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Mario has operated a chocolate-making business in Australia for the past 25 years - HSC - SSCE Business Studies - Question 26 - 2006 - Paper 1
Question 26
Mario has operated a chocolate-making business in Australia for the past 25 years. Recently there have been increases in the cost of labour in Australia. Current in... show full transcript
Worked Solution & Example Answer:Mario has operated a chocolate-making business in Australia for the past 25 years - HSC - SSCE Business Studies - Question 26 - 2006 - Paper 1
Step 1
Describe an alternative organisational structure for Mario’s Australian business.
Answer
An alternative organisational structure for Mario’s Australian business could be a flat or team-based structure. This type of structure promotes open communication and collaboration among employees at all levels, reducing the hierarchical barriers that often exist in traditional businesses. By adopting a flat structure, Mario can empower his employees to take initiative and make decisions, which aligns with the behavioural theory focus on motivation and engagement. It encourages team-based problem-solving and creativity, which can help Mario innovate his product lines and improve customer satisfaction.
Step 2
Recommend ONE staffing system for Mario’s proposed overseas business.
Answer
For Mario’s proposed overseas business, a polycentric staffing system would be highly effective. This approach involves hiring local employees to manage and operate the overseas business, allowing Mario to leverage local expertise and cultural knowledge. Employing local staff can enhance customer relationships and improve operational effectiveness as these individuals will better understand market preferences and consumer behavior in their regions. Additionally, it fosters goodwill and positive relations within the communities where the business operates.
Step 3
Evaluate TWO employment relations strategies which could be used to manage change if international expansion occurs.
Answer
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Communication Strategy: Establishing an open and transparent communication channel between management and employees is vital during the transition to an international operation. Regular updates about the expansion plans can help alleviate uncertainties and build trust. Employee feedback can also be solicited to create a sense of inclusion in the change process, which is essential for maintaining morale and engagement.
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Training and Development: Implementing comprehensive training programs to prepare employees for working in an international context is crucial. These programs should focus on cross-cultural communication, international marketing strategies, and specific operational procedures required in foreign markets. Investing in employee development will not only equip them with the necessary skills for the international environment but also demonstrate the company’s commitment to their growth, facilitating a smoother adaptation to the changes.