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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 any individual or group that has a vested interest in the performance, activities, and operations of a business. This can include shareholders, employees, customers, suppliers, and the local community, all of whom can affect or be affected by the organization’s decisions.
Step 2
Compare the autocratic and participative management styles. Include two characteristics of each management style.
Answer
Autocratic management is characterized by:
- Centralized decision-making: The manager makes decisions without input from subordinates, leading to quick decisions but potentially low morale.
- Lack of staff involvement: Employees are not consulted, which can result in a disconnect between management and staff.
Participative management is characterized by:
- Employee involvement: Employees are encouraged to contribute ideas and participate in decision-making, fostering engagement.
- Consensus-based decision-making: Decisions are made through group discussions, which can lead to better acceptance of outcomes among staff.
Step 3
Discuss two advantages and two disadvantages of the participative management style.
Answer
Advantages of participative management include:
- Enhanced job satisfaction: Employees feel valued when their opinions are considered, leading to increased motivation and loyalty.
- Better decision quality: Leveraging diverse perspectives can result in more well-rounded decisions.
Disadvantages include:
- Time-consuming: Reaching consensus can be slow, which may hinder quick decision-making.
- Potential for conflicting opinions: Varied perspectives may lead to indecision or confusion within the team.
Step 4
Describe two human resource strategies that the new plant manager could implement to improve employee satisfaction.
Answer
- Training and development programs: Implementing training can help employees acquire new skills and advance their careers, increasing job satisfaction.
- Performance appraisals with feedback: Regular performance evaluations help employees understand their strengths and areas for improvement, fostering personal growth and satisfaction.
Step 5
Define the roles of planning and controlling. Discuss how these roles will assist the new plant manager to deal with these changes.
Answer
Planning involves setting goals and determining the best course of action to achieve them. This will assist the new plant manager in aligning the workforce with organizational objectives. Controlling involves monitoring progress towards goals and making adjustments as necessary. This is crucial to ensure that the changes made are effective and that employee performance is being managed effectively.
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
- Communication skills: The new manager should facilitate open discussions, ensuring all voices are heard, which is essential for a participative approach.
- Conflict resolution skills: By mediating disagreements that arise from diverse opinions, the manager can maintain harmony within teams.
- Empowerment skills: Encouraging team members to take responsibility for their tasks can enhance engagement and productivity among the workforce.