BSTE222 Notes SU1-5 2024 PDF

Rouxnique Vermeulen 1  Rouxnique Vermeulen Contents STUDY UNIT 1................................................................................................................

Rouxnique Vermeulen 1  Rouxnique Vermeulen Contents STUDY UNIT 1............................................................................................................................. 3 MANAGEMENT & LEADERSHIP.................................................................................................. 3 1.1 DIFFERENCE BETWEEN MANAGEMENT AND LEADERSHIP STYLES............................... 3 1.2 DIFFERENT MANAGEMENT STYLES................................................................................. 4 1.3 FUNCTIONAL AREAS OF MANAGEMENT.......................................................................... 7 STUDY UNIT 2............................................................................................................................. 8 MANAGEMENT FUNCTIONS...................................................................................................... 8 2.1: PLANNING....................................................................................................................... 8 2.2 ORGANISING.................................................................................................................. 13 2.3 LEADERSHIP................................................................................................................... 19 2.4 CONTROL........................................................................................................................ 24 2.5 POSITIVE ATTITUDE........................................................................................................ 26 STUDY UNIT 3........................................................................................................................... 26 CONTEMPORARY SOCIO-ECONOMIC ISSUES....................................................................... 26 3.1 INTRODUCTION TO CSEI................................................................................................ 26 3.2 VARIOUS FORMS OF CSEI.............................................................................................. 28 STUDY UNIT 4........................................................................................................................... 29 QUALITY OF PERFORMANCE................................................................................................... 29 4.1 INTRODUCTION TO QUALITY......................................................................................... 29 4.2 QUALITY AND BUSINESS FUNCTIONS........................................................................... 30 4.3 QUALITY AND BUSINESS PERFORMANCE..................................................................... 33 4.4 TOTAL QUALITY MANAGEMENT (TGM)........................................................................... 36 STUDY UNIT 5........................................................................................................................... 39 BUSINESS STUDY METHODOLOGY......................................................................................... 39 5.1 CONCEPT ‘TEACHING AND LEARNING’........................................................................ 40 5.2 BARRIERS TO TEACHING AND LEARNING..................................................................... 40 5.3 LEARNING THEORIES TO ENHANCE LEARNING............................................................ 42 5.4 TEACHING STRATEGIES................................................................................................. 42 5.5 TEACHING WITH LEARNING IN MIND............................................................................ 43 2  Rouxnique Vermeulen STUDY UNIT 1 MANAGEMENT & LEADERSHIP 1.1 DIFFERENCE BETWEEN MANAGEMENT AND LEADERSHIP STYLES MANAGEMENT AND LEADERSHIP Management: Process of planning, organising, leading and controlling people and resources to reach a goal. Leadership: Provides an organisation with more emotional guidance by creating a vision for an organisation through communication, guidance, training and motivating others to work together to achieve the goals of the organisation Leadership is a function of management, but not all managers are leaders and not all leaders are managers. Basic functions of management: 1. Planning: What 2. Organising: How 3. Leading: What & When 4. Control: Check if it has been done. 3  Rouxnique Vermeulen Importance of good management & leadership: - Optimal use of resources to reach goals. - Reduce costs and deliver quality products. - Reduce the duplication of tasks. - Promotes good working relationships. - Businesses need to be able to adapt to change. - Leads to a good reputation for the business. 1.2 DIFFERENT MANAGEMENT STYLES 1. Directive: Sets clear objectives and rules for team members. Provides specific guidance and instructions. Makes decisions for the team. Is effective in situations where there is a need for strong, clearly defined direction and quick decision-making 2. Authoritative: An authoritative leader sets goals, determines processes, and oversees them, working closely with employees, providing feedback, and mentoring them to succeed. 3. Affiliative: Fosters positivity, harmony, and team building through conflict resolution and personal connections between employees and managers, fostering a sense of community and trust. 4. Participative: Participative management, involves employees at all levels in decision-making, fostering commitment, creativity, open communication, trust, and cooperation among team members. 4  Rouxnique Vermeulen 5. Pacesetting: Results-oriented approach where a leader sets high performance benchmarks, requiring team members to match or exceed them, demonstrating quality and performance expectations. 6. Coaching: Focuses on individual growth, skill development, and empowerment. Leaders who adopt this style act as mentors, guiding and empowering team members to achieve their full potential. Levels of management Top-Level Management Strategic Planning: Develop long-term goals and strategies for the organization. Decision Making: Make high-level decisions that affect the entire organization. Leadership: Provide overall direction and leadership to the company. Policy Formulation: Establish policies and frameworks for the organization. Resource Allocation: Allocate resources effectively to achieve organizational goals. 2. Middle-Level Management Implementation: Execute the strategies and policies set by top management. Coordination: Coordinate activities between different departments and ensure smooth operations. 5  Rouxnique Vermeulen Supervision: Oversee the work of lower-level managers and ensure they meet their targets. Reporting: Report performance and progress to top management. Motivation: Motivate and support lower-level managers and employees. 3. Lower-Level Management Day-to-Day Operations: Manage daily operations and ensure tasks are completed efficiently. Supervision: Directly supervise and guide employees in their tasks. Training: Provide training and development opportunities for employees. Feedback: Offer feedback and performance evaluations to employees. Problem Solving: Address and resolve any issues or conflicts that arise in the workplace. Skills of managers: Conceptual skills Conceptual skills involve the manager’s thinking and planning abilities. Interpersonal skills These skills help managers to understand and communicate with people and to lead, motivate and develop team spirit. Technical skills Knowledge of accountancy, engineering or economics is an example of technical skills that are required to perform a specified task 6  Rouxnique Vermeulen 1.3 FUNCTIONAL AREAS OF MANAGEMENT General management Administrative management Financial management Marketing management Human Resource management Logistics management Operational management IT management Public relations management. 7  Rouxnique Vermeulen STUDY UNIT 2 MANAGEMENT FUNCTIONS 2.1: PLANNING DEFINITION OF PLANNING: Management activities that determine the mission and goals & the methods in which it should be achieved and the utilization of the resources. DIMENSIONS OF PLANNING 1. Determination Dimension: ▪ WHAT: What the business wants to achieve ▪ WHEN: In what timeframe 2. Decision-making Dimension: ▪ HOW: What resources must be utilised (Human, Financial, Expertise) 3. Future Dimension: ▪ NOW → FUTURE: Planning must create a relationship between what must be done now to achieve a certain state of affairs, goal, in the future. BENEFITS AND COSTS OF PLANNING BENEFITS: Provides direction: What is the goal and how is the company going to achieve this goal. Reduces the impact of change: Planning provides opportunities that can be utilized, and threats minimized when change occurs. Promotes co-ordination: Directs all business activities into one direction and promotes teamwork. Ensures cohesion: Parts of the company are interdependent. Top management can see the business as a unit. Facilitates control: Plan must be executed. Performance is measured against goals and steps can be corrected if an error occurs. 8  Rouxnique Vermeulen COSTS: Create rigidity: Management follows the plan regardless of change. Takes Management Time: Time can be utilized for something else. Replace intuition and creativity: People are not allowed to be creative. Delays Decision-making: Other decisions are neglected. DEFINITIONS: Goal: Certain target set that an organisation has the desire to attain in the future. Plan: Structured process that must be followed for an organisation to reach the set goals. Objectives: Specific and measurable steps taken within an organisation to attain the set goals to be attained. Strategies: Approach or method that will be used by an organisation to attain the desired goals. CRITERIA FOFR EFFECTIVE GOALS: 9  Rouxnique Vermeulen MANAGEMENT BY OBJECTIVE (MBO) Business strategy that integrates individual and organizational goals, requiring employees to understand the business's purpose, mission, long-term goals, and strategy. Top managers must support MBO. STEPS IN MBO: Initial discussion between manager and employee – formulation of the job description of performance areas. Employee determines performance targets and a time. The employee and manager must meet and set goals for the employee. Employee and manager decide together how the employee’s progress will be measured. Evaluation takes place at the end of the time-period. THE PLANNING PROCESS STEPS IN PLANNING: 1. Determine goals 2. Develop alternative plans 3. Evaluate alternative plans 4. Choose a plan 5. Implement the plan 10  Rouxnique Vermeulen 6. Do reactive planning, if necessary, if there are changes in the environment. VARIABLES THAT SET BORDERS TO PLANNING: - Purpose of the business - Mission statement of the business - Environment of the business - Values of managers - Experience of managers. MANAGEMENT INVOLVEMENT: TOP MANAGEMENT Strategic goals - Long term - Applicable to the organization as a whole. MIDDLE-LEVEL MANAGEMENT Use strategic goals and develop Tactical goals - Medium term - Applicable to functional departments. 11  Rouxnique Vermeulen LOWER-LEVEL MANAGERS Follow tactical goals and develop Operational goals - Short term - Applicable in different departments. 12  Rouxnique Vermeulen OPERATIONAL PLANS: Single-use plans Plans that are developed to reach a singular aim. - Programme - Project - Budget. Standing plans Stays the same over a longer period. - Policy - Rule - Standard procedures. 2.2 ORGANISING DEFINITION Organising: The division of tasks between workers; The allocation of resources to workers and sections; The granting of the necessary authority to ensure that tasks are performed. Organisational Structure: The collection of formal tasks allocated to individuals and sections; Formal reporting relationships (lines of authority, responsibility, amount of hierarchy levels, team width of directors); The design of systems to ensure the efficient coordination of workers across sections. ORGANISATION STRUCTURE MECHANISMS NEW BUSINESS - Structure must be set up to ensure the execution of the division of tasks between sections and individuals - Decide: Responsibilities; Authority; Type of Communication. EXISTING BUSINESS Organising must: - Be continuously revised and adapted. - And make provision for: - New products or services. 13  Rouxnique Vermeulen THE IMPORTANCE OF ORGANISING - Organising involves A detailed analysis of work done and Resources that must be used to achieve the company's goals. - Organising divides the total workload into activities that an individual or group can easily perform. - Organisation promotes the productive deployment and utilization of resources. - Activities and tasks of individuals that are related to each other are meaningfully grouped into specialized sections. - Create a mechanism that coordinates the entire enterprise's operations into complete, uniform, harmonious units. THE FUNDAMENTALS OF ORGANISATION The design of posts for the employees: Determining the employee’s responsibilities and drafting the expectations. The grouping of employees in teams or sections The granting of authority The creation of a command structure The creation of coordination mechanisms. MANAGERS MUST INVESTIGATE OTHER APPROACHES TO JOB DESIGN: - Job rotation – Shifting of workers from one task to another. - Job enhancement – The number of tasks of the employee increases. - Job enrichment – The enlargement of the number of tasks that the employee performs as well as the control that the employee has over the tasks. SPECIALIZATION IS THE MANNER IN WHICH - A task is divided into smaller units - To utilize specialized expertise or skills - With the aim of higher productivity. 14  Rouxnique Vermeulen DEPARTMENTALISATION Types: - Function - Product - Area - Clients - Matrix-organisation structure Function Area 15  Rouxnique Vermeulen Product Clients: Focus on a specific market Structure 16  Rouxnique Vermeulen AUTHORITY VS RESPONSIBILITY Authority is the right to command or give assignments, - The right to take steps, To enforce compliance with duties And penalise negligence. - Authority is power that is legalized by the company. Responsibility is a certain obligation or commitment to execute tasks according to instructions. - It means that a subordinate must give account of what they have done. Delegation: Authority is passed down from above 17  Rouxnique Vermeulen FACTORS THAT INFLUENCE THE ORGANISATIONAL STRUCTURE Internal Factors 1. Company Size: Smaller companies often have simpler structures, while larger organizations may require more complex hierarchies to manage diverse functions and large numbers of employees. 2. Life Cycle Stage: The stage of development of a company (startup, growth, maturity, or decline) can dictate its structure. Startups might have a flat structure to encourage innovation, while mature companies might adopt a more hierarchical structure to ensure stability. 3. Strategy: A company’s strategic goals influence its structure. For example, a company focused on innovation might have a more flexible, decentralized structure, while one focused on efficiency might have a more rigid, centralized structure. 4. Technology: The type of technology a company uses can affect its structure. Advanced technology might enable more remote work and a flatter structure, while traditional manufacturing might require a more hierarchical structure. 5. Culture and Mission: The organizational culture and mission can shape the structure. A company that values teamwork and collaboration might have a more matrixed structure, while one that values clear authority lines might have a more hierarchical structure. External Factors 1. Market Environment: The competitive landscape can influence structure. Companies in highly competitive markets might need a more flexible structure to quickly adapt to changes. 2. Regulatory Environment: Compliance with laws and regulations can necessitate certain structural elements, such as compliance departments or specific reporting lines. 3. Economic Conditions: Economic stability or instability can influence whether a company adopts a more conservative or aggressive structure. 4. Globalization: Companies operating in multiple countries might need a more complex structure to manage different markets, legal requirements, and cultural differences 18  Rouxnique Vermeulen 2.3 LEADERSHIP COMPONENTS OF LEADERSHIP: Authority: Give commands & demand actions. Discipline those who do not succeed. Power: Ability to influence others. Influence: Ability to use power and authority. Responsibility: Obligation to reach goals and perform necessary tasks. Delegation: Transfers authority to subordinates. Accountability: Evaluation of how individuals comply with their responsibilities. Motivation: Used to give subordinates a purpose of performing a task. POWER: 1. Positional power Top management delegates positional power by means of the chain of command. 2. Personal power Managers have personal power when their followers transfer it to them. TYPES OF POWER: - Coercive power: To enforce compliance through fear (firing, social exclusion) - Rightful / Legitimate power: Power that the business attaches to a position. - Reward power: The power to give or withhold a reward (salary increase, bonuses) - Referent power: Personal power or “charisma”. - Expertise power: Expertise, knowledge and professional abilities. 19  Rouxnique Vermeulen LEADERSHIP THEORIES  Characteristic / Trait theory ◦ Identification and analysis of the characteristics of strong leaders.  Behaviour theory ◦ Assumption that successful leaders behave differently than unsuccessful leaders.  Contingency theory ◦ Aims to determine the best leadership style for a certain situation. 20  Rouxnique Vermeulen 5 DIMENSIONS OF TRUST INTEGRITY: Honesty and trustworthiness COMPETENCE: Technical and interpersonal skills and knowledge CONSISTENCY: Reliable, predictable, and good judgment in the handling of situations. LOYALTY: Willingness to protect another person. OPENNESS: Can rely on this person to tell the truth. CONTEMPORARY APPROACHES TO LEADERSHIP CHARISMATIC - Confidence - Vision - The ability to express vision. - Strong beliefs - Unconventional behaviour - Environmental sensitivity - Applicable when the followers’ task has an ideological component. Skills: Politics Religion Unusual business enterprises. VISIONARY:  Ability to create a ◦ Realistic, believable and attractive vision of the business. ◦ Grows from the present and improves it.  Creates enthusiasm and brings energy to the organisation. Skills - The ability to explain the vision. - Express it through behaviour. - Extend it to different contexts. 21  Rouxnique Vermeulen TRANSACTIONAL Leader reward employees for compliances. TRANSFORMATIONAL  Leaders’ effect on followers that have trust, loyalty and respect for the leader and do more than what is expected from them. GROUPS VS TEAMS GROUPS Two or more people interact to share information and make decisions that help each member of the group to perform within his/her responsibility sphere. TEAMS A small number of employees with mutual supplementary competencies work together on a project, pursue a goal, and are accountable for the execution of a task. Teams work together collectively, and members are dependent on each other for the completion of their work. 22  Rouxnique Vermeulen TYPES OF GROUPS Informal: - Interest groups: Shar an interest. - Friendship: Satisfy social needs. Formal: - Command group: Created by management, line of authority. - Task group: Created for a specific task/project. CHARACTERISTICS OF A GROUP  Group size  Group composition  Norms  Group cohesiveness  Status  Leader 23  Rouxnique Vermeulen 2.4 CONTROL CONTROL What was planned and The actual achievement of management. And ensuring that all activities are carried out as they should be. AREA OF CONTROL Physical resources. Quality control. Financial control. Budget control. The control of information; and The control of human resources. PURPOSE OF CONTROL Control is linked with planning, organising and leading. Control helps companies adapt to environmental change. Control helps limit the accumulation of error. Control helps companies cope with increasing organisational size and complexity. Control helps minimise costs. THE PROCESS 24  Rouxnique Vermeulen STEPS IN CONTROL STEP 1: Establish standards Establish performance standards at strategic points. STEP 2: Measure actual performance The measurement of actual performance. STEP 3: Evaluate deviations The evaluation of any deviations that might occur. STEP 4: Take corrective action The steps that can be taken to correct deviated actions. PHYSICAL RESOURCES Various control systems of an administrative nature can be established to control physical resources, in particular office furniture, equipment, and vehicles, that normally appear on an asset register. HUMAN RESOURCES The management of people, and the control of human resources, resonates under human resource management. INVENTORY: The reserves of resources held in readiness To produce products and services As well as the end products that are kept in stock to satisfy consumers’ and customers’ needs. 4 types Raw materials Unfinished products Components Finished products QUALITY CONTROL The test of quality is locked up in the product if the product satisfies the consumers’ needs. 25  Rouxnique Vermeulen 2.5 POSITIVE ATTITUDE INTRODUCTION Workplace attitudes influence every person in the organisation, from the employees to the owner of the business. Attitudes help to develop the prevailing workplace environment that determines employee’s morale, productivity and team-building abilities. Understanding how positive and negative attitudes affect the workplace is an important tool in creating a harmonious workplace. IMPORTANT POSITIVE ATTITUDES OF A LEADER MAY BE SEEN AS Positivity Goal orientated Empathy and compassion towards others Humbleness to encourage others Love towards others who take the lead Successful leaders have distinguishing characteristics such as: A mission – know why you are there A vision – know where you are heading A goal – know how to reach your mission and vision and to measure your progress Competence – know what you are doing, being an expert Communication skills – formulate a message that is understood by everyone A support team – people with experience, qualifications and capabilities can support your leadership skills and supplement your shortcomings STUDY UNIT 3 CONTEMPORARY SOCIO-ECONOMIC ISSUES 3.1 INTRODUCTION TO CSEI Contemporary Socio-Economic issues refer to problems in society that negatively affect people, businesses and the economy. Contemporary – current, happening at the moment or in recent years Socio – refers to people Economic – refers to the economy of the country (to which businesses contributed and by which businesses are affected) Issues – refers to problems. 26  Rouxnique Vermeulen SOCIO-ECONOMIC ISSUES: Inequality and Poverty: Inequality refers to disparities in income, wealth, education, health, and other aspects of well-being among individuals or groups. It can be vertical (between individuals) or horizontal (between groups). Poverty is a state where individuals lack sufficient income or resources to meet basic needs such as food, shelter, and healthcare. It can be absolute (below a set standard) or relative (compared to others in society). Inclusivity: Inclusivity is the practice of ensuring equal access to opportunities and resources for people who might otherwise be excluded or marginalized, such as those with disabilities or from minority groups. Unemployment: Unemployment is the state of being without a job despite actively seeking work. It is a key economic indicator and can be classified into types such as frictional, cyclical, structural, and institutional. HIV/AIDS: HIV (Human Immunodeficiency Virus) attacks the immune system, making individuals more vulnerable to infections and diseases. If untreated, it can lead to AIDS (Acquired Immunodeficiency Syndrome), a severe condition where the immune system is badly damaged. Gambling: Gambling involves wagering money or something of value on an event with an uncertain outcome, with the primary intent of winning additional money or material goods. It includes activities like betting on sports, playing casino games, and lotteries. Piracy: Piracy traditionally refers to the act of attacking and robbing ships at sea. In modern contexts, it also includes the unauthorized use or reproduction of another’s work, such as software or media piracy. Counterfeiting: Counterfeiting is the fraudulent imitation of something valuable, such as money, documents, or branded goods, with the intent to deceive or defraud. Strikes: Strikes are organized refusals to work by employees as a form of protest, typically to gain concessions from their employer regarding pay, working conditions, or other employment terms. Violence: Violence involves the use of physical force to harm someone or something. It can also refer to intense emotional or natural forces that cause damage or destruction. Crime: Crime is an action or omission that constitutes an offense punishable by law. It includes a wide range of illegal activities, from theft and assault to more severe offenses like murder and fraud 27  Rouxnique Vermeulen 3.2 VARIOUS FORMS OF CSEI 28  Rouxnique Vermeulen STUDY UNIT 4 QUALITY OF PERFORMANCE 4.1 INTRODUCTION TO QUALITY QUALITY Definition: the standard of a product or service as measured against other things of a similar kind; the degree of excellence of a product or service. Exceeding consumer expectations Remain competitive ‘Fitness for use’ Manufacturing and service delivery. Traditional approach to quality: Inspection of goods after production Modern approach to quality: Each employee must be involved in the quality process and committed to quality. - Quality Control should be applied to all aspects of the business. CHARACTERISTICS OF QUALITY: 1. Performance: The product should perform its intended function efficiently and effectively. 2. Reliability: It should consistently perform well over time without frequent failures. 3. Durability: The product should withstand wear and tear and have a long lifespan. 4. Safety: It must be safe to use and not pose any hazards to the user. 5. Aesthetics: The product should be visually appealing and well-designed. 6. Ease of Use: It should be user-friendly and easy to operate. 7. Efficiency: The product should perform its functions without wasting resources. 8. Consistency: Quality should be uniform across all units of the product. 9. Customization: The ability to tailor the product to meet specific customer needs. 10. Packaging: Good packaging protects the product and enhances its appeal 29  Rouxnique Vermeulen ADVANTAGES OF QUALITY CONTROL Enables high-quality goods. Encourages workers. Reduces production costs. Improves product design. Provides incentives for quality work. QUALITY CIRCLES 4.2 QUALITY AND BUSINESS FUNCTIONS BUSINESS FUNCTIONS - General Management - Administrative Management - Marketing Management - Financial Management - Human Resource Management - IT Management - Operations Management - Public Relations Management QUALITY IN GENERAL MANAGEMENT - Establishing clear vision and mission. - Setting realistic goals. - Effective communication to employees. 30  Rouxnique Vermeulen - Demonstrating leadership. - Controlling business functions. - Involving employees in decision-making. QUALITY IN PURCHASING FUNCTIONING - Ensuring that the business buys its raw materials and products ▪ From the right supplier ▪ At the right price ▪ At the right time ▪ In the right quantities ▪ At the right place. - Good purchases must satisfy the needs of the target market; - Stock control must be done regularly to minimize losses due to theft and obsolescence. QUALITY IN PRODUCTION - Selecting suitable system. - Accurately calculating costs. - Ensuring products meet consumer needs. - Conducting quality control. - Maintaining equipment. - Adhering to safety procedures. QUALITY IN MARKETING - Effective market research. - Product development. - Ethical advertising. - Effective communication. - Advertising campaigns. - Coordination of distribution and production. QUALITY IN FINANCIAL MANAGEMENT - Department Overview: - Obtaining suitable capital. - Effective fund application. - Regular profitability, gearing, liquidity determination. - Good budget control. 31  Rouxnique Vermeulen - Secure cash control system. - Credit granting and collection policies. - Effective investment of surplus funds. QUALITY IN ADMINISTRATION - Effective data capture and processing. - Information availability for management decision-making. - Efficient application of technology. - Quick complaint handling. QUALITY IN HUMAN RESOURCES - Attracting top talent. - Fair selection process. - Appointment of qualified staff. - Employee development, retention, training. - Fair remuneration. - Adherence to labour legislation. - Performance incentives. QUALITY IN PUBLIC RELATIONS - Contribute to community through social responsibility. - Regularly release press statements to counter negative publicity. - Improve client relations through effective after-sales service and complaint handling. - Enhance business's positive image. - Ensure standard internal publicity, building appearance, and correspondence. QUALITY IN INFORMATION TECHNOLOGY - Costly decisions based on incorrect information. - Easeful electronic access to global information aids business decisions and international trade. - Information should be available on time 32  Rouxnique Vermeulen 4.3 QUALITY AND BUSINESS PERFORMANCE Quality: Quality is linked to prices, with higher quality requirements reducing supplier availability. Quality impacts stockkeeping, and ongoing quality is crucial when stock is not maintained. IMPORTANT CONSIDERATIONS - Determining appropriate quality for specific purposes. - Providing clear quality descriptions for buyer and seller. - Ensuring quality control to meet requirements. DETERMINATION OF THE RIGHT QUALITY Correct quality: Lowest price, provides a need, fulfils its function. QUALITY DESCRIPTION METHODS - Specifications - Standardisation - Market grading - Trademarks - SABS STANDARDISATION: The uniformity of; Materials, Services, Methods, Practices, Techniques. Standards are set by; Undertaking, National, International. Benefits - Total stock reduces - Improve communication between customers, purchaser and supplier - Mass production is possible - Increases competition QUALITY CONTROL Poor quality leads to consequences Method of control: - Inspections - Suppliers’ agreements - ISO standards 33  Rouxnique Vermeulen QUALITY PLANNING AND CONTROL If products are of good quality, it can increase the INCOME of the producer, since more products will be sold, but the COSTS can also be decreased, since less repairs costs. DEFINITION OF QUALITY PLANNING AND CONTROL Consistently meeting customers' and clients' expectations. Nature: Quality planning and control aim to guarantee that manufactured products or services meet design specifications. STEPS 1. Define product/service quality characteristics. 2. Measure quality characteristics. 3. Set quality standards. 4. Control quality against set standards. 5. Identify and rectify poor quality causes. 6. Continuously improve quality. 34  Rouxnique Vermeulen STEP 1 - Functionality: Performance stability - Appearances: Aesthetics - Reliability: Performance capabilities - Durability: Life expectancy - Serviceability: Repair-ability - Contact: Convenience IMPACT OF GOOD QUALITY ON BUSINESS PERFORMANCE - Quality in the operational function ▪ Supplying raw materials at fair prices. ▪ Up-to-date machinery. ▪ Well-trained, experienced operations department. ▪ Potential for increased production and reduced costs - Quality in the marketing function ▪ Increase product awareness. ▪ Increase purchase likelihood. ▪ Increase business revenue. - Quality in the financial function ▪ Lower production costs and increased revenue lead to greater profits. ▪ Increased market share. ▪ More dividends for shareholders. ▪ Increased investor interest in the company 35  Rouxnique Vermeulen Impact of poor quality on business performance - Poor quality products / design - Poor machinery and/or untrained employees - Poor image / reputation of the business - Loss of clientele - Loss of income. 4.4 TOTAL QUALITY MANAGEMENT (TGM) TQM emphasizes that quality should be maintained across all departments, not just one, and continuous improvement should be sought through feedback on current performance and areas for improvement, ensuring that quality is not limited to any department. It implies to ALL employees. 36  Rouxnique Vermeulen ELEMENTS OF TQM - Top management involvement / commitment - Total client satisfaction - Continuous improvement of systems and processes - Involvement of all employees - Adequate financing and capacity - Monitoring and evaluation of quality processes - Continuous skills development / Education and training AIMS OF TQM - Meeting client needs and expectations. - Ensuring quality across all business parts. - Making employees quality conscious. 37  Rouxnique Vermeulen - Identifying and accounting for quality costs. - Performing right the first time. - Developing quality systems and procedures. - Establishing a continuous improvement process. IMPLEMENTATION OF TQM Systems: Integration of tqm over all business strategies Commitment: Top management & staff involvement Teams: Teamwork Communication: Feedback of quality successes that have been achieved Culture: Creation of quality awareness Methods: Training employees ISO: International Organization for Standardization Quality assurance: ISO 9000/9001 - Specification for products, services - Developed through global consensus, helping break down barriers to international trade 38  Rouxnique Vermeulen ISO GUIDELINES - Definition of documentation - Management responsibility - Provision of resources - Product realisation - Measurement, analysis and improvement STUDY UNIT 5 BUSINESS STUDY METHODOLOGY Important terminology Methodology: A discipline is a set of methods, rules, and postulates used to interpret and solve problems within a specific field, derived from a system of broad principles or rules. Pedagogy: Function of a teacher: The term "teaching" refers to the professional or academic role of a teacher, encompassing various instructional methods and methods used in education. Pedagogue: Teacher or educator Methods of teaching business studies - Teaching and learning (incorporation of NCS principles) - Barriers to teaching and learning in Business Studies (extrinsic and intrinsic) - Learning theories (Behaviourism, Cognitivism, Social Constructivism) - Teaching strategies for Business Studies (learner-centred and teacher- centred) - Teaching with learning in mind (Multiple intelligences) Business studies promote the following skills: - Decision making - Problem-solving - Creative thinking - Systems thinking - Effective communication 39  Rouxnique Vermeulen 5.1 CONCEPT ‘TEACHING AND LEARNING’ 7 PRINCIPLES OF NCS (NATIONAL CURRICULUM STATEMENT) 1. Social transformation 2. Active and critical learning 3. High knowledge and high skills 4. Progression 5. Human rights, inclusivity, environmental and social justice 6. Valuing indigenous knowledge systems 7. Credibility, quality and efficiency Teaching - The act of involving learners to participate in the process of learning. - Teaching is based on how students are engaged in the process of gaining knowledge. Learning - The process whereby learners gain knowledge and skills through participation and experience while being taught. - Learning is based on what learners do to gain knowledge. Effective Learning and Teaching - Based on understanding learner. - Requires active construction of meaning. - Enhances by supportive, challenging environment. - Enhances through worthwhile learning partnerships. - Shapes and responds to social and cultural contexts 5.2 BARRIERS TO TEACHING AND LEARNING INCLUSIVE EDUCATION OVERVIEW - Acknowledges all learning abilities. - Recognizes need for support. - Enables system to meet all learners' needs. - Respects differences while building on similarities. 40  Rouxnique Vermeulen - Recognizes learning extends beyond formal schooling. - Fosters diverse attitudes, teaching methods, and learning environments. - Promotes learner participation in education. - Minimizes learning barriers. 7 PRINCIPLES OF INCLUSIVE EDUCATION 1. Teaching all students: Every student, regardless of their differences, can learn together in the same classroom. 2. Exploring multiple identities: Every learner has unique qualities that should be respected. 3. Preventing prejudice: Avoid judging based on appearances, belief or background. 4. Promoting social justice: Making the world a fairer better, place. 5. Choosing appropriate materials: Choose materials that include diverse perspectives. 6. Teaching and Learning about cultures and religions: To foster understanding and appreciation 7. Adapting and integrating lessons appropriately: Making sure lessons are designed that all learners understand. BARRIERS TO TEACHING AND LEARNING 41  Rouxnique Vermeulen 5.3 LEARNING THEORIES TO ENHANCE LEARNING 5.4 TEACHING STRATEGIES A variety of methods is suitable to the teaching of Business Studies and is chosen by considering: content to be covered purpose of the lesson nature of the subject 42  Rouxnique Vermeulen number of learners in the class, the classroom environment learners’ abilities teacher’s personality pedagogical content knowledge The individual needs of the learners The time available 5.5 TEACHING WITH LEARNING IN MIND Multiple intelligences learners have It is important to remember that every learner possesses all of these intelligences but all intelligences are not equally developed in all learners. As teachers we should prepare lessons that recognise the individual needs of all the learners involved, we can do this by designing teaching and learning activities to accommodate the multiple intelligences of the learners we teach. 43 Rouxnique Vermeulen 44