Business Management & Change

Business Management & Change Stage 6 – Business Studies HSC Topic 9.1

Agenda • Review of syllabus requirements • Introduction of topic • Case Study activity -

Syllabus – Learn To Students learn to: • use existing business case studies to investigate and communicate ideas and issues related to business management and change. The focus of these case studies will be to: • analyse how management theories apply to various business situation • explain and evaluate how change is managed in one or more businesses.

Syllabus – Learn About Students learn about: • the nature of management • understanding business organisations with reference to management theories • understanding business organisations with reference to management theories • managing change • change and social responsibility

1. The Nature Of Management • the importance of effective management • management roles • interpersonal, • informational, • Decisional • responsibility to stakeholders; reconciling conflicts of interest • skills of management • people skills, • strategic thinking, • vision, • flexibility and adaptability to change, • self-managing, • teamwork, • complex problem-solving and decision-making, • ethical and high personal standards

What is Management? • Management is a process of achieving business goals by coordinating and integrating the work of other people

Effective vs. Efficient Management • A key characteristic of successful managers is that they are effective. • “Effective” simply means that you actually achieve what you set out to achieve. • “Efficient” means not wasting resources and achieving the business goals with the minimum of resources.

Goals of Effective Management • Growing the value of the business as indicated by an increase in the share price • Improving the competitive position of the business as indicated by increasing market share • Improving the flexibility of the business as indicated by its ability to respond to change • Creating an ethical business where responsible decisions are made • Developing a business culture where everyone in the business embraces change.

Interpersonal Management • Refers to the way managers deal with, or interact with people. • Encompasses internal and external stakeholders • Includes: • Motivating staff. • Hiring and firing people. • Keeping the finger on the pulse of the business

Informational Management • Is concerned with monitoring information generally to pick up information that is important to the business; • e.g. news that a competitor has developed a new product. • Ensures that the appropriate people within the business are told information like this so they can adapt their plans. • Responsible for passing on information to external stakeholders such as • general meeting of shareholders • government bodies such as the Australian Taxation Office.

Decisional Roles • Decisions include: • on resources • how many people to employ • what technology to purchase • what to do if there is a workers’ strike or transport breakdown. • Required to negotiate such things as Australian workplace agreements with unions or groups of employees. • Decisions that affect the success or failure of the business.

Responsibility to Stakeholders: Reconciling Conflicts of Interest • Stakeholders are individuals or groups that have an interest in a business with differing goals. • Employees: • have an interest in the continuing success of the business because this is how they earn their income. • want to maximise benefits, • Shareholders • want to maximise their investment through increased returns • want to minimise costs • Customers want to maximise the benefits they get • Managers are required to ensure that all of this occurs - seamlessly

Skills of Management • People Skills • Strategic thinking • Vision • Flexibility & adaptability to change • Self Managing team work • Complex Problem solving & decision making • Ethical and high personal standard

People Skills • Include: • Communication • Motivation • Lead • Delegate • Negotiate • Good active listening skills • Effective performance appraisals • Discipline

Strategic Thinking • Big picture • Future vision • Not done in isolation = collaborative • ‘What if’ thinking

Flexibility & Adaptability to Change • Change is constant and hard to predict • Opportunities & threats are experienced in equal measure • Ability to adapt = competitive advantage (when managed well) • Flexibility = responding to change vs. “we’ve always done it this way so we’ll always do it this way” attitude

Self Managing Teamwork • Members are each responsible for: • Ensuring team goals are met • How they should be met • Assigning of tasks • Disciplining non/under performing group members • Cooperation is a critical success factor • Managers responsibilities: • Training • Tools Profit Cost

Complex Problem Solving & Decision Making

Ethical & High Personal Standards • Ethics – principles that define what is right and what is wrong • Two ways of ensuring: • Hire people with high ethical standards • Develop codes of conduct – statements of values the business believes are important and ethical rules they are expected to follow

Henry Ford

Business Management & Change