K.

Wilson 2014
Syllabus Heading: Structural Factors
SOURCE: HSC ONLINE
http://www.hsc.csu.edu.au/ind_tech/ind_study/organisation/Organisation_Management_of_Ind.ht
ml
Organisation and Management of Industry

People buy goods or services to satisfy their wants and needs. By selling these, businesses strive to
make a profit. The management of the business is responsible for finding the most efficient way of
producing goods or services.

To a large extent the type of business structure depends on the good being produced. A relatively
small business may produce one-off custom made furniture or restorations, while a larger business
structure may be able to produce custom made and mass produced designs.

There are a number of different business structures to choose from. All have benefits, but they can
also have serious disadvantages. As a general rule: the more complex the business structure, the
more expensive it is to establish.

Types of businesses:
A business can be classified according to:

The nature of the business process:

Manufacturer
Wholesaler
Retailer
Primary Producer
Secondary Producer

The form of the organisation:

Sole Trader
Partnership
Company
Co-operative
Public Authority - A type of public-benefit corporation that takes on a more bureaucratic role, such
as the maintenance of public infrastructure.
Its size:
Large
Medium
Small

The location of operations and markets:

Local
National
Multinational

The ultimate goal:

Profit
Non-profit
K.W ilson 2014
Sole Trader

 Sole traders conduct their business alone (without a partner).

 Even if they have employees working for them, they are defined as a Sole Trader. Sole
traders own and manage their own business. All profits belong to the Sole Trader.
 They have a simple organisation with low costs. Sole Traders have the least reporting to the
government.
 The owners of the business have unlimited liability which means that if the business is
unable to pay debts, the owner is liable to the extent that they can become bankrupt and
loose assets such as their home.
 Anyone can start up a sole trader enterprise, but some need to be licensed to trade, such as
plumbers, builders and electricians.
 Sole traders take all the risks and make all the decisions.
 They have limited capital for expansion and finance is difficult to obtain due to the small and
often risky nature of the business. Management expertise is usually limited to the abilities of
the owner, although they can use outside consultants or specialists.
 Sole Traders continue to pay tax at the personal rate.

Answer the questions related to being a Sole Trader

Partnerships
 Partnerships are a group of people who form a collective business organization to operate
the business together. The usual size of a partnership is from 2 to 20 people.
 A partnership is an effective way to reduce tax as each partner is taxed separately.
 Each partner is equally liable and responsible for the running of the partnership and for the
debts incurred.
 In the absence of a formal partnership agreement, the law will assume that each partner has
an equal share in the business.
For more information on business partnerships:
 http://www.business.vic.gov.au/setting-up-a-business/business-structure/partnership
 http://www.smallbusiness.wa.gov.au/partnership/

Answer questions relating to business partnerships

K.W ilson 2014
Companies
 A company is a special type of business organisation that allows potentially thousands of
people to become owners of the enterprise that can be either public or private.
 Public companies are open for anyone to buy shares, where private companies place
restrictions on ownership and the number of shares available.
 When a company is formed, it is said to be incorporated. Companies are established under
the Corporation Act (July 1998). This Act is controlled by the Australian Securities and
Investments Commission (ASIC). All companies must have a constitution, which is a set of
rules that are lodged with ASIC, providing information about all aspects of the company,
such as the rights of each shareholder. The rules are critical to the effective running of the
company.
 Each company has a top management team called a board of directors. Each director
generally is in charge of a separate department within the company. The directors make the
decisions that run the company.

Answer questions relating to companies

Extra Notes:
K.W ilson 2014

Continuation of Syllabus Heading: Structural Factors

Management Structures of Businesses
Owners are those who provide money (i.e. the capital) to operate the business. A manager is one
who is responsible for the control and the co-ordination of the day-to-day operations in order to
achieve the official goals of the business.
Management typically involves planning, organising, leading and controlling such aspects as
suppliers of good and services, employees, money, inputs and outputs etc.
The diagram below shows a simplified organisational structure showing the relationship between
owners and directors and managers in a business:

Owners (shareholders)

Accountability Board of Directors Authority

Managing Director

Personnel Marketing Production Finance Administration

Managers
 Directors: Responsible for the overall policy and strategic direction of the business
 Managers: Responsible for the day to day running of the business

Organisational Structures of Businesses

There are several patterns of organisational structures that businesses tend to follow:

1. Hierarchical/Pyramid organisation structure based on division of labour:

 A hierarchical organisation is the traditional form of organising an industry. Within a
hierarchical structure there is a clearly defined chain of command.
 The structure of the industry is likened to a pyramid, where most power and accountability
is at the top of the pyramid and the least power at the bottom.
 There is a clearly specified jobs. Status, rank and pay are clearly defined.
 Traditionally there are three levels of management in a large industry/business, but smaller
industries/businesses are likely to have only two or even one. In a very small industry the
owner -manager may be the only decision maker.
K.Wilson 2014
Senior management is concerned with most
broad strategic planning. power

Middle management is concerned with

forming and implementing tactical and
operational plans with quantifiable
objectives.

Frontline managers are supervisors who

implement operational and tactical plans.

Employee communication with

senior management often not practical
or even possible. Performance is judged
least
against budgets, benchmarks and peers.
power
2. Flat organisation structure and teams:
 The organisation structure favoured by most industries today is basically still a
pyramid, but with fewer levels of management. It is sometimes referred to as the
matrix structure.
 A flatter management structure is preferred where some of the middle management
has been eliminated to allow streamlined communications between workers and top
management. Rapid advances in electronic data processing and information systems
have made many middle-level managers redundant.
 The flatter structure allows the formation of informal work groups or teams. This
allows the employees to become multi-skilled and have a greater say in the
operation of the industry.
 With the adoption of Computer- Assisted Manufacturing (CAM), a greater
decentralisation of authority can be made possible. Less checking with CAM is
needed, therefore fewer people are needed to consult about decisions, quality etc.
 Businesses using a flat organisational structure need to implement education
programs to give their front line employees the knowledge to make the decisions.
K.Wilson 2014

Each of the four departments shown in figure 2 has a manager who is responsible to the CEO. Each
department manager is responsible for the contribution to the strategic plan that their department
makes. They are also responsible for the progress of the work teams. In this model the lowest level
of management, the supervisors, has been eliminated, with supervisors and workers being merged
together at the one level. These workers operate in teams, where they have greater responsibility
but also greater accountability.

Answer questions relating to Management

.W ilson 2014

Continuation of Syllabus Heading: Structural Factors

Marketing and Sales:
Marketing:
 Marketing is a total system of interacting activities designed to plan, price, promote and distribute
products to present and potential customers.
 It is the systematic planning, implementation and control of a mix of business activities
intended to bring together buyers and sellers for the mutually advantageous exchange or
transfer of products.
 Activities involved in marketing a product include:
o Research
o Advertising
o Sales
o Public relations
o Customer service and satisfaction
 It involves understanding who the potential customers are and what they want to get from the
product or service. Colours, logo and other design elements help to align the image of the
product with the interests of the target audience. It is marketing that defines the brand and
attracts the market share desired.
 Do not get marketing confused with advertising or sales.

Advertising:
 Advertising is making both repeat customers and potential new customers aware of an
individual product or service that you're selling. Each advertising plan is geared toward a
single product (or service). The advertising of every product or service is unique. For example,
advertising a new toaster would be very different from advertising a sale on blue jeans.
 Advertising is done through:
o radio and television commercials
o newspaper and magazine ads
o flyers
o brochures
o emails
o web advertisements
o cold calls to potential clients
SOURCE: HSC ONLINE
 http://www.hsc.csu.edu.au/ind_tech/ind_study/2417/marketing_sales.html.
 Marketing concentrates primarily on the buyers, or consumers. It determines their needs
and desires, educating them with regard to the availability of products and to important
product features. Marketing develops strategies to persuade consumers to buy and
enhancing their satisfaction with a purchase.
 It is widely recognised within industry that, without effective marketing and promotion, a
company will not survive.
 Instead of the older style advertising such as letter box drops and signage, the development
and growth of the Internet has provided companies with a new avenue for marketing their
products and services.
 Consequently, most companies have developed their own web site which is used as a means of
promotion. If the web site is not effective it will be just another "space waster" that no- one
knows exists. It can even cost the company money rather than generating income and
improving profit.
 To turn a web site into a profit making enterprise, advantage needs to be taken of traditional
marketing methods such as advertising, but also of "new age" promotional tools which are
literally at the fingertips of management.
K.W ilson 2014

E-marketing:
 The whole purpose of e-marketing is to promote a site online and to make it easy for
potential customers to find the company amongst the millions of web sites on the Internet.
 One of the real benefits of e-marketing, as opposed to traditional marketing, is that results
are virtually instantaneous. In traditional marketing a company has to go through a "trial and
test" period to work out what aspects of their marketing strategy works and what doesn't.
This can sometimes take months, and it can be costly to continue with a particular marketing
strategy that isn't effective.
 E-marketing, on the other hand, allows a company to assess reaction to their strategies
immediately, and take any appropriate measures

Sales:
 It is widely recognised within industry organisations that there is a critical link between
profits and the effectiveness of sales people.
 In reality, up to 70% of accounts are missed, lost or forgotten due to poor planning,
ineffective technique or failure to follow through. A dynamic selling skill not only pays
dividends to the confidence of the individual but the bottom line of the sales organisation.
 In the modern competitive workplace, sales personnel are required to be just more than
“good talkers”. Dynamic selling techniques, technical precision and a particular psychological
make-up is required of the modern day sales leader.

You will need to produce your own notes on the following dot points:
 Production
 Work environment
K.W ilson 2014

Syllabus Heading:
Technical Considerations:

Tools

Equipment/Plant:
 The SA Work Health and Safety Act 2012 defines plant as any machinery, equipment,
appliance, implement and tool; and any component of those things; and anything fitted or
connected to any of those things. The definition of plant excludes anything that relies on
manual power for its operation; and anything that is designed to be primarily supported by
hand (for example hand-held cordless tools and equipment).
 List equipment commonly used in the Timber Industry:

Production Techniques:
Automation:
 Whilst this production process is not stated in the Preliminary syllabus, it is linked to Mass
Production, Mechanisation and Specialisation.
 Automation is the process in industry where various production operations are converted
from a manual process, to an automated or mechanised process. Machines that are part of
the automation process replace human judgement and perception i.e. senses.
 For example:
Manual Process:

Automated Process:

 Assembly processes can also be automated. Computer programs that use the action of
sensors and actuators, monitor progress and control the sequences of events until the
process is complete.
 Through automation, workers do not need to perform unpleasant, hazardous, repetitive and
tedious work. However, automation means that fewer people are required to complete the
same amount of work.
 Also, higher skill levels are required to setup and operate automated machines and this
results in the displacement from the workplace of semiskilled and unskilled workers.
Displaced workers need to be retrained if they are to retain a place in the workforce.
Training in computing, electronics and maintenance systems is now required to replace
training in machine skills.
K.W ilson 2014
 Most Australian industries are now highly automated. This has resulted in many thousands
of workers being made redundant or retrained to enter new industries. Examples of
industries that have applied automation include the iron and steel industry, manufacturing
industries, the automobile industry, service industries, banks and communications.
 Advantages of Automation are:

 Disadvantages of Automation are:

Mass Production:
 Mass production is the large-scale production of goods in factories.
 The increasing demand for consumer goods following the Industrial Revolution, means that
larger numbers of products need to be manufactured in a more efficient way.
 To facilitate the mass production process, organisation of the following factors is necessary:
1. A division of labour, where the manufacturing process is broken down into small
specialised tasks that each worker carries out over and over again.
2. The standardisation of parts across a number of products so that large numbers can
be made cheaply and efficiently.
3. The development of machinery to perform standardised tasks and produce
components.
4. The production process needs to be designed to efficiently integrate the machine
processes and human tasks.

The best known example of a mass production process was the assembly line developed by Henry
Ford to manufacture the Model T Ford in 1913.
Examples in the Timber and Furniture Industry:

Some of the advantages of mass production include:

Disadvantages include:
K.W ilson 2014
Mechanisation:
Source: The Macquarie Concise Dictionary (1994).
1. to make mechanical.
2. to operate or perform by or as if by machinery.
3. to introduce machinery into (an industry, etc.).

 Mechanisation refers to that stage in the development of tools, where they pass from being
an extension of the operator, to a point where the tool becomes a device and is controlled
by the operator.
 The most common form of mechanisation that has impacted on our current society is
portable power tools. With more efficient production techniques and the use of new
technologies, power tools have become:
o easily available
o have a greater variety
o have choice in different brand names that are affordable.
o Hand saws have been mechanised to become circular saws; coping saws with jig
saws; hand drills with electric drills; and screwdrivers with electric screwdrivers.
Most of these examples also come in a cordless or battery powered version.

For example, a woodworker may have traditionally used a mallet and chisel to create housing joints
on a timber project, but may now use a router for this task.

The benefits of mechanisation in this particular example are:

The disadvantages of using this type of mechanisation are:

K.W ilson 2014

ANSWERS:

Advantages of Automation are:

o Higher production rates and increased productivity (biggest justification of using
Automation)
o More efficient use of materials
o In some cases, better quality products
o Improved safety for workers
o Reduction in the number of hours worked by factory workers

Disadvantages of Automation are:

o Worker displacement
o High capital expenditure to invest in the design, fabrication and installation of an
automated system
o Higher level of machine maintenance
o Generally lower degree of flexibility of product design and manufacture.

Some of the advantages of Mass production include:

 efficiency of production: less time is taken to produce goods
 ‘economies of scale’: cheaper to make products in large quantities
 workers only need to be trained in one or two tasks.

Disadvantages for Mass production include:

 boredom for the workers
 occupational overuse syndrome (repetitive strain injury)
 low job satisfaction for workers
 large stock piles of finished goods waiting to be sold
 difficult to change the product’s design quickly to respond to changing styles and consumer
demand.

Answers for Advantages of Mechanisation:

 More housing joints can be created over a period of time.
 The router can maintain constant settings and keep the width and depth of the housing
joints constant.
 Greater accuracy can be maintained so that all the joints are tight fitting.
 Templates can be used with a router so that time in setting-up and marking-out is kept to a
minimum.
Answers for Disadvantages of Mechanisation:
 The initial cost of the router and its cutters are more expensive.
 On a construction site there may be no electricity to run the router or the power supply may
be cut off at inconvenient times.
 If the router fails or the cutter becomes blunt, it may need specialised skill, time and money
to repair it. Most builders know how to sharpen a chisel with an oilstone. This can be done
easily on site, with no cost and little time lost.
K.W ilson 2014

Specialisation:
To help you create your own study notes, you can use the following websites:
 http://www.evs.ee/Standardimine/Standardimine/Eesm%C3%A4rgidjap%C3%B5him%C3%B
5tted/tabid/151/language/en-US/Default.aspx
 http://www.ehow.com/info_7985428_product-specialization-strategy.html

Industrial Specialisation:
This is where an industry decides to concentrate on the main aspects if their production and out-
source others. They may also rely on ‘off the shelf’ components for their products instead of
manufacturing themselves

Labour Specialisation:
This is where workers specialise on manufacturing or producing an individual and specific part of an
overall product. The aim of this division of labour is to increase output. Workers do not lose time
changing from one process to another and through more practice in the task, their skill increases.

Product Specialisation:
 Syllabus Heading: Environmental Factors
Resources, Alternatives and Limitations:
Pollution:
Recycling/Reusing:
Use the websites below to write your study notes:
http://www.woodsolutions.com.au/Articles/Why-Wood/recycling-energy-wood-waste
http://www.timber.net.au/index.php/timber-wood-products-recycled-products.html
http://www.timberstewardship.org.au/
http://www.sita.com.au/commercial-solutions/resource-recovery-recycling/timber-recycling/
http://www.timber.net.au/index.php/environmentla-design-waste-recycling.html
http://www.epa.nsw.gov.au/resources/warr/120348bwsttmbr.pdf
http://makeitwood.org/documents/doc-692-timber-as-a-sustainable-material.pdf

SOURCE- HSC ONLINE:

 Recycling involves reprocessing materials into new products.
 Reusing involves reusing products in their existing state.
 Manufacturers are also considering the long-term impact of their products on the
environment. A life cycle analysis of products has led to new approaches such as design for
re-manufacture and design for disassembly that allow for the recovery of recyclable
materials at the end of the service life of the product.

Government Legislation:
SOURCE HSC ONLINE:
 When a business, whether a manufacturing or service industry, is setting up in an area they
are required to comply with relevant laws and regulations set down by state and local
governments.
 Typically, regulations cover the zoning of the land, hours of operation, storage of materials,
transport limits, noise levels, pollution, waste controls, hazardous materials handling and
disposal. Government regulations also cover Occupational Health and Safety (OHS)
requirements.
 Website regarding legislation on illegal logging:
http://www.daff.gov.au/forestry/policies/illegal-logging
 Not only do industries have regulations that govern initial set up of a business, but laws are
in place to ensure that the day to day operations comply with pollution, emission and waste
controls. For example;
 http://www.environment.nsw.gov.au/ The NSW government has a department devoted to
the Environment, Climate Change and Water and that there are several government
agencies set up to control a range of environmental concerns.

Some of these agencies are:

Department of Energy, Utilities and Sustainability
http://www.deus.nsw.gov.au/ has responsibility for the safety and performance of energy
networks, water and energy policy and promotes affordable, safe, reliable and sustainable water and
energy for NSW.
The Office of Environment and Heritage
http://www.environment.nsw.gov.au/ The Office of Environment and Heritage (OEH) is a separate
office within the NSW Department of Premier and Cabinet. OEH was formed on 4 April 2011 and
works to protect and conserve the NSW environment, including the natural environment, Aboriginal
country, culture and heritage and our built heritage, and manages NSW national parks and reserves.
Environmental Protection Authority
http://www.epa.nsw.gov.au/ The Environment Protection Authority (EPA) is an independent
authority responsible for leading business and the community to improve their environmental
performance and for managing waste to deliver a healthy environment. The EPA regulates and
responds to activities that can impact on the health of the NSW environment and its people. The
Environment Protection Authority (EPA) became a separate statutory authority on 29 February 2012.
The EPA is responsible for environmental regulation and associated activities throughout NSW.
Department of Planning and Infrastructure
http://www.planning.nsw.gov.au/Home/tabid/471/language/en-AU/Default.aspx aims to achieve
the right balance between jobs and the environment through comprehensive assessment of major
economic developments and infrastructure projects.
Department of Lands
http://www.lands.nsw.gov.au/ is responsible for the management of Crown lands; titling,
valuation and surveying of land; Native Title; Aboriginal land claims; soil services including
conservation and testing; Land Boards and Emergency Information Co-ordination Unit.

EXTRA NOTES:
K.W ilson 2014

Syllabus Heading: Sociological Factors

Issues relating to a business:

Issues

Workplace cultures:
SOURCE- HSC ONLINE.

 Different organisations of any type, even those producing the same product or service, can
be very different places to work. They will have different ‘atmospheres’, different ways of
doing things, different attitudes, different values and so on, and each of these can impact on
the overall contentment of the people in those workplaces.
 We can refer to these aspects of the workplace as ‘workplace culture’. Workplace culture
can probably be best described as the attitudes people within the workforce have toward
their work, and their workmates.
 Many issues can impact positively or negatively on workplace culture. The attitudes and
expectations of the senior management of an organisation can have the greatest impact on
workplace culture, and workplace culture can be very different when there is a change of
management.
 Perhaps the greatest area of concern of an organisation’s culture is that which influences the
application of Occupational Health and Safety processes. Management needs to be aware of
all aspects of the OH&S Regulation and have policies which implement necessary strategies
such as safety training, risk management and OHS committees.
 In addition, workplaces must embrace new, flexible ways of doing things that allow for the
changing nature of the workforce and the need for better work/home/family balances.
 Occupational health and safety in the workplace is about ensuring people are aware of the
potential dangers and the means of reducing risk. All accidents should be viewed as
preventable.
 It is the responsibility of the employer to cultivate a safe workplace culture and for the
employer and employee to maintain this safe culture.
K.W ilson 2014
 The formation of an OHS workplace committee offers the opportunity for a collaborative
approach to workplace safety where the safe culture of the workplace can be developed.
The role of a business in the focus industry:
(Link to Trend Timbers Excursion)
K.W ilson 2014

Syllabus Heading: Personnel Issues

SOURCE- HSC ONLINE
Industrial Relations:
As part of this mission the Department of Industrial Relations is responsible for working conditions,
employment rights and obligations for employers and employees in NSW. The main functions of the
NSW Department of Industrial Relations (DIR) may be summarised as follows:
 manage NSW employment legislation
 make sure all provisions within awards are carried out
 communicate with employers, employees and industrial organisations on all matters relating
to conditions of employment
 advise government on employment issues.

The Industrial Relations Commission

The Australian Industrial Relations Commission (AIRC) is an independent national tribunal dealing
with employment issues.
The Commission is established in a court session, and has the equivalent status to the Supreme
Court. The Commission operates under the Industrial Relations Act 1996 and its role is through the
legal system to:
 resolve industrial disputes
 establish working conditions
 set wages and salaries through industrial awards
 approve enterprise agreements
 arbitrate claims of unfair dismissal.
From 1 July 2009 Fair Work Australia assumed many of the functions of the AIRC.

Industrial Award
 An industrial award is an agreement between employers and employees on the rights and
obligations for all those involved in a specific type of work.
 It is most commonly negotiated by organisations representing employers and organisations
representing employees (unions).
 These organisations either apply to the Commission to have an award prepared or develop
an award through the resolution of an industrial dispute.

Enterprise agreement
 An enterprise agreement is also an arrangement between employers and employees on the
rights and obligations for all those involved in a specific type of work.
 It is also negotiated by employers and either organisations representing employees (unions)
or employees themselves usually on a specific work site.
 Agreements may cover some or all of the employment conditions present in an award but
they must also comply with NSW laws that provide employment rights and obligations.
 Enterprise agreements must have the approval of the Industrial Relations Commission.

http://www.fairwork.gov.au/awards-and-agreements
 Minimum conditions at work can come from registered agreements, awards or legislation.
 When a business has a registered agreement in place and it covers the work that the
employee does, then the minimum pay and conditions in the agreement will apply.
 If there’s no registered agreement that applies and an award covers the business and the
work the employee does, then the minimum pay and conditions in the award will apply.
 There are 122 awards that cover most people working in Australia, which means many
employees who aren’t covered by an agreement will most likely be covered by an award.
K.W ilson 2014
 Where no award or agreement applies, the minimum pay and conditions in the legislation
will apply.

Timber Industry Award 2010.

https://extranet.deewr.gov.au/ccmsv8/CiLiteKnowledgeDetailsFrameset.htm?KNOWLEDGE_REF=21
6363&TYPE=X&ID=0961675286807234888889912894&DOCUMENT_REF=394759&DOCUMENT_TITL
E=Timber%20Industry%20Award%202010&DOCUMENT_CODE=MA000071

Go to the Timber Industry Award 2010 and complete the table below.

Condition Implementation/Information
coverage

wage rate

sick leave

annual leave

hours of work

For more information on awards, agreements and industrial relations go to:

http://www.fairwork.gov.au/awards-and-agreements

READ THROUGH ADDITIONAL INFORMATION SHEET AND ANSWER QUESTIONS.

Entry level training requirements:

http://jobsearch.about.com/od/jobsearchglossary/g/entry-level-job.htm

 An entry level job is the first introductory position for employees entering a new occupation.
Some occupations require different levels of training or experience, but often entry level
positions have few or no prerequisites and are a good option for new graduates or those
interested in beginning work in a new field.
 These jobs often include on-site training or are temporarily part-time until the employee is
familiar with the work. Depending on the job, employee benefits may or may not be
included.

http://www.mskills.com.au/qualjobmatch/skill-level/?q=LVE_WTFS_1
 A Timber furniture production employee, Level 1:
o An employee that is new to the industry and who is undertaking up to three months'
induction and skill development consistent with national competency standards to
prepare the employee for a productive role in the industry.
 The induction and skill development will provide information on the enterprise, conditions
of employment, introduction to supervisors, fellow employees, machinery and work
processes of the enterprise, information on training and career opportunities, plant layout,
work and documentation procedures, basic occupational health and safety instruction and
quality assurance.
K.W ilson 2014
 Responsibilities:
An employee at this level is required to work competently under direct supervision whilst
using minimal discretion.
 Qualification:
An employee must satisfy the employer that they have basic literacy and numeracy skills and
that they have an aptitude for work in the industry. The employee must also be assessed to
be competent in the core units of the Furnishing Industry Training Package.

For more information regarding the remaining 9 Skill Levels involved in the Timber Industry, go to
http://www.mskills.com.au/qualjobmatch/award/?TAG=MA000071 and click on the ‘Related Skill
Levels’ link.

Roles of industry personnel:

 For industry to operate effectively and efficiently there is a need for certain industry
standards to be set. These standards govern the way an industry operates in much the same
way as standards for road use (the 'rules of the road') govern how people drive on the roads.
 Some standards are developed by industry to assist in the smooth and safe operation of that
industry, while other standards are set by government and cover all industries.
 One of the most important standards for any industry is government legislation relating to
safety in the workplace.
 In NSW, the Department of Industrial Relations represents the government in formulating
structures relating to Occupational Health and Safety. Correspondingly, WorkCover as a
statutory authority has the responsibility for enforcing legislation and providing educational
support for the legislation.
 The NSW Occupational Health and Safety Act 2000, and the Occupational Health and Safety
Regulation 2001, aim to protect people at work. The legislation is written in terms of health,
safety and the welfare of people in a work environment.
 The legislation contains provisions that require the employer to consult with employees on
issues of safety, health and welfare. It applies to large and small business and also to the
self-employed.

Industry standards may be described in the form of duties and categorised as responsibilities. In the
case of Occupational Health and Safety:

The responsibilities of the employer include:

 ensuring that the places of work under their management are safe
 ensuring that risk management procedures for the safe use, handling, storage and transport
of plant materials are established for their workplace
 ensuring that systems of work and the work environments are safe, without risks to health
 ensuring that information, instruction, training and supervision is provided to support the
safety of employees
 ensuring the provision of adequate facilities for the welfare of employees.

The responsibilities of the employee include:

 taking reasonable care of the health and safety of themselves and others
 cooperating with employers in their efforts to comply with occupational, health and safety
requirements.

Breaches of the legislation can result in serious penalties for an individual and the business.
K.W ilson 2014

Syllabus Heading: Occupational Health and Safety

Signage:
Source- HSC ONLINE.
Signs and symbols are used in a workplace to convey information to workers and visitors to the site.
Being able to move or navigate around the workplace independently and safely to perform tasks or
access meal and bathroom facilities can be critical to an individual’s success and productivity at
work. There are a range of signs in the workplace that allow a person to move around safely and
with confidence.
Safety signs

There are three main types of safety signs used in the workplace:
1. Picture signs using symbols or pictures.

2. Signs with only text based messages.

3. Picture signs with a short message.

Picture signs are used as they reach as many people as possible in the workplace, including workers
with low reading ability or people from non-English speaking backgrounds.

Colour and shape

There are seven categories of safety signs identified by colour and shape:
1. Prohibition signs – these are signs that indicate something that you must not do: They are
made up of a red circle border with a line through it, a white background and black symbol
K.Wilson 2014
2. Mandatory signs – these signs tell you that you must wear some special safety equipment:
They are made up of a blue solid circle, white symbol, with no border.

3. Restriction signs – these signs tell of a limitation placed on an activity or use in the area
concerned. They are made up of a red circular border, no crossbar, and a white background.

4. Hazard warning signs – these signs warn you of a danger or risk to your health: They are
made up of a yellow triangle with a black border, and a black symbol.

5. Danger hazard signs – these signs warn of a particular hazard or hazardous condition that is
to be life-threatening: They are made up of a white rectangular background, with the word
DANGER in white on a red background, and black border and black text.

6. Emergency information signs – these signs show where emergency safety equipment is kept:
They are made up of a green solid rectangle, with a white symbol or text.

7. Fire signs – these signs tell you the location of fire alarms and firefighting facilities: They are
made up of a red solid rectangle, with white text.
K.W ilson 2014

Health signs
The following examples show wall charts which are placed in the workplace to remind and
encourage workers to follow safe work practices.

Signage of electrical equipment

Testing of all tools is now a legal requirement in Australia on all worksites. Any piece of electrical
equipment, including extension leads must be checked and tagged by a qualified person. The correct
tag looks like the following:

Safety data sheets (SDS)

All containers that have a substance that is deemed dangerous must be labelled appropriately. SDS
provide information required for labelling a container and where possible an SDS is to be attached to
the container. The label on a hazardous substance should draw the attention of an employee who is
using the substance to the significant hazards involved. It should take into account all the hazards
which are likely to occur from the use of the substance.
The SDS must:
 be readily available to personnel using the substance with information provided in a form
that is easily understood by the user
 identify that the substance is a designated hazardous substance
 meet the needs of those persons with language or literacy difficulties.

Placement of signs
Signs should be located where they are clearly visible to all concerned so as to attract
attention and be read or interpreted easily.
The height of a sign should be at the normal line of sight for a standing adult.
Signs should not be placed on movable objects such as a sliding door.
Regulation and hazard type signs should be positioned in relation to the hazard to allow a person
plenty of time to view the sign and take notice of the warning.
K.W ilson 2014

OH&S Principles and Requirements:

See additional hand out

Personal protective equipment (PPE):

Questions to answer:
 What does PPE stand for
 Identify types of PPE and their application
 Where does PPE come on the Hierarchy of Hazard Control?
 For more activities go to:
http://www.hsc.csu.edu.au/ind_tech/production/ppe/ohs_safety_ppe.html

Safe working practices:

Source- HSC ONLINE
OHS induction training – generally occurs when an employee starts a new job. Basic information
regarding OHS should be covered so the new employee is aware of the types of hazards that could
be faced in the workplace, how they should be dealt with and to whom any problems should be
reported.

Personal protection equipment - must be supplied by the employer and the correct way to use each
piece of equipment must be explained properly to ensure the safety of the worker.
Selection of the appropriate tools for a task - explanation and demonstration of all equipment is
necessary so that new employees are informed of the correct equipment to use for each specific
task, to enable work to be completed without injury to workers.

Correct use, maintenance and storage of tools and equipment - will ensure that tools are kept in
good working condition.

Correct handling, application, labelling and storage of hazardous and non-hazardous materials -
must occur to comply with 2001 OHS Regulations so workers are not exposed to dangerous
chemicals.

Correct posture (sitting, standing, bending and lifting)- explanation and demonstration is required
to reduce injuries by workers.
Correct manual handling is required to protect the safety of workers when lifting heavy loads.

Location and use of safety alarms and emergency exits – is required to enable workers to safely exit
the workplace in case of emergency. Emergency exits must be kept clear at all times.

Correct use of fire fighting equipment (fire blanket, fire extinguisher) - training should be provided
so workers can extinguish small fires without harming themselves.

Hazard identification and risk control – is required so workers can identify potential hazards that
could cause injury or ill health; and know how these hazards can be controlled and/or eliminated.
Basic first aid training and access to first aid kits - enables any injured employee to gain basic
medical attention as soon as is possible when injured at work.

Procedures to follow in the event of an emergency – is necessary so that all employees are trained
in emergency procedures to eliminate confusion during an emergency and to enable all employees
to reach safety without injury.
K.W ilson 2014
Effective communication and teamwork - enables all employees to play a specific role in any
situation rather than everyone fending for themselves, which could result in chaos and possible
injury.
Adherence to work instructions, workplace/organisation policies and procedures - are put into
place to ensure the safety of employees.

Housekeeping/clean-up procedures, including waste disposal, with proper considerations of OHS

and the environment - will ensure that all employees are not exposed to dangerous chemicals and
the environment will not be adversely affected in an emergency.

Common workplace injuries in a business services environment

Potential workplace injuries include:
 allergic reactions
 dislocations and fractures
 puncture wounds and cuts
 sprains and strains
 poisoning
 shock

These injuries are most commonly caused by:

 workplace hazards
 lack of protection and safety equipment
 slips, trips and falls
 poor ergonomics
 unrealistic time frames
 negligence
 existing medical conditions of employees
 exposure to toxic substances.

Measures to prevent common workplace accidents, injury or impairment include:

 induction training so employees are made aware of safety procedures,
 adopting correct posture and manual handling techniques,
 taking adequate rest breaks, especially when constantly using computers,
 providing ergonomic furniture,
 ensuring chemicals are used and stored correctly and that all required MSDS are readily
accessible,
 training in stress management techniques is available,
 training in the safe use of equipment is provided,
 employees are made aware of the procedures in place to deal with emergencies, fires and
accidents (and drills are carried out on a regular basis),
 risk assessment is carried out on a regular basis.

First aid:
For information regarding First Aid, go to:
http://www.hsc.csu.edu.au/ind_tech/production/2528/FirstAid.html

Materials handling:
For materials handling information, go to:
http://www.hsc.csu.edu.au/ind_tech/ind_study/3055/MaterialsHandling.html
Question 1: 5 marks
Outline some of the environmental factors that Ind-Tech would need to consider if expansion was to occur.
Possible Answers:
Outline: Sketch in general terms; indicate the main features of.
 Resources, alternatives, limitations –
o Materials
o Tools, equipment, machinery
o Processes and Techniques
o Energy use
Recycling/Reusing-
o Materials
Pollution-
o Air, water, noise, land, light,
Government Legislation-
o Zoning of the land, hours of operation, storage of materials, transport limits, noise levels,
pollution, waste controls, hazardous materials handling and disposal. Government
regulations also cover Occupational Health and Safety (OHS) requirements.

Question 2: 5 marks
Discuss how the business could adopt different production techniques in its possible expansion e.g. Mass
Production, Mechanisation, Specialisation.
Possible Answers:
Discuss: Identify issues and provide points for and/or against
Definition of the production technique
Advantages and Disadvantages of the production technique
Examples of the production technique in the focus area
Implications of the production technique on the business

Question 3: 10 Marks
More staff may be needed if the business decides to expand. Analyse the structural and personnel issues that
the business would need to consider.
Possible Answers:
Analyse: Identify components and the relationship between them; draw out and relate implications
Structural:
Types of businesses
o Forms of an organisation/business e.g. Sole Trader, Partnership, Company
o Size- small, medium, large
o Location- local, national, multinational
Management Structure
o Hierarchical/Pyramid, Flat/Matrix
o Management personnel and descriptions
Marketing, preparation and planning of product
Advertising and E-Marketing
Sales- link between marketing, advertising and sales
Production of products/services. Efficiency, quality control etc
Work environment- expectations, behaviour, values/beliefs, OH&S, safety
Personnel:
Industrial Relations
Industrial Relations Commission
Awards and Enterprises Agreements
Sick and annual leave, wages, conditions/entitlements etc
Timber Industry Award/Multimedia Enterprise Agreements
Entry Level Training Requirements- on the job training, minimum requirements, responsibilities,
qualifications
Roles of Industry Personnel
o Responsibilities of employers
o Responsibilities of employees