201

11
Assess
sment
Rep
port
2011

Businesss Management GA
A 3: Exam
mination

GENERA
AL COM
MMENTS
Most studentts answered alll questions onn the 2011 Buusiness Managgement examinnation and wrote thorough answers.
a
Many studennts were familiiar with the coourse content and had learnned key terms,, definitions annd theories, which
w
they
were able to incorporate in
nto their answ
wers.
me students often
o
simply reelayed their knnowledge withhout addressinng the questioon being askedd. Applicationn
However, som
of key knowlledge to the caase study material continuees to be a probblem, with man
ny students beeing either tooo general or
not referring to the materiaal at all.
Question 1a.
0
Marks
1
Average
0.7
%
31
69
Corporate cuulture is the shhared values annd beliefs of the
t people of the
t organisatio
on. It can be official
o
(writteen) or real
(unwritten).
This questionn was generallly well answeered, with mosst students beiing able to exp
press a clear understanding
u
of corporate
culture. Som
me students useed an examplee to assist theirr explanation,, although studdents need to ensure that thhe example
supports the answer and iss not the basis of it.
The followinng is an examp
ple of a high-sscoring answeer.
Corporatee culture refers to the shared values and belief
efs which are heeld within an orrganisation. Theey can influence the
managemeent style, communication withiin the organisattion and the woorking relationsship amongst staaff.

Question 1b
b.
Marks
1
2
Averaage
0
1.1
%
32
30
38
Methods thatt can be used to
t develop an organisations corporate cuulture include:
trainning and deveelopment
prom
motion
apprraisals
empploy externallyy
channge managem
ment style
alterr priorities succh as budgets
channge style of drress and languuage.
This questionn required stud
dents to descrribe a method that managem
ment could usee to develop corporate
c
cultuure, including
an explanatioon of how thiss would happeen. Many stud
dents were ablee to identify a method but did
d not go on to
t explain
how it mightt develop corpporate culture. The questionn asked for onlly one method
d, but a numbeer of students listed more
than one andd did not addreess the other parts
p
of the question. As a ggeneral rule, iff only one metthod is asked for,
f only the
first method stated in the response
r
will be
b marked.
The followinng is an examp
ple of a high-sscoring answeer.
One way that
th managemennt can develop corporate cultuure is through rituals.
r
This involves managem
ment establishingg social
gatheringss and developin
ng habits which are unique to the
t organisationn. If managemeent develops rituuals, employeess will feel
valued as they are part off the organisatiions customs annd behaviours. This
T can lead too a much more positive
p
corporrate culture.

Question 1c..
Marks
1
2
3
4
Average
0
%
1.7
28
17
28
17
11
In comparisoon, both theoriies have higheer-level and loower-level neeeds. Herzbergs hygiene facctors are simillar to
Maslows phhysiological annd safety factoors. Herzbergs motivationaal factors or saatisfiers are siimilar to Masllows higherBusiness Managgement GA 3 Exaam

VICTORIAN CURRICULUM AND

A
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level needs of
o social, esteeem and self-acctualisation. The
T key differeence is that Maslow
M
believees that the low
wer-level
needs will stiill motivate, while
w
Herzbergg does not. Heerzberg says if these lower--level needs arre met the em
mployee is not
motivated, thhey are simplyy not dissatisfiied.
It was pleasinng to see that most studentss had an underrstanding of both
b
motivatioonal theories. However,
H
the question did
not ask for ann explanation of them, it asked students to
t compare annd contrast thee two theories. Many studennts simply
explained booth theories, which
w
did not address
a
the quuestion. Studennts are remind
ded to answer the question that
t has been
asked.
The followinng is an examp
ple of a high-sscoring answeer.
Maslows and Herzbergss theories of mootivation both are
a concerned with
w how to incrrease motivatio
on of staff, whicch is the factors
n individual to pperform at theirr best. Maslows theory of mottivation states thhat there are 5 stages of
or practicees that drive an
needs thatt need to be satiisfied in order. These range froom extrinsic or lower order neeeds such as phyysiological andd safety and
security neeeds to higher order
o
intrinsic needs
n
such as social,
s
esteem and self-actualissation needs. Whereas
W
Herzberrg suggested
that there were only 2 typpes of needs andd that motivatio
on and dissatisffaction were creeated by separaate factors. Similarly to
Maslow hee identified extrrinsic needs (hyygiene factors) such
s
as pay andd job security and
a conditions, however, he staated that these
would onlyy provide no disssatisfaction annd would not mo
otivate staff. Thhis is contrasted
d to Maslows theory,
t
becausee he stated that
extrinsic nneeds acted as motivators
m
and were essential. Herzberg belieeved that in ordder to motivate staff,
s
intrinsic needs
n
needed
to be satisffied (motivationn factors) whichh consisted of sense
s
of achieveement and recog
gnition. This is similar to Masslows higher
order needds such as self-aactualisation. Herzberg
H
only highlighted
h
2 neeeds yet Maslow
w identified 5 an
nd Maslow beliieved that
extrinsic fa
factors could mootivate yet Herzzberg disagreedd.

Question 1d
d.
Marks
1
2
3
4
Average
0
%
1.9
22
15
33
11
20
Performancee indicators thaat could be used to measuree staff morale include:
leveel of staff turn
nover
leveel of staff abseenteeism
leveel of staff satissfaction as meeasured by thee results of a staff survey.
The questionn required studdents to descriibe the perform
mance indicattor and then ju
ustify its use inn measuring staff
s
morale.
For example, a measure off staff morale is staff turnovver. Staff turnover measures the number of employees who leave
u
a yearr. Staff turnovver measures staff
s
morale ass employees who
w are
an organisatiion over a periiod of time usually
unhappy (witth low moralee) tend to lookk for jobs in otther organisatiions, so if the level of staff turnover is hiigh it
suggests low
w staff morale.
Many studennts were able to
t determine appropriate
a
peerformance inddicators but diid not describee the measuree or justify
how it mightt measure staff
ff morale. It is worth noting that the perfoormance indicator chosen haad to be a direect measure
of staff moraale to be accep
ptable in this case.
c
Many stuudents chose a performancee indicator thaat had an indirrect or distant
link to moralle, such as maarket share or customer
c
com
mplaints, and thhis was not acccepted.
The followinng is an examp
ple of a high-sscoring answeer.
A performance indicator is a device usedd to measure thhe effectiveness and efficiency of an organisattion.
One perforrmance indicattor that a HRM may use to meaasure staff moraale is the level of staff absenteeeism. This meaasures the
number off employees oveer a period of tim
me who take tim
me off work. A high
h
number maay mean employ
oyees are not haappy with
conditionss within the worrkplace and mayy indicate low staff
s
morale. Whereas
W
little ab
bsenteeism may indicate staff are
a satisfied
with their position.
p
A second performance
p
inddicator that a HRM
H
may use too measure stafff morale may bee the level of staaff turnover. Staaff turnover
measures tthe number of employees
e
leaviing an organisaation. A high nuumber may indiicate that staff morale
m
is low annd that they
are unsatissfied with theirr job and workinng conditions and therefore leaave the organissation. A low nuumber may indiicate staff
morale is positive
p
and em
mployees are hap
appy with their workplace
w
condditions.

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Question 1e..
Marks
1
2
3
4
5
6
A
Average
0
%
3.6
4
7
14
20
25
18
12
Induction is tthe orientation
n of new stafff into the organnisation. It inttroduces them
m to policies, key
k staff, physsical facilities
and how the organisation operates.
o
An effective
e
inducction program
m will increasee confidence, improve
i
produuctivity and
ng in the likellihood of the employee
e
establish goood working rellationships beetween employyees and emplloyers, resultin
remaining wiith the organissation long terrm.
Training is thhe skilling of staff to enablee them to perfform their rolees more effectively. Developpment is similar but with a
forward-lookking focus. Thhese both lead to increased staff
s
motivatioon and allow an
a employee to
t see a careerr path within
the organisattion. Both impprove productiivity and flexiibility due to the
t multi-skillling of staff.
This questionn was well hanndled by studeents. Most weere able to dem
monstrate a cleear understandding of inducttion, and
training and development. However, as in other partss of the examinnation, many students strug
ggled to address the latter
m to discuss how
h these pracctices assistedd in managing staff effectively.
part of the quuestion, whichh required them
ple of a high-sscoring answeer.
The followinng is an examp
Induction refers to all thee processes unddertaken by Souuthern Industriees to introduce employees
e
to ann organisation. Induction
programs can give new staff a sense of belonging
b
and give
g the organissation an opporrtunity to conveey its organisatiional values
B explaining what
w
is expectedd of employees during the proccess of an inducction, it assists in the
and moralls to new staff. By
managemeent of staff by outlining employyees responsibbilities. In this way,
w employees have a clear seense of what is expected
e
of
them and cconsequently, will
w reach expeccted performancce levels more quickly.
q
An ind
duction program
m may also incluude being
introducedd to existing emp
mployees and waatching a video about the orgaanisation. This can
c be done to reflect a positivve image of the
organisatiion to new emplloyees meaningg they harbour higher
h
levels off morale from an early stage.
Training rrefers to the proocess of providiing employees with
w the requireed skills and kno
owledge to perfform a task. Deevelopment can
also be imp
mplemented, whiich is the process of providing employees withh the knowledge required to addvance in the organisation
and increaase their responnsibilities. By giiving staff the opportunity
o
for growth
g
and inccreased knowleddge, employees are likely to
feel valuedd within the orgganisation. It caan lead to increeased motivationn and consequeently increased productivity
p
levvels. Hence,
through thhese training annd developmentt programs, whiich may includee on the job menntoring, watching an educationnal workplace
video, or aattending an extternal conferennce, managemen
nt encourages its
i employees too reach their cap
apabilities and strive
s
towards
the attainm
ment of organissational objectivves, hence, improving Southerrn Industries management
m
of its
i staff.

Question 2a.
1
2
3
4
Average
Marks
0
%
2.1
13
20
26
24
17
Positive conttributions inclluded significaant job creatioon, need for innfrastructure, research
r
and development,
d
more likely
to export andd benefits from
m economies of
o scale.
Negative conntributions inccluded significcant carbon em
missions, anti--competitive behaviour
b
such as price fixiing,
outsourcing tto overseas coountries, impoorting raw matterials and dow
wnsizing resulting in job losses.
This questionn was reasonaably well handdled by most students.
s
Manyy students werre able to idenntify both posiitive and
negative conntributions of large-scale
l
orgganisations to the economy. However, th
hey often did not
n address hoow these had
an impact onn the economyy. To answer thhe question fu
ully, students needed
n
to adddress the beneffit or negativee impact on
the economyy. Students sho
ould ensure thhat they also taalk about largee-scale organiisations in thiss context. For example,
most organissations providee employmentt, but what disstinguishes larrge-scale orgaanisations is thhat they provide a
significant am
mount of emp
ployment becaause of their siize.
The followinng is an examp
ple of a high-sscoring answeer.
One positiive contributionn of LSOs to the economy is em
mployment - LSSOs employ around 33% of thhe workforce in Australia.
This leads to increased em
mployment ratees which in turnn means people have more monney to spend. People
P
spend moore and the
nding and hiringg more people this has a muultiplier effect thhroughout the economy.
e
Becauuse of their
businessess do well, expan
large reveenue LSOs are more likely to undertake
u
reseaarch and develoopment. The kno
owledge gainedd is used by LSO
Os and
smaller buusinesses to create new produccts and new wayys of doing thinngs. This enablees them to sell more
m
contributinng to higher
levels of gross
gr
domestic product
p
(GDP).

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port
LSOs cann often outsourcce parts of theirr manufacturingg or processes overseas.
o
This means
m
less jobss in Australia annd more
payments ggoing out whichh detracts from
m the Australian economy and can
c lead to a cuurrent account deficit
d
in Austraalias balance
of paymennts. LSOs can also
a cause damaage to the envirronment througgh their activitiees e.g. pollutionn. This not only damages the
environmeent but can reduuce productivityy and can cost in
i terms of repaairs which may be necessary.

Question 2b
b.
Marks
1
2
0
%
38
13
9
The steps in the planning process
p
are:
1. defiine objective
2. deviise strategies to
t achieve objjective
3. seleect preferred option
o
4. impplement strateggy
5. evalluate (modify if necessary)..

10

21

Average
2

Many studennts struggled with

w this questtion. Some stuudents confuseed the question with the levvels of planninng (strategic,
tactical and operational).
o
W
While
this wass accepted it still
s required students
s
to sho
ow that there was
w a process,, so there
needed to be links between
n the three levvels, which maany students did
d not discusss. Other studeents only discuussed the
b forms partt of the first sttage of the plaanning processs.
SMART prinnciples, whichh is not a plannning process but
The followinng is an examp
ple of a high-sscoring answeer.
Planning rrefers to defininng objectives annd determining strategies to acchieve these objjectives. The pllanning processs consists of 5
steps.
The first sttep is to define objectives, whiich involves outtlining what thee organisation wants
w
to achieve compared to competitors
c
and wheree in the market it
i wants to be. The
T next step iss to outline the facts.
f
This is doone by analysing
g the environment and can be
done usingg a SWOT analyysis. This consiists of determining and examinning the organissations internall strengths and weaknesses
and externnal opportunitiees and threats. Step
S three is deevelop alternativve strategies, which
w
means dettermine possiblle ways of
achieving the objectives, for
f example neew policies, rew
wards or trainingg. Then it requiires managemeent to select andd implement
one strateggy. This involvees identifying thhe most approprriate strategy thhat is most effecctive and puttinng it into actionn. Finally, the
last step iss to monitor andd evaluate the strategy
s
decidin
ng if objectives are being met and
a taking corrrective action iff not.

Question 2c..
Marks
1
2
3
4
5
Average
0
%
1.8
37
12
15
15
12
8
The most apppropriate layo
out for the mannufacture of fuurniture is thee process layouut, where the facility is arraanged so that
equipment annd workstationns are groupedd together acccording to theiir function or the task they carry out. Furrniture
manufacturinng will requiree the use of larrge tools or im
mplements thaat may need to
o be fixed to thhe floor or bennch, and
therefore havve limited or no
n mobility. The
T inputs willl need to be brrought to these stations to have
h
work com
mpleted on
them.
Product layout is where th
he facility is arrranged so thaat equipment and
a workstatio
ons are in a lin
ne in order to provide
p
a
sequence of sspecialised tassks. The manuufacture of furrniture usuallyy involves maaking a standarrdised producct in large
volumes. Thiis is best suiteed to a production line proceess.
ut strategies are process layyout, product layout
l
and fixed position laayout, and thesse were the
The three dessign and layou
only three strrategies acceppted. Describinng the decisio
on-making proocess about thee geographicaal location of the
t facility is
not a design and layout strrategy and was not accepted
d. Many studeents confused the
t names andd features of thhese layouts
by naming thheir preferred choice as a prrocess, for exaample, but theen described th
he product layyout. Often thee justification
for the preferrred layout waas also weak. While it is not essential forr students to have an in-deptth understandding about
how furnituree is manufactuured, there needed to be an attempt to linnk the preferreed layout to thhe manufacturiing of
furniture. Thhe most successsful responses were able too link the needd to manufactu
ure a standard
dised product iin large
numbers to thhe product lay
yout or the neeed to manufaccture differentt types of furnniture to the prrocess layout.
The followinng is an examp
ple of a high-sscoring answeer.
Fredas fuurniture manufaacturing company would be beest suited to the Process layoutt. The process la
ayout is where similar
functions aare grouped toggether in work cells
c
and produucts move from cell to cell as each
e
stage of prroduction is com
mpleted. This
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201
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enhances ccooperation and communicatioon between dep
partments and allows
a
flexibilityy to adjust prodducts to suit cusstomer needs.
For exampple, there couldd be work cells in
i Fredas comppany such as thhe measuring annd cutting cell, the assemblingg cell, the
rendering cell and the paainting cell. Eacch item of furnitture would be trransported betw
ween cells afterr each stage is complete.
c
The
hy the process la
ayout would be best suited for manufacturingg furniture is so that each specific item can eaasily be
reason why
customisedd to meet custom
mer demands because
b
furniturre is not a standdardised producct. This processs therefore incrreases
productiviity and allows for
fo better comm
munication and cooperation
c
bettween cells. Alsso, the whole prroduction line does
d
not need
to be shut down if there are
a problems in one cell, increa
asing productivvity.

Question 2d
d.
Marks
1
2
3
4
5
6
A
Average
0
%
2.5
23
12
15
17
15
10
8
Inputs are huuman skills an
nd effort, raw materials,
m
faciilities, machinnery and equip
pment. Ethicall and socially responsible
managementt practices at th
his phase incllude fair dealinng with suppliers, using envvironmentally
y sustainable innputs, supply
of inputs from
m ethical and socially respoonsible suppliers, staff-frienndly facilities and technolog
gy, and minim
mising the use
of energy as an input.
Processing iss the transform
mation stage thhat inputs und
dergo to becom
me outputs. Etthical and socially responsibble
managementt practices incllude respectfuul employmen
nt practices, OH
H&S, custom
mer relations annd appropriatee disposal of
waste.
Outputs are tthe finished go
ood or servicee provided by the organisatiion for sale. Ethically
E
and socially responnsible
practices incllude honest marketing,
m
prodduct reliabilityy, product saffety and custom
mer health, beenefit to society and
sensitivity too community values.
v
Successful sttudents often started
s
their reesponse by deefining the keyy terms they would
w
address in their answer; this
practice is enncouraged. Hoowever, in som
me cases this caused
c
studennts to have diffficulties with this
t question as
a many
started their aanswer by deffining inputs, processes, outtputs, ethics and
a social respponsibility, theen gave exampples of each.
In many casees this formed
d almost half of
o the answer and
a did not diirectly answerr any part of th
he question assked.
This questionn was generallly poorly answ
wered, and it seemed
s
that many
m
students struggled to think
t
of effectts of ethical
and socially rresponsible management
m
prractices for alll three elemennts. Often stud
dents simply reiterated
r
the same
s
impact
for all three. Many successsful responsess were able to link the businness of the furrniture manufaacturer to eachh of the three
stages and prrovide appropriate examplees, which furthher demonstraated their undeerstanding.
The followinng is an examp
ple of a high-sscoring answeer.
Social respponsibility referrs to commitmeent to society beeyond legal obliigations and eth
hics refers to deeciding what is right and
wrong in tterms of moral standards.
s
Inpuuts refer to mateerials used in production
p
suchh as nails, woodd, time and monney. Being
ethical andd socially respoonsible with thee use of inputs could
c
include puurchasing from
m socially responnsible supplierss that do not
exploit or purchasing
p
envvironmentally sustainable mateerials. This wouuld mean that in
nputs are more expensive but w
would also
result in inncreased custom
mers and markeet share. Processses refer to traansforming resoources (inputs) into goods andd services
(outputs) bbeing ethical annd socially respponsible in proccesses could invvolve reducing waste
w
by recyclling, changing disposal
d
of
waste methhods and reduccing pollution inn processes. This may mean sloower productio
on but will increease profit in thhe long run.
Outputs reefer to the final outcome, whatt the customer pays
p
for. Being socially responnsible with outpputs could meann ensuring that
products aare reliable, fit for
f their stated purpose and beenefit society inn some way, witthout causing harm
h
to customeers. This could
involve quuality management such as quaality control wh
hich could slow down productivvity because it is time consumiing but since
customers often prefer buuying from thesee organisationss it will result inn increased cusstomers, sales, market
m
share annd
p
competitivveness. Thereforre being ethicall and socially responsible leadds to increased profitability.

Question 2e..
Marks
1
2
3
4
Average
0
%
1.7
24
24
27
16
10
OH&S is thee responsibilityy that employyers have to ennsure that the workplace
w
is safe
s for emplooyees and thatt all possible
steps are takeen to minimise harm. Fredaas employees will expect her
h to commun
nicate clearly and
a immediattely to
minimise dannger, and to prrovide approppriate training to ensure theyy know how to work safely
y.
Job security is the belief thhat the employyee will not lo
ose their job either through being made reedundant or being
nt relationship enough to develop
d
a
dismissed. Frredas employyees will needd to feel some stability in the employmen
relationship w
where employyees believe thheir efforts wiill be rewardedd. This fosterss a supportive culture wheree employees
are prepared to contribute more than a minimal
m
effortt.
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Many studennts found this question
q
difficcult, mainly because
b
they seeemed to be unsure
u
what thhe question waas asking
them to do. C
Consequently,, many studennts simply wroote about emplloyee expectattions. The queestion, howevver, was
asking studennts how Fredaa would need to
t address theese expectationns, so it requirred students to
o explain
procedures/ppractices she would
w
need to put in place to
o meet those expectations.
e
Successful ressponses talkedd about her
need to meett legal requirem
ments for OH
H&S, to train staff to be safee and provide posters/signag
p
ge to remind staff
s
of the
importance oof workplace safety.
s
They thhen talked abo
out the need too establish con
ntracts of empployment and to operate
her business in a way that would ensuree its success, which
w
would lead to greaterr job security.
The followinng is an examp
ple of a high-sscoring answeer.
Employeess expect that orrganisations proovide workplaces which abide by occupationaal health and saafety requiremeents. Freda willl
need to ennsure that her workplace
w
is OH
H&S compliant and may even want
w
to ensure it exceeds thesee requirements. Freda, due to
w need to insppect recent legisslative changes in the OH&S leegislation to therefore confirm
m that
employee eexpectations, will
employeess are safe and exxpectations aree met.
Freda neeeds to ensure thaat employees feeel as though their jobs are nott at risk. This innvolves Freda having
h
to guaraantee that
ditions, lower overseas wages, or technologiccal advances. Freda
F
will need
employeess will not be retrrenched due to economic cond
to form a hhuman resourcees plan which considers
c
supplyy and demand oof labour and future
fu
employee needs to ensurre employees
have job security.

Question 2f..
Marks
1
2
3
4
Average
0
%
2
20
16
26
17
20
Negotiation iis a process off discussion annd bargainingg between twoo or more peop
ple, with the aim
a of resolvinng conflict
and arriving at a mutually agreeable outtcome. At the commencemeent of her busiiness Freda will
w need to neggotiate with
suppliers aboout the provisiion of inputs and
a her new em
mployees aboout the terms and
a conditionss of their emplloyment.
Decision makking is the proocess of identiifying the optiions availablee and then chooosing a speciffic course of aaction.
Freda will neeed to make deecisions about the factory, types
t
and amoounts of furnitture to manufa
facture, machinnery and
equipment too purchase, lin
nes of authoritty, layout of thhe factory, etcc.
Time manageement involvees the ability to
t prioritise taasks, set deadliines, review progress
p
and delegate.
d
Fredaa will
inevitably bee busy and as a result will need to prioritiise tasks and meet
m deadliness to ensure bu
usiness objectiives are met.
Delegation iss the transfer of
o authority annd responsibillity from a maanager to an em
mployee to caarry out speciffic activities.
By delegatinng tasks Freda will be able to concentrate on the signifiicant responsibbilities and tasks without haaving to deal
with the less important ressponsibilities.
mmonly used skills cited byy students in their
t
responses were negotiaation, time maanagement, deecision
The most com
making, stresss managemen
nt and problem
m solving. It was
w good to seee other skills, such as technnical skills, annalytical
skills and vissionary skills, being utilisedd effectively. Students
S
weree able to identiify skills and explain them,, but they
struggled to rrelate them to
o the situation of establishinng a new businness. Students are encouraged to know more
m
than two
skills. This thhen will allow
w them to selecct the most apppropriate ones to meet the needs
n
of the question.
q
For example,
e
some studentts selected em
motional intelliigence. It is diifficult to justiify the use of emotional intelligence at thhe
commencem
ment of a busin
ness, and thereefore it was difficult for studdents who choose emotional intelligence to
t achieve
full marks foor this question
n. It is also suuggested that students
s
as parrt of their exam
mination prepparation createe definitions
for key termss that do not innvolve those terms
t
as the basis
b
of the deffinition. For example,
e
a num
mber of studennts defined
stress managgement as the management
m
o stress. Thiss is not an apppropriate descrription of that skill.
of
The followinng is an examp
ple of a high-sscoring answeer.
Negotiatioon refers to the process
p
of barggaining betweenn two or more people
p
to reach a desired outcome. As Freda will be
employingg over 250 peopple, she is involvved in human reesource managgement and as su
uch will be requ
uired to negotiaate enterprise
agreementts or individuall contracts of em
mployment if shhe uses a decenttralised approa
ach to employeee relations. Neggotiation would
be a key skkill to ensuring both herself annd her employeees were satisfieed with their connditions of empployment.
Freda wouuld need good time
t
managemeent skills, whichh involve priorittising tasks in order
o
to meet deeadlines. As Freeda would
need to ennsure all areas of
o the business were
w
ready to start
s
operating on the day of thhe opening of thhe business, tim
me management
is essentiaal to ensure the business can opperate upon opening.

Business Managgement GA 3 Exaam

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Assess
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Question 3a.
1
Average
Marks
0
0.9
%
17
83
A policy is a set of broad guidelines
g
to be
b followed byy all employeees when dealiing with impoortant areas off decision
making and aaction and mu
ust be consisteent with an orgganisations objectives.
a showed thhat students haad a good grassp of their glosssary definitioons for this
This questionn was very weell answered and
examination..
The followinng is an examp
ple of a high-sscoring answeer.
A policy iss a set of regulaations, rules andd procedures thhat essentially ggovern how an organisation
o
is run and operates. A policy
might be ddevised for anytthing, such as workplace
w
bullyying.

Question 3b
b.
Marks
0
1
2
3
4
Average
%
1.2
51
12
15
12
10
Both the centtralised and decentralised approaches
a
deaal with terms and condition
ns of employm
ment. Both usee awards as
the minimum
m terms and co
onditions of em
mployment fo
or an entire inddustry.
Differences include
i
that thhe decentraliseed approach has
h terms and conditions
c
of employment that
t are determ
mined at the
enterprise levvel while centtralised is for the
t entire indu
ustry. With the decentraliseed approach th
here is a strongger link
between prodductivity and terms
t
and connditions of em
mployment thann with a centrralised approach that does not
n have a
link. Decentrralised approaaches are moree flexible than
n centralised approaches.
a
oorly answeredd. Most studen
nts still have difficulty
d
undeerstanding thee differences between
b
the
This questionn was very po
approaches too employee reelations and have even more difficulty exxpressing an understanding
u
of them. The question
required them
m to highlightt the similarities and differeences betweenn both and man
ny students did not address this they
simply tried tto explain botth.
The followinng is an examp
ple of a high-sscoring answeer.
Up until thhe 1990s a cenntralised system
m was used whicch involved govvernments and trribunals settingg the wage deteermination for
different inndustries. In reccent times the aapproach to empployee relationns has become more
m
decentraliised with individdual
organisatiions bargainingg and negotiatinng with employeees at an enterpprise level. Simiilarities betweeen the two approoaches to
employee rrelations includde that both maake use of Awarrds, which set ouut the minimum
m pay and workiing conditions of
o different
industries.. However, in a centralised sysstem these awarrds were industtry-wide and weere used as the main type of wage
w
determination and contraact. However, inn a decentraliseed system the aw
wards are essenntially a safetyy net, acting ass minimum
standards,, yet ultimately they are supersseded by other contracts
c
such as enterprise bargaining apprroaches. Anotheer similarity is
that in botth systems unionns have played a vital role. In the centralisedd system unions were the catalyyst to improvingg working
conditionss and wages. Thhe decentralisedd system also inncorporates uniions as key playyers in enterprisse bargaining, however,
h
their
power hass diminished to a degree as conntracts are now
w made on an ennterprise level.

Question 3c..
Marks
1
2
3
Averagee
0
%
1.1
44
22
19
15
Manufactureed goods can be
b stored; servvices are consuumed as they are created. Goods
G
are tanggible; servicess are
intangible. G
Goods can be standardised;
s
s
services
are offten tailored. Goods
G
have minimal
m
custom
mer contact; services
s
have
high customeer contact.
This questionn was not veryy well answerred, despite maany students seeming
s
to hav
ve an understaanding of the differences
between bothh service and manufacturing
m
g industries. Itt is important to note that iff students are asked to outliine
differences thhen their discuussion must directly
d
show that
t there is a difference. Foor example, a manufacturinng business
creates an ouutput that is tan
ngible, while a service orgaanisation creattes an output that
t is intangibble.
The followinng is an examp
ple of a high-sscoring answeer.
Manufactuuring organisattions transform inputs into tanggible products that can be touched and stored
d, whereas servvice
organisatiions transform inputs
i
into intangible services.
Business Managgement GA 3 Exaam

Published: 222 February 2012

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Assess
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In a servicce, production and
a consumptioon usually occurr simultaneouslly, for example getting a hairccut, whereas in the production
of a good tthey are quite separate.
s
A service aallows for a higgh degree of cusstomer interacttion as it is oftenn tailored to a customers
c
needds, whereas a goood is often
standardissed and mass prroduced.

Question 3d
d.
Marks

Averaage

%
0.9
40
30
29
Low-risk praactices includee communicattion, empowerrment, work teeams and provviding supportt such as counnselling. The
benefits of thhese are that employees will feel secure and
a motivatedd while going through
t
a chan
nge process.
onses named a low-risk pracctice and then discussed how
w it would leaad to effectivee change
The most succcessful respo
managementt. For examplee, two-way communication allows emplooyees to ask quuestions and make
m
contribuutions to the
change proceess. By allowiing them to takke part they arre given a sennse of ownershhip of the chan
nges and conssequently this
reduces resisstance to the chhange. Howevver, many studdent responses to this questtion were far too
t general annd unspecific
in their approoach.
ple of a high-sscoring answeer.
The followinng is an examp
Low-risk sstrategies generrally refer to prractices used byy management that
t
are less likeely to cause anxxiety or fear in relation to
change. Soome examples include
i
using tw
wo-way communnication to disccuss changes an
nd also involvin
ng employees inn the change. A
benefit woould be that it buuilds trust and cohesion
c
betweeen employees and
a managemennt. Therefore reesistance and annxiety from
employeess are likely to bee reduced, whicch enhances effe
fectiveness of chhange managem
ment.

Question 4
0
1
2
3
4
5
6
7
8
9
10
Averaage
Marks
%
4.2
18
5
6
8
15
15
14
9
6
3
2
Stepp 1: create an urgency for chhange this arises
a
from thrreats or opporttunities and iss needed to maake the
busiiness more coompetitive.
Stepp 2: form a poowerful guidinng coalition this is a team that works toggether to mannage the changge process.
Stepp 3: create a vision
v
for channge this is thhe ultimate goaal of the proceess and should
d be motivatioonal.
Stepp 4: communicate the visionn staff need to share the vvision and havve some underrstanding of hoow it will be
achiieved.
Stepp 5: remove ob
bstacles and empower
e
others managem
ment should enncourage the behaviour
b
thatt supports the
channge including risk taking. Structures
S
and practices thatt hinder chang
ge have to be removed.
r
Emppowering
otheers focuses onn the relationshhip between management
m
a staff and thhe degree of involvement of
and
o the
empployees in the organisation. Training and developmentt may be necesssary.
Stepp 6: create shoort-term wins managemennt need to builld stages wherre progress can be observedd, recognised
and rewarded.
Stepp 7: build on the
t change old
o structures and practices that block furrther progress must be channged and
mom
mentum can be
b used to prodduce ongoing change.
Stepp 8: anchor thee change in thhe culture management
m
reinforces the liink between th
he changes annd future
succcess, promotinng a corporatee culture that supports
s
the new
n behaviourr. Addresses thhe internal tarrget for
channge of corporaate culture. It also suggests that ongoing change is neccessary, and crreating a cultuure within the
orgaanisation that recognises thee need for onggoing change is an impact.
Globalisationn is a significaant change issue that will im
mpact on the innternal enviroonment of an organisation.
o
O
Outsourcing
tasks overseaas will impactt on the structuure of the orgaanisation and its use of techhnology. It willl also impact on job
descriptions and job speciffications of em
mployees, it may
m alter workk teams, and itt may require greater coordination of
input of mateerials.
k
Kotters theory of chaange managem
ment and weree able to identiify some stepss in this
Most studentts seemed to know
process, althoough many lissted rather thaan explained thhem. Most stuudents also haad a significannt change issuee, such as
globalisationn, technology or
o mergers annd acquisitionss, or an organiisational exam
mple such as Linfox
L
or Qanttas, that they
were able to use in their reesponse. Howeever, many stuudents did nott discuss how the use of Kootters theory would
w
impactt
nt of an organnisation. Studeents should reaad the question carefully an
nd thoughtfullyy to make
on the internal environmen

Business Managgement GA 3 Exaam

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Assess
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sure they ideentify all elements of a multti-part question and respondd to each part appropriately. Students alsoo need to
ensure that thhe example is there to illusttrate their theo
oretical discusssion, not as thhe primary parrt of their respponse.
The followinng is an examp
ple of a high-sscoring answeer.
Kotters thheory of changee management outlines
o
a seriess of steps necesssary to undertaake to implemennt change succeessfully.
Toyota mooved towards beecoming environmentally sustaainable which impacted on thee internal enviroonment. Enviroonmental
sustainabiility refers to ussing the earths resources at a rate that can be replenished naturally
n
to meeet the needs of future
f
generationns.
To implem
ment this changee, Toyota used Kotters
K
theoryy of change mannagement. The first
f
step was too establish a sennse of
necessity. This involves exxamining the market
m
conditionns and the orgaanisations position in the markket and highlighhting the
ge. By outliningg the opportunityy or benefits off the change, em
mployees are mo
ore likely to suppport it. Toyotaa
importancce for the chang
did this byy using a SWOT
T analysis to higghlight its intern
nal strengths annd weaknesses and external op
pportunities andd threats.
Toyota alsso expressed hoow moving towaards environmen
ntal sustainabillity would resullt in greater perrcentage of marrket share and
increased pprofitability.
The next step of Kotters theory is to form
rm a guiding gro
oup. This involvves establishing
g a team of peopple with relativve respect and
ators by providding unobtrusivee assistance to help
h achieve ob
bjectives. Toyotta formed a susstainability
authority tto act as facilita
committeee which acted as
a facilitators. This
T committee consisted of booth employees and
a managers. The
T committee helped
h
other
employeess support the chhange.
The third sstep is to createe a vision. This involves highligghting where inn the market thee organisation is
i headed, its asspirations and
what it waants to become in
i relation to itss competitors. As
A well as identtifying strategiees to achieve obbjectives, aimingg to increase
commitmeent and coopera
ation among emp
mployees, Toyotaas sustainabiliity committee met
m monthly to discuss
d
strategiees and they
created thee vision to be the
t most admireed and respecteed company. This
Th provided em
mployees with guidance
g
for theeir behaviour.
The fourthh step is to comm
municate the vis
ision. This invollves using a num
mber of differennt communicatiion channels to notify as manyy
stakeholdeers as possible about
a
the changge. Toyota com
mmunicated the vision
v
by using
g an environmenntal report whicch outlined the
reasons foor the change (to
o become moree competitive) th
he advantages of
o the change (iincreased profitability) and hoow
stakeholdeers would be eff
ffected. Toyota also
a outlined thhe new vision ussing posters andd its website. Byy communicatinng the change
this reduceed fear for chan
nge by employeees and reducedd their resistancce for change, meaning
m
that it was more likelyy to be
successfull.
The effectiive use of Kotteers change mannagement theory
ry can cause chaanges to the intternal environm
ment, for exampple, changing
Human Reesource Manageement and mannagement styles as well as corpporate culture. This is becausee a new vision and
a new
objectives are put in placce which affectss the policies annd procedures of an organisatiion and thereforre how it operaates, how
o about day to day
d tasks.
employeess think and behaave (attitudes) aand how they go
After Toyoota successfullyy adopted enviroonmentally susttainable practicces, its internal environment coompletely changged. The
human ressource managem
ment had to chaange. For exam
mple, Toyotas recruitment
r
andd selection procedures were adj
djusted as job
specificatiions were altereed. Toyota channged selection criteria
c
to fit thee new corporatte culture. Emplloyees had to bee re-trained
and develooped to adopt environmentallyy sustainable skkills. As new tecchnologies weree implemented such
s
as CIM (C
Computer
integratedd manufacturingg) redundanciess were made annd new terminattion proceduress were put in plaace, for examplle,
outplacem
ment services. Tooyota developedd new reward and
a recognitionn programs inclluding work grroup environmeental awards.
These werre used to motivvate employees to work toward
ds achieving objjectives and sup
pport change. The
T corporate culture
c
in the
internal ennvironment wass also changed, as employees and
a managers attitudes
a
and beeliefs were influuenced and shiffted to reflect
environmeental sustainabiility. Finally, poolicies and proccedures were chhanged - water saving policiess, recycling poliicies and
reduced poollution policiess were put into place which ch
hanged the day to day operatioons of Toyota. Toyota
T
also adoopted a
participatiive managemennt style to allow
w employee inpu
ut, ideas and oppinions which ch
hanged interacttion between maanagers and
employeess.

Business Managgement GA 3 Exaam

Published: 222 February 2012