Read the scenario below and answer the questions.
Masopha Willie has just opened a new footwear and clothing business, Footer, in Century City next to the community centre in Welkom, Free State. In the past there were two similar businesses in the area managed by the local municipality.
QUESTION
Explain how Masopa can use the following factors in his business environment to improve productivity at Footer. Provide an example for each explanation.
A, Management
Masopa can leverage management in his business environment to improve productivity at Footer using the following strategies
1, Adopting Better Management Styles:
Masopa can adopt better management styles, such as a participative management approach, where employees are involved in decision-making processes to tap into their collective wisdom for innovative solutions and increase motivation levels. For instance, Masopa can organize regular brainstorming sessions where employees contribute ideas for process optimization or product innovation. This approach not only helps Footer discover innovative solutions but also boosts motivation levels.
2, Honing Specific Managerial Skills:
Another way to improve productivity is to hone specific managerial skills by investing in managerial training programs aimed at developing leadership and conflict resolution abilities. Managers can undergo training sessions focused on effective delegation and conflict resolution techniques, enabling them to navigate challenges more efficiently and ultimately leading to smoother operations and increased productivity.
3, Fostering Better Working Relationships:
Fostering better working relationships with trade unions and employees is another crucial factor for productivity enhancement. Masopa can achieve this by organizing regular meetings with employee representatives to address concerns, solicit feedback, and collaborate on improving working conditions. This approach creates channels for effective communication and conflict resolution,contributing to a positive work environment.
4, Implementing a Performance-Based Reward System
Introducing a performance-based reward system is another way to enhance productivity by recognizing and rewarding employees who consistently meet or exceed productivity targets. Such rewards could take the form of bonuses, promotions, or additional training opportunities. This approach reinforces a culture of excellence and continuous improvement, ultimately enhancing productivity levels at Footer.
Entrepreneurship and Business Management N5
B, Raw Materials
Masopa can leverage raw materials in his business environment to enhance productivity at Footer using the following strategies:
1, Quality raw materials:
In addition to better management, Masopa can also leverage raw materials to enhance productivity. For instance, by sourcing high-quality raw materials, such as premium leather for shoes or high-grade cotton for clothing, Masopa can guarantee the production of superior footwear and clothing items at Footer. This not only enhances the reputation of his brand but also streamlines production processes and minimizes rework, ultimately boosting productivity.
2, Availability of raw materials:
Ensuring a steady and reliable supply of raw materials is also essential for maintaining consistent production levels at Footer. Masopa can establish partnerships with reliable suppliers or even consider vertical integration by investing in his own raw material sourcing capabilities, such as setting up partnerships with local leather tanneries for footwear or textile mills for clothing. By having ample access to required materials, Masopa can avoid production delays and capitalize on economies of scale, thus increasing overall productivity at Footer
Sourcing high-quality leather from local suppliers and ensuring a steady supply chain can lead to the consistent production of premium leather shoes at Footer, meeting customer demand effectively and efficiently. Similarly, establishing partnerships with textile mills to procure top-grade fabrics ensures the availability of quality materials for clothing production, allowing Footer to deliver superior products consistently and enhance productivity in the long run.
Entrepreneurship and Business Management N5
C, Employees
Masopa Willie can effectively utilize employees in his business environment to enhance productivity at Footer by ensuring they are well trained and motivated.
1, Well Trained Employees:
By providing comprehensive training to his employees, Masopa can ensure that they have the necessary skills and knowledge to perform their tasks efficiently. For example, he can implement training sessions on customer service techniques, product knowledge, and sales strategies. Well-trained employees will be better equipped to assist customers, handle inquiries, and ultimately contribute to increased sales and customer satisfaction. This can also result in fewer errors and faster service, thereby improving overall productivity at Footer.
2, Motivated Employees:
Motivated employees are more likely to be engaged, committed, and productive in their roles. Masopa can foster a positive work environment by acknowledging and encouraging employees for their hard work and achievements. This can involve providing opportunities for professional growth, offering constructive feedback, and creating a supportive atmosphere where employees feel valued and respected. By fostering a culture of appreciation and empowerment, Masopa can inspire his team to excel in their responsibilities, leading to improved productivity. Additionally, a motivated workforce tends to experience fewer labor disputes and conflicts, contributing to a harmonious work environment and maximizing productivity at Footer.
D, Market conditions
Masopa Willie can leverage market conditions in his business environment to enhance productivity at Footer in the following ways:
1, Competitive Analysis and Innovation:
Masopa can leverage market conditions by conducting a competitive analysis of his competitors within the footwear and clothing industry in Century City. By understanding their strengths and weaknesses, he can identify areas where Footer can differentiate itself. For instance, he can explore innovative digital marketing strategies to reach a wider audience and attract more customers.
2, Government Interventions and Support:
He can explore opportunities for government interventions and support that may benefit his business. For example, if there are local initiatives aimed at revitalizing the textile industry in Welkom, Footer can collaborate with local textile manufacturers to source high-quality materials for its footwear and clothing products.
E, Operations
Masopa can leverage operations management strategies to enhance productivity at Footer by:
1, Investigating new methods of operation:
By regularly exploring and adopting innovative methods, Masopa can streamline processes and improve efficiency. For instance, he can implement a lean manufacturing approach to minimize waste and maximize output. This might involve analyzing the flow of materials and goods in the store to eliminate bottlenecks and reduce unnecessary steps in the supply chain.
2, Proper maintenance:
Ensuring that all equipment and machinery are well-maintained is crucial for sustained productivity. Masopa can establish a maintenance schedule to regularly inspect and service the machinery used in the store. For example, he can conduct routine checks on the footwear manufacturing equipment to prevent unexpected breakdowns that could disrupt production.
3, Utilizing technology and equipment:
Embracing technology and modern equipment can significantly boost productivity in the business. Masopa can invest in automated systems for inventory management and order processing, which can streamline operations and reduce manual errors. Additionally, he can incorporate advanced machinery for clothing manufacturing, such as computerized sewing machines, to increase production speed and accuracy.
Public Finance N6 Exam Revision 4
QUESTION
Explain to Masopa what ethical practice means. Base your response on the footwear and clothing business.
When it comes to the footwear and clothing business, ethical practice means:
QUESTION
Define the term, group dynamics, and state how it would impact on the employees of Footer who work in a stressful environment
Group dynamics refer to the interactions, relationships, and behaviors that occur when a group forms, and its members assume different roles based on their skills, personalities, and experiences with the goal of achieving harmony, productivity, and mutual understanding while navigating potential conflicts and differences.
In the context of employees of Footer who work in a stressful environment, group dynamics can have the following positive impacts:
QUESTION
As manager, Masopa needs basic technical skills to run his footwear business. Explain the concept, technical skills, and provide an example of technical skills that Masopa would need to effectively manage Footer.
Technical skills refer to the specific abilities and expertise required to understand, develop, or operate the core aspects of the business. In the context of managing a footwear business like Footer, Masopa would need technical skills related to the clothing industry. An example of technical skills includes:
1, Knowledge of various fabrics and materials:
Masopa should have a thorough understanding of different types of fabrics and materials used in footwear manufacturing. This includes knowing their properties, characteristics, and suitability for different types of shoes. For example, knowing the difference between natural materials like leather and synthetic materials like polyester allows Masopa to make informed decisions when selecting materials for designing and manufacturing footwear products.
2, Understanding of chemicals and production channels:
Masopa needs to be familiar with the chemicals and substances used in the production process of footwear. This includes knowledge of adhesives, dyes, finishes, and other chemicals commonly used in shoe manufacturing. Understanding production channels involves knowing the steps involved in the manufacturing process, from sourcing raw materials to the final product assembly. For instance, Masopa should know how to manage inventory effectively, coordinate with suppliers, and optimize production workflows to ensure timely delivery of quality footwear products to customers.
3, Operating power:
Masopa should possess basic technical skills related to operating machinery and equipment used in footwear production. This includes knowing how to operate and maintain power tools, sewing machines, cutting machines, and other equipment safely and efficiently. For example, Masopa needs to understand how to adjust machine settings, troubleshoot common issues, and ensure that equipment is used correctly to minimize downtime and maximize productivity in the production process.
4, Dyeing power:
Understanding dyeing processes is crucial for Masopa to ensure the color consistency and quality of footwear products. Masopa should know different dyeing techniques, such as direct dyeing, yarn dyeing, and piece dyeing, and their respective effects on various materials. For example, knowing the appropriate dyeing method for different types of fabrics allows Masopa to achieve the desired color intensity and durability in footwear products while minimizing color fading or bleeding issues.
QUESTION
Power is necessary to influence people to complete tasks, but power, if not contained, can be dangerous and can become destructive. Explain the difference between position power and subordinate power and provide an example of each.
Position power is acquired through legitimate processes, usually associated with one’s formal position or authority within a hierarchy or organization. This type of power is granted to individuals based on their position within the organizational structure, such as managers, executives, or team leaders. For instance, a manager exercising their authority to assign tasks to employees and make decisions that affect the organization is an example of position power. They have the power to enforce rules, allocate resources, and evaluate performance based on their position within the company.
On the other hand, subordinate power is acquired through a collective process, often based on the ability of subordinates to organize themselves collectively and leverage their collective strength to influence decisions and outcomes. Subordinates may wield power through mechanisms such as collective bargaining, protests, or strikes. For example, when employees form a trade union to negotiate for better working conditions, wages, or benefits, they demonstrate the power of unity and collective action, which is an example of subordinate power.
QUESTION
The management of Central East High School in Northwest reported in their monthly feedback to the community that a number of employees at the school have developed a habit of not coming to work on Mondays and the day after pay day.
What methods will you advise management to adopt to assist in changing these employees’ habits?
Habits are regular, often subconscious patterns of behavior that reflect an individual’s character and influence their productivity. To address the problem of employees not showing up on Mondays and the day following payday, management at Central East High School could consider implementing several strategies, including the following:
QUESTION
Explain to Masopa what ethical practice means. Base your response on the footwear and clothing business.
When it comes to the footwear and clothing business, ethical practice means:
QUESTION
Define the term, group dynamics, and state how it would impact on the employees of Footer who work in a stressful environment
Group dynamics refer to the interactions, relationships, and behaviors that occur when a group forms, and its members assume different roles based on their skills, personalities, and experiences with the goal of achieving harmony, productivity, and mutual understanding while navigating potential conflicts and differences.
In the context of employees of Footer who work in a stressful environment, group dynamics can have the following positive impacts:
QUESTION
As manager, Masopa needs basic technical skills to run his footwear business. Explain the concept, technical skills, and provide an example of technical skills that Masopa would need to effectively manage Footer.
Technical skills refer to the specific abilities and expertise required to understand, develop, or operate the core aspects of the business. In the context of managing a footwear business like Footer, Masopa would need technical skills related to the clothing industry. An example of technical skills includes:
1, Knowledge of various fabrics and materials:
Masopa should have a thorough understanding of different types of fabrics and materials used in footwear manufacturing. This includes knowing their properties, characteristics, and suitability for different types of shoes. For example, knowing the difference between natural materials like leather and synthetic materials like polyester allows Masopa to make informed decisions when selecting materials for designing and manufacturing footwear products.
2, Understanding of chemicals and production channels:
Masopa needs to be familiar with the chemicals and substances used in the production process of footwear. This includes knowledge of adhesives, dyes, finishes, and other chemicals commonly used in shoe manufacturing. Understanding production channels involves knowing the steps involved in the manufacturing process, from sourcing raw materials to the final product assembly. For instance, Masopa should know how to manage inventory effectively, coordinate with suppliers, and optimize production workflows to ensure timely delivery of quality footwear products to customers.
3, Operating power:
Masopa should possess basic technical skills related to operating machinery and equipment used in footwear production. This includes knowing how to operate and maintain power tools, sewing machines, cutting machines, and other equipment safely and efficiently. For example, Masopa needs to understand how to adjust machine settings, troubleshoot common issues, and ensure that equipment is used correctly to minimize downtime and maximize productivity in the production process.
4, Dyeing power:
Understanding dyeing processes is crucial for Masopa to ensure the color consistency and quality of footwear products. Masopa should know different dyeing techniques, such as direct dyeing, yarn dyeing, and piece dyeing, and their respective effects on various materials. For example, knowing the appropriate dyeing method for different types of fabrics allows Masopa to achieve the desired color intensity and durability in footwear products while minimizing color fading or bleeding issues.
QUESTION
Power is necessary to influence people to complete tasks, but power, if not contained, can be dangerous and can become destructive. Explain the difference between position power and subordinate power and provide an example of each.
Position power is acquired through legitimate processes, usually associated with one’s formal position or authority within a hierarchy or organization. This type of power is granted to individuals based on their position within the organizational structure, such as managers, executives, or team leaders. For instance, a manager exercising their authority to assign tasks to employees and make decisions that affect the organization is an example of position power. They have the power to enforce rules, allocate resources, and evaluate performance based on their position within the company.
On the other hand, subordinate power is acquired through a collective process, often based on the ability of subordinates to organize themselves collectively and leverage their collective strength to influence decisions and outcomes. Subordinates may wield power through mechanisms such as collective bargaining, protests, or strikes. For example, when employees form a trade union to negotiate for better working conditions, wages, or benefits, they demonstrate the power of unity and collective action, which is an example of subordinate power.
QUESTION
The management of Central East High School in Northwest reported in their monthly feedback to the community that a number of employees at the school have developed a habit of not coming to work on Mondays and the day after pay day.
What the methods will you advise management to adopt to assist in changing these employees’ habits?
Habits are regular, often subconscious patterns of behavior that reflect an individual’s character and influence their productivity. To address the problem of employees not showing up on Mondays and the day following payday, management at Central East High School could consider implementing several strategies, including the following:
QUESTION
Morubane is the owner and chief executive officer of Moru- bus Transport Services in Vuselala. He daily transports students and staff to school and workplaces. He has cars and buses for hire, as well as for special occasions, such as weddings, camping and religious events. His services are in great demand, especially during weekends and major events. The business has the following structure: Transport manager with five drivers, an event manager and two assistants.
How would you advise Morubane on departmentalising his business by means of the following:
1, Time
2, Customers
3, Products
4, Processes
5, Functionality
1, Departmentalization based on time
Morubane can departmentalize his business based on time, as follows
a, Day Shift Operations:
He can assign tasks such as cleaning and maintenance of vehicles to be done during the day shift when transport services are less in demand. This ensures that vehicles are in optimal condition for peak hours.
He can also allocate administrative tasks such as scheduling, customer inquiries, and office management to be handled during regular business hours.
b, Night Shift Operations:
Morubane can utilize night shift to allocate tasks that can’t be accomplished during peak hours, such as major vehicle maintenance or deep cleaning. Furthermore, night shift drivers can be assigned for special late-night events or for providing transportation services to customers with specific needs outside of regular operating hours.
c, Saturday/Holiday Drivers:
Morubane could establish a separate team of drivers specifically for weekends and holidays when demand for transportation services is typically higher. These drivers can focus on providing services for weddings, religious events, camping trips, and other special occasions that often occur during weekends and holidays.
He should though ensure that there are adequate staffing levels for these peak periods by hiring part-time or temporary drivers who are available specifically during weekends and holidays.
2, Departmentalization based on customers
Morubane can departmentalize his business based on customers’ needs, into different departments tailored to specific customer segments as shown below
a, Student Transport Department:
This department focuses exclusively on providing transportation services for students. It ensures timely and safe transportation to and from schools, accommodating varying schedules and routes to meet the needs of different educational institutions.
b, Staff Transport Department:
This department is tasked with serving the transportation needs of businesses and organizations, by providing reliable and efficient transport services for employees commuting to work. It can offer both regular daily routes and customizable options to suit the specific requirements of different workplaces.
c, Wedding Transport Department:
Specializing in wedding transportation, this department caters to couples and their guests, providing elegant and memorable transportation solutions for their special day. Services may include chauffeur-driven cars, luxury vehicles, and shuttle buses to transport guests between venues.
d, Special Events Transport Department:
This department handles transportation arrangements for various special events such as religious gatherings, camping trips, conferences, and festivals. It offers flexible transportation options tailored to the unique requirements of each event, ensuring seamless logistics and customer satisfaction.
3, Departmentalisation by Products.
Morubahne’s can departmentalize his business by-products in the following way.
a. Events Department:
This department will provide transportation services for various events such as religious gatherings, corporate functions, and cultural events. The team in this department works closely with event organizers to ensure timely transportation to and from the event venues. Staff members include an Event Manager and Event Assistants.
b. Weddings Department:
This department is specialized in providing transportation services for weddings and related ceremonies. The team in this department is responsible for arranging transportation for the bridal party, guests, and other wedding-related activities. Staff members consist of a Wedding Coordinator and Wedding Assistants.
c. Daily Transport Department:
This department provides regular transportation services for students, staff, and commuters to schools and workplaces daily. The team in this department manages regular routes, schedules pickups and drop-offs, and ensures the safety and comfort of passengers. Staff members include a Transport Manager and Drivers.
d. Maintenance Department:
This department is responsible for the upkeep and maintenance of vehicles to ensure their safety, reliability, and cleanliness. The team in this department carries out routine inspections, repairs, cleaning, and schedules maintenance appointments. This department may overlap with other departments as vehicles used for events and weddings also require regular maintenance. Staff members consist of Maintenance Technicians.
e. Route Planning Department:
This department is tasked with planning routes for specific occasions such as large events, weddings, or group outings. The team in this department analyzes traffic patterns, coordinates with drivers, and optimizes routes to minimize travel time and ensure punctuality. Staff members include Route Planners.
f. Booking Office:
This department is a centralized point of contact for customers seeking transportation services. The team in this department is responsible for handling all booking inquiries, reservations, and customer service. They manage bookings for all departments. Staff members consist of Booking Agents and Customer Service Representatives.
4, Departmentalisation by Processes
Morubhane can effectively departmentalize his transport business by structuring it around key processes involved in the operation of his transport business. Here’s how he could organize it:
a. Booking and Reservation Department:
This department would handle all aspects related to booking vehicles for transportation services. It’s responsible for communicating with customers, understanding their requirements, providing quotes, and securing reservations.
b. Payment Department:
This department would focus solely on handling payments and financial transactions related to the transportation services provided. They would ensure that invoices are generated, payments are received, and any outstanding balances are settled promptly.
c. Confirmation Department:
This department would confirm bookings and coordinate with customers to finalize arrangements. They would send out confirmations via email or other communication channels, reconfirm bookings closer to the service date, and promptly address any customer inquiries or concerns.
5, Departmentalization based on functionality
Morubahne can divide his transport business into functional departments to streamline operations, and facilitate focused management as follows
a, Administrative/Personnel Department.
This department would handle administrative tasks such as managing employee records, payroll, hiring, and training. It would ensure compliance with regulations, maintain employee satisfaction, and foster a positive work environment. Besides, scheduling, vehicle maintenance, and ensuring adherence to safety protocols would also be the responsibility of this department.
b, Marketing Department
The marketing department can help Morubhane promote his services, attract new customers, and retain existing ones. This department will also be responsible for market research, developing marketing strategies, advertising campaigns, and managing social media presence. It would also handle customer relations, obtaining feedback, and implementing initiatives to enhance customer satisfaction and loyalty.
c, Financial Department
The Financial Department will oversee the company’s financial activities, which include budgeting, accounting, and financial reporting. This department handles invoicing, billing, monitors expenses, and ensures that payments are received promptly. It analyzes financial data, forecasts future trends, and provides insights to support strategic decision-making.
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