SECONDARY SCHOOL IMPROVEMENT PROGRAMME (SSIP) 2016

© Gauteng Department of Education

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SECONDARY SCHOOL IMPROVEMENT PROGRAMME (SSIP) 2016

GRADE 12

SUBJECT: BUSINESS STUDIES

TERM: 2

LEARNER NOTES

(Page 1 of 49)


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TABLE OF CONTENTS

SESSION NUMBER AND TOPIC PAGE NUMBER

SECTION A

5: CSR & CS1 3 - 5

6: Human Rights, Inclusivity & Environmental issues 5 - 6

7: Team performance assessment, conflict and problem solving

6 - 7

8: Business sectors, Management and Leadership 7 - 8

9: Quality of Performance 8 - 9

10: Term 2: Miscellaneous topics 10 - 11

11: Term 1: Miscellaneous topics 11 - 12

12: Term 1 & 2 Typical Exam questions 12 - 16

SECTION B: NOTES ON CONTENT

5 16 - 18

6 19 - 23

7 24 - 29

8 29 - 34

9 34 - 40

10 40 - 43

11 43 - 45

SECTION C: HOMEWORK QUESTIONS

All Sessions 46 - 49


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SESSION NO: 5 TOPIC: Social responsibility and corporate citizenship/ Corporate

Social Responsibility (SCR)

Learner Note: Social responsibility and Corporate Social Responsibility form part of good corporate governance. Businesses are obliged to ensure that their operations and practices do not harm the environment. CSR programmes aim to benefit both businesses and communities.

SECTION A: TYPICAL EXAM QUESTIONS

QUESTION 1: 33 marks 40 minutes (Various sources) TOPIC: Social Responsibility and CSR QUESTION 1: Read the scenario below and answer the questions that follow.

Victor’s Fish & Chips Victor’s Fish & Chips is situated in a residential area consisting of low and middle income people. Victor’s customers usually throw leftovers and wrappers in the street. The business plays music very loud at night in order to attract customers. He also uses coal to operate his machines. The machine causes air pollution.

1.1.1 Do you agree that Victor’s Fish & Chips is not responsible for the wellbeing of

the community? Motivate your answer? (3)

1.1.1 Suggest ways in which Victor’s Fish & Chips can overcome the challenges described to in the scenario above (6)

1.1.2 Explain the difference between Corporate Social Responsibility and Cooperate Social Investments (4)

1.2 Give THREE examples of the components of CSR (6)

1.3 Justify the effectiveness of CSI projects on businesses (6)

1.4 Recommend ways in which businesses can contribute time and effort to advance the wellbeing of the community. (8)


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Hint: Ensure that you able to understand and interpret the scenario before you answer the questions.

QUESTION 2: 15 Marks: 10 Minutes (Various sources) The following questions are based on Corporate Social Investment Read the scenario below and answer the questions that follow.

2.1 Identify THREE socio-economic issues from the above scenario (3) 2.2. Recommend Corporate Social Investment projects that KCM may initiate to

address each of the socio-economic issue identified in QUESTION 2.1 (6) 2.3 Advice KCM on how to overcome challenges to meet the longer term needs of

the community within which they operate (6)

QUESTION 3: 40 Marks 30 Minutes (Various sources)

Hints: This is an essay question. Structure is important. Introduction, body and conclusion. -Sub-headings are important to use as they count for analysis. -Do not write in paragraph style. Use full sentences but in point form. -Use current examples of CSI projects & CSR programmes to obtain marks for originality. -Avoid repeating the question in both the introduction and conclusion (remember no marks for repetition

Essay on SCR and SCI

Flossie’s Bed & Breakfast ‘The owner of Flossie’s Bed & Breakfast is a qualified former teacher. She does not only focus on making a profit but she also offers writing and reading lessons for unskilled people. She also allows youth to use her board room for academic debates and study sessions.

You have been approached by the board of directors of Flossie’s Bed & Breakfast to act as a consultant to assist them on how they should deal with corporate social responsibility (CSR) and corporate social investment (CSI).

Kate’s Clothing Manufacturer (KCM) KCM is situated in a poverty stricken area. Many people are unemployed and suffer from HIV/AIDS related illnesses. There is also a high rate of crime in the area.

NOTE: Note that CSI is the reaction/action of CSR. This means that CSR is expressed in terms of CSI projects.


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Write a report to the board of directors of Flossie’s Bed & Breakfast in which you include the following aspects:

Explain the meaning of social responsibility and give TWO practical examples.

Discuss the purpose of CSR.

Analyse the negative impact of CSR on Flossie’s Bed & Breakfast.

Explain the implications of the Skills Development Act on CSI programmes. (40)

SESSION: 6

TOPIC: Human rights, inclusivity and environmental issues

Learner Note:

Businesses have an obligation to observe human rights and to address diversity issues in the workplace. They must also protect human health from harmful effects as one of the fundamental human rights contained in the in the Bill of Rights.

SECTION A: TYPICAL EXAM QUESTIONS

QUESTION 1: 28 Marks: 20 Minutes Read the scenario below and answer the questions that follow.

Kay Building Constructions (KBC) Kay Building Constructions employs workers from diverse backgrounds. The business does not cater for people who are physically challenged. Young employees disregard the inputs made by older employees. Some earn low income due to low level of education.

1.1 Identify issues of diversity that pose challenges on Kay’s Building

Construction (3) 1.2 Recommend ways on how Kay’s Building Construction can deal with

each issue of diversity identified in QUESTION 1.1. (6) 1.3 Name other diversity issues that may affect businesses (3) 1.4 Discuss the benefits of a diverse workforce (10) 1.5 Explain the implications of equality, respect and dignity in the workplace (6) QUESTION 2: 23 Marks: 15 Minutes 2.1 Identify a human right that has been violated in each of the following statements.

2.1.1 The management of Sam’s Panting’s does not allow employees to share their ideas and concerns.


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2.1.2 Employees of Morgan’ Consulting are not given the opportunity to learn new ways of doing things.

2.1.3 The director of Elsie Interior Décor has shared one of his employee’s

sensitive information with others. 2.1.4 The management of Themba Transport services prevents Muslim

employees to attend church on Fridays at 12pm.

2.1.5 Soso Trading Enterprise pays their employees different salaries despite the fact that they do work of equal value. (10)

2.2 Suggest ways businesses can address each of the above identified human

rights in the workplace. (10) 2.3 Name any other THREE human rights that must be observed in the workplace (3) QUESTION 3: 40 Marks: 30 Minutes

Ali Gold Mine Ali Gold Mine is not concern about the impact of the business operations on the environment. Some employees feel that the business does not take health and safety measures into consideration. One of the employees has suggested that the business must establish the health and safety representatives to promote safety measures in the workplace.

Advise the management of Ali Gold mines on the following workplace health and safety measures issues.

Explain the responsibilities of Ali’s Gold mine and its employees in protecting the workplace environment and promoting human health.

Discuss the roles of the health and safety representatives.

Suggest strategies businesses may use to protect the environment and promote human health. (40)

SESSION: 7 TOPIC: Team performance assessment, conflict and problem solving Question 1: 31 Marks: 30 Minutes Read the scenario below and answer the questions that follow.

A group of friends want to do a project and they have decided to name the group “ winning team”. Karl and Elma fought over a leadership position such that the team was unable to effectively perform their tasks. The team appointed Elma as their leader. They started working towards a common goal.

1.1 Identify TWO stages of team development described in the scenario above.

Support your answer. (6) 1.2 Discuss THREE other stages of team development. (9)


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1.3 Advise Elma on how she can assess herself using the criteria for successful team performance. (12)

1.4 Justify the importance of using team dynamic theories to maximise team performance. (4)

QUESTION 2: 20 Marks: 20 minutes 2.1 Outline any FIVE typical problems that may arise from working with

others. (10) 2.2 Explain how team members can effectively perform a specific role

within a team. (10) QUESTION 3: 40 Marks: 30 Minutes Read the scenario below and answer the questions that follow.

The employees of Vusi Trading enterprise refuse to share ideas with others because each one wants to be the “employee of the month”. Some feel that they are given too much work to do than others. This has affected the profitability of the business.

Identify TWO causes of conflict from the scenario above and support your answer. Discuss other sources of conflict. Apply conflict resolution steps to resolve the above conflict. Outline the correct procedure to deal with grievances. (40) SESSION: 8 TOPIC: Business sectors, management and leadership QUESTION 1: 30 Marks: 35 Minutes Read the scenario below and answer the questions that follow.

Sally’s Clothing Manufacture (SCM) Sally’s Clothing Manufacture has employed forty workers who are responsible for producing winter jackets and trousers. The business does not have sufficient capital to produce new equipment. Some employees do not have the necessary skills to produce quality products. The trade union demands that Sally’s Clothing manufacture should increase the wages of its workers. Sally has received a notification from the government to renew the business’s license. The business is located in the area that has a lot of crime. Bheki’s Clothing manufacture sells quality winter jackets and trousers at reasonable prices.

1.1 Name the business sector in which Sally’s Clothing manufacture operates. (1) 1.2 Identify the business environments that affect Sally’s Clothing manufacture and mention the challenges presented by each environment. (12) 1.3 State the extent of control of each business environment identified in

QUESTION 1.2. (3) 1.4 Recommend ways Sally’s Clothing manufactures can deal with each of the

challenges identified in QUESTION 1.2. (12) 1.5 Describe other TWO business sectors. (6)


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QUESTION 2: 26 Marks :15 minutes Read the following dialogue between Nicky (manager) and Patrick (new unskilled employee) and answer the questions that follow.

Nicky: Good morning Patrick, welcome to our company. I hope that you will do well in your new job. Patrick: Thank you madam for giving me the opportunity to be part of this company. Nicky: Is there anything I can do for you? Patrick: Yes madam, please guide me on how I should go about performing my task. Nicky: Oh I see!! But unfortunately I don’t give guidance to my employees; they work on their own as long as they do not violet the company’s rules and policies.

2.1 Identify Nicky’s leadership style and support your answer. (3) 2.2 Discuss the impact of the leadership style identified in QUESTION 2.1 on

businesses. (10) 2.3 Recommend situations in which this leadership style can be used. (6) 2.4 Do you think that Patrick will effectively perform his duties without proper

guidance? Motivate your answer. (2) QUESTION 3: 40 Marks: 30 Minutes

Businesses realise that effective leadership and management depends on effective implementation of different leadership styles and theories. Some people also argue that personal attitude plays an important role in leadership and management.

Write a report on leadership and management. Include the following aspects in your report:

Differentiate between leadership and management.

Discuss the theories of leadership and management.

Explain the role/effect of personal attitude in success and leadership.

Evaluate the impact of a charismatic leadership styles on businesses. (40)

SESSION: 9 TOPIC: Quality of performance QUESTION 1: 26 Marks: 30 Minutes Define the following concepts: 1.1.1 Quality 1.1.2 Quality control 1.1.3 Quality assurance 1.1.4 Quality performance 1.1.5 Quality management system (10)


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1.2 The director of Phomolong Trading feels that it is not important to maintain a

good quality management system. Advise him on the benefits of a good quality management system. (8)

1.3 Discuss how the quality of performance can contribute to the success of the following business functions: (a) Production function (b) Public Relations function (8)

QUESTION 2: 27 Marks: 30 Minutes Read the scenario below and answer the questions that follow

Ricky’s Chicken Farm Ltd The management of Ricky’s Chicken Farm Ltd ensures that the employees attend training sessions on any latest farming techniques. They also encourage employees to give their inputs on how best the business can be conducted. Management is also hands on and leads from the front.

2.1 Identify THREE elements of Total Quality Management (TQM) from the

scenario above. Support your answer. (9) 2.2 Analyse the impact of the elements of TQM identified in QUESTION 2.1 on

Ricky’s Chicken Farm Ltd. (12) 2.3 Explain how TQM can impact on the reduction of the cost of quality. (6) QUESTION 3: 40 Marks: 30 Minutes

Customers expect businesses to sell good quality products and services. Businesses are under pressure to satisfy the needs of customers and strive to sustain good profitability by implementing the elements of Total Quality Management system (TQM).

You are an expert in the implementation and management of Total Quality Management system. Advise businesses on the following aspects:

Explain the meaning of TQM.

Compare the impact of the following elements of TQM on small and large businesses: -Total client satisfaction -Continuous improvement to processes and systems

Discuss the impact of TQM if poorly implemented.

Advise businesses on how they should apply the PDCA model/cycle to improve the quality of their products. (40)


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SESSION: 10 TOPIC: TERM 2: MISCELLANEOUS TOPICS QUESTION 1: 26 marks: 30 minutes 1.1 Explain the implications of the Skills Development Act on Corporate Social

Investments. (6) 1.2 Explain how businesses can address the following human rights in a

workplace.

Respect/ Dignity

Information

Free choice of a trade/occupation

Fair labour practices (8)

1.3 Outline THREE economic rights of the employees in the workplace. (6) 1.4 Recommend ways businesses can address issues of equality, social and

cultural rights. (6) Question 2: 28 marks: 30 minutes 2.1 Identify the characteristic of successful teams represented by each of the

following scenarios: 2.1.1 Team members have acknowledged one of their members for work well

done. 2.1.3 The team works together to achieve their aims and objectives.

2.1.3 Team members are free to give their opinions and ideas without fear of criticism. (6)

2.2 Read the scenario below and answer the questions that follow.

Nana and Shaun are fashion designers at Thandi’s boutique. Nana always looks for something to complain about and she negatively influences other workers. Shaun refuses to take instructions from his boss because he feels that he is a specialist in the fashion design industry.

2.2.1 Name Nana and Shaun’s personality types. Support your answer. (6) 2.2.2 Recommend ways in which businesses can deal with the personality

types identified in QUESTION 2.2.1 (8) 2.2.3 Suggest other ways of dealing with difficult people in the workplace. (8)


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QUESTION 3: 40 marks: 30 minutes

Leaders realise the importance of using various leadership styles in managing a diverse workforce with various skills and backgrounds. Some businesses find it difficult to implement different leadership styles.

Discuss the impact of the following leadership styles on businesses: - Democratic - Autocratic and - Bureaucratic

Recommend situations in which each of the above mentioned leadership styles can be applied in the workplace. (40)

SESSION: 11 TOPIC: TERM 1: MISCELLANEOUS TOPICS QUESTION 1: 22 marks: 30 minutes 1.1 Differentiate between the National Skills Development and Human Resources

Development Strategy. (8) 1.2 Discuss the functions of SETAs. (10) 1.4 Elaborate on the meaning of learnerships. (4)

QUESTION 2: 29 marks: 30 minutes 2.1 Identify the Act that is applicable to each of the following actions that are

regarded as discriminatory: 2.1.1 The management of Peter Carpentry requested Vusi not to report

injuries he has sustained while performing his duties. 2.1.2 Ntombi is not allowed to attend site stewards meetings. 2.1.3 Sizwe Consulting refuses to appoint black women in management

position. 2.1.4 The employees of Victor’s catering services are allowed to only take 10

days annual leave.

2.1.5 Cash bank has rejected Zodwa’s loan application without a valid reason. (10)

2.2 Discuss THREE types of diversification strategies. (9)


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2.3 Explain the reasons why businesses use diversification strategies. (4) 2.4 Elaborate on the importance of using Porter’s Five Forces to analyse the

market environment. (6) QUESTION 3: 40 marks: 30 minutes

The National Credit Act (NCA) was introduced to regulate the credit market. Businesses feel that the Act gives consumers many rights and it also shrinks the credit market. Some people believe that the Act is similar to the Consumer Protection Act (CPA).

Explain the purpose of the National Credit Act and discuss the impact of the Act on businesses. Differentiate between the NCA and Consumer Protection Act. Recommend ways businesses can comply with the National Credit Act. (40) SESSION: 12 TOPIC: TERM ONE & TWO TYPICAL EXAM QUESTIONS QUESTION 1: 40 marks: 20 minutes Section A: (Various sources) 1.1 Various options are provided as possible answers to the following questions.

Choose the answer and write only the letter (A–D) next to the question number (1.1.1–1.1.10) in the ANSWER BOOK, for example 1.1.11 B

1.1.1 This Act promotes demographic representation in a business:

(a) Broad-Based Black Economic Empowerment Act, 2003 (Act 53 of 2003)

(b) Basic Conditions of Employment Act, 1997 (Act 75 of 1997) (c) Employment Equity Act, 1998 (Act 55 of 1998) (d) National Credit Act, 2005 (Act 34 of 2005)

1.1.2 The success of a business is mainly informed by…

(a) profitability (b) social projects (c) BEE scores (d) insolvency

1.1.3 Employers are legible to pay a skills levy if their total annual salary expenses

exceed.

(a) R1 million (b) R5 million (c) R250 000 (d) R500 000


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1.1.4 A pregnant woman qualifies for a maximum of…paid maternity leave.

(a) two months’ (b) One month’s (c) four months’ (d) three months’

1.1.5 The filling of vacancies in a business with existing employees is known as

(a) advertising (b) internal recruitment (c) external recruitment (d) job specification

1.1.6 One item that should appear in the code of conduct for chartered accountants

is to: (a) take full responsibility for yourself and your work. (b) dress according to the latest office fashion. (c) use customers' personal details for financial gain. (d) make sure that your business is sustainable

1.1.7 The King Code of Corporate Governance contains examples of ethical business

practice. An example of an ethical business practice is to:

(a) inflate financial results artificially in order to obtain a bank loan. (b) conceal harmful information about a new product launched on the

market. (c) sell second-hand furniture at lower prices than new furniture. (d) do business with countries that have poor human rights records

1.1.8 The general manager of Super M Butchery gives orders to staff members and

does not allow them to give any inputs with regard to decision-making. This leadership style is best described as (a) democratic (b) charismatic (c) laisses-faire (d) autocratic

1.1.9 Which ONE of the following businesses can be classified under the tertiary

sector?

(a) Sishen Iron Ore Mine (b) Spier Wine Farm (c) SA Furniture Manufacturers (d) First National Bank

1.10 Collaboration means that team members…

(a) work effectively on their own. (b) do not rely on each other.


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(c) are held accountable for their actions. (d) agree to co-operate in working towards a common goal.

(10X2) (20) 1.2 Choose the correct word(s) from those given in brackets. Write only the word(s)

next to the question number (1.2.1–1.2.5) in the ANSWER BOOK 1.2.1 A maximum of (ten/fifty) members can form a close corporation. 1.2.2 (Gross/Net) pay is an amount received by an employee after deductions. 1.2.3 Group (consensus/ agreement) is one of the team dynamic theories. 1.2.4 (Staff development /Social investment) programmes aim to improve the skills

of existing employees. 1.2.5 (Placement/Induction) is the process whereby new employees' skills are

matched to the positions in which they will be appointed. (5x2) (10) 1.3 Choose an item/abbreviation from COLUMN B that matches a description in

COLUMN A. Write only the letter (A–H) next to the question number (1.3.1–1.3.5) in the ANSWER BOOK, for example 1.3.6

Column A Column B

1.3.1 Sustainability A. Unethical conduct.

1.3.2 Strategy B. Differences in opinions, values and attitudes.

1.3.3 Contract C. Verbal agreement between the employer & employee.

1.3.4 Unfair pricing D. Plan of action to achieve a goal.

1.3.5 Conflict E. A legal document that informs the candidate that his/her job application has been successful.

F. Charging high prices in urban areas.

Ab G. Ability of a business to continue operating even in times of economic hardship.

H. Comparing set standards with actual performance.

(5x2) (10) Section B: QUESTION 2: 36 marks 25 minutes (Various sources) 2.1 Identify the element of Porter's Five Forces model that applies to each of the

following statements:

2.1.1 Customers prefer fashionable sneakers to more expensive, formal shoes.

2.1.2 Mpho's Stores has few regular customers who always place large orders.


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2.1.3 Ayishaa Ltd wants to start an exclusive fashion boutique that requires huge capital investment to cover high establishment costs and expensive stock.

2.1.4 Sam's Millers is the only place where bakeries can buy flour.

2.1.5 Jack Hardware attracts more customers than Tim Hardware. (10)

2.2 Differentiate between backwards and forward integration strategy. (4) 2.4 Discuss the recruitment procedure. (10) 2.5 Simmer & Jack is a mining company situated in Stilfontein. Recommend ways

Simmer & Jack Corporate Social Investment programmes can address the following CSI focus areas:

2.5.1 Education (4) 2.5.2 Crime (4) 2.5.3 Housing (4)

QUESTION 3: 33 marks: 20 minutes (Various sources) 3.1 Describe FIVE characteristics of a successful team in the workplace. (10) 3.2 Read the scenario below and answer the questions that follow.

MOYENI SUPERMARKET (MS) Tsakani regularly buys groceries from Moyeni Supermarket, the only grocery store in her village. After Tsakani returned from visiting her friend in the city, she complained to Mr Moyeni about the high prices of his products. Mr Moyeni thinks that his goods are cheap because customers do not have to travel to the city for groceries, but he promises to investigate his supermarket's price levels.

3.2.1 Identify the unethical business practice in the scenario above. (1) 3.2.2 Recommend ways in which Moyeni Supermarket can address the

unethical business practice identified in QUESTION 3.2.1. (6) 3.3 Suggest other ways (NOT in the scenario) in which Moyeni Supermarket

can conduct business professionally, responsibly and ethically. (8) 3.4 Advise businesses on how continuous improvement to processes and

systems cycle could improve the quality of products and services. (8)


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Section C: QUESTION 4: (Business Strategies)

Susan is selling sandwiches from a small shop in a busy office block. Her sandwiches are very popular as she uses only fresh quality ingredients that are delivered daily. She wants to expand to other office blocks in the area, which are further away from her suppliers and closer to other fast food restaurants

Analyse Susan's idea of expanding her business using the Porter's Five Forces model. Explain how Susan can apply the THREE intensive strategies to address challenges she may experience when expanding to other areas (40)

SECTION B: NOTES ON CONTENT

SESSION NO: 5 TOPIC: Social responsibility and Corporate Social Responsibility (CSR)

Description of SCR

An obligation by a business to pursue sound long term goals for society.

Long term commitment by businesses to always act ethically/to contribute to economic development in order to improve the quality of life of their employees, their families, their local communities and society in general.

The way companies manage their business resources/processes to impact positively on society.

When a business is accountable to their employees/community/government for its actions/behaviour/methods of doing business.

An ethical way of doing business in the interest of both the business and the wider community.

A willingness to act in accordance with legislation that requires community upliftment/employee development.

Businesses recognise the need to give back to society in a sustainable manner.

Refers to strategies used by business to take responsibility for their impact on society and the environment.

It is not a single action, but rather an approach to doing business that guides all decision-making in the firm.

Companies manage their business operations in such a way that it does not negatively affect stakeholders.

CSR focuses on the idea that businesses can no longer act in isolation from the broader society.


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Nature of CSR

CSR programmes are internal programmes that businesses use to comply with laws and ethics.

Key areas of concern are protecting the environment, the wellbeing of employees from the community and civil society in general.

Businesses seek to promote public interest and do away with harmful practices without the need for any formal legislation.

Business operations address Triple Bottom line through CSR programmes by considering its impact on people, profit and planet.

CSR aims at creating a safe working environment for employees.

CSR programmes and activities the business undertakes have to contribute positively to the community in which the business operates.

CSR may take the form of a monetary donation to support local organisations.

Impact of SCI on businesses: Positives/Advantages

May attract experienced employees/increase the pool of skilled labour which could increase productivity.

Businesses may have a good public image/reputation as they look after their employees/conduct themselves in a responsible way.

The business may have a competitive advantage, resulting in good publicity and an improved reputation.

Promotes customer loyalty resulting in increased sales/profit/more consumers.

CSI projects may be used as a marketing strategy to promote products/services.

CSI projects promote teamwork amongst employees.

CSI helps to attract investors which may lead to expansion/growth

Businesses may enjoy tax advantages, e.g. tax reduction/rebates.

Assist in addressing socio-economic issues e.g. poverty.

If the corporate sector gets voluntarily involved in CSI, it is less likely that government will enforce the issue through legislation.

Employees feel like they are making a difference in working for this business.

It helps to retain staff/lower staff turnover as employees' health/safety is considered.

Improves the health of its employees through focussed CSI projects.

Businesses may become more community-based by working closely with the community to roll out skills development projects.

AND/OR

Negatives/ Disadvantages

The community may not support the business, e.g. may not use their products as it only meets the needs of a small proportion of the community.

Difficult to comply with legislation that governs CSI projects.

Businesses may find it difficult to implement CSI projects due to financial constraints. CSI activities can distract employees from their core business functions/ duties.

Social involvement is paid from their profits which may have been used to lower their prices to benefit their customers.


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Detailed reports must be drawn up which may be time consuming.

Social spending reduces economic efficiency and businesses may become less competitive.

It can increase financial risk, as programmes cost money and may impact negatively on profits.

Company directors are usually accountable to shareholders, not to communities.

Difficult to accurately measure the effectiveness of social investment/exact needs of communities.

Most managers are not trained/lack experience to handle CSI projects.

Some shareholders/investors might withdraw their support from the business, as they feel that social issues should be the government's responsibility.

Provide goods/services that meet the needs of consumers, according to some stakeholders, is already socially responsible.

Some CSI projects will be regarded as a public relations stunt, and may harm the image of the business if projects are not sustainable.

Shareholders may suffer as their profits are spent on CSI.

Positives for the community

Supports the business by purchasing its products and thereby contributing to business profitability.

Provides labour, customers and are suppliers to the business.

Provision of bursaries.

Improves the welfare of society.

The standard of living of the community is uplifted/quality of life of communities is improved.

Involves employees in community projects.

Better educational facilities are established in poor communities.

AND/OR Negatives for the community

Distribution of scarce CSR resources to selected beneficiaries in the community may cause problems such as discrimination.

The benefits of the programmes may not filter to the intended persons within the community.

Programmes that do not satisfy all the needs of the community may be rejected

Hand-out programmes discourage locals from taking their own initiative by making them dependent on social investment programmes.

Sustaining projects after businesses withdraw their assistance are often difficult without the right expertise.

Spending money on CSR means the business has to recover it somehow and this will lead to higher prices and inflation which has a negative impact on the economy.

SESSION NO: 6 TOPIC: Human rights, inclusivity and environmental issues


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Description of diversity in the workplace.

Refers to the variety of people employed based on age/race/gender/ ethnic groups/people with disabilities/material wealth/personalities/how employees see themselves and others.

All employees should be empowered/developed to improve personal performance which ultimately will improve the performance of the whole business.

Leads to creative ideas/different viewpoints, which support problem solving.

Leads to conflict situations, if not properly managed.

Addressing diversity issues in the workplace Language

A business may specify that all communications must be in one specific language only and would expect employees to have a certain level of fluency in that language.

It may sometimes be necessary to employ an interpreter so that everyone can fully understand what is being said in a meeting.

All business contracts should be in easy-to-understand language and should be available in the language of choice for the parties signing.

Age

Promotions should not be linked to age, but rather to specific skills set.

A business must not employ children aged 15 or younger.

The ages of permanent workers should vary from 18 to 65 to include all age groups.

A business may employ a person who is older than the normal retirement age provided that person is the most suitable candidate.

Businesses must encourage older employees to help young employees to develop their potential.

Young employees must be advised to respect and learn from older employees.

The business should encourage employees to be sensitive to different perspectives of various age groups.

Disability

Provide employment opportunities for people with disabilities.

Accommodate people with disabilities by providing facilities/ramps for wheel- chairs, etc.

Ensure that workers with special needs are not marginalised/feel excluded from workplace activities.

Business should be well informed with how to deal with disabled employees.

Policies and programs should accommodate the needs of people with disabilities.

Create an organisational culture and climate that is conducive for people with disabilities.

Employees should be trained to deal with colleagues with disability.

Bringing in external experts to help with disability and accommodation issues.

Ensure that employees with disabilities are treated fairly.


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Focus on job skills/work performance of the disabled, rather than their disability/ possible problems they may pose in the future.

Poverty

Supply free uniforms/working clothes.

Provide low priced meals at canteens.

Offer training to improve skills for better positions in the business

Businesses should employ people from different socio-economic backgrounds/ status.

Give previously disadvantaged individuals a chance to be educated by incorporating Adult Basic Education and Training (ABET) into training programmes of the business.

Train all employees so that they can be able to deal with retrenchment.

Reward employees for services well-rendered.

Ensure that the prices of products are affordable for the identified consumer market.

Sponsor learnerships for unemployed people/use grants received from SETAs to train more unemployed people from local communities.

Train some unemployed people from local communities as part of a business's CSI projects.

Offer subsidised meals/canteen facilities on the premises.

Supply free uniforms to employees for safety purposes

Race

Implement affirmative action policies as required by law.

No discrimination should be made based on skin colour.

Inequality

Implement equal opportunity policies when appointing new staff.

Equal opportunities should be considered when promoting staff.

Implement an Employment Equity Plan for the business.

Gender

Male and female workers should be paid the same salary/wage for equal work performed.

All posts should be accessible to male and female workers.

Targets may be set for gender employment.

Businesses should employ both males and females.

Males and females are entitled to equal treatment in the workplace.

The Employment Equity Act forbids gender discrimination and states that men and women should receive equal treatment/have access to equal opportunities in the workplace.

BBBEE promotes the economic empowerment of women.

Promotion should be based on skills and ability.

Introduce affirmative action by offering female employees a fair chance in the workplace with regard to remuneration/promotion/other employment opportunities.

Effectively deal with sexual harassment incidences.


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Positive impact/benefits of a diverse workforce

Workforce diversity improves the ability of a business to solve problems/ innovate/cultivate diverse markets.

Employees value each other's diversity and learn to connect and communicate across lines of difference.

Diversity in the workforce improves morale and motivation.

Employees demonstrate greater loyalty to the business because they feel respected/accepted/understood.

A diversified workforce can give businesses a competitive advantage as they can render better services.

Being respectful of differences/demonstrating diversity makes good business sense/improves profitability.

Diverse businesses ensure that its policies/practices empower every employee to perform at his/her full potential.

Customers increasingly evaluate businesses on how they manage diversity in the workplace.

Employees from different backgrounds can bring different perspectives to the business.

A diversified workforce stimulates debate on new and improved ways of getting things done.

Employees represent various groups and are therefore better able to recognise customer needs/satisfy consumers.

Businesses with a diverse workforce are more likely to have a good public image and attract more customers.

Human rights in the workplace Privacy

Businesses may not violate the rights of the employees and clients.

They should not provide personal information about employees to anyone else.

Information on employees who have disclosed their HIV/Aids status or any chronic illness must be kept confidential.

It is illegal to read other people's emails/record conversations unless stated clearly and upfront.

Respect/Dignity

Businesses must treat all employees with respect/dignity regardless of their socio-economic status

They should not force workers to do embarrassing or degrading work.

Equity

Businesses must give equal opportunities/not discriminate against their employees on the basis of gender/race/religion/sexual orientation etc.

Equal pay for work of equal value.

They should apply relevant legislation fairly on all levels.

Managers should ensure that no employee suffers because of discrimination.

Freedom of speech and expression

Businesses should allow open communication channels between management and employees.


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They should give employees a platform to raise their grievance without any victimisation.

An employee should not be punished/discriminated against for voicing their opinion.

Information

Workers should have access to information, including all information held by the government, e.g. policies/work schedules/employment contracts/ labour laws such as BCEA/EEA/SDA etc.

Businesses need to be transparent in their financial statements/Employees may request to see these statements with motivation.

Employees should be updated as new information becomes available.

Freedom of association

An employer may not refuse employees to join the trade union of their choice.

Free choice of a trade, occupation or profession

Every employee has the right to receive suitable training for positions at their place of work.

Labour rights/Freedom of assembly/Right to protest

Businesses may not discriminate against any employee who opts to follow the correct process to strike/withhold labour.

Businesses should respect employees' membership to unions/taking part in legal strikes as long as the industrial action is within the law.

Freedom of thought and religion

CLT may not prevent an employee from practising his or her religion.

Employees should be allowed to observe their religious holidays/given time off.

Employees should be allowed to practise their religion without any fear.

Health care/food/water and social assistance

Employees should have access to clean water and sanitation at the workplace.

Some employers subsidise healthy meals/arrange for primary health care services to be available on site.

Businesses must promote the basic human rights, e.g. support workers living with HIV/Aids/those affected by occupationally related illnesses.

Fair labour practices

Businesses should pay fair salaries and wages.

They must adhere to the terms and conditions of BCEA.

Education and training/universal right to basic education

Employees should be sent for skills development training programmes.

Coaching/Mentoring to prepare employees for managerial positions.

Every employee has the right to training including ABET training for employees who have little formal education.

Safety/Security and Protection/Life


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Employees must work in a safe working environment free from hazardous areas/products.

Businesses should provide workers with protective clothing e.g. gloves and footwear.

They should comply to legislation such as the OHSA/COIDA, etc.

Businesses should take precautionary measures to ensure employees and their belongings are safe in the workplace.

Freedom of slavery, servitude or forced labour

Businesses should comply with legislation such as BCEA/Labour Relations Act.

No business should threaten/apply pressure on/intimidate an employee, to perform a specific act.

Vote

Businesses should ensure that their employees have time available to vote in general elections.

Freedom of movement

Businesses may not prevent an employee from applying for any suitable position at another office of the employer/at any other business.

Children's rights

Businesses may not employ children of 15 years and younger.

Right to choose your own language/participate in own cultural life

Businesses may not discriminate against any employee's cultural/language choice.

They must ensure that all employees are treated equally. Businesses should have a detailed policy dealing with diversity in the workplace.

Access to Labour institutions/Court

Employees have the right to apply to the CCMA/Labour Court for assistance, if discussions with businesses did not resolve any labour disputes.


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SESSION NO: 7 TOPIC: Team performance assessment, conflict and problem solving

Stages of team development Forming stage

Individuals gather information and impressions about each other and the scope of the task and how to approach it.

This is a comfortable stage to be in.

People focus on being busy with routines, such as team organisation e.g. who does what, when to meet each other, etc.

Storming stage

Teams go through a period of unease/conflict after formation.

Different ideas from team members will compete for consideration.

Team members open up to each other and confront each other's ideas/perspectives.

Tension/struggle/arguments occur and upset the team members/there may be power struggles for the position of team leader.

In some instances storming can be resolved quickly, in others, the team never leaves this stage.

Many teams fail during this stage as they are not focused on their task.

This phase can become destructive for the team/will lower motivation if allowed to get out of control.

This stage is necessary/important for the growth of the team.

Some team members tolerate each other to survive this stage.

Norming stage/Settling and reconciliation

Team members form agreement and consensus.

Roles and responsibilities are clear and accepted.

Processes’, working style and respect develop.

Team members have the ambition to work for the success of the team's goals.

Conflict may occur, but commitment and unity are strong.

Performing stage/Working as a team towards a goal

Team members are aware of strategies and aims of the team.

They have direction without interference from the leader.

Processes and structures are set.

Leaders delegate and oversee the processes and procedures.

All members are now competent, autonomous and able to handle the decision-making process without supervision.


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Differences among members are appreciated and used to enhance the team's performance.

Adjourning/Mourning stage

The focus is on the completion of the task/ending the project.

Breaking up the team may be traumatic as team members may find it difficult to perform as individuals once again.

All tasks need to be completed before the team finally dissolves. Characteristics of successful teams

Successful teams share common goals.

Goals must be clearly set out and each member must be fully conversant with the goals

Teams should share team values.

Group decisions must be implemented by all team members.

Teams must consider individual members needs.

A climate of respect, trust and honesty should prevail.

Team members should enjoy open communication.

Teams must be accountable.

Mutual respect for all team members.

Team members share credit.

Team members must know the time frames within which goals should be achieved.

Criteria for successful teams

Interpersonal attitudes and behaviour

Members have a positive attitude of support and motivation towards each other.

Good/Sound interpersonal relationships will ensure job satisfaction/ increase productivity of the team.

Members are committed/passionate towards achieving a common goal/objectives. Team leader acknowledges/gives credit to members for positive contributions.

Shared values/Mutual trust and support

Shows loyalty/respect/trust towards team members despite differences.

Shows respect to the knowledge/skills of other members.

Perform team tasks with integrity/pursuing responsibility/meeting team deadlines with necessary commitment to team goals.

Communication

A clear set of processes/procedures for team work ensures that every team member understands his/her role.

Ability to communicate well and make quick decisions.


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Communicates with team members and allows for feedback.

Encourages discussion about the problem so that solutions can be found.

Continuous review of team progress ensures that team members can rectify mistakes/act pro-actively to ensure that goals/targets are reached. Co-operation/Collaboration

Clearly defined realistic goals are set, so that all members know exactly what is to be accomplished.

Willingness to co-operate as a unit to achieve team objectives.

Co-operate with management to achieve team/business objectives.

Agree on methods/ways to get the job done effectively without wasting time on conflict resolution.

All members take part in decision making.

A balanced composition of skills/knowledge/experience/expertise ensures that teams achieve their objectives.

Importance of team dynamic theories

Tasks can be allocated according the roles of team members

Team dynamics theories explain how effective teams work, what they need to do work effectively.

The theories guide businesses on the roles team members need to perform so that teams will be effective.

If team members have similar team-work strengths, they may tend to compete (rather than co-operate) for the team tasks and responsibilities that best suit their natural styles.

Businesses can use the theories to ensure that necessary team roles are covered.

Theories assist team leaders in understanding the personality types of their team members so that they assign tasks that suit their members’ personality types and attitudes.

How to effectively perform a specific role within a team

Team members need to understand each other’s role and how it contributes to the team’s performance.

Each person’s behavioural strengths and weaknesses need to be identified so that they can be given a suitable team role.

The role of each member in the team needs to be well defined and have clear boundaries and instructions, to minimise conflict related to role ambiguity.

Role overload needs to be avoided to ensure effective performance.

Team members must take responsibility for their roles and work to co-corporate with other team members to achieve the team’s objectives.

Use resources wisely and effectively to achieve higher and better quality outputs.

Conflict

Conflict is a struggle, disagreement or argument between people.

It can be caused when people have incompatible needs, opinions, values, beliefs or ideas.


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Conflict can produce positive results if it is managed properly, but it can also be problematic if it is not resolved effectively.

Sources of conflict Personal differences/Different personalities

Conflict is inevitable when people from different backgrounds/cultures/values races/gender work in the same environment.

When employees fail to understand or accept the differences in each other's personalities, problems arise in the workplace.

Humour and sarcasm may be perceived as insulting behaviour by employees of other cultures/backgrounds.

Different personality types within a group can cause conflicts because some employees' may be introverts while others are extroverts resulting in different perceptions.

Different opinions may make it difficult to reach agreements

Poor communication

Poor communication can lead to all types of misunderstanding and can become very destructive.

If employees or management decide to sidestep each other's opinions, team members may become unhappy.

Competition

Although competition may be a good motivator, it can become negative if the focus is on competition only, as team members may lose their team spirit.

Team members, who always loose when competing, may feel incompetent/ demotivated and may not complete their tasks/reach deadlines.

Unhealthy workplace competition may spark conflict as it demoralises employees who cannot always meet targets.

When salary is linked to employee productivity, a workplace may experience strong competition between employees.

Ignoring rules/procedures

Employees who do not follow the rules/procedures can cause conflict as tasks may not be performed according to the business specification.

Team members who ignore/disobey rules/procedures may delay the completion of tasks.

Poor organisation/leadership/administrative procedures and systems

Poor systems and procedures cause stress to workers and makes them frustrated.

If there are not enough guidelines for team members, they will be unorganised/ uncoordinated in their work. Workload and stress/Unrealistic expectation

When employees are overloaded with work, they become stressed/feel unappreciated/burnt-out.

Some employees may depend on their colleagues to help them to complete their work.


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Confusion about scheduling and deadlines

Individual deadlines and the team schedules that are not clearly communicated/are not easily available can cause confusion.

Employees working in a team may be available at different times/finding a suitable time when everyone is available, which can be a challenge in reaching deadlines.

Unclear responsibilities

Employees who are not clear about their responsibilities are more likely to avoid and blame others for work not done.

They may not effectively perform their task as expected.

Distracted by personal objectives

Some employees may pursue their own personal objectives and they will try to force their own desires onto the team.

They may lose focus of the task at hand and distract others from performing their tasks effectively.

Lack of/ Insufficient resources

Limited resources may cause conflict, because employees may all want to use the resources at the same time.

Team members may fight over the limited resources available to accomplish their/the team's tasks.

Constant changes

Constant changes in a business may cause instability/lack of clarity regarding the roles and responsibilities of each employee/team member.

Staff of businesses that continuously change, may experience 'change fatigue'.

People may have less patience and fail to understand the reasons for change.

Any other relevant answer related to causes of conflict.

Problem solving

Businesses rely on team work and collaboration.

The diversity in team, common goals and objectives all make a team effective at solving problems.

The individual in a team will be more creative and positive when solving a problem.

When people work together closely together there is a very good chance that problems and conflict will arise.

Management of problems

The business needs to ensure that every employee understands the business objectives and believes in them.

Management need to ensure that every employee feels valued by the business and that they will be listened to and taken seriously if they have an idea.

The management style should not be autocratic.

Important decisions need to be made regularly through the process of team work.

Good teamwork needs to be rewarded and mistakes need to be viewed as opportunities to learn and grow.


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SESSION NO: 8 TOPIC: Business sectors, management and leadership Business sectors

Businesses are grouped according to primary, secondary and tertiary sectors.

The primary sector makes direct use of natural resources. It extracts or harvest products from the earth.

The secondary sector comprises the manufacturing, energy generations, water and construction sub-sectors.

The tertiary sector is the service industry of the economy. It provides services to the general population and to businesses.

Businesses have a certain amount of control over their environments.

The micro, market and macro environment influence the business and the way in which it operates.

Businesses are able to control these influences to a certain extent.

They have the most influence on the micro environment since it involves the internal operations and structures of the business.

Businesses have less control over the market environment but are able to influence it and respond positively to it.

Businesses have no control over the macro-environment because it includes the law both locally and internationally, and other aspects that are very difficult to predict and to influence.

There are still ways for businesses to respond quickly to changes in the macro environment to reduce negative impacts on the business.

Differences between leadership and management

Leadership Management

-Influences human behaviour. -Guides .human behaviour.

-Communicates. by means of interaction/behaviour/vision/values/ charisma.

-Communicates through management functions, .e.g. line function

Innovates new ideas. to increase productivity.

Administers plans/programs/tasks. to reach targets.

Inspires staff to trust .and support each another.

Controls systems and procedures. to get the job done.

Focuses on what .and why. Focuses on how. and when.

Focuses on the horizon./long term. Focuses on the bottom line./short/ medium/long term.

Leaders are born with natural/ instinctive leadership skills.

A person becomes a manager because of the position in which he/she is appointed.

Guides/Leads people. to become active participants.

Manages the process of getting things .done by exercising responsibility.

Leaders have power/influence. because of his/her knowledge/skills/ intelligence.

Managers have power because of the position of authority. into which they are appointed.


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Always trying to find more efficient ways .of completing tasks.

Enforce rules on subordinates./Ensure that tasks are completed.

Motivational/Inspirational.in their approach.

Instructional. in their approach.

People orientated. Task orientated.

Lead by example/trust/respect. Manage by planning/organising/ leading/control.

Leadership styles Autocratic: Positives

Quick decisions can be taken without consulting/considering followers/ employees.

Work gets done in time/on schedule.

Line of command/communication is clear as it is top-down/followers know exactly what to do.

Direct supervision and strict control ensure high quality products/service.

Provides strong leadership which makes new employees feel confident and safe.

Works well in large companies where consultation with every employee is impractical.

Clear guidance can be given to low-skilled/inexperienced/new staff.

Useful in a crisis/urgent situation, e.g. after an accident/meeting tight deadlines.

Negatives

Leaders and followers may become divided and may not agree on ways to solve problems.

Workers can be demotivated as their opinions/ideas are not considered.

De-motivated workers impact negatively on productivity.

New/Creative/Cost reducing ideas may not be used/implemented/never be considered.

Followers may feel that they are not valued resulting in high absenteeism and high employee turnover.

Experienced and highly skilled workers will resist an autocratic leadership style because it results in less growth, participation and creativity.

Democratic: Positives

Leaders allow followers/employees to participate in the decision-making process.

Staff gives a variety of ideas/inputs/feedback/viewpoints, before final decisions are made by leaders/managers.

Variety of ideas can lead to innovation/result in an increase in productivity.

Clear/Two way communication ensures group commitment to final decision(s).

Authority is delegated which can motivate/inspire workers to be more productive.

Complex decisions can be made with inputs from specialists/skilled workers.


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Workers feel empowered as they are involved in the decision-making process.

Negatives

Incorrect decisions may be made if staff is inexperienced/not fully informed.

Decision making may be time consuming because stakeholders have to be consulted.

Employees may feel discouraged if their opinions/inputs are not considered.

Leaders can rely too much on the input of the followers and fail to make a final decision.

Not effective in times of crisis/when quick decisions need to be made.

Some employees only pretend to participate in decision making and their feedback may not always be accurate.

Laissez-Faire style: Positives

Workers/Followers are allowed to make decisions on their own policies/methods.

Subordinates have maximum freedom and can work independently.

Leader motivates workers by trusting them to do things themselves/on their own.

Authority is delegated, which can be motivating/empowering to competent workers/increase productivity.

Subordinates are experts and know what they want/can take responsibility for their actions.

Suitable for coaching/mentoring to motivate employees to achieve more/better things.

It can be empowering for competent followers as they are completely trusted to do their job.

Individual team members may improve/develop leadership skills.

Negatives

Lack of clear direction/leadership may be demotivating to employees.

Employees can be held responsible for their own work which may lead to underperformance.

Could lead to conflict when some team members act as leaders and dictate to other team members.

Workers are expected to solve their own conflict situations.

Productivity may be compromised with a lack of tight control over workers not meeting deadlines.

Productivity might be low, if employees lack the necessary knowledge or skills.

Transactional leadership style: Positives

Encourages employees to work hard because they will receive rewards.

Improves employees' productivity and morale.

The goals and objectives of the business can be achieved.

Employees know what is expected of them.

Disciplinary action procedures are well communicated.


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Negatives

Employees can become bored because they have to follow rules and procedures therefore there is no creativity in the workplace.

A transactional leader will have to monitor the work performance of the employees to ensure that expectations are met and this can be time-consuming.

Some employees may be demoralised or unmotivated if they fail to reach/meet targets despite having worked very hard.

This style is not suitable for team work because all team members can be punished for poor performance caused by a member of a team.

Bureaucratic leadership style: Positives

Managers ensure that rules/regulations are always followed accurately.

Works well when tight control measures need to be implemented/ followed.

Health and safety are increased in a dangerous workplace, construction sites/mines.

Followers know what is expected of them because of detailed instructions.

The quality of work can be ensured.

Ensures accountability to the general public/customers.

Ultimate/Strict control over systems/procedures ensures high quality output.

Negatives

Complicated official rules may seem unnecessary/time consuming.

Leaders may acquire power/become authoritative and can disregard inputs from others.

Very little room for error, so workers feel they are not always treated with dignity.

Lack of creativity/innovation/self-fulfilment may lead to stagnation/ decrease in productivity.

Employees may feel they have become objects of work and are not treated as humans.

Charismatic leadership style: Positives

Guide people by using charm and self-confidence.

The leader has a vision and is able to communicate this well to others.

Followers are praised for the smallest success achieved.

Followers enjoy working with their leaders and value their opinions.

Their personality attracts attention.

They are excellent motivators and others are eager to please them.

Uses other people’s admiration to influence them to flow.

Workers with low morale can be inspired.

Workers believe in their leader and thrive on praise.

Reaches the followers on a basic emotional way and has the ability to communicate well.

Negatives

They focused on themselves and may not want to change anything.

It is not a style which can be learnt as it draws on personal charm and the ability to inspire.


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They believe more in themselves than in their followers abilities.

The team will not be able to function without the influence of a strong charismatic leader.

Theories of leadership and management: Situational theory

Different leadership characteristics are needed for different situations.

The task/situation dictates the leadership style that should be applied, so leaders are adaptable/flexible/self-assured.

Relationships between leaders and employees are based on mutual trust/ respect/loyalty/ integrity/honesty.

Leaders have the ability to 'read' the situation and get the most suitable people in the right positions to complete tasks successfully.

It enables leaders to use different leadership styles to accomplish their goals.

Leaders analyse group members/objectives/time constraints, then adopt a suitable/relevant leadership style.

May lead to conflict when leaders use different leadership styles when managing employees in different situations.

Its success depends on the kind of relationship that exists between the leader and followers/subordinates/employees.

Transformational theory

The passion/vision/personality of leaders inspire followers to change their expectations/perceptions/motivations to work towards a common goal.

Strategic thinking leaders develop a long term vision for the organisation and sell it to subordinates/employees.

Leaders have the trust/respect/admiration of their followers/subordinates.

Leaders promote intellectual stimulation/creative thinking/problem solving which result in the growth/development/success of the business.

Followers are coached/mentored/emotionally supported so that they can share their ideas freely.

Leaders will encourage followers to explore/try new things/opportunities.

Leaders lead by example and make workers interested in their work.

Leaders have strong, charismatic personalities and are very good at motivating staff to achieve results.

Enable employees to take greater ownership for their work and to know their strengths and weaknesses.

Leaders and followers

Focuses on the interaction and relationship between leaders and followers.

The leader-follower relationship is based on respect and the ability of the one to influence the other.

Successful relationships between leaders and followers will result in commitment from followers, effective team work and achievement of common goal.


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This theory also focuses on the differences that may exist between the leader and each of his/her followers and therefore, the leader cannot treat all the followers the same.

A leader is someone who can influence people, someone who people want to follow and respect.

Followers are able to accept the direction given by their leaders, they are loyal and dependable.

Leaders choose followers who they can trust and delegate responsibility and who will work with the rest of the team.

It is essential for leaders to have honest and analytical communication to encourage followers to openly communicate with their leaders.

Application of theories:

Situational theory

Application of the theory depends on the particular situation/circumstance that prevails within the organisation.

Used when it matches the needs of followers, e.g. inexperienced employees/

Followers require a different form of leadership than more experienced employees/followers.

Applied to address a crisis/conflict in the workplace.

Transformational Theory

May be applied when followers/employees have a low morale/are demotivated/ are underperforming.

Applied during the strategic planning process, where vision/mission/objectives have to be developed/changed.

When a business is restructuring and exploring new ways of doing things.

SESSION NO: 9 TOPIC: Quality of performance

Benefits of a good quality management system

Effective customer services are rendered, resulting in increased customer satisfaction.

Time and resources are used efficiently.

Productivity increase through proper time management/using high quality resources.

Products and services are constantly improved resulting in increased levels of customer satisfaction.

Vision/Mission/Business goals may be achieved.

Business has a competitive advantage over its competitors.

Regular training will continuously improve the quality of employees' skills and knowledge.

Employers and employees will have a healthy working relationship resulting in happy/productive workers.

Increased market share and profitability.

Success indicators of business functions:


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Quality indicators for the marketing function

Acquire a greater market share through good customer service.

Win customers loyalty by satisfying their needs/wants and building positive relationships.

Adhere to ethical advertising practices when promoting products/services.

Identify competitive edge by conducting regular market research.

Differentiate products to increase the target market and profitability.

Constant review of value issues.

Communicate effectively with customers to get feedback about their experiences of the products and services sold.

Co-ordinate distribution with the production/advertising strategies.

Use pricing techniques to ensure a competitive advantage.

Measure the gaps between customer expectations and their actual experiences so that problems regarding quality of products/services can be diagnosed and addressed.

Make adjustments and changes to products/services based on feedback received from customers.

Use aggressive advertising campaigns to sustain the market share.

Quality indicators for the purchasing function

Buy raw materials in bulk at lower prices.

Select reliable suppliers that render the best quality raw materials/capital goods at reasonable prices.

Place orders timeously and regular follow-ups to ensure that goods are delivered on time.

Effective co-ordination between purchasing and production departments so that purchasing staff understands the requirements of the production process.

Required quantities are delivered at the right time and place.

Implement and maintain stock control systems to ensure the security of stock.

Maintain optimum stock levels to avoid overstocking/reduce outdated stock.

Monitor and report on minimum stock levels to avoid stock-outs.

Effective use of storage space and maintain product quality while in storage.

Involve suppliers in strategic planning/product design/material selection/quality control process.

Ensure that there is no break in production due to stock shortages.

Establish relationships with suppliers so that they are in alignment with the business's vision/mission/values.

Have a thorough understanding of supply chain management.

Quality indicators for Production function

Provide high quality services according to specifications.

The production/operating processes should be done correctly through proper production planning and control.

Products and services should be produced at the lowest possible cost to allow for profit maximisation.

The production manager should clearly communicate the roles and responsibilities to the production workforce.


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Products must meet customers' requirements by being safe, reliable and durable.

The business should have good after-sales services and warrantees.

Empower workers so that they can take pride in their workmanship.

Get accreditation from the SABS/ISO 9001 to ensure that quality products are being produced.

Specify the product or service standards and take note of the factors that consumers use to judge quality.

Monitor processes and find the root causes of production problems.

Implement quality control systems to ensure that quality building products are consistently being produced.

The business should utilise machines and equipment optimally.

Accurately calculate the production costs.

Quality indicators for General management function

Develop, implement and monitor effective strategic plans.

Efficient organisation and allocation of resources to allow for the successful achievement of long-term and short-term plans.

Ensure that structured standards and norms are in place so that control mechanisms can be implemented.

Learn about and understand changes in the business environment on an on-going basis.

Set direction and establish priorities for their business.

Communicate shared vision, mission and values effectively.

Be prepared to set an example of the behaviour they expect from employees in terms of ethics as well as productivity.

Ensure that employees have the resources needed to do their work (effective allocation of resources).

Be proactive and always seek to improve comparative advantage over competitors.

Quality indicators for Public Relations function

Management deals quickly with negative publicity.

Less/Little/No incidents of negatives publicity.

Regular positive press releases.

Implement sustainable Corporate Social Investment (CSI) programmes.

Good results of public surveys on business image.


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High standard of internal publicity /Appearance of buildings/ Professional way of answering telephones.

Deliver quality goods/services that promote the brand/image with key stakeholders e.g. customers/suppliers/government/service providers.

Compliance with recent legislation, e.g. BEE compliant.

Quality indicators for administration function

Fast and reliable data capturing and processing systems.

Supply reliable information to management on time.

Make relevant information available for quick decision making.

Handle complaints quickly and effectively.

Use modern technology efficiently.

Implement effective risk management policies to minimise business losses.

Quality assurance and control evaluation are recorded accurately.

Quality indicators for financial function

Determine the need for funds.

Acquire the funds from most suitable sources.

The funds must be effectively applied.

Profitability ratios must be prepared by the financial manager and presented to management to compare and make decisions.

This is also influenced by the credit collection policy, liquidity analysis and cash flow position.

Quality indicators for Human Resources function

To find the suitable person for the right job.

To appoint a person to the position where his/her capabilities can be used to advantage of the business.

Continuous training and development of staff.

Appropriate training and development programmes can lead to a highly stable staff.

Creating and sustaining effective labour relations.

Appraising employees’ work performance.

Determining appropriate salary and benefits packages for employees.

Planning and forecasting human requirements in terms of numbers and skills.

Elements of Total Quality Management (TQM) Top management involvement/Commitment of top management

Management should have a clear vision and mission statement with regards to TQM.

Management is responsible for giving strategic guidance with regards to quality management.

Top management should support all TQM activities.

Appoint managers/supervisors to control and oversee all stages of TQM processes.

Act on customer feedback and complaints.

Ensure that quality reviews are regularly conducted.


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Ensure that shareholders are totally satisfied with the standards of quality.

Total client satisfaction/Total customer satisfaction

The business should understand current and future customer needs.

Quality products and services satisfy customer's needs and expectations.

Customers will be satisfied if products and services meet their needs, requirements and expectations.

Businesses need to conduct effective market research to determine customer's needs and to develop products and services that will meet or exceed those needs.

Businesses need to implement efficient, friendly customer services and customer care systems.

Continuous improvement to systems and processes

Processes and systems are the flow of activities implemented to create or deliver products and services to customers.

Businesses that have quality processes and systems in place will produce good quality products and can provide excellent customer services.

It should be easy for customers to understand processes so that they do not waste their time with long and complicated procedures.

Employees need to understand the operating system and the service delivery system.

Identify the problem areas of the business.

Give details and specific instructions on the improvement of systems and processes.

Encourage team work and delegate responsibilities

Involvement of all employees/People Based Management

Management should ensure that all employees are involved in quality management.

Management should ensure that employees are totally satisfied with the standards of quality.

Effective meetings should be encouraged at all times.

Effective communication tools will ensure high quality standards.

Regular internal quality audits may maintain high quality standards.

There should be regular reviews of non-conformities in order to be pro-active/ to take remedial action.

Continuous skills development/Education and training

A skills audit should be conducted to determine the qualifications and competence of staff that can influence the quality of products/processes.

Employees who lack skills should be trained in line with their job descriptions.

Regularly evaluate the effectiveness of the training.

Suitable induction programmes that promote quality should be implemented.

Quality guidelines for managers should be used to monitor continuous skills development.

Adequate financing and capacity

There should be enough funds available for proper quality management

processes, e.g. systems to prevent errors in the process/detect defects in


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raw materials.

Funds should be available for market and product research to gather information on quality improvement.

Suitable equipment should be available for testing and maintaining high quality standards.

Funds should only be used to buy the best quality raw materials to avoid/prevent faulty products.

Funds should be available for regular internal/external testing of products and processes to maintain high quality.

Proper planning for quality assurance of processes should be in place before production commences.

Enough staff/Quality assurers should be available at key production points to quality assure products and processes.

Monitoring and Evaluation

Monitoring/Evaluation systems and quality assurance processes should be in place to prevent product defects and wastages.

Allow for quality control checks and procedures at key production points.

Management by facts

Management should be kept informed about all quality processes.

Facts should be measurable/based on observation and experiments.

Analysis of data and information should be accurate.

Accurate data and information would assist the management to make informed decisions.

Regular quality feedback meetings between management and employees should be held to discuss ways of improving quality.

Teamwork

TQM requires everyone to work effectively as an individual and as a team member within a department of a business or across departments.

An initiative that works well within teamwork to improve quality is the use of quality circles.

A quality circle is a group of employees with a variety of skills and experience coming together to solve problems related to quality and to implement improvements.

They give/suggest solutions to top management.

Reducing the cost of quality

Introduce quality circles/small teams of five to ten employees, who meet regularly to discuss ways of improving the quality of their work.

Schedule activities to eliminate duplication of tasks/activities.

Share responsibility for quality output amongst management and workers.

Train employees at all levels, so that everyone understands their role in quality management.

Develop work systems that empower employees to find new ways of improving quality.

Work closely with suppliers to improve the quality of raw materials/inputs.


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Improve communication about quality challenges/deviations, so that everyone can learn from experiences.

Reduce investment on expensive, but ineffective inspection procedures in the production process.

Implement pro-active maintenance programmes for equipment/machinery to reduce/eliminate breakdowns.

Negative impact of poorly implemented TQM

Setting unrealistic deadlines that may not be achieved.

Employees may not be adequately trained resulting in poor quality products.

Decline in productivity, because of stoppages.

Businesses may not be able to make necessary changes to satisfy the needs of customers.

The reputation of the business may suffer because of faulty goods.

Customers will have many alternatives to choose from and the impact could be devastating to businesses.

Investors might withdraw investment, if there is a decline in profits.

Bad publicity due to poor quality products supplied.

Decline in sales, as returns from unhappy customers' increase.

High staff turnover, because of poor skills development.

Undocumented quality control systems/processes could result in error or deviations from pre-set quality standards.

SESSION NO: 10 TOPIC: TERM 2: Miscellaneous topics

Implications of the Skill Development Act (SDA) on CSI

Businesses must provide learnerships to improve the quality of lives of their employees and the community in which they operate.

Businesses must contribute 1% of their total wages/salaries to SDF on a monthly basis.

20% of all levies collected are then paid to the National Skills Fund (NSF).

The NSF uses the income to train the unemployed, up-skill communities and contribute to social programmes.

By developing workers skills, businesses make it possible for them to move up into better paid jobs.

Through the skill development levy, businesses make an actual investment in CSI.

By becoming more employable, workers can invest more in economies of their local communities. This makes a positive difference to the socio-economic environments of these communities.

Implications of the Employment Equity Act (EEA) on CSI

EEA requires businesses to appoint people from race groups to reflect South Africa’s demographics.

Job vacancies must be made known to all people who may be eligible to apply.

CSI recruitment projects must provide equal job opportunities for everyone.


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Businesses that comply with the Employment Equity Act are considered socially responsible and accountable.

Investing in employees from designated groups in term of the Act is an example of CSI and it indicates a responsible business practice.

Employment equity helps businesses give previously disadvantaged people the opportunity to participate in the economy.

Empowering more South Africans economically means that the economy grows and their family and community’s economic and social position can improve.

Economic rights

Free from forced labour.

Free to accept or choose work.

Fair wages/Equal pay.

Reasonable limitation of working hours.

Safe and healthy working conditions.

Join/form trade unions.

Right to participate in a legal strike

Issues of equality, social and cultural rights

Businesses should treat all their employees equally, respectfully and with dignity.

All employees should have access to equal opportunities/positions and resources.

Employers and employees need to respect legislation that provide for rights to equal opportunities in the workplace.

Businesses should develop equity programmes and promote strategies that will ensure that all employees are treated as equals, regardless of status, rank or power.

The mission statement should include the values of equality and respect.

Provide employees with training and information on issues such as diversity and discrimination.

Putting in place company policies to deal with issues like harassment and discrimination.

Responding swiftly and fairly to reported incidents of discrimination in the workplace

Dealing with difficult people/ personality types OPTION 1

Get perspective from others who have experienced the same kind of situation to be able to understand the difficult employee.

Act pro-actively if possible, as a staff/personnel problem is part of a manager's responsibilities.

Regular meetings with supervisors/departmental heads should help to identify difficult/problem behaviour.

Ask someone in authority for their input into the situation.

Identify the type of personality which is creating the problem.

Meet privately with difficult employees, so that there are no distractions from other employees/issues.


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Make your intentions and reasons for your actions known so that they will feel at ease.

Employees should be told what specific behaviours are acceptable by giving details about what is wrong/ unacceptable and also an opportunity to explain their behaviour.

A deadline should be set for improving bad/difficult behaviour.

The deadline date should be discussed with the employee and his/her progress should be monitored/ assessed prior to the deadline.

Guidelines for improvement should be given.

Do not judge the employee, but try to understand him/her/Understand the person's intentions and why they react in a certain way.

Keep communication channels open and encourage employees to communicate their grievances to management.

Build rapport/sound relations by re-establishing personal connection with colleagues, instead of relying on e-mails/messaging/social media.

Help difficult employees to be realistic about the task at hand.

Remain calm and in control of the situation to get the person(s) to collaborate.

Treat people with respect, irrespective of whether they are capable/ competent or not.

Sometimes it may be necessary to ignore but monitor a difficult person.

Identify and provide an appropriate support program to address areas of weakness.

OPTION 2 (Different personalities)

Type of personality

Strategy to deal with personality

- Complainer

- -

Listen to the complaints but do not acknowledge them. Interrupt the situation and move to the problem-solving process as soon as possible.

- Indecisive

- - -

Guide them through alternatives. Stay in control and emphasise the importance of making a decision. Help them make the decision or solve the problem.

- Over agree

- -

Be firm and do not let them make promises that they cannot keep. Follow up on their actions.

- Negativity

- -

Be firm with them and do not let them draw you into their negativity. Listen to them but do not agree with them.

- Expert

- - -

Be firm and assertive. Do not accuse them of being incorrect and do not get caught in their game. Know your facts.

- Quiet

- - - -

Do not fill their silence with words. Wait for their response. Prompt them through the process so that they give input. Restrict the time of the discussion.

- Aggressive - Allow them time to speak and blow off.


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- -

Be firm, but do not attack them. Do not allow them to be hostile towards others.

SESSION NO: 11 TOPIC: TERM 1: Miscellaneous topics

Differences between the National Skills Development and Human Resources Development Strategy

National Skills Development Strategy

Provides for the participation of government, organised business and labour.

Encourages good quality training in the workplace to ensure on-going development of skills.

Indicates how Sector Education and Training Authorities (SETAs) should use the money allocated from the Skills Development Levy (SDL).

Improves social development through economic development.

Increases access to programmes that train people.

Encourages and supports small businesses, community-training groups, NGOs and worker-initiated training initiatives.

Increases the skills of the public sector to improve service delivery.

Builds career and vocational guidance and training centres.

Establishes and promotes closer links between employers, training institutions and the SETAs.

Human Resources Development Strategy

Addresses skills shortages in the South African workforce.

Develops short term and long term workforce skills.

Promotes social development and social justice and helps to alleviate poverty.

Aims at achieving faster growth, higher employment and reduced levels of poverty.

Improves the supply of skills.

Increases employee participation in lifelong learning.

Supports employment growth through innovation and research.

Roles of SETAs

Develops skills plans in line with the National Skills Development Strategy.

Approves workplace skills plans and annual training reports.

Pays out grants to companies complying with the requirements of the Skills Development Act.

Promotes and establishes learnerships.

Registers learnerships and learning programmes.

Provides training material/programmes for skills development facilitators.

Provides accreditation for skills development facilitators.

Oversees training in different sectors of the South African economy.

Draws up skills development plans for their specific economic sectors.

Allocates grants to employers, education and training providers and employees.

Promotes learnerships and learning programmes by identifying suitable workplaces for practical work experience.


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Collects levies and pays out grants as required.

Discriminatory actions of various Acts

Labour Relations Act

Unfair/Illegal dismissal of employees because they took part in a legal strike

Cancellation of employees' contracts by a new owner/employer when a business is sold/amalgamated with other companies.

Refusing the formation /recognition of workplace forums/trade union.

Preventing the trade union or their representatives to meet with workers.

Forcing employees to give up trade union membership.

Preventing employees from joining trade unions.

Refusing leave to trade union representatives to attend trade union activities.

Breaching of collective agreements/resolution mechanisms by either employer/employee.

Consumer Protection Act

No person my threaten an employee or influence them to do anything that will result in them being deprived of their rights provided in this Act.

The employer may not request the employee not to report the accident or injury.

An employer who does not pay the monthly contributions or submit the employees’ claims from compensation would be seen to be uncaring and thus, discriminating against his worker.

If employers fail to take the necessary precautions to ensure the workplace is a safe and healthy environment.

Broad Based Black Economic Empowerment

Businesses that do not achieve minimum scores on the BBBEE Score card in any of the five/seven "pillars"

COIDA

An employer may not bribe an employee to not report an injury.

An employer who does not pay the monthly contributions or submit the employees’ claims for compensation would be seen to be uncaring and discriminating against his/her worker.

Skill Development Act

No employee may be discriminated against and be prevented from signing up for a learnership due to their work or age, gender, disability etc.

Employers who promote skill and development unfairly.

National Credit Act

Refusing to grant credit or charge different interest rates to a customer based on gender, race, religion or age, etc.

Basic Conditions of Employment Act

Forbidding workers to discuss wages and salaries with co-workers.

Preventing workers having access to employment contracts or conditions of work.


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Deducts money from wages because an employee took a family responsibility leave.

Employment Equity Act

When an employer will not employ a young woman because she will want to have children.

Refusing to employ a person because they have strong religious beliefs.

Forcing employees to do HIV testing unless justified by the Labour Court.

Doing psychological tests that are not reliable, valid and can be applied fairly to all employees.


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SECTION C: HOMEWORK QUESTIONS

SESSION 5: Social responsibility and Cooperate Social Responsibility QUESTION 1: 15 minutes (Taken from various sources) 1 Various options are provided as possible answers to the following questions.

Choose the correct answer and write only the letter (A–D) next to the question number (1.1.1–1.1.5) in the ANSWER BOOK, for example 1.1.11 B

1.1.1 The success of a business is mainly informed by…

(a) profitability (b) social projects (c) BBBEE scores (d) insolvency

1.1.2 The dumping of toxic waste into rivers, lakes, dams and the sea is a good

example of a/an … issue

(a) dumping (b) inclusivity (c) political (d) environmental

1.1.3 Which ONE of the following is an example of a social responsibility programme

implemented by a business? (a) Increase in manager's salary (b) Sponsoring an HIV/Aids orphanage (c) Increasing profits (d) Discounting the prices of its products

1.1.4 Which ONE of the following is a strategy that can be used by organisations to promote the well-being of their employees?

(a) Demotion (b) Inadequate equipment (c) Smoking in the workplace (d) Professional counselling

1.1.4 The monitoring of best business practice includes economic, environmental and social issues. This is largely due to… (a) SWOT analysis. (b) King's Code (c) general management. (d) problem-solving techniques


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QUESTION 2: 26 Marks 15 Minutes (Various sources) 2.1 Define the term Corporate Social Investments. (2) 2.2 Discuss the benefits of Corporate Social Investment for businesses. (10) 2.3 Elaborate on the meaning of corporate citizenship and give TWO examples of

what a business can do to be regarded as a responsible corporate citizen. (8) 2.4 Discuss the link between triple bottom line and the social responsibility of a

business. (6) SESSION 6: Human rights/inclusivity and environmental issues QUESTION 1: 20 Marks 16 minutes (Various sources) 1.1 Explain the meaning of inclusivity in the workplace. (2) 1.2 Give one example of an environmental issue and suggest how businesses can

address this issue. (6)

1.3 Suggest how businesses should address inclusivity in the workplace. (8)

1.4 Explain the concept of diversity in the workplace. (2) QUESTION 2: 16 marks 10minutes (Various sources) Suggest ways in which businesses can address the following diversity issues in the workplace:

Language (4) Age (4) Disability (4) Poverty (4)

SESSION 7: Team performance assessment, conflict management and

problem solving QUESTION 1: 26 marks 20 minutes (Various sources) Read the scenario below and answer the questions that follow.

CONFLICT IN THE WORKPLACE Peter is the marketing manager of Bush Lodge in King Williams Town. He employs three workers, Vusi, Jane and Busi. He dislikes Vusi and treats him differently from the two female employees. Peter requires Vusi to work on weekends and to work overtime without payment, but he pays the other two workers for weekends and overtime worked. Vusi is considering quitting his job if he is not transferred to another department.

1.1 State TWO causes of the conflict in the above case study. (2) 1.2 Mention other THREE causes of conflict in the workplace. (6)


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1.3 Give Vusi advice on the different ways in which he can overcome his dissatisfaction as an employee at Bush Lodge. (6)

1.4 Distinguish between a grievance and conflict in the workplace. (4) 1.5 Recommend any FOUR steps that employers and employees should follow

when handling grievances in the workplace. (8) SESSION NO: 8 BUSINESS SECTORS AND LEADERSHIP QUESTION 1: 16 marks 20 minutes (various sources) 1.1 Identify the business sector of each business operation below and explain the

reason for your answer: 1.1.1 Diamond mining in Namibia. (3)

1.1.2 Commercial banks offering different types of investment opportunities. (3)

1.2 Read the scenario below and answer the questions that follow.

EASTERN STAR HOTEL

The Eastern Star Hotel in Port Elizabeth is situated close to a number of popular tourist attractions. They employ 20 full-time employees and during peak season casual workers are employed to meet the demands of the hotel. Recently the hotel experienced a decline in tourist bookings which resulted in the laying off of some full-time staff. Crime in the area is also increasing. Some guests have been robbed in their hotel rooms. Regular Eastern Star Hotel guests are now staying in other hotels and guest houses in the area, who offer tighter security and other services like conference facilities

1.2.1 Name the economic sector in which the Eastern Star Hotel is operating. (1) 1.2.2 Identify THREE challenges in the case study above and devise a strategy for

each challenge. (9) QUESTION 2: 28 marks 20 minutes (Various sources) 2.1 Discuss the following leadership styles and explain how each of the following

leadership styles will manage conflict between employees in the business:

2.1.1 Charismatic (6) 2.1.2 Transactional (6) 2.1.3 Democratic (6)

2.2 Justify why leaders should use different management styles when

addressing different challenges. (4)


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2.3 Do you think personal attitude is important for the success of a leader in a

business? Motivate your answer. (6) SESSION NO: 9 Quality of performance QUESTION 1: 26 marks 20 minutes (Various sources) 1.1 Analyse the impact of total quality management (TQM) on large

businesses. (8) 1.2 Discuss the impact of quality on sole trader versus large businesses. (8) 1.3 Describe the benefits that a business may enjoy when implementing a

good quality management system. (10) QUESTION 2: 40 marks 30 minutes (Various sources)

Zama (Pty) Ltd is a business that was established five years ago. The business has not been performing well in the following areas:

The target market has not been reached.

It is unable to manage debts.

It has failed to attract and retain skilled employees.

The image of the business is not promoted.

Outdated methods of record-keeping are still being used

Recommend THREE ways in which Zama (Pty) Ltd can improve the quality of performance in each of the challenges that appear in the scenario above. Also discuss how the quality of performance of the general management function will ensure the success of the business.

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SECONDARY SCHOOL IMPROVEMENT PROGRAMME (SSIP) 2016

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