This learning module is designed for students in the preliminary (Year 11) Business Studies (NSW) course. Course syllabus documents can be viewed here. The module supports students studying topic 9.2 Prelimininary topic: Business Management, which focusses on the nature and responsibilities of management in the business environment. It emphasises the importance of ethical business behaviour and the high personal and ethical standards managers and entrepreneurs need to demonstrate in realising business goals. Core to this purpose is the peer-reviewed project that invites students to connect with Interact, which is a Rotary International initiative that works with youth in service-oriented projects.

It addresses these learning outcomes, as prescribed in the syllabus documents:

Outcomes
The student:
P2 explains the internal and external influences on businesses
P4 assesses the processes and interdependence of key business functions
P5 examines the application of management theories and strategies
P6 analyses the responsibilities of business to internal and external stakeholders
P7 plans and conducts investigations into contemporary business issues
P8 evaluates information for actual and hypothetical business situations
P9 communicates business information and issues in appropriate formats
P10 applies mathematical concepts appropriately in business situations

In engaging with the updates and the community discussion, and participating in the peer-reviewed project, members of the community will be able to:

examine contemporary business issues to:

• discuss strategies that could reconcile the conflicting interests of stakeholders
• compare and contrast approaches to management
• explain the benefits of quality management practices

investigate aspects of business using hypothetical situations and actual business case studies to:

• identify the qualities of managers who have exhibited high personal and ethical standards
• analyse different ways of coordinating key business functions for a small-medium sized enterprise

You are contributing to a social knowledge network, focussing on improving the quality of your writing, while learning about business management. Your participation in this part of the course is recognised by fulfilling these requirements:

1. Comment (in around 20 words) on at least 4 admin updates.
2. Create 3 updates, using prompts from "Make an Update" instructions in the Admin Updates (using around 50 words, at least 1 media element).
3. Comment on 10 of your peers' updates (in around 20 words).
4. Create a work connected with the course.
5. Peer review two works and self-review your final work.

This will be reflected in the astra-plot, found under the "Analytics" tab. This clip explains how your performance is reflected in the astra-plot.

Media: OI, 2022

Your final score at the end of the learning module will be used to grade your work. This score follows the same grading patterns used across the school:

Grading score cut-offs

A	> 84
B	67-84
C	47-66
D	<47

 

Plan and organise with peers a project that helps our school or community (see ideas at Rotary’s Interact: InteractOfficial - YouTube).

Head to Rotary's Official Interact YouTube channel here.

Using your project idea, individually create a business report in CG Scholar, that:

• outlines your project's purpose and objectives;
• discusses how you will apply strategies that could reconcile the conflicting interests of stakeholders;
• compares and contrasts two approaches to management for the project;
• identifies the high personal and ethical standards that managers need to show, relevant to your project;
• analyses different ways of co-ordinating key business functions that would ensure the success of the project.

Rubric: Refer to the checklist below and the Rubric for an overview of what your work should include. The Rubric is the one against which others will review your work, and against which you will do your self-review at the completion of your final draft. You can also view this rubric while you draft your work at Creator => Feedback => Reviews => Rubric. The rubric reflects how you:

• demonstrate your knowledge and understanding of management strategies and approaches
• use the information provided in this learning module and discussions with your peers
• communicate using relevant business terminology and concepts
• present a sustained, logical and cohesive response

Word length: at least 1000 words

Media: Include at least 4 media elements, such as images, diagrams, infographics, tables, embedded videos, (either uploaded into CGScholar, or embedded from other sites), web links, PDFs, datasets, or other digital media. Be sure these are well integrated into your work. Explain or discuss each media item in the text of your work. When referring to a video, you should refer to specific points of the video with time codes or the particular aspects of the media object that you want your readers to focus on. Caption images sourced from the web with a link and be sure to cite all media sources in the references list.

References: Include a References “element” or section with the sources that you have used and referred to in the text, plus any other necessary or relevant references, including websites and media. Use APA 7th edition or other referencing guidelines you are familiar with.

Checklist for completing your peer-reviewed project:

• Does your business report use the format of a  business report, including the executive summary, body and recommendations or conclusions sections?
• Have you responded to each of the 4 questions outlined in the task requirements above?
• Have you included at least 4 media elements and integrated them into your business report?
• Have you cited all your references and listed them in a separate section at the end of your business report?

 

By the end of this update, you should know, understand and be able to:

• explain the work of Interact as part of Rotary International
• identify a service-oriented project and its role and purpose in communities
• recall and apply new knowledge and understanding about skills that effective managers need to use

You will show this by:

• making a comment about what you think a service project should focus on and what our community needs are at this time (following the instructions under Comment);
• making your own update about one or some skills effective managers need to use to make a project work (following the instructions under Make an Update);
• making a comment on a peer's update or comment that adds to this discussion.

 

Rotary clubs can energize and inspire young leaders ages 12-18 through service and encourage them to become responsible global citizens by supporting Interact clubs.

Here are some project ideas from international groups:

InteractOfficial (2018)

InteractOfficial (2018)

InteractOfficial (2018)

Comment: What do you think a service project should focus on? What does our school or community need?

Make an Update: Effective managers need to use their skills to make a project work. Choose one or some of the skills of management: interpersonal, communication, strategic thinking, vision, problem-solving, decision-making, flexibility, adaptability to change, reconciling the conflicting interests of stakeholders and explain how these skills would have been helpful in any of the projects in the YouTube clips from InteractOfficial.

 

 

By the end of this update, you should know, understand and be able to:

• identify business goals under the categories of financial, social, environmental, and personal;

• discuss how effective managers use their skills to meet the business goals;

• explain how managers need to reconcile the interests of stakeholders;

• outline how staff involvement, such as innovation, motivation, mentoring, and training. can help a business meet its goals.

You will show this by:

• identifying stakeholders in your Interact project and explaining how they may have conflicting interests in making a comment  (following the instructions under Comment); 
• making your own update about how business managers can involve staff when leading conflict and change (following the instructions under Make an Update); 
• making a comment on a peer's update or comment that adds to this discussion.

 

Reconciling the conflicting interests of stakeholders

The definition of management refers to the approaches and strategies involved in coordinating a business' key functions to achieve its goals. Managers work with and through other people and teams to achieve the business' goals.

Read the information in this file. Copy the table into your workbook and identify business goals for the categories provided.

Watch this clip on YouTube: "Terry Tate Office Linebacker" (Kris Decker, 2014). 

Kris Decker (2014)

Managers need to also be effective leaders and this takes some practice and self-reflection. The clip featuring Terry Tate is a good example where this has not happened. Managers are constantly juggling the conflicting interests of their customers, their employees, the shareholders, the local government, even members of the wider community where the business manufactures, operates and distributes their goods and services.

The Chaser is "a satirical media empire which rivals Rupert Murdoch’s News Corporation in all fields except power, influence, popularity and profitability". Watch one of their clips about the National Australia Bank (NAB) and how NAB may not be successful in reconciling the conflicting interests of stakeholders.

The Chaser (2021)

Comment: Identify the stakeholders in your Interact project. How might they have conflicting interests? If you haven't finalised your project ideas, choose a local business or our school to consider the stakeholders and their conflicting interests.

Make an Update: One of the important ways that business managers can lead through conflict and change is to involve the staff. Open this file "staff_involvement" and choose one of the exercises for this update.

 

By the end of this update, you should know, understand and be able to:

• describe the three management approaches: classical, behavioural and contingency;
• compare and contrast these management approaches.

You will show this by:

• watching the clips in this update;
• skimming and scanning the articles linked in this update for new information;
• making a comment reflecting on your experience under one of the management styles used in the simulation (see Comment for directions);
• making an update that investigates one of the management approaches (see Make an Update for directions);
• making a comment on a peer's update.

Here's a recap on the role of a manager:

Study.com (2014)

The structure of an organisation can influence the role of a manager and the type of managerial approach a manager will use to coordinate the key functions of a business.

An organisational structure is how a business organises its staff to represent the different layers of management. This information can be displayed in the form of a chart. There are two main types of organisational structure used in businesses – hierarchical (or tall) and flat.

Read more here from the BBC (2022)

The following points from the Business Studies syllabus explain the three main types of management approaches described by theorists.

Classical approach

• management as planning, organising and controlling
• hierarchical organisation structure
• autocratic leadership

Behavioural approach

• management as leading, motivating, communicating
• teams
• participative/democratic leadership style

Contingency approach

• adapting to changing circumstances

The following clips and follow-on resources will help you understand each of these types of approaches.

CLASSICAL MANAGEMENT

Study.com (2014)

These websites have further information:

• Advantages and Benefits of the Classical Management Theory (Chron)
• Classical and Scientific Management Theory (business.com)

Here's an example from Catwoman:

MARiiON241680 (2010) 

BEHAVIOURAL MANAGEMENT

Study.com (2014)

These websites have further information:

• Behavioural Management (Study.com, 2014)
• The Needs Theory (Study.com, 2014)
• Examples of Behavioural Approaches in Business Management (Chron, 2020)

CONTINGENCY THEORY

Study.com (2014)

These websites have further information:

• Contingency Approach Use in Business (Chron, 2019)
• What is a Contingency Approach? (HRzone, 2022)

Comment: How did you feel during the "Classically Beautiful Craft and Art" simulation? What was the purpose of the exercise?

Make an Update: Choose one of the three management approaches shared here and provide a deep dive into that approach, sharing examples of companies and managers or entrepreneurs that favour this style of management. Suggest how that style is suited to their organisational structure and the business goals. You could also discuss the drawbacks of that approach and how it may have been a limiting factor in that business' growth and establishment.

By the end of this update, you should know, understand and be able to:

• explain how a person's ethics influence their role as an entrepreneur or business manager;
• identify ways in which the key business functions (KBFs) are influenced by an entrepreneur or business manager's ethics;
• analyse situations where breaches in the law reflect poor decisions that were not ethical. 

You will show this by:

• watching the clips in this update;
• skimming and scanning the articles linked in this update for new information;
• making a comment about the significance of an entrepreneur or business manager's ethics in leading an organisation (see Comment for directions);
• making an update that investigates one of the case studies highlighted in the update (see Make an Update for directions);
• making a comment on a peer's update.

This update uses some of the information in Edrolo under "Ethical Business Behaviour". You can head directly to Edrolo using this link or download the notes in this file below.

What are business ethics?

Theory summary

• Laws are the rules and regulations imposed within a country. Penalties may be imposed for breaching these laws.
• Ethics are the moral guidelines that a person believes to be true. Non-compliance of business ethics are not punishable through the same methods as breaches of the law, although if these actions break the law, the issue also becomes a legal concern.

Ethical issues

Two Teachers (2022)

There are a range of ethical issues that concern managers leading a business, which directly involve the KBFs. See the following examples of each area where an ethical issue has emerged. Note for some, such as the case of AMP in "Money for Nothing", the matter also became a legal issue.

1. Financial mis-management: "Money for Nothing" from Four Corners (2018)
2. Human resource mis-management: Clean Clothes Campaign (2022)
3. Marketing or advertising deceptive or misleading practices: "Ooshies - a cautionary toy story about cashing in on childhood innocence" The Conversation, 2019)
4. Operations: "Fortescue's Andrew Forrest declares beginning of end of modern slavery" (SMH, 2017).

Comment: Why are personal and business ethics an important area to consider in studying business management? Why would a manager compromise their moral code and take part in unethical conduct?

Make an Update: Research one of the examples of ethical issues or a similar example and share your findings on the community page in an update. Be sure to include the facts of the case study, the issues that it raised and how the situation was resolved.

By the end of this update, you should know, understand and be able to:

• outline each of the key business functions (KBFs) entrepreneurs and business managers need to manage in leading a successful enterprise;
• recognise that change is inevitable in the business and economic environment and this impacts the KBFs.

You will show this by:

• watching the clips in this update;
• skimming and scanning the articles linked in this update for new information;
• making a comment defining and giving an example of a KBF (see Comment for directions);
• making an update that explores how the global pandemic has affected a business (see Make an Update for directions);
• making a comment on a peer's update.

Management process
Managers coordinating key business functions (KBFs) and resources, refer to these specific areas in leading a business enterprise:

1. Operations

• goods and/or services
• the production process
• quality management

2. Marketing

• identification of the target market
• marketing mix

3. Finance

• cash flow statement
• income statement
• balance sheet

4. Human resources

• recruitment
• training
• employment contracts
• separation - voluntary/involuntary

These KBFs rely on each other. Alex Symonds explains how in this clip:

Alex Symonds (2021)

The following clips and follow-on resources will help you understand each of these KBFs.

1. OPERATIONS

Processing inputs to create a product is a KBF associated with operations. This outline of producing a brick outlines each step in the process. It moves from raw material sourcing, through to management and preparation before preceding to shaping, drying, colouring and firing. The final product then moves into the distribution chain for packaging and delivery.

In leading the operations of a business, managers need to ensure they are managing the quality of the business' goods and services. This clip explains how managers do this:

Chartered Quality Institute (2011) 

 2. MARKETING

Marketing is a core part of every business. It uses the 4Ps: price, product, place, promotion. This clip helps you understand and identify each of these essential components of marketing:

ShearerToon (2015)

3. FINANCE

There are three main accounting statements that businesses rely on to monitor how the KBFs are working towards the business goals:

• Balance sheet
• Income and expenditure statement
• Cash flow statement

This clip "Three Financial Statements" explains the role and purpose of these statements:

Corporate Finance Institute (2018)

You can read more about these three statements by clicking on the link for: "What are the Three Financial Statements?" (CFI, 2018). 

4. HUMAN RESOURCES

People are the mainstay of any business and managers need to recruit, train, and follow legislated guidelines for employment contracts when employing for their business. Managers also need to be aware of the laws and company policies around separation, whether it is a voluntary or involuntary separation. You can learn more about these 4 areas of HR below:

• Recruiting: Read Business Queensland's "Recruiting and interviewing" advice.

MrsFarley1971 (2010)

• Training: Read Business Queensland's "Training Staff" advice.
• Employment Contracts: Try one or some of the "Workplace basics" Quiz from FairWork Australia to test your knowledge of your workplace rights and obligations.
• Separation can be an employee's choice (voluntary) or forced on them (involuntary).

MovieFactorVideos (2009)

Read about "Employee Termination Types" (CHRON, 2022) here.

Comment: Provide a definition for one of the KBFs and give examples of activities done in this area of the business. What does this look like in an actual business (use an example such as McDonald's, Apple or a family or locally owned business)?

Make an Update: Managers have had to adapt to economic and social conditions under Covid and need to now adjust for The Restart. You can read some advice for managers here which outlines 8 actions CEOs can take to ensure a safe and successful relaunch of economic activity. Choose one of these 8 actions and explain how this would affect one of the KBFs of a business. You can use your project, a well-known enterprise or a family or locally owned business.

This update brings together the experiences, concepts, applications and analysis of the previous updates. Through this learning module you have:

• considered how service projects address a community's needs;
• reviewed the role of management and the skills of effective managers;
• investigated different types of business goals and how managers work towards achieving those goals;
• discovered how staff involvement -innovation, motivation, mentoring and training can also help achieve business goals;
• learned about the three management approaches: classical, behavioural and contingency;
• identified the ethical issues;
• analysed different ways of coordinating KBFs.

This update recommends follow-on activities that focus on the nature and responsibilities of management in providing goods and services that fulfil a broad range of business goals. 

Shark Tank Australia (2021)

Businesses are established by entrepreneurs who are motivated by financial, social, environmental and personal goals. They need to coordinate the KBFs, using a management approach that motivates staff and meets the conflicting interests of stakeholders. They also need to be mindful of ethical issues and maintain their moral code. Your Interact project is a service-oriented project that will make a difference to our school and community.

Comment: After watching "Top 3 Products that Changed People's Lives" (Shark Tank Australia, 2021) choose one of the three ideas presented that you would support and explain why this idea should be supported.

Make an Update: Share your Interact project idea, providing a pitch for the Sharks. You can video or write up your ideas in an update on the community page.