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VCE Business Management Notes 2011

- Technology: communications, innovation in production - Legislation: OH&S, environment EXAM TIP: Do not use the acronym SADIM in your answers; instead ensure you use full sentences! 2. Organising: The coordination of an organisations human, physical and financial resources to get the results it desires. 3. Leading: The process of influencing staff to do what an organisation, department or team wants done. The following qualities are essential in a successful leader: - Interpersonal skills involving dealing or liaising with employees - Informational qualities involving gathering information and statistics - Decision making qualities referring to the success and swift implementation of decisions. 4. Controlling: The process of establishing ways of comparing actual performance with planned performance to take corrective action if necessary. The process of controlling: Benchmarking: Identifying a standard to meet within the organisation Determine methods of measuring performance Measure actual performance Compare actual performance with intended performance Take corrective action if necessary Review performance standards

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VCE Business Management Notes 2011

UNIT 3: Area of Study #3 The Operations Management Function Key knowledge The operations function and its relationship to business objectives and business strategy; Characteristics of operations management within large-scale manufacturing and service organisations; Key elements of an operations system (inputs, processes and outputs) in different types of large scale organisations; Productivity and business competitiveness, their importance for and impact on the operations system; Strategies adopted to optimise operations, including: Facilities design and layout Materials management Management of quality Extent of the use of technology; Ethical and socially responsible management of an operations system. The Operations Function and its relationship to business strategy and objectives - Operations describe an organisations main areas of production or reasons for being in business. Its tasks are to transform inputs (or resources) into goods or services available for consumption. - Operations are essential to business objectives as it is the central area which supports the organisations objectives and strategic outlook. Typical objects include greater profit and market share, both heavily dependant on efficient production in operations. Therefore, a desirable good or service produced efficiently is important to an organisations financial success as a strong demand from consumers will benefit revenue and assist in the achievement of these objectives.

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VCE Business Management Notes 2011

TERMINATION PHASE There are 4 main ways in which the employment cycle is terminated. 1. Retirement: The decision of an employee to cease paid employment. HR should monitor those likely to retire to implement a succession plan. Management should offer pre-retirement counselling and training on matters such as superannuation, pension and use of time to ensure an easy transition is achieved for the employee. 2. Resignation: The voluntary decision of an employee to end the employment relationship. HR should conduct an exit interview as to why the employee has chosen to leave in order to minimise future job turnover. 3. Dismissal: Action taken by the employer to terminate the employment relationship because of poor work performance or unacceptable behaviour by the employee. It can fall under due process, in which an employee is given multiple official warnings for unsatisfactory performance, or it can be summary, in which an employee has behaved highly inappropriately, such as being under the influence of illegal drugs. 4. Retrenchment: Results from a person being surplus to the organisations need for staff. Surplus workers are referred to as redundant. HR should offer redundancy packages to ease workers into unpaid life, as well as recommend employment agencies in which they can find another job.

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VCE Business Management Notes 2011

Key principles of the Kotter theory of change management 1 Create the urgency for change: This can be expected to arise from threats or opportunities for the organisation. Management should stress the necessity to undertake change for the sake of business competitiveness. 2 Form an influential leading team: A team capable to work together to ensure change is achieved swiftly and thoroughly. 3 Create a vision for change: Management should create an ultimate goal to be achieved to provide direction and motivation for employees to help bring upon change. 4 Communicate the vision: Staff need to share the vision and understand how the vision is to be attained. This includes the influential leading team setting an example of new behaviour to other employees. 5 Remove obstacles: Management should give staff confidence in the direction of the change and encourage behaviour that supports the change. Risk taking should be particularly encouraged while old structures and procedures hindering change should be removed. 6 Create short-term wins: Due to often long and drawn out nature of the change process, management needs to build stages into its plans where progress can be observed and measured. All involved should be recognised or rewarded to ensure similar progress continues. 7 Build on change: This step beds down improvements by supporting them with resources. New projects or themes can be introduced to reinvigorate the ongoing change process. Involving teamwork in this phase is particularly helpful for employees. 8 Anchor the change in corporate culture: Management needs to emphasise the link between the changes made and its influence on future organisational success. The aim is to provide a corporate culture which fully supports the new behaviour.

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