Business Studies

Business Ventures:
Forms Of Ownership:
Businesses That Are Not Legal Entities:
Sole Proprietor:
Definition:
 When the owner does business without registering as a company.
 Could have employees, even though sole proprietorships are owned and managed by one
person.
 Suitable for small enterprises.
Characteristics:
 Sole proprietorships are owned and managed by a single owner.
 It is simply the owner doing business-there is no distinction between the owner and the
business.
 Sole proprietorships are not legal entities.
 Assets belong to the owner.
 Profits belong to the owner.
 The owner pays tax in his/ her personal capacity.
 The owner is liable for all debts incurred by the business.
Advantages:
 The owner can simply start doing business –there are no registration formalities.
 Owner runs the business as he/she see fits.
 The owner does not need anyone else’s permission to make a business decision.
 The owner has direct contact with customers.
 The owner is not accountable to other owners.
Disadvantages:
 Owner contributes only his/her time, skills and energy to the business.
 Sole proprietorships do not have continuity-this means that the business cannot continue to
exist if the owner retires or dies.
 The owner pays tax in his/her personal capacity-personal tax rates are much higher than tax
rates for companies at the high end of the scale.
 Capital is limited to the amount of money the owner has access to.
 The owner has unlimited liability for the debt of the business.

Partnerships:
Definition:
 A partnership is where the owners do business without registering as a company.
 The number of partners depends on the nature and size of the partnership.
 There are four essentials to forming a partnership.
 Every partner must contribute
 The business must be carried for the joint benefit of the partners.
 The object must be to make a profit.
 The partnership contract must be legal.
Characteristics:
 A partnership is an agreement between two or more persons.
 Each partner makes a contribution to the partnership. e.g. skills, time, effort or money.
 Partnerships are not legal entities.
 Partners are jointly and severally liable for the debts of the partnership- one partner can be
held liable for the total debt of the partnership. The partner who paid the debt must then
collect each partners share of the debt from that partner.
 Profits and losses are shared among the partners according to the terms in the partnership
agreement.
 The partners pay tax in their personal capacity.
Advantages:
 Partnerships can be financially strong because a number of people can contribute to the
capital of a partnership.
 Partners have personal interest in the business.
 This encourages partners to work hard.
 The different skills of partners are combines to achieve synergy.
 Responsibilities such as paying telephone, water and electricity accounts are shared.
 Stress is reduced because decisions can be taken in collaboration with other partners.
Disadvantages:
 Partners do not always agree- this can slow down decision- making.
 A bad decision can lead to losses for the partnership.
 Partners are bound by the decisions of other partners.
 There is no continuity- partnerships must resolve when a partner dies or retires.
 Partners have unlimited liability for the debts of the business.

Businesses That Are Legal Entities:

Closed Corporation:
Definition:
 A registered business with a membership of 1-10 persons.
 Exists under the Close Corporations Act (No 69 of 1984)
 Specially created for smaller businesses.
 The new Companies Act (No 71 of 2008) does not make provision for the formation of new
Close Corporations.
 However, all existing Close Corporations may continue to exist indefinitely, or until their
members decide to convert the CC into a company.
 Existing companies may not be converted into CC.
 Existing CC will be treated as private companies.
Characteristics:
 Owned and managed by 1-10 members
 Name must end with the words Close Corporation or CC.
 CC have continuity.
 Close Corporations are legal entities.
 Assets belong to the CC and not to the members.
 Profit belongs to the CC and not to the members.
 Tax is paid by the CC.
 Members are sometimes required by creditors to stand surety for the debt of the business-
this means that debts cab be recovered from members in their personal capacity.
 Members may become personally liable for the debts of the CC, for example:
 If the business of the CC was carried on recklessly. Grossly, negligently or fraudulently.
Advantages:
 Members have limited liability for the debts of the CC- unless they have stood surety.
 Appropriate for small and medium businesses.
 Usually has greater access to capital than sole proprietorship and partnerships.
 Financial statements need not be audited.
 Tax rates businesses are lower than tax rates for individuals.
 Auditing of financial statements is voluntary, except when regulations under the Companies
Act require financial statements to be audited.
Disadvantages:
 Capital is limited to the contribution of up to ten members.
 Creditors will normally require members to stand surety before they lend money to the CC.
 All members of the CC must give their approval If a member wishes to sell his/her interest.
 The financial statements of some CC’s (as determined by the Companies Act) are subject to
an independent review and or/audit.

Companies Can Be Classified Into Two Categories:

Non – Profit Company:
Definition:
 Formed for public benefit purposes.
 Companies that do not exist to make a profit.
Characteristics:
 The main goal of non-profit companies is to benefit the public or to fight for a cause.
 All income and assets of non-profit companies must be used for public benefit purposes.
 Members, directors and incorporators of non-profit companies may not gain any financial
benefit from the company, other than reimbursement for costs incurred on behalf of the
company.
 The names of non-profit companies end with NPC
 A minimum of 3 directors are appointed.
 Dependent on financial support from the community sponsorships and fundraising projects to
raise money.
Advantages:
 Aims to benefit the community.
Disadvantages:
 Not sensitive to commercial considerations.
 Difficult to raise money.

Profit Company:
Private Company:
Definition:
 A profit company is a private company if:
o Its’s securities may not be offered to the public; and
o The transferability of securities is restricted.
Characteristics:
 Name must end with “Proprietary Limited” or “(Pty)Ltd”
 Owned by shareholders.
 Minimum number of shareholders is one.
 Managed by directors.
 Minimum number of directors is one.
 Securities are not offered to the public.
 If a shareholder wishes to sell his/her shares, the shares first have to be offered to existing
shareholders.
  A securities register must be kept.
 Shareholders have limited liability for the debts of the company.
Advantages:
 More capital can be raised by a company than by an individual.
 Creditors are less likely to require surety from members if the company is financially strong.
 Continuity of existence.
 Auditing of financial statements is voluntary, except when regulations under the Companies
Act require it.
 Not necessary to appoint an auditor, audit committee or company secretary.
 Not necessary to hold annual general meetings.
Disadvantages:
 Double taxation: Companies pay tax on taxable income of the company as well as secondary
tax on the dividends distributed to shareholders.
 Restricted from raising funds directly from the public.
 Costs and formalities associated with forming a private company.
 The financial statements of some companies (as determined by the Companies Act) are
subject to an independent review and/or an audit.

Public Company:
Definition:
 A public company is a profit company that may offer its securities to the public.
Characteristics:
 Owned by shareholders.
 Minimum number of shareholders is one.
 Managed by directors.
 Minimum number of directors is three.
 Name of public companies must end with “Limited”, or “Ltd”.
 Securities may be offered to the public.
 A securities register must be kept.
Advantages:
 Shareholders have limited liability for the debt of the company.
 Funds may be raised directly from the public by offering securities to the public.
 Continuity of existence.
 Companies can raise more capital than other forms of business enterprise.
 The prices of the securities serve as a barometer of the company’s performance.
Disadvantages:
 Double taxation: Companies pay tax on taxable income of the company as well as secondary
tax on the dividends distributed to shareholders.
 Poor performance by public company may lead to management losing their jobs.
 Annual general meetings must be held- this places an administrative burden on the company.
 Incorporating a public company is a complicated process
 An auditor, audit committee and a company secretary must be appointed.
 Public companies have extensive corporate governance duties.

Personal Liability:
Definition:
 A profit company is a personal liability company:
o It meets the criteria for a private company and
o Its Memorandum of Incorporation (MoI) states that it is a personal liability company.
Characteristics:
 Name must end with the word “Incorporated”, or “Inc”
 Owned by shareholders.
 Minimum number of shareholders is one.
 Managed by directors.
 Minimum number of directors is one.
 Securities are not offered to the public.
Advantages:
 More capital can be raised by a company than by an individual.
 Creditors will be less.
Disadvantages:
 Double taxation: Companies pay tax on taxable income of the company and companies pay
secondary tax on the dividends distributed to shareholders.
 Restricted from raising funds directly from the public.
 Costs and formalities associated with forming a personal liability company.
 The financial statements of some companies (as determined by the Companies Act) are
subjected to an independent review and/ or an audit.

State Owned Company:

Definition:
 A state-owned company is a registered company that is either
 Owned by the state; or
 Is a municipality
Characteristics:
 The state is the only shareholder.
 Examples of state-owned companies are Eskom, Telkom, SAA and the SABC.
 The board of directors are appointed by the government.
 The remuneration of directors is determined by the government.
 Name ends with “SOC Ltd”
Advantages:
 State owned businesses can be managed more efficiently as state-owned companies.
 The format of the state /-owned company provides a vehicle for holding state-owned
businesses accountable.
 State-owned companies allow for a compromise between the state’s interests and
commercial considerations.
Disadvantages:
 It is difficult to enforce accountability.
 A company secretary has to be appointed-this places a financial burden on the company.
 The state as an owner is less sensitive to commercial considerations.
 State-owned companies often operate at a financial loss.

Co – Operative:
Definition:
 A co-operative is an:
o Autonomous association of persons
o Who are united voluntarily
o To meet their common economic and social needs
o Through a jointly owned and democratically controlled enterprise
o That is organised and operated by co-operative principles
Characteristics:
 Not driven by profit.
 Reason for existence is usually service delivery.
 Name includes the word “co-operation” or “co-op” and ends with the word “Limited” or “Ltd”
 Controlled by members of the co-op.
 Members have equal voting rights-one member has one vote.
 Co-operatives specialise in particular fields e.g. agricultural co-operatives and consumer co-
operatives.
 Returns are paid out to members.
 Co-operatives must establish a reserve fund- at least 5% of the surplus must be kept as a
reserve and may not be divided among members.
Advantages:
 Creates an opportunity for people to work together towards a common goal.
 Aims at benefiting the community.
 Bulk buying often enables co-operatives to negotiate good prices with suppliers.
 Co-operatives do not aim to make a profit so they are capable of selling goods at affordable
prices.
Disadvantages:
 Not as sensitive to commercial considerations as a company.
 Not as effective at raising capital as a company.
 Because the main aim of a co-operative is not to make a profit, co-operatives can easily get
into financial trouble.
 Difficult to dispose of shares.
 Subject to annual audits.
 Compelled to hold annual general meetings-this is an administrative burden.
Principles, Values And Types:
Principles:
 Members economic participation
 Autonomy and independence
 Co-operation among co-operatives
 Concern for community
 Democratic member control
 Education, training and information.
 Voluntary and open membership

Values:
 Self-help
 Self-responsibility
 Equity
 Democracy
 Solidarity

Types:
 Agricultural co-operatives
 Social co-operatives
 Housing co-operatives
 Consumer co-operatives
 Service co-operatives
Benefits And Challenges Of Companies:
A Public Company Versus A Sole Propriety And A Partnership:
Public Company:
 Shareholders have limited liability for the debt of the company.
 Funds may be raised directly from the public by offering securities to the public
 Continuity of existence
 Tax rates

Sole Propriety And Partnership:

 Owners of sole traders and partners in partnerships have unlimited liability for the debt of their
business.
 Funds cannot be raised from the public. Funds are limited to loans from a bank and money
saved by the owner or partners.
 No continuity of existence.
 Tax rates of companies are usually lower than personal tax rates- owners of sole traders and
partners in partnerships pay tax in their personal capacity.
A Public Company Versus A Closed Corporation And A Personal Liability Company:
Public Company:
 Private companies
 Funds may be raised directly from the public by offering securities to the public.
 Companies can raise more capital compared to other forms of businesses.

CC And A Personal Liability Company:

 Funds may not be raised from the public but are restricted to what company owners can
borrow from the bank.
 More money can be raised be selling securities to the public than by borrowing from the bank.
A Public Company Versus A Co-Operative:
Public Company:
 The price of the securities serves as a barometer of the company’s performance.
 Companies can raise more capital compared to other forms of business enterprise.

A Co-Operative:
 Not as sensitive to commercial considerations as a company.
 Not as effective at raising capital as a company.
Challenges Of Starting A Company:
 Sole traders and partnerships can start doing business without having to go through
registration formalities
 Companies need to be incorporated- this process takes time and costs money.
 Raising money from the public is also a complicated process-public companies issue
prospectus to convince the public to buy their shares.

Formation Of A Company:
Memorandum Of Incorporation:
 The Memorandum of Incorporation serves as the constitution of a company.
 The MoI sets out the rights, responsibilities and duties of shareholders and director.
 It also includes detail about incorporators (people who complete and lodge the documents
necessary for the registration of a company), number of directors and share capital.
Name Of The Company:
 The first step to registering a company is reserving a name for the new company with CIPC
 The name of a company is subject to approval by CIPC.
 The name of a company must be original and may not be misleading.
 The name of a company indicates the type of company.
 Personal liability company must end with Incorporated or Inc.
 Non-profit company must end with NPC.
 Private company must end with Proprietary Limited or Pty Ltd.
 Public company must end with Limited or Ltd.
 State-owned company must end with SOC Ltd.
Incorporation And Commencement Of A Company:
 A company is registered and may start doing business once:
o The name of the company has been approved.
o The prescribed fees have been paid.
o The Notice of Incorporation and Memorandum of Incorporation have been lodged.
o The application to incorporate a new company has been processes by CIPC.
Prospectus:
 The securities of a company may not be offered to the public unless it is accompanied by a
prospectus.
 A prospectus is a written invitation to the public to buy securities offered by a public company.
 The securities of a company may include shares in the company or debentures of the
company.
 Shareholders advance capital to a company but are not entitled to return on their capital
except in the case of redeemable shares.
 A company can also borrow money by issuing debentures to the public.

Avenues Of Acquiring A Business:

Franchising:
Description Of Franchising:
 A franchise is an agreement between a franchisee and franchisor according to which the
franchisee obtains the right from the franchisor to use the name and trademark of the
franchisor and to sell the franchisor’s products.
 A franchise is not a form of ownership, franchises serve as a marketing and distribution
system for franchisors.
 Franchisees pay an upfront fee for the right to use the name and trademark of the franchisor-
known as the initial fee.
 Franchisees are obligated to pay a continuous, monthly turnover-based fee in return for
guidance and marketing assistance from the franchisor- known as royalties.

Advantages For The Franchisee:

 The franchisee enters into an existing market
 The franchisee receives marketing and management assistance from the franchisor.
 The franchisor provides the franchisee with training.
 Market research is done by the franchisor.
 The franchisor assists the franchisee in finding a suitable location.
 The franchisor provides the franchisee with equipment.
 The franchisee benefits from using the good name and trademark of the franchisor.
Disadvantages For The Franchisee:
 Some franchise agreements specify suppliers from which stock must be bought.
 The franchisee must pay turnover-based royalties to the franchisor.
 It is usually very expensive to buy a franchise.
 The franchisee may only sell products permitted by the franchisor.
 The franchisee is contractually bound by the guidelines of the franchisor.
 It is difficult to sell a franchise that is not performing well.
 The franchisee is influences by bad decisions made by the franchisor.

Advantages For The Franchisor:

 Franchising allows the entrepreneur to expand their businesses.
 The franchisor retains control over the operations of franchisees.
 Dedicated franchisees will work hard to be successful. This reduces the risk of failure for the
franchisor.
 The franchisor has access to distribution channels through the different franchise outlets.
 The franchisor has access to wider market exposure through the franchise outlets.

Disadvantages For The Franchisor:

 The franchisor will have to invest a great amount of money and time to establish a franchise.
 The franchisor must keep a close eye on developing franchises and provide developing
franchises with guidance.
 Franchisees that are nor performing as they should, cannot simply be fired. Instead, they will
require more guidance and assistance from the franchisor.
 An underperforming franchise can hurt the name and image of the whole franchise group.
 The income of the franchisor is limited to royalties.

Contractual Obligations For Franchising:

Description Of A Contractual Agreement For A
Franchise:
 A franchise agreement refers to the agreement between the franchisee and franchisor.
 Franchise agreements must be in writing and in plain and simple language.
 The franchise agreement will include detail such as:
 Operational details
 Financial statements
 The rights and responsibilities of the franchisee
 The right and responsibilities of the franchisor
 The duration of the franchise agreement.
 The following documents are important to both franchisors and franchisees.

Secrecy Undertaking:
 This document is signed by the franchisee to protect the confidentiality of information that the
franchisee acquires from the franchisor.
Disclosure Agreement:
 The disclosure document provides prospective franchisees with information regarding the
franchise.
 The aim of the disclosure document is to enable franchisees to make informed decisions.
 According to the Franchise Association of South Africa’s (FASA) Code of Ethics and Business
Practices, the information included in the disclosure agreement must be updated at least once
a year.

Operations And Procedures Manual:

 The Operations and Procedures Manual (OPM) describes the way in which the franchise
must be run.
 It is a very important document, because it aims to provide franchisees with enough
information to run and manage their franchisees.

Outsourcing:
Description Of Outsourcing:
 Outsourcing is when a business pays another business to perform an activity that the
business could perform in house.
 The most important reason for outsourcing is to allow the outsourcing business to concentrate
on its own core activities.
 Examples of activities that are commonly outsourced include cleaning services and call centre
services.

Advantages:
 The outsourcing company can focus on its core business activities.
 The administrative burden for the outsourcing company is relieved in terms of personnel
issues such as salaries and wages and labour relations.
 Outsourcing has the potential to save money. The outsource provider is usually able to render
the service at a lower cost because it specialises in the particular service.
 The outsourcing business has fewer capital expenses because it does not have to invest in
equipment, e.g. a cleaning company supplies its own polishers and vacuum cleaners.

Disadvantages:
 The outsource provider may gain access to confidential information.
 A business can become dependent on its outsource provider.
 This can potentially create a crisis for the business if the outsource provider suddenly
terminated its contract
 Managing the outsource provider could be more difficult than managing employees.

Contractual Implications Of The Outsourcing

Agreement:
 The outsourcing company has the responsibility of paying the outsource provider.
 The outsource provider has the responsibility of delivering the service to the outsourcing
company, as agreed.
 The following issues are addressed in the outsource agreement.
 The duration of the contract.
 A secrecy clause to protect the outsourcing company’s patents.
 The rights and responsibilities of both the outsourcing company and the outsource provider.
 A confidentiality clause to protect the confidentiality of privileged information.
Leasing:
Description Of Leasing:
 A lease agreement is an agreement entered into by a lessor and the lessee according to
which the lessee acquires the right to use goods provided by the lessor for a specific time, in
return for payment.
 Reasons why enterprises consider leasing include the fact that leasing can be arranged
quickly and does not require a large capital investment from the lessee.

Advantages For The Lessee:

 The lessee obtains the use of the goods without having to worry about maintenance
 The lessee obtains the use of the goods but does not have to insure the goods.
 The lessee does not bear the risk of defects.
 Goods can easily be replaced when they become obsolete.
 Very little cash is required.

Disadvantages For The Lessee:

 The lessee never acquires ownership for the goods.
 The lessee is bound by the contract.
 The lessee cannot use the asset as security to borrow money.
 The lessee cannot sell the goods in times of financial difficulty.

Advantages For The Lessor:

 The lessor receives continuous rent income.
 The lessor receives quantity discount if goods are bought in bulk.

Disadvantages For The Lessor:

 The lessor is responsible for insuring the goods
 The lessor is responsible for maintaining the goods
 The lessor is exposed to bad debt.

Contractual Implications Of The Lease Agreement:

 The lessor has the responsibility of delivering the goods to the lessee in good, working
condition.
 The lessee has the responsibility of paying the lessor and protecting the goods.
 Issues that will be addressed in lease agreements include:
 The duration of the contract
 Amount of rent payable by the lessor to the lessee
 The rights and responsibilities of both the lessor and lessee
 A penalty clause describing the penalties payable by the lessee if the lessee decides to
terminate the lease agreement before the agreed date of termination.
Transformation Of A Business Plan Into An
Action Plan:
Business Plan And Action Plans:
Definition Of A Business Plan:
It is a written document which gives a comprehensive overview of a proposed business.
A business plan explains the objectives of a business/what the business is all about and how it will be
financed/resourced.

The Purpose Of A Business Plan:

 Offers direction of a proposed business.
 A written document which gives a comprehensive overview of a proposed business.
 Explain the business objectives, how it will operate, how the finances, resources will be
handled and what the business aims to achieve.
 Used to check the performance.
 A tool used to sell or market the business.
 To identify possible strengths, weaknesses, opportunities and threats.
 Used to convince other people of the profitability of the business, such as applying for finance
for a bank.

The Meaning Of An Action Plan:

 An action plan is a record of activities showing how those activities will be organised to
achieve the goals set out in the business plan.
 Is a planning and a monitoring tool that specifies what tasks must be done by whom, when
and with what resources in order to reach specific goals.
 Is a process that will help to focus ideas and to decide on the steps to achieve a particular
goal.

The Importance Of An Action Plan:

 It enables projects to be achieves within the specified time.
 It helps the person responsible for achieving certain goals to be organised.
 It is a control measure against which standards and performance can be measured.
 It priorities activities according to importance.
 It turns plans into actions.
 Identify problems that could occur.
 Acts as a monitoring tool that makes it possible to check the progress.
 Enables businesses to transfer their plans into actions.
 Enables businesses to think logically and identify gaps in the plan.
 Serves as a monitoring tool to check its progress.
 It provides an opportunity for reflection of what has happened before and what actions have
not helped.
 Can bring together individuals/experts that are knowledgeable in the area of work.
 Clarifies the objective and provides the opportunity to identify areas that need change.
 Builds consensus as everyone involved can contribute their ideas.
 Creates ownership/accountability by creating a sense of individual and collective ownership
for the action plan.
 Clarifies timescales that need to be done in order to achieve a particular objective.
 It identifies measures of success by providing a way of measuring progress towards that goal.
Steps To Follow When Drawing Up An Action Plan /
Stages Of An Action Plan:
 The summary of the vision, mission, long term and short-term goals must be defined.
 Define the steps you would take to get there
 Start with what must be done first/prioritise
 Identify the end point for each step
 Arrange the steps in logical order
 Think about any problems that may happen
 Review progress regular
 Identify indicators to confirm progress

Project Planning:
The Meaning Of Project Planning:
 Project planning is a tool that can be used to turn an idea into an action plan.
 It is a detailed description of all activities that need to be completed to execute a project
successfully.
 The start-up of a business can be viewed as a project which must be planned.
 Project managers are usually in charge of developing and monitoring the implementation of
projects.
 Project management skills are the use of knowledge, skills and tools to plan and implement
activities to meet the goals for every project.

Project Planning Steps:

 Define the scope of the plan to be done e.g. what is the purpose, first and last activities?
 Identify project supporters.
 Break the project down into activities.
 Set time frames and determine how long each activity takes.
 Set milestones targets e.g. what are main completion point?
 Determine accountabilities/person responsible for the decision made.
 Calculate the financial, human/technical resources that will be needed
 Plot the activity schedule into a Gantt chart
 Execute the project plan.
 Monitor progress
 Communicate and review project progress.
 Keep records of all activities.

Planning Tools:
Timelines / Schedules:
Meaning:
 A timeline is a representation of all the tasks that must be completed and when these tasks
can be completed.
 Timelines help team members to know what milestones need to be achieved and by when.
 The entries on the timeline need to be accurate and the information needs to be well
organised.
 Timelines often involve making projections
Importance Of Timelines:
 They help the planners to project dates in advance.
 Assists in determining the sequence/order in which activities tasks must be completed.
 Keeps information in the order that it has to be in.
 Assists project management in meeting their targets and exceeding client expectations.
 Project managers tools to get their jobs done, many of which are specific to a single company
or product

Examples Of Timelines:
A timeline is also known as a schedule for example, when implementing a business plan, the
entrepreneur may make use of a timetable for these activities:
Work Breakdown Structure (WBS):
Meaning:
 A Work Breakdown Structure is used to schedule the timelines for a project in order to decide
what tasks need to happen when and in what order.
 It is the first step in dividing the business plan into smaller project stages.
 It organises the plan into manageable stages that can be carried out individually.
 It also organises the tasks into a logical sequence
 It can also be used to develop a Gantt Chart.
 It allocates responsibilities to staff members

Work Breakdown Structure (WBS) Steps:

 Identify one key activity
 Sub-divide the task into secondary tasks
 Break down each secondary task into more details
 Check for logic, sequence and details

Gantt Chart:
Meaning:
 It is a bar chart that illustrates a project schedule.
 It shows the start and finish dates of the terminal elements and a summary element of a
project.
 These elements consist of the WBS of the project
 It is an easy way to view projects as it shows a series of dates across the top of the page with
solid bars below the dates.
 These elements consist of the WBS of the project.
 The bars show the duration of each task.
 Tasks names are written in the column on the left/vertical axis and contains the name of the
person/team responsible for completing the task.
 They have different lengths to represent the order, timing and time span for each task.

Constructing Of A Gantt Chart:

 Write down all the activities that must be carried out to complete a project
 Decide how much time you will need for each activity
 Determine which activities need to be completed before another activity can be started and
which activities can be carried out simultaneously.
 Draw up a table with a row for each activity and columns in days/weeks. These columns
indicate the timeline.
 Write each activity in order down the rows, in the left-hand column
Example Of A Gantt Chart:

The Importance Of A Gantt Chart:

 Easy to prepare and understand.
 Events are shown in a chronological order
 The time needed for an activity is shown visually
 Managers and team members can see which activities run concurrently.
 Team members can see who is responsible for each activity.
 They show progress on an activity and enable managers to monitor progress.
 Interrelated tasks can be used at a glance.

Starting/Setting Up A Business:
Initiating A Business:
Strategy:
 A strategy is a plan of action that must be carried out by an entrepreneur
 An action plan outlines the vision, mission, goals and objectives.
 The action plan must be used to develop the systems and processes for the business

Operations:
 The business plan, action plan identifies the operational plan, timelines and key deliverables
 Operations need to be implemented, staff employed and trained.
 Resources must be acquired and managed continuously
 Constant monitoring & evaluation need to be done to ensure that resources are used
effectively.
Productivity:
 The action plan includes budget and financial planning
 Budgets need to be assessed and amended
 Costs need to be decreased and output increased
 To ensure productivity - costs need to be decreased & output increased
 Improvements need to be implemented constantly to improve profits

Size Of The Business:

 The success of a business depends on its management and staff.
 The bigger the businesses the more difficult to manage
 It is difficult to keep control of the quality of each of the employees, work and productivity
levels

Culture, Training, And Quality Of Staff:

 It is essential to establish an organisational culture from the beginning so that staff are familiar
with what is acceptable.
 Staff need appropriate training in order to achieve the desired outcomes and deliver the best
quality.
 Managers should ensure that all new staff know the business dress code

Risk And Change:

 All businesses need to take risk and amend the original action plan several times.
 The introduction of new technology or new machine may influence a budget and it may be
necessary for the business plan to be adapted.
 Management and leadership teams must be flexible to adapt to changes in the market and/or
macro environment.

Customer Service:
 A successful business gives customers what they want.
 Businesses need to change their market plan/adjust their products and prices to ensure sales
increase.
 They also need to establish a good relationship with their customers.

Market Research:
 Businesses should conduct ongoing market research to identify profitable markets for their
product.
 Many businesses benefit from conducting market research in local/familiar markets.

Business Cycles:
 Businesses obtain profit and experience losses.
 Changes in market & macro environment can either have a positive or negative impact on
business operations.
 Businesses should constantly make adjustments to reduce costs where possible.
 Reducing cost increases profitability.
Factors To Be Considered:
Culture Of The Organisation:
 Establish an organisational culture so that the staff is familiar with what is acceptable.
 Ensure that a code of conduct is in place and enforce it from the start
 The staff must know the dress code and the code of conduct of the business from the start.
 Provided ongoing training to ensure that the staff remain skilled and able.

Environmental Changes:
 Continue to network and research to avoid changes in the business environment which may
upset the business operations.
 Consider the risk and success factors
 Plan for risks and minimise the impact

Customer Service:
 Make an effort to satisfy the needs of customers.
 Change the action plan accordingly to accommodate the needs of customers
 Establish a good relationship with customers.

Business Growth:
 Managed and backed up growth by using a solid strategy.
 The success of a business is often dependent on its management and staff.
 Devise a suitable strategy to manage and control a larger group of employees.
 Keep control of the quality of each employee.

Cost Saving:
 Cut cost by controlling unnecessary expenditures

Risk And Change:

 Management and leadership teams must be flexible to adapt to changes in the market.
 The original action plan may need to be changed and amended several times.
 The introduction of new technology may influence a budget.

Other Factors That Must Be Considered Before

Starting A Business:
 Planning and minimising the environmental impact on the business.
 Action plan to satisfy the needs of customers.
 The sources of raw materials/suppliers.
 The sources of funding that the business would use.
 The forms of ownership that will be used by the business.
 The registration of the business.
 The location/business premises to be used.
Acquiring Funding:
Reasons Why Businesses Need Funding:
 Cover the start-up costs including g premises/machinery/raw materials etc.
 Run the business and have enough money to pay employees/suppliers of raw material etc.
 Pay for cost of input such as wages, telephone other expenses
 Expand the business as the orders/sales increase and bigger premises need to be
established.

Sources Of Funding:
Equity Capital:
 Equity capital is the total amount of money and assets invested in a business by the owner
that comes from own sources
 Capital that is contributed by the owner is referred to as the owner’s interest.
 Owner’s equity increases when the owner puts in additional funds to expand the business.
 The benefits of putting own capital into the business is that it encourages a commitment from
the owner.

Issuing Of Shares:
 New companies can issue shares to obtain capital.
 Shareholders receive a share certificate as proof of ownership
 The Memorandum of Incorporation and prospectus list the details of the shares that are
offered for sale
 Ordinary shares are the most type of share offered by companies to shareholders
 All shareholders receive a portion of the profits called a dividend.

Debt Capital:
 Many businesses need to borrow funds.
 The business plan will indicate how much a debt capital is crucial for business funding.

Sources Of Finance Available To Entrepreneurs:

Bank Loan:
 The business can borrow money from the bank.
 The amount will be specified for a set period.
 Interest is payable on the loan.
 The period can be fixed for the time of the loan or variable in line with the current interest rate.

Trade Credit
 This is the time which a business has before it has to settle a debt.
 Suppliers usually allow a small business a period between buying materials and paying for
them.

Bank Overdraft
 This is when a bank allows a business to draw more than what is deposited in the bank
account.
 The bank decides on the maximum amount to be drawn known as the overdraft limit
 The business pays interest on the amount of money they withdraw and for the period they
have overdrawn.
Leasing And Hire Purchase:
 Businesses can lease certain assets from suppliers.
 Assets such as machinery/vehicles/computer systems can be leased.
 A fixed amount of money is paid monthly for the use of the asset
 The lease agreement can be renewed when the asset is returned/replaces.

Grants:
 Grants are funds that are received from government departments/local development agencies
and other organisations that support small business developments.
 The business can qualify for government support to help get started.
 The main advantage of grants is that it is cheap financing.

Venture Capital:
 Financing is given in exchange for a share in the business at its start up.
 Some venture capitalists also request a position in management or on the board.

Angel Funding:
 These are often wealthy entrepreneurs who offer financing in exchange for a share in the
business.
 This carries a high risk for the investor.

Factors That Influence Funding:

Nature Of Finance:
 This depends the owners if he/she wants to use own or borrowed capital as well as short- or
long-term loan.

Amount Of Capital Needed:

 Business owners usually use their own capital if a small amount is needed.
 The larger the amount of capital that is needed the owners will have to look at borrowed
capital as well.

Risk:
 Providers of own capital are usually willing to accept greater risks than providers of borrowed
capital.
 Interest on loan is legally compulsory and may lead to the liquidation of a business in bad
economic circumstances.

Cost Of Finance:
 Businesses will generally choose the funding with lower costs/interest.
 The income earned on borrowed capital must exceed its cost otherwise it will be to the
disadvantages of the holders of own capital.
 Borrowed capital may be cheaper because the holders of own capital require a higher income
owing to the higher risk.

Period Of Financing:
 If needed for a long period might rather use own capital because borrowed would be too
expensive over a long period.
Availability:
 If more own capital is not available, the business might be forced to use borrowed or other
way around.

Tax Considerations:
 Interest on borrowed capital is tax deductible. Dividends on own capital are not deductible.

Presentation Of Business Information:

Presenting Business Information:
Importance Of Presenting Business Information:
 The business information needs to be presented to be made available to
employees/stakeholders.
 Business information enables management to:
o provide stakeholders with the information to make strategic, tactical and operational
decisions.
o ensures success, transparency and smooth running of the business.
o assist management in making decisions.
o provide information on financial statements/investigations/disputes/new policies etc.
o persuade management to implement a strategy.
o identify trends in the market and anticipate challenges
o devise strategies to deal with the challenges.

Difference Between Verbal And Non-Verbal

Presentation:

Factors To Be Considered When Designing A

Presentation:
 Know your audience.
 Presentation should include an introduction, body and conclusion.
 State the aims of the presentation in your introduction.
 Outline the most important information first.
 Use visual aids/tables/graphs/charts/diagrams/pictures effectively.
 Use suitable section titles/headings, sub-headings and bullets.
 Summarise key findings/Conclude by indicating how goals were met.
 Consider external factors, e.g. noisy surroundings, which may influence the presentation.
 Keep to the time limit to prevent boredom.
 Be well prepared/Research the topic in depth
 Allow time for feedback/questions.
  Speak clearly and audibly.
 Keep eye-contact with the audience.

Reasons Why A Presentation Must Be In A Written

Format:
 A presentation in a written format can easily be sent stored for a later presentation.
 The electronic files can be emailed, distributed in the company or posted on the internet.
 The presentation if in writing can be used by someone else if the original presenter is no
longer available.
 The written presentation can also be sent to the stakeholders that were unable to attend the
presentation.

Handling Feedback In A Non-Aggressive Manner:

 Note/write down the questions asked to be able to respond correctly.
 Be polite, confident and courteous/humorous.
 Address questions in an orderly manner.
 Listen to the whole question and then respond.
 Respond honestly and as best as you can
 Encourage questions from the audience.
 Repeat the question so that so that everyone can understand the basis of your response
 Acknowledge good questions to motivate audience to ask more questions.
 Rephrase questions if uncertain and if you do not know the answer then admit
 Limit question time so that it does not make you go over your time limit.
 Remain professional, polite and calm.
 Pause and consider your answer before responding.
 Apologise for the error that you have made.
 Always address the questions and not the person/Address questions in an orderly manner.
 Be assertive when answering questions and avoid being aggressive.
 Do not make a second presentation when answering a question.

Types Of Visual Aids:

Tables:
 A set of facts/figures systematically displayed, especially in columns.
 They are usually used to compare or contrast different things or ideas.

Graphs:
 These are visual illustrations to provide information in a clear and concise way.
 Two-dimensional drawing showing a relationship between two set of variables by means of a
line/curve/bars
 These can be inclusive of types of graphs such as line graphs/bar graphs/pie graphs etc.
 Information in the graphs requires interpretation and comparisons must be made to see
relationship between different sets of data.

Diagrams:
 A drawing showing the appearance/structure/workings of data in a schematic representation.
 Diagrams and illustrations are used for making verbal descriptions clearer.

Posters:
 They are used to advertise something or act as a reminder of something.
 They are effective when they are bold and eye catching.
Handouts:
 Printed information provided to the audience to accompany a presentation.
 People attending a verbal presentation prefer to handouts at the end of the presentation to
remind them of the key points of the presentation.

Data Projector:
 A slide projector that is used to display images to an audience.
 It is usually used for large audiences.

PowerPoint:
 A collection of pages arranged in a sequence that contain text and images for presenting to
an audience.
 Video clips can provide variety and capture the attention of the audience.

Interactive Whiteboards / Smartboards:

 An interactive display in the format of a white board that reacts to user input either directly or
through other devices.
 It is useful to note down the most important points before or during a presentation.
 Useful to capture feedback and new ideas.

Flipcharts / Whiteboards:
 A large pad of paper, bound so that each page can be turned over at the top to reveal the
next page, used on a stand.
 Additional notes that was added during the presentation can be captured on computer after
the presentation.

How To Prepare Visual Aids:

Transparencies / Slides:
 Start with the text/headings
 Use keywords instead of full sentences
 Use legible font and font size.
 Limit the amount of information on each slide.
 Avoid too much writing and complicated graphs
 Choose images that may help to communicate the message.
 Include graphics.
 Keep slides/images/graphs simple.
 Make sure there are no grammatical/spelling errors.
 Use bright colours to increase visibility.
 Structure information in a logical sequence.

Posters:
 Make use of headings
 Make sure all relevant information appears on the poster
 Use bright colours to enhance visibility
 Use short phrases instead of full sentences
 Make use of pictures
 Posters must be bold, creative and easy to read
 They must have essential details and clearly summarised
 Get the intended message across strongly
Handouts:
 Structure information in a logical sequence
 Use a legible font type and font size
 Choose images that may help to communicate the message.
 Make sure there are no grammatical/spelling errors.
 Use bright colours to increase visibility.
 Refrain from using busy borders, different fonts and too many different colours.
 Allow an empty page at the end of the handout to allow for the audience to make additional
notes during the presentation.

Factors To Be Considered When Composing A Flyer:

 Define the purpose of the flyer/Central message of the flyer
 Write a title that will attract the reader’s attention
 Use graphics to attract attention/ Be creative and use interesting images
 Focus on the benefits of the products/services
 Identify points clearly/Do not use many words
 Main details much in large print
 Keep it simple with white space
 Use text boxes if space allows
 Check your spelling
 Let someone proofread the contents before it goes to print
 Use bright paper and black text if budget does not allow for colour printing.
 Offer a discount on the product or service.

Written Information:
Types Of Written Information:
Business Reports:
 A business report is done for businesses that have been in operation and key information
must be shared with stakeholders.
 Businesses use written reports to provide information on financial statements
/investigations/disputes/disciplinary actions etc.
 These may be presented orally to an individual or to a group or electronically on a computer
screen.
 The following questions need to be asked:
 Who will use the report?
 What information must be included in the business report?
 What would be the best way to present the business information in the report?

Business Plans:
 These are a written document describing the nature of the business, the sales and marketing
strategy and the financial background.
 They help present the business’s goals and objectives to all stakeholders.

Business Analysis:
 This is a method of investigating all aspects of a business in order to assess its prospects.
 It presents an established business’s information and development to all people in the
company.
Steps In Writing A Report:
 Define the purpose of a report and who will be reading it.
 Be aware of who the reader of the report will be.
 Do research in order to gather data
 Plan the report structure e.g. title, contents page, introduction, body and conclusion
 Prepare a work plan, start early and allow time for brainstorming and preliminary research.
 Clearly display the topic of the report at the top of the page.
 Put together the first draft of the report, print the first draft and read sometime later.
 Ensure the information presented is useful to the decision-making process
 Organise and rewrite your material
 Prepare visual aids to help convey the information
 Ensure the report is accurate and to the point.
 Balance the quality of information by being specific and straight to the point.
 Anticipate the audience and issues, it could be distributed to people whom it was not
intended.
 Write the executive summary.
 Reread the whole report to check for spelling, grammar and layout mistakes.

Guidelines In Writing A Report:

Entrepreneurship:
Entrepreneurial Qualities:
The Meaning Of An Entrepreneur:
 The word 'entrepreneur' refers to a person who demonstrates the attitudes, behaviours,
knowledge and skills needed to start a business and be successful.

Characteristics Of An Entrepreneur:
Risk Taking :
 Risks are classified as unforeseen events that could adversely affect a decision.
 Successful entrepreneurs are willing to take risks by investing all their resources in a new
business.
 The primary function of an entrepreneur is to accept a risk on behalf of others and be
rewarded in return.
  Every business must be innovative and take risks to survive.
 Innovation and risk-taking are essential for what businesses are and what they do.

Creativity And Innovation:

 An entrepreneur must be able to come up with something new or do things differently.
 He / she must be able to generate new ideas to solve business problems.
 Entrepreneurs must also be able to use the same products to meet different needs.

Confidence And Adaptability:

 Successful entrepreneurs believe in their own abilities and that they will achieve their goals.
 They are positive and focus on things that can go right instead of concentrating on things that
can go wrong.
 They have a healthy opinion of themselves and a strong personality.
 They are focused and determined to achieve their goals.
 Successful entrepreneurs are adaptable because they can change course and try to do
something different.

Passion And Energy:

 Entrepreneurs must show enthusiasm to find the best solution.
 Passion can be illustrated when an entrepreneur finds it difficult to simply walk away from
mistakes / setbacks.
 Starting and running a business requires considerable energy and the ability to focus on
business goals.
 High energy levels and good health are essential.

Product And Customer Focus:

 Entrepreneurs develop products and provide services with customers in mind.
 It simplifies the lives of customers and they find it rewarding.

Persistence:
 Successful entrepreneurs do not give up, despite challenges and problems.
 Most successful entrepreneurs face obstacles and become successful only after failing
several times.
 They have a positive attitude towards failure and believe that problems are merely
opportunities.
 They work long hours and continuous efforts to make a business run successfully, even when
a particular day makes him / her tired and discouraged.
 They are able to turn problems into challenges and have the ability to be persistent.

Recognising Opportunities:
 Successful entrepreneurs can identify problems in the market and make money.
 They can identify viable opportunities that are not always easy to find.
 They have the ability to see an opportunity and turn it into a profitable business.

Responsibility:
 Successful entrepreneurs are not afraid to take responsibility for their decision and actions in
their business.
 They accept positive and negative outcomes.
Good Management And Organisation:
 Successful entrepreneurs have good management and organizational skills, including good
administrative skills and see a bigger picture.
 They can retain control and make final decisions about activities that need to take place.

Honesty And Ethics:

 Honesty in a business builds trust with co-workers / customers / stakeholders.
 Business ethics is an important part of running a business.
 Successful entrepreneurs have a moral obligation to look after the interests of investors and
other stakeholders.

Vision And Communication Skills:

 They have a clear vision and are able to achieve long-term goals.
 They have good communication skills needed to communicate their business vision to their
workers and stakeholders.
 They can formulate the mission and vision and connect it to the goals of the business.

Success Factors:
Important Success Factors Of A Business:
Sustainability:
 Sustainability means that a business:
o Still exists despite all the challenges and threats it faces.
o Does not damage the environment and the community in which it operates.
o Management and reports on the triple baseline, for example profits, people and
o planet.
o Attract and retain employees more easily.
o Experience less financial and reputation risk.
 Involve stakeholders in joint decision-making and learning from clients, employees and the
surrounding community.
 Put in place environmental management systems to minimize the impact of business activities
on the environment.
 Analyze the environmental and social impact of the products and services that the business
uses and delivers.
 Reveal exactly what the business does and what it stands for.

Profitability:
 Means that a business:
o Earn money and management is passionate about their business
o Manage money in such a way that a good return on investment can be guaranteed to
investors.
o Attract even more investors that enable the business to expand its activities and
become even more profitable.
Customer Base:
 Means that a business:
o Meets the needs of the customer and provides excellent service.
o Keep looking for ways to expand their consumer base.
o Keep track of people who buy their products.
o Collect customers' contact details.

Know The Market:

 Means that a business:
o Do a thorough investigation to find out about the needs of the customers and the type
of customers who buy the product or service.
o By identifying the needs and tastes of consumers, it helps to ensure continuous
development of products and services.

Good Leadership:
 A business needs good leaders who are team players, listen to staff members and respect
them.
 Good leaders also bring energy, enthusiasm and urgency to the workplace.
 It filters through the business and motivates staff to perform even more than expected.

Ethics / Control And Governance:

 An unethical corrupt business is not sustainable.
 Staff and customers know the reputation of the business and do not support a business with
poor management.

Sustainable Workforce:
 Means that employees:
o Motivated, happy and well trained.
o Loyal to the business and they stay longer with the business
o Be productive and proud of their work.

The Uniqueness Of The Business / Product / Service:

 Means that a business:
o Offer different products and services than their competitors.
o The product or service makes customers notice it and talk about it
Areas For Improvement:
Identification Of Improvement Areas:
Aspects When Assessing Areas For Improvement:
 Evaluate the price of each product regularly
 Use a plan based on its vision
 Make sure the money comes in quickly
 Keep business expenses to a minimum
 Set goals with reasonable milestones and timelines
 Evaluate the benefit of increased sales at the cost of marketing
 Identify and implement the necessary technology to support its operation and growth
 Identify the target customer and what we do for them
 Investigate and categorize competition, note their strengths and weaknesses
 Distinguish the business from competitors and communicate it in the sales and marketing
program.
 Take a good look at the best customers
 Know the needs of customers, e.g. request feedback from customers through surveys / direct
interaction with them.
 Regular assessment sessions where they discuss their structure / vision / delivery methods,
etc. judge.

Example Of An Activity:
How To Answer These Questions:
Business Roles:
Creative Thinking And Problem Solving:
Problem Solving:
Meaning Of Problem Solving:
 It is a clear process to follow whenever a problem needs to be solved.
 A process of finding the correct strategy to respond to a problem.
 Problem solving involves analytical and creative skills.
 Some businesses uses the PDCA process/cycle to solve a problem.
 PDCA stand for Plan-Do-Check-Act.

Acquiring Problems Solving Skills In A Business

Context:
 All people and business enterprises experience problems.
 The problem solving cycle is a problem solving tool that is used to solve problems.
 The process comprises seven steps that can be presented in a cycle diagram- it is presented
as a cycle, because the process needs to be repeated if the problem is not solved by working
through the process the first time.

The Problem-Solving Cycle:

Creative Thinking:
Meaning Of Creative Thinking:
 Creative thinking refers to thinking differently and looking at something in a new way.
 Creative thinking is about approaching a thought/idea/problem/situation in a new and
interesting way.
 It is a process of putting facts/concepts/principles together in new and original ways.
 Businesses need to solve their problems efficiently to find creative solutions to problems.

Mental Blocks To Creative Thinking:

Differences Between Routine Versus Creative

Thinking:
Problem Solving Techniques:
Meaning Of The Delphi Technique:
 It is a technique that is used to solve new and complex problems.
 The Delphi technique is a popular method of gathering information by using a selected
expert’s panel on a specific topic.
 The group of specialists/expert’s panel never meet face to face.
 This technique uses a series of questionnaire to obtain feedback from experts.
 The questionnaires are used to bring about agreement from different views.

Ways In Which Businesses Can Apply The Delphi

Technique In The Workplace:
 Businesses must invite a panel of experts to research the complaints from customers.
 Experts do not have to be in one place and will be contacted individually.
 Design a questionnaire consisting of questions on how to improve the quality of their tiles and
distribute it to the panel members/experts.
 Request the panel to individually respond to the questionnaire/suggest improvements to the
products and return it to businesses.
 Summarise the responses from the experts in a feedback report.
 Send the feedback report and a second set of questions/questionnaire based on the feedback
report to the panel members.
 Request panel members to provide further input/ideas on how to improve the quality of their
tiles after they have studied the results/documentation.
 Distribute a third questionnaire based on previous feedback from the second round.
 Prepare a final summary/feedback report with all the methods to improve the quality of
products.
 Choose the best solution/proposal after reaching consensus.

Meaning Of Force Field Analysis:

 Force filed analysis is a method of listing, discussing and analysing the various forces
for/advantages and against/disadvantages of a proposed change.
 It is often used for planning and implementing change in a business.
 The analysis involves identifying the advantages and disadvantages of a decision.
 This tool is especially useful to overcome resistance to change.

Ways In Which Businesses Can Apply The Force Field

Analysis:
 Describe the current situation/problem and the desired situation.
 Identify what is going to happen if there is no action taken.
 List all driving/pros and restraining/cons forces that will support and resist change.
 Discuss the key restraining forces and determine their strengths.
 Discuss the key driving forces and determine their strengths.
 Allocate a score to each force using a numerical scale, where 1 is weak and 5 is strong.
 Weigh up the positives and negatives then decide if the project is viable.
 Analyse the restraining forces and best way of advancing them.Explore the driving forces and
the best way of advancing them
 Choose the force with the highest score as the solution.
 If the project is viable, find ways to increase the forces for change.
 Identify priorities and develop an action plan.
Advantages Of Working With Others To Solve
Problems:
 The problem can be solved faster and easier.
 Workload decreases if everyone does their share.
 More ideas can be generated increasing the chances of finding the best possible solutions.
 Exposure to other people’s thinking patterns and to the way other people approach problems.
 Enables team members to learn from others and accept their points of views.
 Greater results can be achieved.
 Team members have access to a broader bases of knowledge, skills and expertise.
 The problem is viewed from different perspectives.
 There is access to a broad base of knowledge, skills and expertise.
 Problems are analysed in greater detail which lead to better understanding of the problem.
 Promotes creative thinking and idea generation by thinking of as many ideas as possible to
solve problems.

Conventional Versus Non – Conventional:

Differences Between Conventional Versus Non-
Conventional Solutions:

Indigenous Knowledge:
 Referring to indigenous knowledge systems is (to many people) a non-conventional
approach.
 Indigenous knowledge is local knowledge, for example knowing which plants to use as
medicine.
Benefits Of Creative Thinking:
Benefits/Advantages Of Creative Thinking In The
Workplace:
 Complex business problems may be solved.
 Creativity may lead to new inventions which improves the general standard of living.
 Better/Unique/Unconventional ideas/solutions are generated.
 May give businesses a competitive advantage if unusual/unique solutions/ ideas/strategies
are implemented.
 Managers/employees have more confidence as they can live up to their full potential.
 Managers will be better leaders as they will be able to handle/manage change(s) positively
and creatively.
 Managers/Employees can develop a completely new outlook, which may be applied to any
task(s) they may do.
 Leads to more positive attitudes as managers/employees feel that they have contributed
towards problem solving/Improves motivation amongst staff members
 Managers/Employees have a feeling of great accomplishment and they will not resist/obstruct
once they solved a problem/contributed towards the success of the business.
 Management/Employees can keep up with fast changing technology.
 Stimulates brain function of employees/managers, as they are continuously pushed out of
their comfort zone/improving the total well-being of employees.

Stress And Crisis Management:

Stress Management:
Meaning Of Stress:
 Stress is defined as a state of emotional or mental strain.
 The strain can affect memory/concentration and lowers the morale of employees.
 Stress refers to the harmful physical/emotional responses that can happen when there is
conflict between job demands on the employee and the amount of control an employee has
over meeting these demands.
 It is the wear and tear our bodies experience as we adjust to our changing environments.
Importance Of Stress Management In The
Workplace:
 If stress is not managed effectively, it can get out of control and cause staff health issues.
 Stressed employees are more likely to miss work, both as a way to cope and due to health-
related problems.
 Managing stress will curb absenteeism in order to maintain productivity at workplace
 Workers who suffer from stress often display poor judgement in crisis or emergency situations
and this can be avoided through managing stress
 Grievances or complaints that lead to staff turnover can be addressed if stress is well-
managed.
 Conflict and interpersonal problems can be avoided if stress is managed at the workplace.
 Having stressed and tired employees serving the public may lead to poor service and
unhappy customers and this can be corrected through management of stress
 Stressed employees are more likely to cling to the old ways of doing things by resisting
change and this can be controlled through proper management of stress.
 Constant stress can cause many problems for a business since it can become an unhealthy
environment.
 Too much stress can become a barrier to success and lowers the performance of workers.

Ways Employees Can Manage Stress In The

Workplace:
 Develop self-awareness to recognise the signs of stress and its causes.
 Create a balanced lifestyle and minimise extreme emotions.
 Exercise regularly and keep fit.
 Follow a balanced diet
 Get enough sleep and relaxation
 Replace negative self-talk with positive thoughts
 Apply good time-management skills
 Set personal realistic goals and targets
 Accept things one cannot change and focus on things one can control
 Practise time management

Crisis Management:
Definition Of Crisis:
 Crises is an unforeseen event that can cause major changes in an organisation.
 It refers to the sudden and potentially disastrous events.
 It is time of intense difficulty/ trouble/ danger.
 An event that can harm the business’s stakeholders/ its property, finances / its reputation.
 Any situation that threatens people at home or work.
 Unforeseen event that can cause major changes in the organisation.
Ways Businesses Can Deal With Crisis In The
Workplace:
 Businesses should respond appropriately and quickly to lessen the effects of the crisis
situation.
 Intervene swiftly and with urgency, but without panicking or overreacting.
 Identify the real nature of the crisis by making a thorough assessment of the situation and
seeking expert opinions
 Assess/If the crisis happens, face up to it and quickly find out what has happened without
over-reacting.
 Deal with crisis directly and timeously without trying to avoid/minimise the seriousness of the
situation
 Plan/Identify and prioritise the actions required
 Inform/Provide accurate and correct information
 Support/Guide others through the situation by providing training and support.
 Attempt to contain the situation to minimise further damage
 Communicate with all stakeholders so that they are properly informed about what has
happened, what the impact is and how it is being dealt with.
 Appoint a spokesperson from the management team who will deal with all questions and
provide information
 Regain control/Manage the situation in a calm manner until the crisis is over.
 Obtain expert advice if the crisis falls outside the business’ scope of expertise.
 Call for help and seek assistance/advice and support from the appropriate agencies and
professional
 Arrange debriefing sessions for all those directly involved in the crisis or who have been
traumatised by the event.
 Evaluate how effective the emergency plan was throughout the crisis.
 Amend the emergency plan after evaluating what worked and what did not work.

Change Managers:
Definition Of Change:
 Change is a process that takes people, employees and organisation from the present to a
future desired change.
 New ways to get things done.
 A business needs to change in order to meet changing needs of customers, improved
technology and international competition.
John P Kotter’s 8 Steps Of Leading Change:
 Establish a sense of urgency by motivating their employees
 Form a powerful coalition/Build the guiding team by bringing together a team of influential
people who will convince everyone else that change is needed
 Develop a vision and a strategy, decide what values are central to the change
 Communicate the vision frequently and demonstrate the kind of behaviour that they want from
their employees
 Empower broad based action by identifying employees who are resisting change and help
them see the need for change.
 Generate/ Create short term wins and make sure their businesses taste success early in the
change process
 Consolidate gains/Build on change by analysing what went right and what needs to be
improved after each win
 Anchor the changes in corporate culture and this must become part of the core of their
business.

Strategies Business Can Use To Deal With

Globalisation:
 Adapt your approach to new operational complexities.
 Businesses should be aware of changes in the related industry
 Keep abreast of new technology/processes and developments that could give your business
a competitive edge.
 Investigate overseas markets for their products
 Source overseas manufactures/materials/suppliers etc.
 Build a strategy for connecting with governments.
 Comply with international standards of quality.
 Comply with international trade laws.
 Upgrade the enterprise’s information technology (IT) network to enable online purchasing.
 Be creative in making products desirable and unique.

Affirmative Action:
 Affirmative action is a policy that ensures that qualified people from designated groups have
equal opportunities in the workplace.
 The policy aims to ensure that Black South Africans, women and people with disabilities are
well represented in businesses.
 Workers can resent affirmative action appointments and people who have been appointed in
affirmative action positions.

Strategies Business Can Use To Deal With Affirmative

Action:
 Inform employees on how affirmative action will be implemented in the business.
 Businesses must have acceptable affirmative action programmes.
 Businesses must indicate in all their job adverts that they are affirmative action employers.
 They should open themselves to new ideas and opportunities instead of sticking to the past.
 Employees need to focus on the job rather than the differences of the people in the team and
how they were appointed.
Unemployment:
 It is when employees lose their jobs because they are fired, or they quit their jobs
 Change can lead to unemployment due to retrenchment.
 A business may close down/sold/merge resulting to unemployment.
 Copying with unemployment is traumatic and can lead to depression.

Retrenchment:
 Retrenchment is when a business cuts the number of workers to reduce their wages and
salary bill.
 A process whereby the employer reviews its business needs to increase profits or limit losses,
which leads to reducing its employees.
 Economic changes may result in many people being retrenched from their jobs.

Ways Businesses Can Deal With/Manage Change In

The Workplace:
 Acknowledging that change is stressful and empowering employees to cope with stress.
 Transparency in the process of change is important in building trust with employees.
 Management need to ensure that it communicates with employees and keeps all informed of
decisions and anticipated changes.
 Do not deviate from the original plan.
 Involve employees in the transformation process.
 The business can manage change easily if employees have interpersonal relationships that
are characterised by trust, respect and support.
 Employees should increase their skills levels in order to be more competitive for positions and
promotion.
 Acknowledge/Respect differences and focus on achieving the goals/objectives.

Professionalism And Ethics:

Professionalism And Ethics:
Definition Of Ethics:
 Moral principles that govern the behaviour of a person or a group.
 Ethics defines how individuals/professionals and businesses choose to interact with one
another.
 It involves making sound business decisions that do not have a negative effect on other
people.
 Focusses on developing moral compass that can be used in decision making.
 These decisions entail identifying ways of achieving the objectives of the business, while also
doing what is right and good for other people.

Definition Of Professionalism:
 A way in which people conduct themselves in the workplace, maintaining high standards and
showing respect to all.
 The competence or skill expected of a professional person.
 It involves taking pride in your actions and never compromising standards.
 It is about being focussed on what you do and being committed to a certain standard
performance.
Differences Between Professionalism And Ethics:

Theories And Principals:

Principles Of Professionalism:
 Employees should respect themselves and the rights of others.
 Responding quickly to the request of customers
 Caring about the quality of work before submission.
 Communicate with clarity and honesty.
 Meeting deadlines by completing assignments before the due date.
 Using resources responsibility with due regard for the environment.
 Respecting the image of the business/your profession, e.g. adhere to the dress code of the
business/profession.
 Respecting diversity and differences and demonstrate cultural sensitivity.
 Acting with integrity/honesty/reliability, e.g. keep to working hours even if no other workers are
around/noting using the business resources for personal gain.
 Being committed to quality and apply skills and knowledge to the benefit of the
business/society at large.
 Adhering to confidentiality measures by not disclosing sensitive information about
customers/business.
 Remaining objective, act fairly and justly to all without being biased or showing favouritism.
 Continually improve/develop skills and knowledge, e.g. attending refresher courses and
seminars.
 Sharing knowledge by investing time and expertise with junior staff members, e.g.
uplifting/empowering others.
 Offering and accept appropriate incentives, goods and services in business transaction.

Principles Of Ethics:
 Being objective and impartial
 Transparency and full disclosure.
 Confidentiality
 Avoiding conflict of interest.
 Being committed and responsible.
 Initiating CSI projects for communities/Social responsibility
 Looking after the environment
 Abiding by international laws
Theories Of Ethics:
The Rights Approach:
 Focuses on individual rights where people should be treated with respect and dignity.
 No person may be maltreated and the business will not impose its mission or products on
people.

Consequential Approach:
 Business must promote or generate the greatest value for society, while harming as few as
possible.
 Consequentialists believe that an act should be judged based on the effect it has on others/ if
the effect is good, the action can be seen as ethical.

The Common Good Approach:

 Focuses on ensuring that the business’ values and ethical principles are in line with society in
which the business operates.
 It recognises that ethics and values vary from country to country and from area to area.

Good And Bad Decisions:

The Meaning Of Good Decisions:
 Good decisions are those that are ethically correct and will be also benefit the without
harming others.
 A good decision enables businesses can make a lot of profit.

The Meaning Of Bad Decisions:

 Bad decisions are not always ethical, they can be the results of the wrong information.
 A decision that brings in lots of profit, but based on unethical business practices, is bad.
 In the long run, no business can survive it its policies and way of doing things are unethical.

Examples Of The Differences Between Good And Bad

Decisions:
Ethical Business Ventures:
Ways In Which Professional, Responsible, Ethical And
Effective Business Practice Should Be Conducted:
 Businesses should treat all employees equally.
 Plan properly and put preventative measures in place.
 Pay fair wages/salaries which are in line with the minimum
 requirements of the BCEA. /Remunerate employees for working
 overtime/during public holidays.
 Engage in environmental awareness programmes. /Refrain from
 polluting the environment, e.g. by legally disposing of toxic waste.
 Refrain from starting a venture using other businesses' ideas that are
 protected by law.
 Business decisions and actions must be clear/transparent to all stakeholders.
 Businesses should be accountable /responsible for their decisions and actions/patent rights.
 Hiring honest/trustworthy accountants/financial officers with good
credentials.Regular/Timeous payment of taxes.
 Draw up a code of ethics/conduct.
 Ongoing development and training for all employees.
 Performance management systems. /Appraisals should be in place.
 Adequate internal controls/monitoring/evaluation.

Code Of Ethics:
Meaning Of Code Of Ethics:
 A written set of guidelines issued by an organisation to its workers.
 management to help them conduct their actions in accordance with its primary values and
ethical standards.
 Outlines the mission and values of the business or organisation.
 Defines the values by which a business will function and provides a guideline for employees
when making decisions.

Requirements For A Good Code Of Ethics:

 Regular identification of ethical risk areas
 Development of compliance policies, procedures and systems
 Easy accessibility , confidentiality and non-discriminatory
 Alignment with the disciplinary code
 Integrating the integrity assessment with selection and promotion
 Induction of new employees
 Training ethical principles, standards and decision-making
 An internal audit that monitors compliance with ethical principles and standards.

Different Perspectives On Ethics:

 There are certain universal ethical principles such as human rights but differ according to
culture/religion etc.
 There is no absolute right or wrong when it comes to ethics as societies decide on acceptable
behaviours.
 Different cultures have different rules of conduct.
 Some people believe cloning animals or people is interfering with nature, while others believe
that cloning indicates scientific progress and medical hope
  Some believe that tax evasion is wrong, while others regard tax evasion to be creative
bookkeeping.

Citizenship Roles And Responsibilities:

Citizenship Roles And Responsibility:
Roles And Responsibilities Of Citizens:
Roles As Citizens:
 As citizens fulfil leadership roles, for example politicians.
o Some citizens research ways to achieve sustainable development.
o Some citizens fulfil caring roles, for example nurses.
o Some citizens gather information to share with the rest of us that we can make
informed decisions, for example journalists.
 Perhaps our most important role is to make a meaningful contribution to our country.

Contributions Towards The Development Of A Country:

 Being economically productive.
o Being economically productive means earning a salary and contributing to the
development of the country by regularly paying tax.
 Caring for our fellow human being.
o Some people, for example AIDS-orphans, are not capable of taking care of
themselves.
o They are dependent on the goodwill of other people.
 Exercising our voting rights.
 Spending money wisely so that we do not become a burden to other people when we reach
old age and are unable to work.
 Obeying the laws of the country.
o People who are in jail are not economically productive. Instead, tax money is used to
provide food and medical services to people in jail.
 Treating people who work for us with respect.

The Roles Of Other Role Players In The Business

Community:
The Role Of Business Enterprises:
 Business enterprises create job opportunities.
 Business enterprises also generate money through Corporate Social Investment
Programmes.

The Role Of Civil Society, NGO's And CBO's:

 Civil society refers to all organisations in a country, e.g. NGO’s and CBO’s.
 These organisations make meaningful contributions towards the economic and social
development of the country.
 Civil society, NGO’s and CBO’s are actively involved in combating socio-economic issues
such as HIV/AIDS, poverty, corruption and unemployment.
The Role Of Individual Business Practitioners:
 Individual business practitioners contribute towards society by creating job opportunities.
 Tax revenue is generated through the operations of individual business practitioners and is
used to develop the country.
 Individual business practitioners also contribute towards the social and economic
development of communities by educating employees and by helping employees acquire the
skills they need to perform their jobs.

Business And Corporate Citizenship:

Businesses And Corporate Citizenship:
 Businesses are corporate citizens.
 This means that businesses must be operated responsibly.
 Businesses that are good corporate citizens:
o balance the needs of stakeholders
o the well-being of the community
o the well-being of the environment.

Ways In Which Businesses Can Contribute To Society:

 Businesses create job opportunities.
 Businesses improve the standard of living of employees.
 Businesses contribute to economic growth.
 By paying taxes, money is generated for the national budget.
 Corporate Social Responsibility programmes contribute to uplifting communities.

Reasons Why Businesses Should Get Involved In The

Community:
 Businesses that are good corporate citizens attract customers.
 Businesses that are good corporate citizens attract investors.
 Businesses can help in the battle against unemployment.
 Businesses can contribute to alleviating poverty.

The Role Of Civil Societies In The Community:

 Civil Society helps create awareness of socio-economic issues.
 Civil Society speaks for people who have no voice, e.g. the homeless.
 Civil Society helps to combat corruption.

Team Dynamics And Conflict Management:

Stages Of Team Development:
Forming:
 This stage is the initial stage where team members get to know one another.
 Team members think about their new tasks and new environment
 The team learns about team processes and procedures.
 Team members gather information and impressions about each other.
 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:
 The team begins to face technical, interpersonal and social problems.
 Team members could end up fighting and arguing.
 At this stage, there is conflict because they confront each other with their ideas.
 The true character of team members starts to show as they experience the first round of
conflict
 Different ideas from team members will compete for consideration.
 Team members open-up to each other and confront each other's ideas/perspectives.
 This stage is often unpleasant, but it is necessary for teams to grow.
 Team members need to be matured, patient and tolerant of each other’s ideas and behavior
in order to move successfully to the next stage.

Norming:
 The team starts working through individual/social issues and start to settle down.
 Team members establish their own norms and behaviour.
 They begin to trust each other, and reconciliation takes place.
 A team develops good interpersonal skills and members become better at problem solving.
 Team members accept each other and set common goals and values for the team.
 Team members form agreement and consensus.
 Roles and responsibilities are clear and accepted.
 Team members have the ambition to work for the success of the team's goals.
 They cross-train and learn new job skills.
 Team members manage time and quality work with growing competence, confidence and
independence.

Performing:
 In this stage, the teams are achieving their goals by helping each other
 Team members are aware of strategies and aims of the team.
 They have direction without interference from the leader.
 Leaders delegate and oversee the processes and procedures.
 Team members know each other and can function as a unit.
 They find ways to get the job done smoothly without conflict/external supervision.
 Conflict disappears, problems are solved, and successive goals are achieved.
 Team members are motivated and can handle disagreements maturely/positively.
 The team takes pride in its own work and accomplishments.

Adjourning:
 In this stage, team members must leave a team and prepare themselves for the next team.
 The focus is on the completion of the task/ending the project rather than on task performance.
 All tasks need to be completed before the team finally dissolves
 It`s also the stage for recognition for participation and achievement.
 Breaking up the team may be traumatic as team members may find it difficult to perform as
individuals once again.
Team Dynamics:
Types Of Team Dynamic Theories:
Belbin:
 This theory explains how team members interact
 People take on different roles and will have dominant and sub dominant roles.
 The Belbin role theory can be used to create balance in a team or recruit members for
specific roles.
 According to this theory an effective team has members that cover the following nine key
roles while performing their tasks:

Roles Of Employees And Descriptions:

Role Description
Coordinator  Respected leader who helps everyone focus on their task.
 Guide the team to what they perceive are the objectives.
 Able to recognise the value each member can contribute.
 Calm and good natured and delegate tasks very effectively.

Plant  Thought orientated.

 Introverted and prefer to work apart from the team.
 Thrive on praise but criticism is very hard for them to deal with.
 Creative innovator who comes up with new ideas.
Resource  They are outgoing and are often extrovert
Investigator  Innovative and curious.
 Explores available options, develop contacts and negotiate for resources on
behalf of the team.
Implementer  Plans practical/workable strategies
 Carries out plans effectively
 Well organised and predictable
 People who get the job done.
Team worker  Helps team to settle in
 Identifies what needs to be done and does it.
 Provide support and make sure the team work together.
 Tend to be popular people who are very capable in their own ways.
Shaper  Challenges the team
 Action orientated
 Keeps the team moving
 Enjoy stimulating others, questioning norms and find the best
 Approach to challenges.
 Does not lose focus/momentum
Completer /  Ensures that the project is completed thoroughly
Finisher  Ensures that there have been no errors or omissions.
 Pays attention to the smallest details.
 Concern about deadlines and will push the team to make sure the job is done.
Specialist  Has specialised knowledge to get the job done.
 Skillful and work to maintain they provisional status.
 Has in-depth knowledge in key areas
 Commits him/herself fully to their field of expertise.
Monitor /  Makes impartial judgments and he/she is objective
Evaluator  Weighs up team’s options
 Best at analyzing and ideas that other people come up with.
 Critical thinker and very strategic in their approach.
Jungian Theory:
 This theory recognised personality types that follows certain behavior patterns.
 It is useful for team members to know their own personality type and the personality types of
the rest of the team in order to understand their own values and goals.
 According to this theory people are born with a preference to certain attitudes and functions
which will be used effectively during the adulthood stage.
 Jung believed that the most superior function will influence an individual’s interaction with
others.

Jungian ‘Pairs Of Opposing Attitudes And Functions:

 Extrovert versus introvert
 Sensing versus intuition
 Thinking versus Feeling
 Judging versus perceiving
 The combination of the above attitudes determines a personality type.
 Team leaders that understand the strength and weaknesses of each personality type can
analyse the composition of a team according to types.
 Team leaders can guide team members to success by using their natural strengths and being
aware of their weaknesses and compensating for them.
 Team members who understand this theory will be able to understand why they behave the
way they do.
 They learn to understand what drives their own actions and others’ actions, values and goals.

MTR-I Approach:
 This theory is a model that can be used as an instrument for team development.
 This theory team roles in terms of the contributions or “product” each member brings to the
team.
 It measures what a person does within a team.
 The three factors that are measured include:
o What the person is doing?
o What colleagues think each other is doing?
o The position description for each team member.
MTR-I Team Roles, Each Of Which Shows A Different Type Of Contribution That
Is Made To The Team:

Margerison Mccann:
 This theory defines a set of management styles and emphasises on the need to integrate all
these styles to create an effective team.
 The strength of the system lies in developing effective team dynamics.
 This approach uses the Team Management Wheel to maximise personal strengths for
building balanced and high performing teams.
 Individual development is seen as the first step to effective team development.
 The theory identifies how people:
o Prefer to work e.g. on their own or with someone?
o Gather and use information.
o Make decision and organise themselves
 This approach focuses on individual development and maximising personal potential so that
individuals contribute effectively to the team.
 It looks at building high balanced and high performing teams.
Group Consensus:
 Consensus is a process use by a group to come to an agreement by discussing the facts and
convincing each other on the best decision.
 The input and ideas of all members are gathered to make a final decision that is acceptable to
all.
 Groups must have the following characteristics for consensus to be a positive experience:
o Shared values
o Some skills in group process and conflict resolution
o Commitment and responsibility to the group by its members
o Sufficient time for everyone to participate in the process
o Identify, define and discuss the problem
o Brainstorm a list of alternatives proposals without rejecting any ideas
o Discuss proposals, make changes and set priorities
o Test for consensus
o Get the group to make a decision and plan their action once consensus is reached
o Get those who are still not in agreement to experiment with the decision for a set time
period.

Conflict Management:
Meaning Of Conflict:
 Conflict is a struggle/disagreement/argument between two people.
 Disagreement between two parties in which one or both parties believe that a personal
interest/need is threatened.

Explanation Of Causes Of Conflict In The Workplace:

 Lack of proper communication between management and workers.
 Ignoring rules/procedures may result in disagreements and conflict.
 Management and/or workers may have different personalities/ backgrounds.
 Different values/levels of knowledge/skills/experience of managers/workers.
 Little/no co-operation between internal and/or external parties/stakeholders.
 Lack of recognition for good work, e.g. a manager may not show appreciation for extra hours
worked to meet deadlines.
 Lack of employee development may increase frustration levels as workers may repeat errors
due to a lack of knowledge/skills.
 Unfair disciplinary procedures, e.g. favouritism/nepotism.
 Little/no support from management with regards to supplying the necessary resources and
providing guidelines.
 Leadership styles used, e.g. autocratic managers may not consider worker inputs.
 Unrealistic deadlines/Heavy workloads lead to stress resulting in conflict.
 Lack of agreement on mutual matters, e.g. remuneration/working hours.
 Unhealthy competition/Inter-team rivalry may cause workers to lose focus on team targets.
 Lack of commitment/Distracted by personal objectives which may lead to an inability to meet
pre-set targets.
 Constant changes may cause instability.
 Lack of clarity regarding employees' roles and responsibilities.
Meaning Of Conflict Management:
 Conflict management is the process of planning to prevent conflict where possible and
organising to resolve conflict as quickly as possible.
 All members of the organisation need to develop ways of keeping conflict to a minimum and
solve problems caused by conflict.
 Conflict can be positive if managed correctly, since it means communication is taking place.

Conflict Management Theories:

Traditional Theory:
 This theory is based on the notion that conflict is bad and should be avoided as it disturbs the
running of an organisation.
 This approach assumes that conflict is caused by troublemakers who do not identify with the
goals of the organisation.
 These troublemakers are seen as undesirable because they are seen as causing trouble for
management.
 Conflict should therefore be avoided according to this approach.
 Management thus uses its power to suppress the troublemakers and should force them out of
the organisation.
 This leads to a win lose situation, with management retaining control and restoring their order
while the troublemaker is forced to fit in or move out of the organisation.

Contemporary Theory:
 This theory is based on the belief that conflict is a normal part of human interaction.
 Conflict arises as a normal result of change.
 It is understood that conflict can be beneficial and has the potential to lead to constructive
changes within the organisation.
 Conflict must be managed through conflict resolution skills.
 Conflict situations often generate new ideas and change.
 Management thus seeks to use strategies such as negotiation and consultation to arrive at a
win-win situation.
 Consultation and negotiations with unions and workplace forums are good examples of
implementing contemporary theories.
 Management can thus achieve an outcome that is acceptable to management and employees
through such negotiations.

Workplace Forums:
Meaning Of Workplace Forums:
 A workplace forum is an elected organisation consisting of employees in a workplace.
 It is a forum of employees of a business that employees more than 100 people.
 Workplace forums were introduced by the Labour Relations Act.
 They are useful for promoting communication, minimising and resolving conflict in the
workplace.
 A trade union will make a request to the CCMA to form a workplace forum.
 Employers must give workplace forum all information that s relevant to workers.
 Workplace forums prevent employers from making all the decisions about matters which
directly affect employees without consulting them.
Function Of Workplace Forums:
 Prevent unilateral decision made by employers on issues affecting the employees.
 Encourages workers participation in decision making.
 Workplace forum has the right to be consulted by employer.
 Promotes the interests of all employees in the workplace.
 Promotes efficiency in the workplace through inputs/recommendations.
 Consult with the employer and to reach consensus about working conditions.
 Consult with the employer on issues that could cause conflict
 Resolves conflict between employers and employees.
 Improve efficiency and productivity through input/recommendations.

Ways In Which Workplace Forums Differ From A

Trade Union:
 A trade union is a legal entity that can be sue or be sued in its own name.
 A trade union negotiates salaries and wages, whereas a workplace forum does not deal with
remuneration.
 A trade union can organise a strike under certain circumstances, whereas a workplace forum
cannot.
 Non-union members can belong to a workplace forum.