Unit 3: Managing a business

9 dot points, in syllabus order. Each dot point has a focused answer, with exam-style questions and worked answers where available.

Area of Study 1: How are businesses structured to achieve their objectives?

Business objectives - to make a profit, to increase market share, to fulfil a market need, to fulfil a social need, to meet shareholder expectations - and the relationship between businesses and their objectives

Business objectives. The five objectives in the study design, how they differ across business types, how objectives can conflict and be sequenced, and how managers translate objectives into action, with worked Australian examples.

8 min read →

Types of businesses - sole trader, partnership, private limited company, public listed company, social enterprise, government business enterprise - and their objectives; stakeholders of a business and their interests; corporate culture (official and real)

Business types, stakeholders and corporate culture. The six business types in the study design, their objectives, the seven stakeholder groups, and the distinction between official and real corporate culture, with worked Australian examples.

9 min read →

Area of Study 1: How do managers lead and manage to achieve business objectives?

Management styles - autocratic, persuasive, consultative, participative, laissez-faire - including the appropriateness of each in different situations; management skills - communication, delegation, planning, leading, decision making, interpersonal, time management, problem solving, emotional intelligence

Management styles and skills. The five study-design styles (autocratic, persuasive, consultative, participative, laissez-faire), when each is appropriate, the nine management skills, and worked Australian examples from Qantas, Atlassian and Coles.

9 min read →

Area of Study 2: How is the official and real corporate culture managed to support employees and business objectives?

Corporate culture - the official corporate culture (the formally communicated values, mission, vision, policies and rituals) and the real corporate culture (the actual day-to-day behaviour, norms and beliefs of employees) - and strategies managers use to develop and align both

Corporate culture. The difference between official and real corporate culture, why the gap between them matters, and strategies managers use to develop, communicate and align culture, with worked Australian examples from Atlassian, Qantas and Bunnings.

10 min read →

Area of Study 2: How do managers motivate employees?

Motivation theories - Maslow's hierarchy of needs, Locke and Latham's goal-setting theory, and Lawrence and Nohria's four-drive theory; motivation strategies including performance-related pay, career advancement, investment in training, support strategies and sanction strategies; appropriateness of each in different contexts

Motivation theories. Maslow's hierarchy of needs, Locke and Latham's goal-setting theory, Lawrence and Nohria's four-drive theory, the five motivation strategies, and the appropriate-use context for each, with worked examples from Coles, Atlassian and NAB.

10 min read →

Area of Study 2: How do managers manage employees through training, performance and termination?

Training options - on-the-job and off-the-job - and their benefits; performance management strategies - management by objectives, appraisals, self-evaluation, employee observation; termination management - retirement, redundancy, resignation, dismissal, and the entitlement and transition issues involved

Managing employees beyond motivation. On-the-job and off-the-job training and their benefits, the four performance-management strategies, and termination management (retirement, resignation, redundancy and dismissal), with worked Australian examples and the entitlement and transition issues managers must handle.

9 min read →

Area of Study 2: How are workplace relations and disputes managed?

Workplace relations under the Fair Work Act 2009 - the National Employment Standards, modern awards, enterprise agreements, and the role of the Fair Work Commission - and methods of dispute resolution including negotiation, mediation, conciliation and arbitration

Workplace relations. The Fair Work Act 2009 framework, the National Employment Standards, modern awards versus enterprise agreements (and the better-off-overall test), the role of the Fair Work Commission, and the dispute-resolution methods of negotiation, mediation, conciliation and arbitration.

9 min read →

Area of Study 3: How are operations managed effectively in a contemporary business?

Key elements of an operations system - inputs, processes and outputs; characteristics of operations management within manufacturing and service businesses; strategies to improve operations - facilities design and layout, materials management, quality management, technological developments, global sourcing, waste minimisation, lean management

Operations. Inputs, processes and outputs; differences between manufacturing and service operations; strategies including facilities design, materials management, quality management, technology, global sourcing, waste minimisation and lean management, with worked Australian examples.

10 min read →

Area of Study 3: How can operations be improved through quality, materials and lean management strategies?

Strategies to improve operations efficiency and effectiveness - materials management strategies (forecasting, master production schedule, materials requirement planning, Just In Time), quality strategies (quality control, quality assurance, Total Quality Management), and lean management (waste minimisation)

Operations improvement strategies. Materials management strategies (forecasting, master production schedule, MRP, Just In Time), quality strategies (QC, QA, TQM), and lean management for waste minimisation, with worked Australian examples from Woolworths, Toyota Altona and Bunnings.

11 min read →