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The 2008/2009 global financial crisis has led to a decrease in automobile sales in Australia and hence a reduction in demand for parts of all types - VCE - SSCE Business Management - Question 1 - 2009 - Paper 1
Question 1
The 2008/2009 global financial crisis has led to a decrease in automobile sales in Australia and hence a reduction in demand for parts of all types. At Johnson Autom... show full transcript
Worked Solution & Example Answer:The 2008/2009 global financial crisis has led to a decrease in automobile sales in Australia and hence a reduction in demand for parts of all types - VCE - SSCE Business Management - Question 1 - 2009 - Paper 1
Step 1
Define the term stakeholder.
Answer
A stakeholder is an individual or group that has a vested interest in the performance, activities, and operations of a business. This can include employees, managers, shareholders, customers, and suppliers, as they can influence or be influenced by the decisions and actions of the organization.
Step 2
Contrast the autocratic and participative management styles. Include two characteristics of each management style.
Answer
The autocratic management style is characterized by top-down decision-making where the manager exerts full control and makes decisions without consulting employees. In contrast, the participative management style encourages collaboration and includes employees in the decision-making process, leading to better consensus.
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Autocratic Management Characteristics:
- Decisions are made by the leader without input from subordinates.
- Clear hierarchy and structure are maintained.
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Participative Management Characteristics:
- Employees are encouraged to share ideas and participate in decisions.
- Feedback from team members is actively sought and valued.
Step 3
Discuss two advantages and two disadvantages of the participative management style.
Answer
Advantages
- Enhanced Employee Engagement: Employees feel valued and are more likely to be motivated and productive since their opinions are considered.
- Better Decision-Making: The combined knowledge and expertise of the staff can lead to more informed and effective decisions.
Disadvantages
- Time-Consuming: The process of gathering input can prolong decision-making, which can be detrimental in urgent situations.
- Potential for Confusion: It may not be clear who is ultimately responsible for decisions, leading to accountability issues.
Step 4
Describe two human resource strategies that the new plant manager could implement to improve employee satisfaction.
Answer
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Training Programs: Implementing training sessions to upskill employees can lead to greater job satisfaction as they feel more competent and prepared for their roles.
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Performance Appraisal Systems: Establishing a system for regular performance evaluations can provide employees with clear feedback and recognition of their contributions, fostering a sense of achievement and motivation.
Step 5
Define each of these roles. Discuss how these roles will assist the new plant manager to deal with these changes.
Answer
Definition of Roles
- Planning: Planning involves setting goals and defining a strategy to achieve them by outlining the necessary steps and resources required.
- Controlling: Controlling entails monitoring progress towards achieving the established goals and making adjustments as needed to stay on track.
Assistance to the Plant Manager
These roles will assist the new plant manager in ensuring a structured approach to the changes occurring within the organization. By effectively planning, the manager can set clear objectives for restoring employee morale and productivity. Moreover, through controlling, ongoing assessment of these strategies can be conducted to identify what is working and what may need change, enabling a flexible approach to management in response to the evolving workplace conditions.
Step 6
Describe three management skills that a participative manager could use. Discuss how the new plant manager at Johnson Automotive could apply each of these skills to the current situation.
Answer
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Communication Skills: A participative manager needs effective communication skills to facilitate open discussions with employees. The new plant manager can implement regular meetings to gather feedback and concerns regarding the recent changes.
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Empathy: Understanding employee perspectives is crucial. The new plant manager can demonstrate empathy by actively listening and addressing employee concerns during transitions, which will build trust.
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Conflict Resolution: The ability to manage and resolve conflicts is essential to maintaining a positive environment. The new manager can utilize mediation techniques to resolve disputes that may arise due to the restructuring and workforce reductions, ensuring a harmonious workplace.