Business for QCE Units 3&4 Chapter 3 Summary PDF

*Business for QCE Units 3&4*: CHAPTER SUMMARY Chapter 3 Competitive strategies: Human resources and finance Managing human resources in maturity The employment cycle Four stages: Acquisition, development, maintenance, separation - Development - During start up and business growth it focu...

*Business for QCE Units 3&4*: CHAPTER SUMMARY Chapter 3 Competitive strategies: Human resources and finance Managing human resources in maturity The employment cycle Four stages: Acquisition, development, maintenance, separation - Development - During start up and business growth it focuses on building the business's culture and inducting staff - The process needs to be formalised to ensure staff feel valued and relevant to the achievement of business goals and objectives - Maturity stage: ensure constant training so employees grow - Maintenance - This stage focuses on motivating and supporting employees to help the business achieve their goals and objectives - Maturity stage: leadership and management of employees is crucial to ensure the maintenance stage lasts - Employee motivation and the culture of the business is integral Motivation theories Understanding what drives and motivates employees means that communication and rewards will vary to suit different personalities Staff wellbeing increases staff loyalty and attention to the extent of: increased satisfaction, increased morale, increased productivity, reduced absenteeism, better relationships, open communication channels and a more sustainable workforce - Maslow's hierarchy of needs - Physiological needs, safety needs, belonginess/social needs, esteem needs, self-actualisation - Each level of needs aligns with the engagement and satisfaction that an employee feels towards their workplace - Locke's goal-setting theory - Identifies challenging, but not overwhelming, goals to motivate employees as well as intrinsic motivation - SMART goals - Herzberg's two-factor theory - Ensuring a satisfactory work environment is essential before any positive motivators can prevail - Positive psychology and motivation - Typically, external motivation related to financial gains was thought to motivate employees, now shifting to holistic motivation approaches - Seligman's PERMA framework to ensure lasting wellbeing: positive emotion, engagement, relationships, meaning in life, achievement Human resources strategies Employer of choice Desirable place to work as a result of specific and deliberate strategies to create a collaborative culture Defined as a recruitment and retention strategy to offer appealing incentives causing people to choose to work and dedicated themselves to their business despite offers from competing employers Diverse workforce Employees from a wide range of backgrounds such as different ages, gender, ethnicity, physical ability, sexual preference, religious belief, work experience, education, etc. A diverse workforce must also be inclusive Anti-Discrimination Act 1991 Intrapreneurship Fostering the skills of an employee who has an entrepreneurial mindset and utilising this to the advantage of the business Responsible for introducing new ideas, inspiring creativity, leading and motivating those around them, ensuring the business meets targets and improves operations Fostering intrapreneurship is classified by four models within the two dimensions of organisational ownership and resource authority Four models: the enabler, the producer, the opportunist, the advocate Leaders and managers in the maturity stage Different stages of the business lifecycle require different strengths and focuses of leadership In maturity stage, the leader has to facilitate growth and intrapreneurship characteristics of employees Leadership styles: authoritative, charismatic, bureaucratic, authentic, transactional, transformational Leadership behaviour Fielder's contingency model: Determines what type of leader will be effective in certain situations and how this will affect group performance Least preferred co-worker (LPC) scale; high LPC scores insinuates valuing interpersonal relationships, low scores derive satisfaction from performance of the task and attainment of objectives Situational favourability The amount of influence a leader has over their followers supplied by a given situation Three elements: leader's position power, task structure, leader-member relations Relationship between styles and situations: The ability to look at a manager's LPC score and the situational variables to determine the best leader for the situation Managing finances in maturity Financial management: covers the planning, organising, directing and controlling of business activity and funds Financial controls in expansion Strategies and processes a business adopts to manage finance and the associated risks In global expansion, a business must have controls to mitigate the risks of fluctuating international factors such as exchange rates, cost of processing international transactions and hedging Ethical and sustainable financial decisions Decisions of a business should not be driven by greed or a failure to understand the industry ethical standards Financing strategies Private equity - The investment of money into private companies not listed on a public exchange, whereby capital is usually from institutional investors and accredited investors, or the buyout of public companies - Growth capital investments: private equity investments made in mature companies with proven business models seeking growth Money in capital markets - Capital market: where buyers and sellers engage in trade of financial securities to grow investment capital and enhance wealth Going public Sells shares that were privately held to new investors for the first time (Initial Public Offering) IPO steps: Appoint advisers, prepare the prospectus, commence institutional marketing program, lodge prospectus with ASIC, listing application lodged and review by ASX, marketing and offer period, offer closes and shares are allocated with trading commencing Dividends Portion of the profit generated by a company that it paid to shareholders via cash payments, shares of stocks or other property Some companies such as start-up and other high-growth companies that want to reinvest into the business may not offer regular dividends Government grants and incentives In maturity, grants and incentives are designed to encourage growth and increase opportunities Grants do not require the business to pay anything back Evaluating finance options Triple bottom line: People, planet, profit; expressing a company's impact on a local and global scale Cost benefit analysis: an approach to help businesses determine the financial feasibility of a strategy by evaluating all the potential costs and benefits (qualitative and quantitative) that could be generated.