VCE Business Management sample questions

Question 1

Which of the following is a key performance indicator of operations, rather than of human resources?

Accepted Answer

B. Rate of productivity growth

Question 2

Distinguish between a driving force and a restraining force in the context of business change, and give one example of each.

Accepted Answer

A driving force is a factor that initiates and supports a change within a business, pushing it to move away from the current position — for example, competitors releasing a superior product, which pressures the business to update its own. A restraining force works against the change and holds the business at its current position — for example, employees resisting the change because they fear their roles will become redundant.

Question 3

Elmore Furniture has seen its level of wastage rise from 2% to 5% over the past year. Explain one operations strategy the business could implement to improve this indicator, and one likely cost of doing so.

Accepted Answer

Elmore could implement quality assurance, where the production process is certified against an external standard and errors are designed out rather than found at the end. Because faults are prevented rather than detected after the fact, less material is scrapped and the level of wastage falls.

The cost is that certification and process redesign require significant expenditure and take time before any improvement appears, and staff must be trained in the new procedures, which reduces output while the training takes place.

Question 4

Explain how a business could use Maslow's hierarchy of needs to motivate an employee who has recently been promoted to a supervisor role.

Accepted Answer

Maslow's hierarchy proposes that lower-order needs must be satisfied before higher-order needs motivate behaviour. A newly promoted supervisor is likely to have their safety and social needs met, so the business should address esteem needs — through recognition of their new responsibilities, a title that reflects the role, and authority over decisions in their area. Once esteem needs are being met, offering opportunities to lead projects and develop new skills addresses self-actualisation.

VCE Business Management practice exams and worked solutions

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