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In 2017, John was employed as the manager of a bakery with 80 employees - VCE - SSCE Business Management - Question 1 - 2020 - Paper 1
Question 1
In 2017, John was employed as the manager of a bakery with 80 employees. In 2020, the business has had the following business objectives: - to increase profits by 1... show full transcript
Worked Solution & Example Answer:In 2017, John was employed as the manager of a bakery with 80 employees - VCE - SSCE Business Management - Question 1 - 2020 - Paper 1
Step 1
Define the term 'business objective'.
Answer
A business objective refers to a specific and measurable goal that a company aims to achieve within a defined timeframe. These objectives guide the decision-making process and help in measuring the success of business activities. For example, in this case, John's bakery aims to increase its profits by 10% and reduce staff absenteeism by 20%.
Step 2
Evaluate the suitability of the management style John has adopted for achieving the bakery's business objectives.
Answer
John has adopted an autocratic management style, which centralizes decision-making and communication. This style can be both advantageous and disadvantageous for the bakery's objectives.
Strengths:
- Clear Directions: Employees receive specific tasks and guidance, which can lead to increased efficiency in operations. Since John's focus is on meeting profit and absenteeism targets, clear guidance can help employees understand their roles better and contribute effectively toward these objectives.
- Quick Decisions: In emergencies or urgent situations, an autocratic style allows for swift decision-making, ensuring that the bakery responds rapidly to challenges.
Weaknesses:
- Employee Morale: This style may negatively impact staff morale. Employees might feel undervalued and disengaged, as there is little room for their input. This could lead to higher absenteeism and lower motivation to work towards the bakery's objectives.
- Limited Creativity: The lack of employee involvement in decision-making might hinder innovative ideas that could contribute to achieving business objectives.
Conclusion: While the autocratic management style can facilitate quick decision-making and clear direction, it might not be suitable in the long run for achieving John's objectives, particularly in fostering a motivated workforce to reduce absenteeism.
Step 3
Propose and justify one performance management strategy, other than a change in management style, that John could use to reduce staff absenteeism.
Answer
One effective performance management strategy John could implement is the use of staff training and development programs. This strategy involves equipping employees with necessary skills and knowledge to perform their tasks more efficiently.
Justification: By investing in training, John not only enhances the competencies of his employees but also boosts their confidence in their roles. When employees feel more capable and valued, they are more likely to stay committed to their job, reducing the likelihood of absenteeism. Moreover, training sessions can foster a sense of community and teamwork among staff, providing them with a supportive environment that further discourages absenteeism.