Business Plan - Typical Contents

Business Plan - Typical Contents

Executive summary

• What is the business?
• What is the market?
• What is the potential for the business?
• Forecast profit figures
• Funding requirements
• Prospects for the investor/ lender

Description of the business

What is the business?

• A brief description of the business idea and why it should be a success
• History of the enterprise and its ownership
• Information about the entrepreneur’s qualifications, experience and financial status
• Location

Products and services

• A description of the product and what it does
• An explanation of ways in which the product is distinctive and unique
• Analysis of the competition
• How the product will be developed and what new products are being considered as replacements
• Intangible assets & protection (e.g. copyright, trade marks)

The market

• Size and expected growth of the market
• Analysis of market by segments
• Identification of target segments
• Competitors - who they are, ownership, size, market share, likely response to the challenge
• Customers (existing & potential) - who they are, how they buy, why they buy
• Distribution channels

Situational audit (where are we now?)

ORGANISATION STRUCTURE

•                    


CHAPTER 8

ORGANISATION STRUCTURE

•                  LECTURE OUTLINE

•                  Nature of organisation structure

•                  Job design

•                  Types of departmentalisation

•                  Methods of vertical coordination

•                  Promoting innovation

(methods of horizontal coordination)

•                  NATURE OF
ORGANISATION STRUCTURE

Formal pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achieving organisational goals.

•                  NATURE OF
ORGANISATION STRUCTURE

Four elements:

1.                       Assignment of tasks and responsibilities to individuals and units

2.                       Clustering these to form a hierarchy

3.                       Mechanisms for vertical coordination

4.                       Mechanisms for horizontal coordination

•                  NATURE OF
ORGANISATION STRUCTURE

The organisation chart

–                                        Line diagram depicting broad outlines of an organisation’s structure

The chain of command

–                                        Unbroken line of command ultimately linking each individual with the top organisational position

•                  NATURE OF
ORGANISATION STRUCTURE

Principles of chart design

–                                        As few hierarchical levels as possible

–                                        Charts should show who has authority over who

–                                        Charts should show official lines of responsibility & communication

•                  NATURE OF
ORGANISATION STRUCTURE

•                  JOB DESIGN

Work Specialisation

•                  Degree to which work is broken down into various jobs

•                  Most organisations require work specialisation, otherwise every employee would need to be able to perform every job

•                  JOB DESIGN

Specification of task activities associated with a particular job

•                  logical grouping of tasks

•                  design of jobs affects employee        motivation

•                  JOB DESIGN

Four main approaches:

•                  Job simplification

•                  Job rotation

•                  Job enlargement

•                  Job enrichment

•                  JOB DESIGN

Job simplification

Process of configuring jobs so job-holders have only a small number of narrow activities to perform.

•                  JOB DESIGN

Job rotation

Practice of periodically shifting workers through a set of jobs in a planned sequence.

•                  JOB DESIGN

Job enlargement

Allocation of a wider variety of similar tasks to a job to make it more challenging.

Job Scope

Number of different tasks an employee performs in a particular job.

•                  JOB DESIGN

FOUNDATIONS OF GROUP BEHAVIOR

CHAPTER 8:FOUNDATIONS OF GROUP BEHAVIO

AFTER STUDYING CHAPTER 8,
YOU SHOULD BE ABLE TO:

1. Differentiate between formal and informal groups.

2. Compare two models of group development.

3. Explain how group interaction can be analyzed.

4. Identify the key factors in explaining group behavior.

5. Explain how role requirements change in different situations.

YOU SHOULD ALSO BE ABLE TO:

6. Describe how norms exert influence on an individual’s behavior.

7. Define social loafing and its effect on group performance.

8. Identify the benefits and disadvantages of cohesive groups.

9. List the strengths and weaknesses of group decision making.

10.            Contrast the effectiveness of interacting, brainstorming, nominal and electronic meeting groups.

Defining and Classifying Groups

Group Sub-classifications

Stages of Group Development

Stages of Group Development (cont’d)

Stages of Group Development

An Alternative Model: For Temporary Groups with Deadlines

The Punctuated-Equilibrium Model

Group Behavior Model

External Conditions Imposed on the Group

Group Member Resources

Knowledge, Skills, and Abilities

Interpersonal skills

Conflict management and resolution

Collaborative problem solving

Communication skills

Personality Characteristics

Sociability

Initiative

Openness

Flexibility

Group Structure - Roles

Formal Leadership

Leadership that is imposed on the group by the organization.

HUMAN RESOURCE MANAGEMENT = basics of HRM

•                     


CHAPTER 10

HUMAN RESOURCE MANAGEMENT

•          LECTURE OUTLINE

•          The HRM framework

•          Establishing the employment relationship

•          Maintaining the employment relationship

•          LECTURE OUTLINE

•          HRIS, Internet, intranets & extranets

•          The future of work

•          Terminating the employment relationship

•          Corporate responsibility

•          THE HRM FRAMEWORK

Management’s critical task:

To align formal structure with
HR systems so as to drive an organisation’s objectives.

•          THE HRM FRAMEWORK

The Harvard map

HR decisions regarding:

•          Extent of employee commitment

•          Flow of human resources

•          Reward systems

•          Work systems

Outcomes of HR decisions:

•          Degree of employee commitment

•          Competence of employees

•          Cost effectiveness

•          Congruence between employee & employer goals

•          THE HRM FRAMEWORK

Theories of HRM

•          Proactive approach, link to strategic planning & cultural change

•          View of people as capital, not cost

•          Possibility of mutually beneficial relationship between stakeholders

•          THE HRM FRAMEWORK

Those management functions concerned with attracting, maintaining and developing people in the employment relationship.

•          THE HRM FRAMEWORK

HRM functions

•          THE HRM FRAMEWORK

Regulatory framework

•          Australia & New Zealand, long history of government support for union involvement

•          Since early 1990s, major shift toward enterprise or individual agreements

•          Increasing reliance on civil law processes

•          Growth of regulation relating to human rights, discrimination, EEO, OH&S, environmental matters

•          ESTABLISHING THE EMPLOYMENT RELATIONSHIP

•          Acquiring human resources

•          Job analysis

•          Recruitment

•          Selection

•          Interviews

•          ESTABLISHING THE EMPLOYMENT RELATIONSHIP

Human resource planning

Determining future human resource needs in relation to an organisation’s business objectives or strategic plan.

•          ESTABLISHING THE EMPLOYMENT RELATIONSHIP

Job analysis

The systematic collecting and recording of information about the purpose of a job, its major duties, the conditions under which it is performed, the required contacts with others and the knowledge, skills and abilities needed to perform
it effectively.

•          ESTABLISHING THE EMPLOYMENT RELATIONSHIP

Job Analysis

–        Outcomes:

<  Job descriptions and job specifications

–        Impacts upon:

<  Recruitment & selection

<  Performance appraisal

<  Remuneration

<  Training & development

<  Job design & redesign

•          ESTABLISHING THE EMPLOYMENT RELATIONSHIP

Recruitment

The process of finding and attracting job candidates capable of effectively filling job vacancies.

•          RECRUITMENT

Ensuring

compliance

by organisation

with government

regulations

•          RECRUITMENT

INTERNAL RECRUITMENT

ADVANTAGES                   DISADVANTAGES

- Improves morale                           - ’Inbreeding’

- Better assessment                       - Nepotism

- Motivates staff                              - Infighting

- Maintains organisational            - Induction/training costs

knowledge                                         - Lowers internal morale                                                               - Cultural adjustment

•         
METHODS OF RECRUITMENT

Employment agencies

•          ESTABLISHING THE EMPLOYMENT RELATIONSHIP

Selection process:

The decision-making system used to identify which job applicants are best suited to the vacant position.

Key aspects:

–        Reliability

–        Validity

–        Selection devices

•          ESTABLISHING THE EMPLOYMENT RELATIONSHIP

Key aspects of selection: