PREPARINGFORTHE2016VCEBUSINESSMANAGEMENTEXAM

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Presenter:HelenVoidis

WHATWEKNOW:• TheexamisonMonday31stOctoberat3.00–5.15p.m.(Don’tleave

early!)• QuestionandAnswerBooklet• Questionsintheexamincludeshortandextendedresponsesthatmake

upthe65marks(frontcoversreleasedinearlyOctober–checkVCAAwebsite)

• Thefinalquestionwillbeworth10marksandwilldrawoneitherUnit3orUnit4orboth–usuallyboth(see2013,2014,2015exams)

• Onemarkquestionsarestraightoutapplication• Twoormoremarksmayrequireadefinitionwithapplication• Themarkallocationindicatesthedepthofanswerthatshouldbe

providedbythestudenti.e.4marks=4clearpoints

ADVICEFORUNIT3:CORPORATEMANAGEMENT

AREASTUDY1:Large-ScaleOrganisationsinContext

• BespecificwhendiscussingkeycharacteristicsofanLSO–200+employees,assetsover$200million,multiplelocationsetc.

• MaintypesofLSO’sinclude:Corporations,governmentdepartments,GBE’sandnotforprofitorganisations–keydifferencesrelationtoownershipandpurposee.g.Corporationdrivenbyprofitsandmarketshareownedbyafewormanyshareholders

• Wearefamiliarwiththefunctionalmanagementstructureasthatiswhereoperationsandhumanresourcemanagementfitsin

• Whentalkingaboutpositiveandnegativecontributions–providemorethanjustonesentence–showlinkse.g.providejobs,employ30%oftheworkforce,contributetotheeconomy,createmorejobsthroughdemandandsupply

• Negativeimpactcouldbethereleaseofcarbonfootprintintotheatmosphereaffectingthecommunityatlarge

• Whendiscussingexternalfactors–identifyiftheyaremacrooroperating• Considertheformercarbontaxwasanexampleofamacropressurefor

changebeingdrivenbypolitical,economicandsocialinfluences• Beclearonperformanceindicators–beabletodefineandapplyand

showwhattheyaremeasuring–keytermistheyareameasureovertime

• RememberPI’sareusedtomeasureefficiencyandeffectiveness• IfthequestionisHRbasedusestaffturnover,staffabsenteeismorstaff

satisfactionmeasuredbystaffsurveys–impactproductivityandcultureoftheLSO

• IfthequestionisOperationsbased–goforcustomercomplaints,levelofwastage,rateofproductivitygrowth,numberofsales,customersatisfactionmeasuredbysurveys

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• IfthequestionrelationstoChange–netprofitfigures,percentageofmarketshare

• BeclearonstakeholdersandtheirrelationshiptotheLSO–theycanhaveconflictinggoalsandinterests

AREASTUDY2:InternalEnvironmentofLarge-ScaleOrganisations

• Beabletodiscussthethreemanagementstructurestogetherwithboth

advantages(canbeusedtojustifyachoiceofstructure)anddisadvantages–functional,divisionalormatrix

• Understandcorporatecultureanditslinkstoproductivity,managementstylesandethicsandsocialresponsibility

• Beclearonthefourmanagementroles:• Planning–strategic,tacticalandoperational–ifthescenarioidentifies

onebesuretomentionite.g.outsourcingtoChinawouldbepartofstrategicplanningundertakenbytheCEOandtheseniormanagementteam

• OrganisingisallaboutallocatingtasksandstafftotheactivitiesoftheLSO

• Leading–explainthisintermsofinterpersonal,informationalanddecision-makingqualities

• ControllingisallaboutevaluatingperformancecanrefertoPI’sinyouranswer

• Policydevelopmentispartoftheseniormanagementteam’sfocusandisessentialinaninductionprogram–againmakethoselinkswithvariouspartsofthecourse

• Understandthedifferentmanagementstyles–useautocraticonlyinatimeofcrisisandsuggestconsultativeorparticipativeasthealternativesbasedonthescenario–alwaysidentifykeyfeaturesthatrelatetocommunication,decisionmaking,control–onewayortwoway;centralisedordecentralisedcontrolandjustifyyourchoiceclearlyreferringbacktothescenario

• Keymanagementskillsneedstobedefinedandthenappliedtothescenario–ifyouaretalkingaboutanautocraticmanagerthenrefertoskillslikecommunication,timemanagementorproblemsolving

• Participativemanagerswoulddelegate,negotiate,useteamworkskillsandemotionalintelligence

• Neverconfuseskillswithroles!

AREASTUDY3:TheOperationsManagementFunction

• UnderstandwhatOperationsManagementisandtheroleoftheOperationsManagerinanLSO-involvestheoverseeingoftheproductionprocessofagoodorservice

• BeabletocomparethecharacteristicsofOMinrelationtomanufacturingandserviceindustriesandtalkabouthowinserviceindustriestheproductistailoredtotheneedsoftheconsumermakingproductivityhardtomeasure

PREPARINGFORTHE2016VCEBUSINESSMANAGEMENTEXAM

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• Withthekeyelementsofanoperationsystemremembertoexplainwhatinputs,transformationprocessandoutputsarebeforeyouapplythesetothescenario–bothmanufacturingandserviceLSO’susethesebutitisintheprocessandtheoutputthattherearedifferences–bothstilluseinputs

• Understandthelinkbetweenproductivityandbusinesscompetitivenessifyoucanreduceyourcostsorincreaseyouroutputwiththesameamountofinputthenyoucanbegainacompetitiveedgebecauseyoucanreduceyourprices,productdifferentiateordelivertheproductinashorterspaceoftime

YOUMUSTKNOWYOUR4STRATEGIESTOOPTIMISEOPERATIONS:• Facilitylayoutanddesign–allaboutplanningthelayoutsothat

productionwillflowsmoothlyandefficiently–remembertherearethreelayouts–twoformanufacturing–fixedpositionlayoutandproductlayoutandonethatappliestoallothertypes–processwhichallowsformorespecialisedproduction

• MaterialsManagementisallabouttheuse,storage,anddeliveryofmaterialstomakesurethattherightamountofinputsisavailablewhenrequired–JITisstrategytohelpmakethishappen–rightamountarrivesjustasyouneedit–reducingtheneedforstorage,limitingwaste–butyouneedareliablesupplierwhocandeliverontime

• TheManagementofQualityinvolvesmakingsurethattheproductmeetscustomerexpectationsandtherearethreeapproachesthatcanhelpOperationsManagersachievethis–QualityControl,QualityAssuranceandTotalManagementQuality–eachhasadifferentfocuswhichneedstobeexplainedandappliedtothescenario

• Technology–usingtoolsandknowledgetoimproveefficiencyandcompetitiveness.

• Technologiesusedinbusinesstodayinclude:photocopiers,mobilephones,GPS,printers,computers–IPad’s,laptops,videoconferencingInternet–changesthetransformationprocess

• ManufacturingtechnologyincludesRobotics,CADandCAM• ImpactofE-commerce

ETHICSANDSOCIALRESPONSIBILITY

• AppearsineachofthethreeAreasofStudyinUnit3• Ethics=whatthebusinessdoesthatismorallyrightorwrong–itis

aboutmanagementbehaviourtowardsotherstakeholders,• SocialResponsibilityrelatestotheobligationsofanLSOgoingbeyond

thelegalrequirements.Itislinkedtothewell-beingofstakeholderse.g.customersandemployees,beingmoreenvironmentallyfriendlyandgivingbacktothecommunitythroughcharityworkandcommunitysponsorship

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ADVICEFORUNIT4:MANAGINGPEOPLEANDCHANGE

AREASTUDY1:TheHumanResourceManagementFunctionFactorsinvolvedinhumanresources:

• WhatisHRall–focusesontheeffectivemanagementofemployeesinanLSO

• Employeeexpectationsarelinkedtoconditionsofemployment,jobsecurity,OH&Sandworklifebalance–whichiscloselylinkedtomotivationandemployeerelations

• Besureaboutthekeyprinciplesofeachofthethreemotivationaltheoriesandbeabletoapplytheseclearlytoagivenscenario(Maslow,Herzberg&Locke)

• Dosamplequestionsrelatedtoallthreetheories–beabletoapplytoagivenscenario–showsyouunderstandhowthetheoryworks

Managementpracticesandprocessesinvolvedwiththeemploymentcycle:• Linkplanningtojobanalysisandjobdesignaspartoftheestablishment

phaseandthedevelopmentofajobdescription• Beabletodiscussdifferentrecruitmentmethods–internalandexternal• Understandafivestepprocessforselection–listanddescribeeachstep• Inductionaspartofmaintenanceislinkedtostaffretention–itisall

abouttheprocessofintroducingnewemployeestotheorganisation• Beclearonthedifferencebetweenrecognitionandrewardandprovide

examplesofeach• Understandtheperformancemanagementisallaboutaccountabilityand

islinkedtotraining,promotionandfeedbacktoemployeeswhichcanalsobelinkedtoLocke’stheoryofmotivationandtheterminationphase

• WiththeterminationphasebeabletotalkabouttransitionissuesthataHRmanagerundertakesinsituationsofredundancyorretrenchment–likecounselling,training,redeployment,referrals

• WithEmployeeRelationsensureyoucandistinguishbetweenacentralisedanddecentralisesystemofER

• Beabletodefineindustrywideawards,collectiveagreementsandindividualcontracts

• Rememberthatproductivitygainscanbeincludedinacollectiveagreement

• FairWorkCommissionisnowthebodythatoverseesthisarea• HRindecentralisedERandwoulduseaparticipativestyleof

managementandofcoursenegotiationwouldbeakeyskill• ConflictresolutionhasanumberofstepscommencingwithNegotiation,

Mediation,Conciliation,Arbitration

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• Ifthereisabreakdownintheemploymentrelationshipthiswillbeindicatedbyindustrialactionlikestrikes,worktoruleetc.–whichwillhaveanimpactontheoperationsoftheLSO

• Understandthedifferencebetweenprotectedandunprotectedindustrialactionandwhenthisoccurs–i.e.beforeanewcollectiveagreementislodgedwithFWCandisimplementedattheworkplacelevel

AREASTUDY2:TheManagementofChange

• Beabletodefinetheconceptofchange-theprocessofalteringpartsorall

oftheorganisation• Identifytheinternalandexternalpressuresforchangewhichofcourse

formthebasisofdrivingforces• Restrainingforces–keyexamplesareemployees,timeandcost• BeclearaboutKotter’stheory–thereare8stepsthatyouneedtolearnto

beabletoexplainandappliedtothescenario–youmustunderstandthese

• Recognisethatlowriskpracticespromoteharmonyandstaffinvolvementwhereashighriskpracticescreateacultureofmistrustandresentment–withthreats,manipulationandco-aptation

• Againifyouaretalkingaboutleadershipinchangerefertothethreequalities–interpersonal,informationalandofcoursedecision-making

• IfyouarediscussingtheimpactofchangeonanLSOdosointermsofthestructure,theoperationsprocessandhumanresourceelement

• HaveangoodexampleofanLSOthathasundergonechangeandrefertothiswithyoursignificantissue

Don’tforgettorevisitethicsandsocialresponsibility-itisacriticalpartofthecoursethatappearsacrossallfivekeyAreasofStudyanddrawonthescenariotoprovideexamplesifthequestionasksforit.FINALTIPS:

• Duringreadingtime,scanthepaper,workoutwherethe35marksareandthengobackandreadthequestionscarefully

• Theexamisdesignedtotaketwohours–somakesureyoustaythereforthefulltwohoursandfifteenminutes

• Ifyouarerunningoutoftimethenputsomethingdownforthequestionsyouhavenotfullyanswered

• Writeinpenblackorblue–nopencilsplease–examsarescannedandmarkedviacomputer

• Linkkeyareasofthecourseinyouranswers–thatiswhatthebusinessexamisallabout

• Ifyouhavetimerereadyouranswersandcheckwhatyouhavewrittenhasinfactansweredthequestion

• Ifyougetstuckrewordthequestion–workoutwhatisitaskingyou• CreateWOWfactoranswersthatshowcaseyourknowledgeand

understandingofthecourse.• UseexamplesofLSO’sthattheassessorswillbefamiliarwith

PREPARINGFORTHE2016VCEBUSINESSMANAGEMENTEXAM

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STEMWORDSUSEDINTHE2015EXAM

STEMWORD WHATTODOOutline Giveabriefdescriptionofsomething–couldbeabusiness

term

Explain Adetailedanswerstatinghowandwhysomethingoccursoroperates

Describe Giveadetailedaccount,includesignificantcharacteristics,featuresofatermwithsomedetail

Discuss Amoredetailedanswerwithbothpointsofview

Distinguish Toshowpointsofdifferencebetweentwobusinessconcepts;highlightthedifferencesbetweenthetwo

Analyse Breakdownintocomponentsoressentialpartsandexamine

Justify

Givereasonsforyourstatement/s

INPREVIOUSEXAMPAPERS:

Compare Explainwhatissimilar(first),thenwhatthekeypointsofdifferenceare

Evaluate Lookatthedifferentarguments;strengthsandweaknesses,theadvantagesanddisadvantagesandthenmakeapersonaljudgementinfavourofoneortheotherasanoutcomeorwithareason

Identify Providethekeycharacteristicsorfeatures;giveanexampleofsomething(MORETHANJUSTNAMING,ORLIST)

Define Explainthemeaningoftheterm–youcanuseanexampletosupportyouranswer

GOODLUCK–YOUCANDOIT!