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It has come to my attention that your department has caused significant spillage of oil and paint over the past 8 months - VCE - SSCE Business Management - Question 3 - 2007 - Paper 1
Question 3
It has come to my attention that your department has caused significant spillage of oil and paint over the past 8 months. Traces of this oil and paint have been foun... show full transcript
Worked Solution & Example Answer:It has come to my attention that your department has caused significant spillage of oil and paint over the past 8 months - VCE - SSCE Business Management - Question 3 - 2007 - Paper 1
Step 1
a. Explain the characteristics of an autocratic management style in this situation.
Answer
An autocratic management style is characterized by a top-down approach where the manager makes decisions unilaterally. In this case, Jerome Jones can use this style to ensure quick decision-making regarding the oil and paint spillage, as it allows him to implement solutions without waiting for employee consensus. Key characteristics include:
- Centralized Decision-Making: Jerome retains full control over decisions, which is crucial in a crisis.
- One-Way Communication: Information flows from Jerome to employees without feedback, ensuring that directives are clearly understood and quickly implemented.
- Low Trust in Staff: Given the operational errors, there may be a low level of trust in employee capabilities, making an autocratic style more appropriate.
- Task Orientation: Emphasizing task completion focuses teams on addressing the immediate issues of spillage and waste management.
Step 2
b. Identify and explain two management skills that Jerome Jones could use and discuss how these skills would help in the current situation.
Answer
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Communication Skills: Jerome needs to effectively convey the urgency of the situation to his team, ensuring that all staff are fully aware of the operational changes, expectations, and timelines. Clear communication will help mitigate confusion and resistance.
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Decision-Making Skills: Facing a critical issue like spilled oil and paint, Jerome must quickly evaluate possible solutions and choose the best course of action. This skill will enable him to swiftly implement measures to control the spillage and reassure stakeholders.
Step 3
c. Outline two non-financial key performance indicators that could be used to measure the success of the changes at Pacific Paint.
Answer
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Employee Satisfaction: Measuring employee morale through surveys can gauge the workforce's reaction to changes and management strategies, highlighting areas needing attention.
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Customer Feedback Ratings: Monitoring customer satisfaction levels via feedback can provide insights into how well the business is meeting community expectations post-change. High customer ratings will suggest successful adaptation to operational shifts.
Step 4
d. Identify and explain two operations management strategies (apart from technology strategies) that Jerome Jones could introduce and discuss how these strategies could improve business competitiveness.
Answer
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Quality Management: Implementing strict quality controls can mitigate errors associated with manual handling and ensure that products are consistent and meet safety standards. This can enhance brand reputation and customer trust.
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Supply Chain Management: Streamlining the supply chain to monitor the flow of materials closely can enhance efficiency. By reducing waste and ensuring the timely delivery of raw materials, Pacific Paint can reduce operational costs and improve competitiveness.
Step 5
e. Discuss the elements of an operations management system. Illustrate your answer using a service firm.
Answer
An operations management system comprises major elements such as:
- Process Design: Establishing workflows that optimize efficiency.
- Resource Management: Allocating human and material resources effectively.
- Quality Control: Ensuring that outputs meet defined standards.
- Output Monitoring: Measuring outcomes to gauge performance.
For instance, a restaurant, as a service firm, would focus on process design through kitchen workflows, manage staff schedules as resources, enforce quality control with health and safety checks, and monitor customer service feedback as part of output measurement.
Step 6
f. Evaluate the positive and negative aspects of two ethical and social responsibility issues faced by Jerome Jones in this situation.
Answer
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Environmental Responsibility:
- Positive: Implementing sustainable practices can reinforce community trust and commitment to environmental stewardship.
- Negative: The initial costs of changing processes to be more environmentally friendly may strain financial resources.
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Employee Welfare:
- Positive: Prioritizing training and retraining over redundancies could foster loyalty and minimize layoffs, enhancing overall morale.
- Negative: Layoffs due to automation could lead to reputational damage and community unrest, impacting business operations.