SCSC Year 11 Business Management



Exam RevisionLearning Outcome 1 – Legal Requirements and Financial ConsiderationsChapter 10What makes an effective business name? Outline the factors that should be considered when choosing a business name. Identify which organisation is responsible for registering business names in Australia. (3 marks)Explain why, in today’s business environment, it is necessary for a business to apply for a website domain. Describe the process for acquiring a website domain. Create an appropriate domain name for a pet store called ‘Pets of Melbourne’. Justify your choice of domain name. (6 marks)Under which circumstances is a consumer entitled to a repair, replacement or refund of a good purchased, according to the Australian Consumer Law? Provide an example of a situation where a consumer would be entitled to one of the remedies outlined above. (4 marks)Identify and describe one type of insurance that is compulsory for all businesses in Australia. (2 marks)Chapter 11Define the term ‘policy’. (1 mark)What is a ‘business routine’? How do policies help to establish business routines? Describe one policy that may help establish business routines. (3 marks)Outline one policy that is required by businesses to comply with legal requirements. (1 mark)Explain the importance of setting up financial control systems and record-keeping strategies. (2 marks)Identify and describe four factors that should be considered when choosing a supplier. (4 marks)Describe the benefits and limitations of choosing suppliers which meet standards of corporate social responsibility. (4 marks)Learning Outcome 2Marketing a BusinessChapter 12Define the term ‘marketing’. (1 mark)Explain the purpose of the marketing function. (2 marks)Describe the relationship between marketing, establishing a customer base and business objectives. (3 marks)Differentiate between mass marketing and niche marketing. Outline the costs and benefits of each strategy. (4 marks)Identify and explain two consumer trends and discuss why they are relevant to the marketing function. (4 marks)Identify the first step in the market research process. (1 mark)Chapter 13Explain what ‘people’ refers to in terms of the 7Ps model of marketing. (1 mark)Outline three reasons why it is important to choose the right packaging. (3?marks)List six factors that affect the price of a product. (3 marks)Describe two pricing strategies that can be used for a business wanting to remain competitive in the marketplace. (2 marks)Identify the difference between advertising and publicity. (2 marks)Distribution channels are used to provide the link between the manufacturer and the customers. Describe the two main types of distribution channel and provide one advantage and one disadvantage of each type. (4 marks) Chapter 14 – PUBLIC RELATIONSExplain the relationship between public relations and the achievement of business objectives. (3 marks)Outline three different ways an organisation can try to enhance its image and public relations profile. (3 marks)How are media and press releases used by an organisation? (2 marks)Explain why it is important for an organisation to have a crisis management plan in place. (3 marks)Describe a recently publicised crisis. Explain how the business involved attempted to manage the crisis. How would you rate their performance? Justify your position. Outline the implications of the crisis on the business. (4 marks)Learning Outcome 3Staffing a BusinessChapter 15Analyse the relationship between the performance of staff and the achievement of business objectives. (4 marks)Explain the kinds of decisions that need to be made about the staffing needs of a business. (2 marks)Define the term ‘workforce planning’. (1 mark)Outline why workforce planning is such an important business decision. (3 marks)Describe how developments in technology have affected staffing needs. (3 marks)Explain the advantages and disadvantages of staff turnover (employees leaving the business). (2 marks)Chapter 16Distinguish between job analysis and job design. (2 marks)Explain the purpose of the job description and job specification documents and outline what information needs to be included in each of these documents. (4 marks)Describe the relationship between the job analysis process and the job description and job specification documents. (1 mark)Discuss the advantages and disadvantages of using the business website to attract applications for a vacant position. (4 marks)Discuss the advantages and disadvantages of using work testing to choose an appropriate candidate for a vacant position. (4 marks)Chapter 17Define the following key terms. (3 marks)a.job securityb.work-life balance inductionOutline the expectations a university graduate might have of their first job. Then describe how these expectations might change towards the middle and the end of their career. (3 marks)Explain the elements of a well-designed induction program. Describe the costs associated with failing to provide such a program. (4 marks)What legal obligations do businesses have under the Occupational Health and Safety Act 2004? (2 marks)How does the Equal Opportunity Act 2010 affect the management of staff in Australian businesses? (2 marks)Describe the purpose of the Workplace Gender Equality Agency (WGEA). (1 mark)Chapter 18Explain the reasons why an Australian business might decide to recruit overseas labour. Identify the most popular countries from which workers are sourced. (4 marks)Describe the ways in which a business can recruit skilled workers who are currently living overseas. (3 marks)Outline three strategies a business can use to help make overseas recruitment a success. (3 marks)Define the term diversity and explain the benefits of recruiting a diverse workforce. (3 marks)Describe two strategies related to staffing that a business can implement to manage their commitment to corporate social responsibility. (2 marks)Exam Revision SOLUTIONSLearning Outcome 1 – Legal Requirements and Financial ConsiderationsChapter 10What makes an effective business name? Outline the factors that should be considered when choosing a business name. Identify which organisation is responsible for registering business names in Australia. (3 marks)Some business names are more effective than others. An effective business name is one that is original, descriptive, easy to remember, easy to pronounce and spell, professional, and appropriate for the business type. The Australian Business Register facilitates business name registration.Explain why, in today’s business environment, it is necessary for a business to apply for a website domain. Describe the process for acquiring a website domain. Create an appropriate domain name for a pet store called ‘Pets of Melbourne’. Justify your choice of domain name. (6 marks)More and more business is being conducted over the internet. Even if a business does not intend to provide its customers with a web store, it still requires a website. Customers often ‘Google’ the products and/or services they require. They expect that every business they interact with will have a website that outlines (at the very least) the location of the physical store, provides contact information, and a description of the goods and services available. Businesses that do not have a website miss out on attracting customers. In order to have a website, a business needs to purchase a domain name. A business that wants to purchase a domain name should first check that their desired name is available. This can be done by using the free service provided by AusRegistry. If the name is available, the next step is to purchase the name. The business should visit the .au Domain Administration website, which provides a list of domain registration organisations. The business should then contact one of these organisations to purchase their desired domain name. For example, .au is an appropriate domain for Pets of Melbourne. This domain name accurately reflects the business name, and is therefore easy to remember. It is also easy to spell and Google. Under which circumstances is a consumer entitled to a repair, replacement or refund of a good purchased, according to the Australian Consumer Law? Provide an example of a situation where a consumer would be entitled to one of the remedies outlined above. (4 marks)A consumer is entitled to repair, replacement or refund of the purchase price of a good if the good is found not to be: of acceptable quality, safe to use, match sample or demonstration models, have available spare parts, or durable. For example, if a consumer purchased a television that stopped working after two months, the consumer would be entitled to a refund of the purchase price. Under these circumstances the television is considered to be of poor quality.Identify and describe one type of insurance that is compulsory for all businesses in Australia. (2 marks)All businesses are required to purchase workers’ compensation insurance, otherwise known as WorkCover. This insurance will compensate an employee or their family in the event that the employee is injured, contracts an illness, or dies as a result of their employment duties or environment. Chapter 11Define the term ‘policy’. (1 mark)A written statement detailing the processes, procedures, rules and regulations that should be followed in a given situation. What is a ‘business routine’? How do policies help to establish business routines? Describe one policy that may help establish business routines. (3 marks)A business routine is a task or process that is completed on a regular basis. Policies help to establish business routines because they outline the steps to be followed in a given situation. When policies are established in a business, it ensures that routine tasks are completed in the same way every time, which creates consistency in the business, regardless of who is responsible for completing the task. For example, a recruitment and selection policy outlines the process for the attracting and selecting appropriate staff members to fill vacant positions. Following the policy should ensure that this processes is fair for all candidates. Outline one policy that is required by businesses to comply with legal requirements. (1 mark)Legislative requirements place obligations on businesses to create certain policies. For example, every business is required to have an occupational health and safety policy.Explain the importance of setting up financial control systems and record-keeping strategies. (2 marks)Financial control systems and record-keeping strategies are important to protect the business from errors, theft and fraud. They are also important to help a business comply with legal requirements, and for the preparation of financial reports. Combined, these systems and strategies ensure that financial information is collected, complete, accurate and reliable. Such information can then be used to file tax returns (a legal requirement) and produce financial reports (profit and loss statements and balance sheets) which are used to make business decisions.Identify and describe four factors that should be considered when choosing a supplier. (4 marks)Price: Generally speaking, businesses try to minimise the price of the inputs they buy. This helps a business to provide competitive output prices.Quality: Price minimisation needs to be balanced with quality. Businesses try to get the highest quality inputs they can afford. This helps the business to create quality outputs. It is very difficult, if not impossible, to create a quality output with inferior inputs.Reliability: Businesses must choose a supplier that can be relied upon to deliver the right inputs, in the right quantity, for the right price, at the right time. If inputs arrive late or in the wrong quantities, this will disrupt the businesses ability to produce their outputs. Social responsibility: Stakeholders (especially consumers) increasingly care about social responsibility. They expect the businesses they deal with to behave in an ethical and socially responsible way. Stakeholders expect that businesses understand, accept and adopt as their own the CSR standards at their suppliers. Therefore, they hold a business responsible for any wrongdoing in their supply chain. As a result, when choosing suppliers, a business must consider CSR standards. Ideally, the CSR standards of suppliers should be similar to the standards adopted at the business.Describe the benefits and limitations of choosing suppliers which meet standards of corporate social responsibility. (4 marks)Choosing suppliers which meet the businesses standards of CSR has many benefits, as well as limitations. For example, a business that adopts CSR suppliers demonstrates that it has a commitment to CSR. Using CSR inputs allows a business to create genuinely CSR products. The business can market itself as a CSR business and this will help it to improve its reputation. It may become a business of choice among CSR-conscious consumers, and this may contribute to improved sales and revenue. It may also help the business to attract CSR-conscious investors. These benefits help to improve the business’s competitiveness. However, some businesses may find that CSR suppliers provide more costly inputs. In some industries, there are few CSR supplier choices. There is also a possibility that the ‘green’ option is of inferior quality or does not perform as well as the alternatives. Businesses are therefore forced to weigh up the benefits and limitations associated with CSR suppliers and make the appropriate choice for them, given the product or service they provide and the industry they operate in. Learning Outcome 2Marketing a BusinessChapter 12Define the term ‘marketing’. (1 mark)The process that provides the link between producers or providers of goods and services, and the consumers of these.Explain the purpose of the marketing function. (2 marks)The purpose of the marketing function is to gather and analyse crucial information about the market, help the business to understand the needs and wants of customers, assist with the creation of a brand identity that is relevant to the target customers, help develop products that satisfy the needs and wants of customers, and communicate the benefits and attributes of the goods and services sold by the business. All this is done in an attempt to attract and satisfy customers, and thereby retain them. In so doing, the marketing function helps the business to achieve its objectives in relation to customer attraction, revenue generation and profit. Describe the relationship between marketing, establishing a customer base and business objectives. (3 marks)Marketing is all about communication between buyers and sellers. Sellers undertake market research to understand the needs and wants of buyers, to develop customer profiles and to target a specific segment of customers. They use the analysis generated by market research to craft appropriately appealing messages and promotional offers to their target audience. These messages help to attract customers. When buyers purchase from the seller, they become part of the customer base. The purchases of customers help the business to achieve their objectives relating to revenue generation and profit. It is now up to the seller to work hard to retain the customer. This requires further marketing and communication efforts. Differentiate between mass marketing and niche marketing. Outline the costs and benefits of each strategy. (4 marks)Mass marketing is a strategy that involves communicating the same promotional message to the entire market. The advantage of this method is that the business only needs to develop one marketing strategy. The disadvantage however, is that mass marketing is unlikely to be effective if the customer base is made up of smaller segments of customers with quite different attributes, and therefore different needs and wants. One strategy is unlikely to appeal to all groups simultaneously. Niche marketing is an approach that involves breaking the market into smaller segments comprised of customers that are relatively homogeneous according to geographic, demographic, psychographic and behavioural traits. A business then chooses one segment or target market on which to focus all of its efforts. The business can then craft specific messages that appeal to the attributes of the target market chosen. The advantage of this method is that it is likely to be more effective because the messaging is more relevant to potential customers. The disadvantage is that a business with multiple products and services may need to develop a costly and complex strategy that involves communicating different messages to different target audiences. Identify and explain two consumer trends and discuss why they are relevant to the marketing function. (4 marks)Buying online: Many consumers research purchases online. This has implications for marketing. Businesses need to have a website that customers can locate and navigate to easily. They also need to advertise online. This requires a business to understand the internet habits of its customer base, and place promotional material in the locations their customers visit most frequently. Businesses should also consider establishing a web store, if this is appropriate for their product. Once customers have completed their research, many wish to purchase straight away. Establishing and maintaining a web store allows a business to take advantage of the large and growing number of internet shoppers.E-commerce: The days of cash may be numbered. Many people, especially young people, expect to be able to pay for goods and services using digital means – debit/credit cards, and contactless payment technology. Cash-only businesses frustrate and alienate customers that do not regularly withdraw and carry cash. This trend has an implication for the marketing function. Businesses need to keep abreast of changing technology and offer their customers as many options as possible for payment. This ensures that the business is as inclusive as possible, enabling them to meet the needs of the widest number of customers. Businesses need to communicate to their customers about accepted methods of payment. Identify the first step in the market research process. (1 mark)The first step in any market research process is to define the problem and establish research objectives. Chapter 13Explain what ‘people’ refers to in terms of the 7Ps model of marketing. (1 mark)The ‘people’ part of the 7Ps model acknowledges the importance of employees in selling the brand and the products. When customers interact with a business, they consider the employees to be representing the business. As a result, customers do not separate the employees from the product and the brand. In order for a business to create a customer base and successfully sell its products, it needs to ensure that its employees are properly trained in customer service and have high levels of product knowledge so that they can adequately assist customers and appropriately represent the brand.Outline three reasons why it is important to choose the right packaging. (3?marks)Packaging advertises the product it contains, and differentiates it from its competitors. Therefore, the packaging needs to be attractive as well as functional. Businesses need to carefully consider the colour of the packaging and the font of any lettering on the packaging.Packaging protects the product it contains. Therefore, it needs to be strong and durable. Consumers are also conscious about the impact of packaging on the environment. Therefore, businesses need to consider the size of the packaging they use as well as the materials they use. Strong, durable and recyclable materials should be used, and businesses should avoid any unnecessary packaging. Packaging provides information to potential buyers. There are requirements that govern the information that must be contained on packaging; for example, where the product was made and the ingredients used to manufacture it (food).List six factors that affect the price of a product. (3 marks)The cost associated with procuring or manufacturing the product.The desired mark-up (profit margin).The price charged by competitors (the going rate).Life cycle position of the product. The supply and demand for the product.Marketing strategy adopted.Describe two pricing strategies that can be used for a business wanting to remain competitive in the marketplace. (2 marks)Competitive pricing: Price products at a similar price range to competitors. Customers become indifferent in terms of cost and are forced to differentiate on other characteristics of the brand and/or product.Penetration pricing: Set prices lower than that of competitors to attract customers to the brand/product. The hope is that customers will get drawn in by the product and remain loyal to the brand once prices (eventually) increase.Identify the difference between advertising and publicity. (2 marks)The purpose of advertising is to inform the public about a product, in order to persuade potential buyers to purchase it. Businesses pay to advertise on television, in newspapers, on the radio, on the internet, and so on. Publicity is like advertising in that its purpose is to attract the attention of potential buyers. Unlike advertising, publicity is free. Publicity is about attracting free media attention by creating a press release, holding a press conference, launching a new product or through sponsorship. A business using publicity aims to attract the attention of potential buyers in the hope that they will purchase the product being sold. Distribution channels are used to provide the link between the manufacturer and the customers. Describe the two main types of distribution channel and provide one advantage and one disadvantage of each type. (4 marks) Direct distribution channel: The manufacturer of the product sells directly to the customer. Advantage: The manufacturer can keep prices low for customers because there is no ‘middleman’ adding a mark-up. This could help them attract sales.Disadvantage: Customers don’t get to browse or compare products in a retail outlet setting. This may discourage some customers. Indirect distribution channel: The manufacturer of the product sells to the customer via a wholesaler and or a retailer.Advantage: The manufacturer can sell the product to a retailer and not have to worry about selling the stock themselves, allowing it to focus on the production side. Disadvantage: Marketing and pricing decisions are now out of the control of the manufacturer. The retailer gets to make these decisions. The manufacturer may not agree with the strategy adopted by the retailer, who may be trying to sell multiple competing brands simultaneously. Chapter 14 – PUBLIC RELATIONSExplain the relationship between public relations and the achievement of business objectives. (3 marks)Public relations (PR) aims to develop and maintain a positive image of the business in the eyes of the ‘public’. In other words, it is about forming and shaping the business’s identity – its brand. When this is achieved, the public understands the business’s aims and objectives, its values and beliefs, its commitment to ethics and social responsibility, and the products it provides. When it comes to making purchasing decisions, a business that has invested in effective PR is front and centre in the customer’s mind. Customers are attracted to businesses that have a prominent, positive reputation, and are more likely to purchase from them. Effective public relations therefore helps a business to achieve major objectives. It assists the business in connecting with the community, which helps to attract customers, generate sales, revenue and profit. Outline three different ways an organisation can try to enhance its image and public relations profile. (3 marks)Open day: An organisation can create and develop the image it wants by hosting an open day at its facilities. An open day is a carefully crafted public relations strategy where members of the public get to experience the organisation while it is operating. The organisation is cleaned and polished to perfection and everyone is on their best behaviour! Sponsorship: Sponsorships help an organisation to develop its target reputation by association. Organisations choose sponsorship recipients based on shared values and beliefs. When one organisation sponsors another, they become associated with one another. The public comes to view the values and beliefs of the sponsored organisation as those of the sponsorship provider. Seminar/conference association: An organisation can enhance its image and public profile by hosting a seminar or contributing to an industry conference. A highly respected conference may attract the best and brightest thinkers in an industry. Organisations that sponsor the conference become associated with those individuals and therefore adopt identities of being the best, most respected players in the industry. How are media and press releases used by an organisation? (2 marks)Creating a press release is a common public relations strategy. A press release is a statement written by an organisation, informing the public about something of importance – an event, a new product launch or a store opening, for example. It may be placed on the website and released to the media for further circulation. Often a business will pair a press release with a press conference. A press conference involves calling together members of the media to announce something of importance. The business will make a statement and take questions. The media are then provided with a press release, which gives them ready-made content to circulate to the public. Organisations use the media to circulate their carefully crafted pieces of public relations spin!Explain why it is important for an organisation to have a crisis management plan in place. (3 marks)When a crisis occurs, there is usually some level of confusion and chaos. And time is of the essence! Hesitation can cost the organisation money, its reputation and potentially even the lives of employees or customers. Every organisation needs a crisis management plan. A crisis management plan is important because it helps the organisation to understand what to do, and who to contact in the event of a crisis. It nominates leaders, describes their responsibilities and identifies a spokesperson for the organisation. This helps the organisation to react in a calm and timely manner, helping to minimise the negative effect of the crisis. Describe a recently publicised crisis. Explain how the business involved attempted to manage the crisis. How would you rate their performance? Justify your position. Outline the implications of the crisis on the business. (4 marks)Student answers will vary. This question requires personal research and reflection. Students should undertake appropriate research on their chosen crisis topic, and justify the position they take. Learning Outcome 3Staffing a BusinessChapter 15Analyse the relationship between the performance of staff and the achievement of business objectives. (4 marks)Employees are the most important asset of any business. Their performance determines whether or not the business as a whole achieves its stated objectives. Employees are the face of the business, the people hired to take on responsibilities and complete tasks that have been designed to contribute towards the achievement of business objectives. If they do not complete their jobs satisfactorily, then the business will not achieve its overall objectives. Therefore, it is important that the business owners and managers ultimately responsible for the achievement of objectives, develop a positive and productive relationship with their employees, and work with their employees to align the goals and objectives of the business with goals and objectives of individual employees. When individual employees are incentivised to work towards the goals and objectives of the business, everyone wins. Employees need to be provided with assistance to create individual SMART goals. Managers need to check-in with employees to see how they are progressing towards their goals. They need to provide constructive feedback and assistance to employees as they work towards goal achievement. At the end of a defined period, employee performance needs to be reviewed, and the employee must be appraised and rewarded appropriately (or not, according to performance). When employees have appropriate goals, are incentivised and assisted towards achieving those goals, and are rewarded for their efforts, their performance increases, and this helps the business to achieve its overall objectives. Explain the kinds of decisions that need to be made about the staffing needs of a business. (2 marks)The business owners/managers need to determine the knowledge and skills required for their business to achieve its objectives. A business may require people with specific skills and qualifications. They need to determine the number of people they need to hire and make decisions about which jobs are going to be offered as full-time, part-time, casual or contract hires. Define the term ‘workforce planning’. (1 mark)Workforce planning is a continual planning process used to align the needs and priorities of the business with those of its employees to ensure that it can meet its production and service requirements and business objectives.Outline why workforce planning is such an important business decision. (3 marks)It takes time to conduct workforce planning. It costs a significant amount of money to advertise a position, interview candidates, conduct reference checking, organise induction, and train a new employee. Therefore, it is important that a business carefully consider its needs and do the best it can to hire the most appropriate person for the job. If a person is hired that is not suitable for the job, they will not perform it satisfactorily. This is a negative outcome both for the employee and the employer. Eventually, the employer may leave the business. In the meantime, the business may need to provide extra training, and suffer from reduced productivity. Afterward, it is forced to re-hire for the business and pay the costs associated with recruitment, selection, induction and so on all over again. It is important for all involved that the business reflect carefully on what it needs, and try to select the right person for the right job at the right time.Describe how developments in technology have affected staffing needs. (3 marks)Developments in technology have changed staffing needs at businesses. Technology is responsible for replacing and destroying some jobs. For example, the use of automation and robotics has completely replaced some of the most dangerous manual labour tasks in the construction and manufacturing industries. Technology is also responsible for changing the nature of some jobs. For example, computer technology has been developed that allows customers to self-scan and then pay for items they wish to purchase at a store. People that were previously employed as check-out staff are now employed to help customers use check-out technology and to operate the few remaining check-out counters used by customers who prefer not to operate the technology themselves. Finally, technology is responsible for creating entirely new jobs! For example, technology has created many jobs in the technology and engineering sectors where highly educated and skilled professionals are required to design, develop, build, maintain and service the technology that we rely on every day. Explain the advantages and disadvantages of staff turnover (employees leaving the business). (2 marks)When employees leave a business, they take with them valuable skills and experience developed during their employment. Team dynamics can change and this can lead to a dip in morale and productivity. However, when employees leave they provide an opportunity for the business to hire someone new. The new employee will bring with them a different set of skills and experience and new ideas that can benefit the team they become part of and the business as a whole. Chapter 16Distinguish between job analysis and job design. (2 marks)Job analysis is about researching and reflecting on a job that already exists in the business. The job analysis process determines what tasks a particular person is completing, as well as the skills and experience required to complete those tasks, whereas job design is about constructing a new job or redefining an existing position. When designing a job, consideration should be given to the number and variety of tasks that a person will be asked to complete. In order to retain and motivate staff, it is important that jobs are interesting, challenging and rewarding. They should include an appropriate level of variety and responsibility. Explain the purpose of the job description and job specification documents and outline what information needs to be included in each of these documents. (4 marks)The purpose of the job description is to explain what the actual job involves. Typically, a job description should provide the job title, and outline the roles and responsibilities of the successful candidate. The purpose of the job specification is to describe who the business is looking for to fill the position – the ideal candidate for the job. The job specification should outline the skills, experience, qualities and qualifications required by the successful candidate, and the remuneration they will be paid in exchange for completing the job. Together, the job description and job specification are designed to attract suitably skilled and qualified applicants for the job. Describe the relationship between the job analysis process and the job description and job specification documents. (1 mark)The job analysis process is what generates the information required for the job description and job specification documents. Without job analysis, a business would not be able to produce an accurate or relevant job description and specification. Discuss the advantages and disadvantages of using the business website to attract applications for a vacant position. (4 marks)Most businesses maintain a website. Many websites contain a ‘careers’ page. Posting an advertisement on the business website is a cost-effective way to advertise a vacant position. It costs virtually nothing to upload the relevant content. Because applicants must have visited the website in order to see the advertisement, this method of recruitment succeeds in attracting applicants that are genuinely interested in the business and the opportunity available. For the same reason, only a relatively small pool of applicants is likely to be attracted this way. As a result, the business has less people to choose from. It may not find a suitability qualified and experienced candidate in the pool of applications received. The business may be forced to re-advertise, which lengthens the recruitment and selection process, making it costly for the business overall.Discuss the advantages and disadvantages of using work testing to choose an appropriate candidate for a vacant position. (4 marks)Work tests are designed to assess candidates by asking them to complete a task that simulates a job task they would perform as part of their regular work day in the position being offered. The advantage is that work tests provide feedback on how the candidate might actually perform on a real task at work. They test whether the candidate actually possesses the skills they claim to possess. This helps a business to identify and progress high performers. Unfortunately, simulated performance does not always mirror actual performance. Work tasks are often completed under strict supervision. Candidates are not usually allowed to ask for assistance, and there is a tight timeline attached. These conditions do not reflect the real work environment. Some candidates that may perform well in a real office environment may become nervous and not perform their best under these artificial conditions. Chapter 17Define the following key terms: (3 marks)Job security: the assurance that an employee has gainful employment for as long as they determine.Work–life balance: the relationship between a person’s work and the commitments in the rest of their life. Induction: the process of introducing new workers to their place of work, their job role, their colleagues, supervisors, management and corporate culture.Outline the expectations a university graduate might have of their first job. Then describe how these expectations might change towards the middle and the end of their career. (3 marks)A university graduate that has just landed their first ‘real’ job may have different expectations of their employment compared to someone in the middle or later years of their career. Having just finished university, graduates are often concerned about securing a permanent full-time position. They have a debt to repay to their university and are ready to enter the world of full-time employment. They want to be paid a fair wage but understand that they’re starting at the bottom of the ladder. They do not want to be exploited but they also understand that they have a lot to learn and need to put in the hours required to learn it! They are prepared for and mostly willing to do fairly long hours to prove themselves to their managers. Employees in the middle of their careers often become much more concerned about job security, remuneration and work–life balance. At this time, many employees may have families to support and home loans to service. As a result, they want to ensure that their employment is secure and they are receiving competitive remuneration commensurate with their skills and experience. Many employees at this stage also expect their employers to provide them with flexible workplace practices. Employees with young children or carer responsibilities may need to adjust their schedules to meet their commitments. They expect their employer to understand. Employees in the later years of their careers may also expect flexibility, but for different reasons. They may no longer be interested in long hours and ‘face time’ at the office. Indeed, some may want to transition to part-time employment, prior to retiring. They expect their employer to be able to accommodate this. Some senior employees may have accrued long service leave, which they are entitled to take. Different employees at different stages may have different expectations for their employers. Successful businesses identify and accommodate these differences.Explain the elements of a well-designed induction program. Describe the costs associated with failing to provide such a program. (4 marks)A well-designed induction program should include the following.Introduction to the workspace and key facilities.Introduction to manager, team members, colleagues and other key personnel. A discussion about the job role, key tasks, responsibilities, expectations and training requirements. Hand-over of company policies and procedures, an organisational chart, a list of key contacts and a staff handbook.Introduction to a buddy or mentor responsible for helping the new employee to settle in. The mentor should be available to answer any questions the new employee has. The mentor should help the new employee to feel welcome by taking them out for coffee or a snack (and a debrief!). A business that fails to effectively induct new employees risks losing them altogether. Employees that don’t feel welcome or don’t understand their job role or responsibilities will not work productively. They will feel isolated from the group. They will not feel confident coming to work and may come to regret their decision to accept the job offer. The employee may decide to leave the business. If they do, the business will be forced to re-advertise and will then accrue the costs associated with recruitment and selection all over again.What legal obligations do businesses have under the Occupational Health and Safety Act 2004? (2 marks)All businesses are required to provide a safe and healthy working environment for their employees. This requires businesses to develop appropriate policies and procedures to prevent injury and ill-health. The exact requirements vary from business to business. All businesses must have safety and emergency procedures in place, and they must practice these with employees. All businesses must provide employees with relevant and appropriate safety equipment, and train them in how to use this equipment. How does the Equal Opportunity Act 2010 affect the management of staff in Australian businesses? (2 marks)The Equal Opportunity Act 2010 (the Act) protects employees from discrimination and harassment by making it illegal to discriminate against someone based on their personal characteristics including age, sex, race, religious belief, marital status and status as a carer or parent. The Act also makes it illegal to sexually harass or victimise someone. The Act protects people who make a complaint and stand up for their rights. Businesses must ensure that all of their policies (including recruitment and selection) comply with the Act.Describe the purpose of the Workplace Gender Equality Agency (WGEA). (1 mark)WGEA was created to promote and improve gender quality in the Australian workforce.Chapter 18Explain the reasons why an Australian business might decide to recruit overseas labour. Identify the most popular countries from which workers are sourced. (4 marks)Sometimes a business may not be able to meet its staffing requirements with local people. This could be for many reasons. For example, the business may be located in a rural or remote area, which may make it difficult to attract suitably qualified and experienced candidates. Alternatively, it may require specialised skills and experience not found in the local area. Otherwise, the business may have an uneven demand for labour. Its demand for labour may spike at some times (e.g. during the harvest at a farm) and be low at other times. Such businesses can find it difficult to employ the number of people they need for the short period of time required. Overseas recruitment provides a solution to businesses that find it difficult to fill vacant positions. Most overseas workers are sourced from India, China and the United Kingdom.Describe the ways in which a business can recruit skilled workers who are currently living overseas. (3 marks)Businesses that want to recruit skilled workers from overseas can sponsor them to work in Australia on a permanent basis. This involves helping individual workers to apply for permanent migration. Alternatively, a business can choose to sponsor workers on a temporary basis. This involves helping individual workers to apply for a temporary work visa, which permits the worker entry and employment rights for up to four years. A business can also negotiate a formal labour agreement with the Australian Government which grants permission for the business to recruit workers from overseas on either a temporary or a permanent basis. Outline three strategies a business can use to help make overseas recruitment a success. (3 marks)Moving to a new country is hard. The culture is different, the climate is different and the language may also be different. It takes time for the worker and their family to adjust. It can be expensive for a business to recruit an overseas worker. Therefore, it is important that they help the worker and their family to settle in, and help give them the most positive experience possible. There are many strategies that a sponsoring business can put in place to help transition the worker into Australian life. First, the sponsoring business should provide temporary accommodation for the worker, and provide assistance in finding more permanent accommodation. It is difficult for new arrivals to understand and navigate the local real estate market, and assistance in finding somewhere to stay helps the worker and their family to feel settled. Second, the sponsoring business should provide the worker (and their family) with a comprehensive induction program designed to introduce the worker to their place of work, and the whole family to the community. For example, the worker and their family should be assisted with setting up a local bank account, finding a local doctor, using public transport and getting a driver’s license. Finally, the worker and their family should be provided with ‘cultural transition training’. Such training helps the worker to understand some of the differences between their home culture and Australian culture. It can help them to understand what to expect and what to do in certain circumstances. This may help the worker and their family to gain the confidence they need to go about their daily lives in Australia. Define the term diversity and explain the benefits of recruiting a diverse workforce. (3 marks)Diversity refers to the human characteristics that make people different from one another. For example, age, sex, sexual orientation, ethnicity, religious belief and disability (among many other characteristics). It is illegal to discriminate against a person based on their personal characteristics. And yet, diversity is an issue in many workplaces today. Recruiting a diverse workforce gives a business an edge. It provides them with access to a range of different talents, ideas and experiences. These differences can be applied to help improve business performance. A diverse workforce will see problems differently and be able to identify different solutions. This facilitates better decision making. A diverse workforce is also more representative of the wider community, which helps a business to better connect with its customers, understand their needs and fulfil their expectations.Describe two strategies related to staffing that a business can implement to manage their commitment to corporate social responsibility. (2 marks)Establishing an Employee Assistance Program (EAP): An EAP is a confidential counselling program that may be accessed by employees and their close family members free of charge. Establishing this kind of program demonstrates that the business cares about the welfare of its employees and is prepared to put practical support measures in place. An EAP may be accessed by someone affected by a personal, family or work-related problem. Facilitating community volunteering and engagement: Setting aside time for employees to participate in community programs like tree planting or cooking in a soup kitchen demonstrate that a business does more than pay lip service to corporate social responsibility. Employees value opportunities to give back to the community by participating in programs that have some connection to the values and beliefs espoused by the business. ................
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