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VCE Unit 3 - Business Management - AOS 2a
Transcript of VCE Unit 3 - Business Management - AOS 2a
Chain of Command
Vertical Management Structure
Span of Control
Division of Labour
(cc) image by anemoneprojectors on Flickr
Used by corporations with a range of products or services.
Communication top down
Communication by consensus
The way in which parts of an organisation are formally arranged to achieve objectives. The structure must assist in reaching organisational goals
Determines responsibility, supervision and accountability of members of the organisation. Vertical lines of authority within an organisation hereby instructions and authority are passed down the organisation through each level.
Indicates the number of people for whom a manager is directly responsible for.
The division of labour refers to the way tasks and duties are set out within an organisation. Organisations group together tasks to form a job. Some more traditional or centralised structures have highly specialised tasks and division of labour and tasks.
Horizontal Management Stuctures
Function Management Stucture
Divides employees by their functions.
Defined career pathway for employees.
Efficient use of resources.
Specialist in charge of each functional area.
Expertise ensures high productivity and work practices.
Issues can be solved within functional areas.
Lack of flexibility
Narrow departmental focus instead of on the wider scheme of things, for the whole organisation.
Empire building may occur.
Slow response to changes in the environment due to the separation of functions.
Expertise on the division is greater.
Encouragement of cooperation between departments.
Greater flexibility in adapting to changes in the market and environment, quicker response time.
Specialists in each area.
Reduced benefits for corporation as work may be doubled up between divisions.
Rivalry between each division.
Difficulties in communication are more obvious.
Good communication between departments.
Enhanced decision making.
More skills can be learnt.
Control is decentralised.
Horizontal and vertical career paths.
Undermines the authority and challenges the principle of unity of command.
Bringing specialists from different parts of the organisation based on the functions that they perform.
Creates a grid over the existing structure.
Team approach to different projects.
greater organisation focus, rather than purely a functional focus, which means employees, will strive to achieve both function specific and organisation –wide objectives
P - Planning
O - Organising
L - Leading
C - Controlling
1. Identify an issue
2. Analyse business environment (SWOT)
3. Consult stakeholders
4. Develop new policy
5. Prepare draft
6. Revise policy
7. Approve and distribute policy
8. Monitor policy
High level written statement
Broad framework for an organisation’s rules and regulations
EG: Ave Uniform Policy
Detailed and written statement
Describes the steps required to achieve the polices.
EG: Demerit Card
Corporate culture refers to the shared values and beliefs within an organisation. They can influence the management style, communication within the organisation and the working relationship amongst staff
What an organisation says they are
Expressed in mission and vision statements sometimes in slogans
Predominately stated to serve as a public relations tool.
EG: Australia Post: "Delivering more than ever"
EG: Woolworths: "The fresh food people"
What the organisation is really like
Usually unwritten but indicators can be found within an organisation:
EG: The way the employees dress and the language they use.
Relationship between staff
Attitudes towards mangement
Changing or developing
Staff are highly motivated
Productivity levels are high.
Low levels of staff turnover. Staff are loyal.
Positive staff relationships.
Morale is high with employees experiencing high job satisfaction.
Achieving organisational objectives
Employees have little to no job satisfaction.
High absenteeism rate and staff turnover.
Low morale with staff experiencing workplace conflict.
Strong Corporate culture
Weak Corporate culture
Training and development - Inductions
Appraisals or "Employee of the month" Awards
Rituals - social gatherings
New employees / managers
Change management style
Alter priorities Eg: budgets
Change style of dress or language.
LEVELS OF PLANNING
Arranging resources to meet organisational objectives
Determining what is needed to meet objectives (time, resources, materials, labour)
Establishing a positive work environment
Communication among different staffing levels and departments.
Self disciplined and able to lead by example
Be less controlling and strive for integration
Work collaboratively and share decision-making and authority
An excellent communicator
Work well in a team
Directing and coordinating tasks and/or motivating staff towards the achievement of the organisation’s objectives. Modelling appropriate behaviour and establishing goals and expectations of staff.
Monitoring and evaluating performance and processes and taking corrective action to ensure that the set objectives are achieved.
Comparing actual performance with planned performance
E. Establish standards
M. Measure performance
M. Make changes
level (long-term) planning – for three to five years. Top Management, concerned with long-term objectives and the direction of the organisation. EG: Introduction of new products.
level (medium term) planning – one to two years. Middle management, linked to strategic plans. Function heads with work to develop a plan within their division to achieve this. EG: Finance - budget for new product and marketing. Marketing - develop new marketing plan. R & D - research new market and possible new products.
level (short-term) planning – day to day, month to month. Lower level management with direction of higher levels of management. EG: Supervisors will schedule production of the new products.
1. Define the objective
2. Get the facts - Analyse the environment (or situational analysis) SWOT (Strengths , Weaknesses (internal) Opportunities, Threats (external)
3. Develop alternative strategies
4. Implement one of the strategies
5. Monitor and seek feedback
Planning is the process of setting objectives and deciding on the methods to achieve them.
Formulating vision and mission statements.
It is often referred to as the primary management role.
It provides the key to short-term and long term success of the organisation.