Business Management &

ChangeStage 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

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