Chapter 2: The nature of management
Additional school-assessed coursework 2 answers
Outcome 1
Discuss the key characteristics of businesses and stakeholders, and analyse the relationship
between corporate culture, management styles and management skills
ASSESSMENT task — case study
1 Define the following terms.
(a) Leading
Leading — the ability to influence or motivate people to work towards the achievement of
business objectives. The previous CEO would have used power to influence and motivate
staff.
(b) Corporate culture
Corporate culture — the values, ideas, expectations and beliefs shared by the staff and
managers of the business. Macullum’s corporate culture is one where the decisions made
by the previous CEO were strictly followed and staff had little input.
1 mark for each correct definition = 2 marks
2 Explain two elements of corporate culture that Macullum Coal would consider when attempting
to change its culture.
Students would be expected to discuss two elements from:
values (the business’s basic beliefs, shared among its employees)
symbols (the events or objects that are used to represent something the business believes to
be important)
rituals, rites and celebrations (the routine behaviour patterns in a business’s everyday life)
heroes (the business’s successful employees who reflect its values and, therefore, act as an
example for others).
2 marks for each element identified and explained = 4 marks
3 Identify one area of management responsibility. For this area, outline one strategy that
Macullum Coal could use to support the new direction for the business.
Students would be expected to identify one area of management responsibility from
operations, finance, human resources, sales and marketing, and technology support. Students
should then select an appropriate strategy from this area that might support the new direction
for Macullum Coal, and explain this strategy.
For example, one area of management responsibility is human resources. The human resources
area could revise the management of staff performance. The human resource area may work
with all employees to determine individual objectives and then evaluate their performance
after a given period of time. In this way, employees will be provided with the opportunity to
participate in achieving business objectives.
1 mark for identifying an area of management responsibility, 1 mark for outlining a strategy from
this area related to supporting Macullum Coal’s new direction = 2 marks
© John Wiley & Sons Australia, Ltd 1
Chapter 2: The nature of management
4 (a) Identify and describe the style of management used by the previous CEO.
The previous CEO used the autocratic style of management. Students should describe at
least two characteristics of the autocratic management style.
(b) Select and justify a more effective style of management that could have been used.
Students should select any one of the other management styles and justify why it would be
more effective. The consultative or participative styles would be appropriate answers, as
James Wolff intends to meet the strategic objectives by improving staff participation in
decision making.
2 marks for identifying and describe a style of management, 2 marks for selecting and justifying a
more effective management style = 4 marks
5 Identify and explain two management skills that James Wolff could use to successfully introduce
the new direction for the business.
Students would be expected to provide a definition and explanation of any two of the
management skills, in particular two of those listed below. Students should also attempt to link
the chosen skills to the successful introduction of the new direction for Macullum Coal.
Communicating. This is the ability to transfer information from a sender to a receiver, and to
listen to feedback. Communication can be verbal (written — such as letters, memos, emails,
reports and text; or oral — such as meetings, one-on-one conversations and conferences).
Communication can also be nonverbal — such as body language or visual.
Delegating. This is the ability to transfer authority and responsibility from a manager to an
employee to carry out specific activities. A manager delegating tasks remains accountable for
outcomes of the delegated work but allows employees to make their own decisions.
Planning. This involves the ability to define business objectives and decide on the methods
or strategies to achieve them. Planning can be strategic (for two to five years), tactical (for
one to two years) or operational (daily or weekly). A planning process involves defining the
objective, analysing the environment (making use of SWOT analysis), developing alternative
strategies, implementing an alternative, and monitoring and seeking feedback on the
implemented strategy.
Leading. This skill involves the ability to influence or motivate people to work towards the
achievement of business objectives. A transactional leader provides staff with rewards in
return for their compliance and acceptance of authority. Incentives such as pay rises or
promotions are offered depending on whether or not performance goals are met. A
transformational leader inspires or enthuses staff with a vision to ensure that they are
committed to achieving objectives.
Decision making. This is the ability to identify the options available and then choose a
specific course of action from the alternatives. The steps in a decision-making process
include developing objectives and criteria, outlining the facts, identifying alternative
solutions, analysing the alternatives, choosing one alternative and implementing it.
Interpersonal. This is the skill of dealing or liaising with people and building positive
relationships with staff. Managers using interpersonal skills use clear communication when
working with staff and are sensitive to their needs, not threatening. Interpersonal skills can
be used to inspire and influence staff while overcoming conflict, creating a workplace where
people respect each other and work well together.
2 marks for each skill identified, explained and applied to James Wolff’s efforts to change
the direction of the business = 4 marks
© John Wiley & Sons Australia, Ltd 2
Chapter 2: The nature of management
6 Analyse the relationship between management styles and management skills.
Management style refers to the way a manager does things – their behaviour and attitude when
making decisions, directing and motivating staff and when implementing plans to achieve
business objectives. The management style chosen will relate to the personality, experience,
values and beliefs of the manager. A manager who is comfortable with involving employees in
decision making and making use of two-way communication is likely to choose a consultative or
participative style.
Management skills are the abilities or competencies that managers have to complete tasks
effectively, thereby achieving business objectives. These can be gained or developed through
training and experience. The management style that a manager chooses will determine the
range and degree of management skills that they use. For example, if a manager assesses a
situation and chooses to use a participative style, then clear communicating, delegating,
planning, leading and interpersonal skills will be important.
2 marks for definitions of management styles and management skills, 2 marks for explaining how the
two terms are linked = 4 marks
© John Wiley & Sons Australia, Ltd 3
