sees an organisation adapting to its environment, prepared to change and constantly evolving to survive and compete.


The Kotter change process:
• Establish a need for change
• Form a guiding team
• Create a positive vision
• Communicate that positive vision
• Empower staff to implement the change
• Planning for and celebrating change progress
• Consolidating improvements and maintaining change momentum
• Institutionalising the new organisational behaviour


Overcoming Resistance:
• Communication
• Participation
• Support
• Negotiation
• Manipulation
• Threat

These tactics can be used to overcome organisational insecurity and inertia and assist with the implementation of organisational change.











5.5 The role of leadership


Effective leaders see trends, opportunities and possible strategies.
Leaders of change have to be persistent and courageous in the implementation of a strategy.
Leaders have to be convincing in articulating a vision to the rest of the organisation and motivate staff to be part of the change.
The best leaders inspire other people.
• Interpersonal roles
• Informational roles
• Decision-making roles



5.6 Impact of change on internal environment


There are many aspects of the internal environment that have to change for organisational change to take affect.

Change management involves and works through things like corporate culture, structure, planning and performance indicators. It can also involve different management styles and skills to those previously employed within the organisation.

Eight targets for change –
• Facilities and technology
• Management structures
• Objectives
• Planning
• Management style
• Corporate culture
• Recruiting and training
• Tasks

Also 7S framework –
• Strategy, overall plans for resource use over time to achieve objectives
• Structure, organisational structures and how teams come together
• Systems, routine procedures and processes
• Staff, demographic characteristics of employees
• Style, management styles and organisational styles
• Shared Values, collective beliefs – corporate culture
• Skills, capabilities of individuals and the organisation as a whole

Using the eight targets for change model –
1. analyse the points where forces for change are impacting on an organisation
2. develop management responses to the forces or targets for change
identify performance indicators on which evaluation of management’s strategy can be based
5.7 Globalisation


• The globalisation of an industry occurs with the reduction of barriers to entry into world markets.
• There is increased competition between organisations in an industry on an international level.

Example: The world airline market is open to all airline operators and this has impacted on the Australian domestic air-travel market.


Barriers that can be reduced include tariffs, improved communication, rapid banking capabilities. (Also collapse of communism)
Improvements to information technology systems have huge impacts on how economies interact.

Globalisation = Global economic integration
Trade flows
Capital flows
Technology transfers
Information flows

The use of international benchmarks becomes essential when competing against multinational corporations rather than domestic competitors.
Outsourcing of work overseas also evident (ie. Call-centres in India fuelled by cheaper labour).

Internal targets –
• Management style, does the style and culture meet globalisation needs
• Facilities and technology, is the organisation equipped, facilities overseas
• Recruiting and training, international recruitment, training on international economies, languages
• Structures, what new structures need to exist to accommodate globalisation

[Baiku]

This is a little mini-summary... It goes through acronyms you should know and the "basics" to answer an exam in BM.

Management Styles:

Autocratic
• Decisions are made entirely by management
• Management simply informs staff of decisions made without consultation or persuasion
• Communication is almost entirely “top-down”
• Staff have little or no input in decisions made that affect them
o Advantages – efficient in times of change, quick response to dynamic environments due to no time in discussion
o Disadvantages – may lead to morale issues, doesn’t utilise the expertise of all staff members.

Persuasive
• Decisions are made by management and then staff are persuaded that they are the best option
• Requires a persuasive manager that can influence staff opinion
• Communication is almost entirely “top-down”
• Staff have no input in decisions, however they are persuaded to agree with them
o Advantages – efficient in times of change, quick response, less morale problem than autocratic style
o Disadvantages – management spends time trying to convince employees of decisions that are already made, doesn’t utilise staff expertise, morale issues may still exist

Consultative
• Management consults staff before making the final decisions themselves
• Utilises the skills of staff due to the consultation of employees
• Communication is “two-way”
• Management retains the decision completely, it’s still up to them
o Advantages – management utilises staff experience, management retains final decision-making power, staff feel more empowered due to consultation
o Disadvantages – time spent during consultation, management may still face morale issues when they “go against” staff

Participative
• Open discussion occurs and decisions are made as a group
• Management does not retain the overriding decision-making power of all other styles
• Staff are involved in decisions made
• Communication is “two-way”
o Advantages – staff feel empowered, morale-problems not created
o Disadvantages – a lot of time is spent deciding on things, management doesn’t retain decision-making power, not effective in industries of rapid or sudden change.


Management Skills:


Communication
Negotiation
Time management
Delegation
Decision-making and Problem-solving
Stress management
Emotional intelligence



Management Roles:

Planning – The process of deciding where a team, department or organisation is heading and how it intends to get there.

Exists at three levels: Strategic (3-5 years+), Operational (~ 1 year),
Front-line (short-term)

Use SADIM to develop and implement a plan.


Organising – The process of defining the relationship between staff and tasks, ensuring that all resources are working efficiently towards organisational objectives.

Establish the structure, assigning responsibility to staff, delegating authority, communicating between levels and departments.


Leading – The process of influencing staff to work towards organisational objectives.

Leading involves communication, negotiation, motivation, and the human capacity to have a vision.


Controlling – The establishment of ways to compare actual performance with planned performance.

Establishing performance standards, deciding on methods of performance review, measuring performance, reviewing levels of performance compared to planned performance.



Operations Management:


Elements – Inputs, Processes, Outputs

Four strategies to optimise operations – Facilities design & layout, Materials management, Quality management, Technology




Planning for and making decisions:


Problem solving:

DODDSE - Define the objectives
Outline the facts
Decide on the cause(s) of the problem
Develop several viable solutions
Select the preferred solution and implement it
Review whether the problem has been solved



Human Resource Management (Employment Cycle):


Establishment, Maintenance, Termination

Establishment
• Recruitment
• Selection

Maintenance
• Induction
• Training
• Development
• Performance Review
• Reward and recognition

Termination
• Retirement
• Resignation
• Dismissal
• Redundancy


Human Resource Managers are responsible for the management of the employment-cycle.



Human Resource Management (Industrial Relations)


Workplace Relations Act (1996)

Award – A set of minimum conditions and pay for employees of a certain industry and specific occupation

Enterprise Bargaining Agreement (EBA) –
A collective agreement by employees of an organisation regarding working conditions and remuneration, registered with the employment advocate.

Australian Workplace Agreement (AWA) –
Negotiated between individuals and employers and may contradict some award conditions, but presently must past no-disadvantage test.

Individual Contracts of Employment –
These contracts predominantly exist where there is no award in existence for a specific occupation, must follow all laws, is a common-law contract.



Change Management & Globalisation:

Driven by:
• Changing Markets
• New Technology
• Trend towards outsourcing
• Environmental issues

Restrained by:
• Organisational inertia
• Organisational insecurity
• Management procrastination
• Financial costs

Goal: ensure business survival and competitiveness.

Kurt Lewin:
• Unfreeze
• Change
• Refreeze

Kotter 8-stage:
• Establish the need for change
• Form a guiding team
• Create a positive vision
• Communicate the vision
• Empower staff to take action
• Plan for and celebrate progress
• Maintain change-momentum
• Institutionalise new behaviour


Globalisation- The reduction in trade-barriers that leads to the integration of national markets to form a “world-economy”. Globalisation is stimulated by developments to technology, especially communications infrastructure, as well as reductions to tariffs and trends towards outsourcing.


Ethical and socially responsible management:

When a person is behaving ethically, their decision-making and action show a concern for morality and personal principles. In the corporate context it includes acting in a socially responsible manner.

For the most part, ESM is automatic and intuitive.

ESM situations may exist in human resource management, operations management, marketing management, and financial management.

Human Resources:
Because HR involves dealing with people, ESM usually refers to the fair treatment of staff
• Recruitment and selection methods and practices
• Medical and psychological testing
• Pay and responses to employee-relations
• Training and promotion (equal opportunity?)
• Health and safety (including bullying)
• Privacy and confidentiality practices

Operations:
Issues arise in relation to responsible treatment of the natural environment, relationships with suppliers, and who suppliers are.
• Suppliers exploit workers or abuse human rights
• Suppliers are not environmentally concerned


Marketing Function:
Issues arise in regard to methods of promotion and advertisement of products, particularly in regard to honest advertising.
• Honest advertising
• Product safety and security
• Response to customer complaints
• After-sales service
• Price-setting
o Elimination of competitors (Jet-Star)

Accounting Function:
• Accounting and financial practices
• Independence of auditors
• Public disclosure
• Remuneration of executives and directors
• Protection of employee entitlements (superannuation)

CONFLICTS OF INTEREST – Often arise between stakeholders in regard to ethical and socially responsible management and the extent that it determines courses of action.


Acronyms:

Management Roles:
• POLC – Planning, Organising, Leading, Controlling

Planning:
• SADIM – Setting out objectives, Analysing the present situation, Developing and evaluating alternatives, Implementing the plan, Monitoring and reviewing results.

Analysing the present situation:
• SWOT – Strengths, Weaknesses, Opportunities, Threats

Kotter’s 8-stages of change-management:
• ETVVSPMC
o Establishing the need for change
o Creating a guiding team
o Creating a positive vision
o Communicating the positive vision
o Empowering staff to implement the change
o Planning for and celebrating progress
o Maintaining positive-change momentum
o Conserving the new corporate culture and evaluate

Decisions-Making:
• DODDSE – Define the objectives, outline the facts, determine the cause(s) of the problem, develop several solutions, select the preferred solution and implement it, evaluate the solution to the problem.

Operations Management Facilities design & layout:
• PVASL – Product selection, Volume, Activities, Space, Layout

Operations Management Technology:
• CAD – Computer-Aided Design
• CAM – Computer-Aided Manufacture
• FMS – Flexible Manufacturing Systems
• EDI – Electronic Data Interchange (data exchange)

Operations Management Materials:
• MPS – Master Production Schedule
• MRP – Materials Requirements Planning
• JIT – Just-In-Time
• CAPM – Computer-Aided Production Management

Operations Management Quality:
• QC – Quality Control
• QA – Quality Assurance
• TQM – Total Quality Management

[njlw]

wow, thank you so much for going to the trouble of putting your notes up, it's really helpful of you

[fatboynotsoslim]

Indeed, thanks for your notes Baiku
.

[jeddie76]

thanks a lot man, this is going to help a load

in regard to the bits you say are missing, i'm hopefully going to make something like this up as well, so any bits i find, i'll post up as well

[AppleXY]

man these notes are gold

thanks alot Baiku, cheers Kudos to your efforts.

[decimated.dream]

whoa sweet .. thanx for the notes dude .. im sure they'll b really helpful to many of us ..

[Odette1990]

hey thanks heaps for you notes, helps clear up some areas i had trouble with, so thanks once again

[jeddie76]

I think someone should pin this, if the OP is up for it.

[moshmosh]

hey thanks so much -saved ALOT of time for alot of people! cheers!

[anastasiastarz]

Thanx ^^

[Star7]

Message me for practice sacs and exams and stuff

[Axel8100]

Great sharing...
Thanks for sharing this....