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The 2008/2009 global financial crisis has led to a decrease in automobile sales in Australia and hence a reduction in demand for parts of all types - VCE - SSCE Business Management - Question 1 - 2009 - Paper 1

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The 2008/2009 global financial crisis has led to a decrease in automobile sales in Australia and hence a reduction in demand for parts of all types. At Johnson Autom... show full transcript

Worked Solution & Example Answer:The 2008/2009 global financial crisis has led to a decrease in automobile sales in Australia and hence a reduction in demand for parts of all types - VCE - SSCE Business Management - Question 1 - 2009 - Paper 1

Step 1

a. Define the term stakeholder.

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Answer

A stakeholder is any individual or group that has a vested interest in the performance, activities, and operations of a business. This includes but is not limited to employees, customers, suppliers, and shareholders.

Step 2

b. Compare the autocratic and participative management styles. Include two advantages of participative management.

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Answer

Autocratic management is a top-down approach in which decisions are made by the manager without input from staff. In contrast, participative management involves staff in the decision-making process. Two advantages of participative management are: 1) Increased employee engagement, as they feel their opinions and expertise are valued, and 2) Improved decision-making, since collective input can lead to more well-rounded choices.

Step 3

c. Discuss two advantages and two disadvantages of the participative management style.

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Advantages: 1) Greater range of opinions leads to more comprehensive solutions, and 2) Enhanced employee/employer relations, fostering a collaborative environment. Disadvantages: 1) It can be time-consuming, as it involves more people in the decision-making process, and 2) There may be confusion over who is responsible and accountable for decisions.

Step 4

d. Describe two human resource strategies that the new plant manager could implement to improve employee satisfaction.

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One strategy is to implement training programs that enhance employees' skills, which will contribute to their career development. Another strategy is to establish a performance appraisal system that provides regular feedback on employee performance, linking it to rewards and recognition.

Step 5

e. Define each of these roles. Discuss how these roles will assist the new plant manager to deal with these changes.

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Planning involves establishing objectives and outlining steps to achieve them, while controlling ensures that the organization's actions align with the established plans. These roles will help the new plant manager to focus on the organization's direction and maintain accountability, ensuring that targets are met and adjustments are made as needed.

Step 6

f. Describe three management skills that a participative manager could use. Discuss how the new plant manager at Johnson Automotive could apply each of these skills to the current situation.

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Answer

Three management skills are: 1) Communication, allowing the manager to effectively share information and gather feedback from employees; 2) Delegation, enabling the manager to distribute tasks and responsibilities among team members, and 3) Conflict resolution, to address and mediate any disagreements effectively. The new plant manager can apply these skills to foster a supportive work environment, engage employees in decision-making, and enhance overall productivity.

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