Unit 3 & 4 - Session 4

NCFE Principles of Business AdministrationLevel 2 CertificateWatersideTutor: Michelle [email protected] 354413

Induction Fire evacuation

Toilets

Smoking

Phone calls / appointments

Commitment = 70%

Absences – To be reported

Brews – 25p per session

Questions?

Learning objectives – Session 3Unit 3 & 4

Understand the requirements of written and verbal business communication1.1 Explain why different communication methods are used in the business environment

1.2 Describe the communication requirements of different audiences

1.3 Explain the importance of using correct grammar, sentence structure, punctuation, spelling and conventions in business communications

1.4 Explain the importance of using appropriate body language and tone of voice when communicating verbally

Understand organisational structures1.1 Explain the differences between the private sector, public sector and voluntary sector

1.2 Explain the functions of different organisational structures

1.3 Describe the features of different types of legal structures for organisations

Understand the organisational environment2.1 Describe the internal and external influences on organisations

2.2 Explain the use of different models of analysis in understanding the organisational environment

2.3 Explain why change in the business environment is important

Unit 3 – LO 1 Guidance 1.1 communication methods may include, but

are not limited to, face-to-face, telephone, email, letter, video conference calls

1.2 audiences may include, but are not limited to:

internal – colleagues, managers, other departments

external – individuals, companies 1.3 conventions refer to specific presentation

styles used by an organisation or sector

Know your audience

In creating your message you need to think carefully about each audience or ‘stakeholder’ and how they fit into your goal. Firstly clearly define your goal. Next identify the stakeholders that are affected by working towards the goal and using stakeholder mapping. Then identify how important their support is to the success of your project.Once you know who you are communicating to and what level of support you are seeking from them, you need to consider their perspective. Assess their current attitude towards the goal. This can be classified as the following: • advocate - actively promotes your goal to others • supporter - works to forward your goal • neutral - has no opinion and does not proactively work for or against the goal • critic - has concerns about the goal • blocker - seeks to prevent the goal being achievedTry to assess the stakeholder’s own sphere of influence, interests, concerns and timetables, for example financial control, personnel management, marketing to a particular group.From this contextual information about the stakeholder you can then decide what action you want them to take as a result of the communication and therefore the message you need to get through.

Communication - Oral

Communication - Written

15 MINS

Unit 4 – LO 1 & 2 Guidance 1.2 Different organisational structures for

example functional, product/activity, area – regional or geographical

1.3 different types of legal structures, for example sole trader, partnership, private company (ltd), public company (PLC)

2.2 models of analysis to include: SWOT (strengths, weaknesses, opportunities

and threats) PESTLE (political, economic, social,

technological, legal and environment)

1.1 – 1.3Private: sole trader partnership public limited company private limited company franchisePublic: Government

departments local authorities public corporations

Voluntary: not for profit registered charities trusts Organisational structures: hierarchy/flat centralised/de-centralised Features of legal structures: formation ownership and control liability obligation

1.2 http://www.bbc.co.uk/bitesize/higher/business_ma

nagement/business_enterprise/internal_organisation/revision/1/

http://www.bbc.co.uk/bitesize/higher/business_management/business_enterprise/business_contemporary_society/revision/1/

http://www.healthknowledge.org.uk/public-health-textbook/organisation-management/5b-understanding-ofs/internal-external

Legal Structures1. Overview

You must choose a structure for your business. This structure will define your legal responsibilities, like: the paperwork you must fill in to get started the taxes you’ll have to manage and pay how you can personally take the profit your business makes your personal responsibilities if your business makes a loss

You can change your business structure after you’ve started up if you find a new structure suits you better.

Types of business

The main types are: sole trader limited company business partnership

You can form an ‘unincorporated association’ if you’re setting up a small organisation like a sports club or a voluntary group and don’t plan to make a profit.

You can use other structures for businesses that help people or communities, eg ‘social enterprises’.https://www.gov.uk/business-legal-structures/overviewMore; http://www.resourcecentre.org.uk/information/legal-structures-for-not-for-profit-organisations/http://www.bbc.co.uk/education/guides/z4br87h/revision/1

2.1 http://pestleanalysis.com/internal-factors-affec

t-business-organization/

Internal and external influences might include some or all of the following: New technology; Government legislation; The appointment of a new

chief executive or senior figure; Customer demand for new

and improved products and services;

Internally-driven improvements in productivity and/or profitability;

Need to reduce costs; Financial recession; Local and (increasingly)

global competition; Competitor innovation; Product obsolescence; Loss of market share; Loss of revenue; Higher taxation; Mergers and take-overs;

and/or, Organisational inefficiency.

2.1 – 2.3Internal influences: policies procedures systems organisational and

team structure aims and objectives cultureExternal influences: competitors market share PESTLE factors

Models: SWOT analysis PESTLE analysisChange: change in market

share new technologies new competitors staff/organisational

structure globalisation sustainability.

SWOT analysis

Pestle analysis

Benefits of Change In an organisational context, any proposed change must bring benefit if it is to be

meaningful. By failing to understand the benefit(s) from a proposed change, and by not being clear about the benefit, organisations run the risk of failing to successfully deliver the change.

One of the biggest challenges organisations face in identifying the potential benefits of a change is the definition of a readily understood measure of success. For example, a company decides to manage one of its support functions differently by outsourcing that function. To quantify the benefit in this case is reasonably easy since a comparison between the cost of in-house delivery and the cost of an out-sourced service could reveal a cost saving. This easily quantified benefit is defined as a tangible benefit.

Understanding Business Where things become more difficult is where there is a significant payback period – that

is, the benefit of the change will not be derived for several years – or where the benefit is intangible. An intangible benefit is one that is not easily quantified. For example, a company proposes to allow staff greater freedom to choose their own working hours arguing that staff morale will be improved. Finding measures to confirm that the benefit – improved morale – has been achieved is challenging and, indeed, imprecise.

Learning outcomes – Session 3DID YOU……?

Understand the requirements of written and verbal business communication 1.1 Explain why different communication methods are used in the business environment 1.2 Describe the communication requirements of different audiences 1.3 Explain the importance of using correct grammar, sentence structure, punctuation, spelling

and conventions in business communications 1.4 Explain the importance of using appropriate body language and tone of voice when

communicating verbally

Understand organisational structures 1.1 Explain the differences between the private sector, public sector and voluntary sector 1.2 Explain the functions of different organisational structures 1.3 Describe the features of different types of legal structures for organisations

Understand the organisational environment 2.1 Describe the internal and external influences on organisations 2.2 Explain the use of different models of analysis in understanding the organisational

environment 2.3 Explain why change in the business environment is important

Any questions?

See you next weekYou need to work on;

Unit 03 & Unit 04