Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management (18772)

Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management (18772) A Pearson Self-regulated Framework qualification Specification First teaching January 2015 Issue 2

Edexcel, BTEC and LCCI qualifications Edexcel, BTEC and LCCI qualifications are awarded by Pearson, the UK s largest awarding body offering academic and vocational qualifications that are globally recognised and benchmarked. For further information, please visit our qualification websites at www.edexcel.com, www.btec.co.uk or www.lcci.org.uk. Alternatively, you can get in touch with us using the details on our contact us page at www. edexcel.com/contactus About Pearson Pearson is the world s leading learning company, with 40,000 employees in more than 70 countries working to help people of all ages to make measurable progress in their lives through learning. We put the learner at the centre of everything we do, because wherever learning flourishes, so do people. Find out more about how we can help you and your learners at: www.pearson.com/uk Pearson s Self-regulated Framework qualifications This qualification has been approved by Pearson as meeting the criteria for Pearson s Self-regulated Framework. Pearson s Self-regulated Framework is designed for qualifications that have been customised to meet the needs of a particular range of learners and stakeholders. These qualifications are not accredited or regulated by any UK regulatory body. For further information please see Pearson s Self-regulated Framework policy on our website. This specification is Issue 2. Key changes have been side-lined. We will inform centres of any changes to this issue. References to third-party material made in this specification are made in good faith. We do not endorse, approve or accept responsibility for the content of materials, which may be subject to change, or any opinions expressed therein. (Material may include textbooks, journals, magazines and other publications and websites.) ISBN: 9781446924709 All the material in this publication is copyright Pearson Education Limited 2014

Contents 1 Purpose of this specification 1 2 Qualification summary 2 Key information 2 Aim of the qualification 2 3 Centre resource requirements 3 4 Qualification structure 4 5 Assessment 5 6 Centre and qualification approval 5 Approvals agreement 5 7 Quality assurance 5 8 Programme delivery 6 9 Access and recruitment 7 10 Unit format 8 Units 11 Unit 1: Financial Principles and Techniques for Non-specialists 13 Unit 2: Strategic Management 21 Unit 3: Innovation and Creativity in Business 29 Unit 4: Supply Chain Management 39 Unit 5: Management and Leadership 47 Unit 6: Entrepreneurship in Business 55 Unit 7: Change Management 63 Unit 8: Contemporary Issues in Business 73 Unit 9: Applying Lean Principles to Business Operations 81 Unit 10: Project Management for Engineering 89

1 Purpose of this specification All customised qualifications on Pearson s Self-regulated Framework have a specification developed by Pearson. The purpose of this specification is to set out: the aim/objective of the qualification the structure and rule of combination of the qualification the resources required by the centre to offer the qualification the knowledge, skills and understanding which will be assessed as part of the qualification the method of assessment and any associated requirements relating to it the criteria against which learners level of attainment will be measured (for example assessment criteria). This specification must be used for delivery and teaching. It will be used by Pearson to externally verify and certificate the approved qualification. If you need any guidance or support related to customised qualifications you should contact your Pearson representative, who will be happy to provide advice. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 1

2 Qualification summary Key information Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management Minimum total Notional Learning Hours (NLH) Minimum qualification value (NLH/10) European Credit Transfer and Accumulation System (ECTS) Assessment Unit grading information Overall qualification grading information 1200 120 60 ECTS credits* This qualification is assessed via centre-devised assessment (internal assessment) Pass Pass * The ECTS credit value is calculated on the basis that one credit represents 20 NLH. The recognition of ECTS credit is at the discretion of Higher Education institutions, and will depend on the relevance of the prior learning and associated learning outcomes. Aim of the qualification The Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management is for learners who work in, or want to work in, business management. It gives learners the opportunity to initiate and carry out projects, make business decisions in complex and unpredictable contexts and identify viable solutions to problems. Learners will apply their knowledge and practical skills in the workplace. Full-time learners have the opportunity to do this through formal work placements and parttime learners through their employment experience. Learners will be workplace ready and have academic progression opportunities (to Level 7 qualifications) for lifelong learning. This qualification enables learners to become effective and competent business unit managers across the entire value chain. Learners will gain the knowledge and skills which can be applied across a variety of sectors and to organisations of all sizes. This qualification will provide equal benefit for self-employed learners or start-up owners. 2 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

3 Centre resource requirements As part of the approval process, the centre must make sure that the resource requirements below are in place before offering the qualification. The centre must have appropriate physical resources (for example equipment, IT, learning materials, teaching rooms) to support the delivery and assessment. Staff involved in the assessment process must have relevant expertise and occupational experience. There must be systems in place to make sure that there is continuing professional development for staff delivering the qualification. The centre must have appropriate policies in place relating to the delivery of the qualification. The centre must deliver the qualification in accordance with current equality legislation. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 3

4 Qualification structure Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management The Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation Management qualification is a minimum of 1200 Notional Learning Hours (NLH). Learners must achieve all eight mandatory units to the value of 120 to achieve the qualification. Mandatory units (all units must be taken) Unit Unit title Level Notional Learning Hours Value (NLH/10) 1 Financial Principles and Techniques for Nonspecialists 6 150 15 2 Strategic Management 6 150 15 3 Innovation and Creativity in Business 6 150 15 4 Supply Chain Management 6 150 15 5 Management and Leadership 6 150 15 6 Entrepreneurship in Business 6 150 15 7 Change Management 6 150 15 8 Contemporary Issues in Business 6 150 15 Learners may choose to study additional units if they want to specialise in lean business operations and/or project management in the engineering sector, to meet their employer's needs and/or progress to further study. Additional units must not replace any of the mandatory units. Additional units Unit Unit title Level Notional Learning Hours Value (NLH/10) 9 Applying Lean Principles to Business Operations 6 150 15 10 Project Management for Engineering 6 150 15 4 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

5 Assessment All units in this qualification are internally assessed. Assessment is a process of measuring learners work reliably against criteria, to produce results that are a valid interpretation of knowledge or performance. To avoid over-assessment the centre is encouraged to link delivery and assessment across units, where appropriate. Each unit has specified outcomes of learning and assessment criteria. To pass a unit, learners must meet all the outcomes of learning. The centre will need to devise a range of assessment methods to allow learners the opportunity to meet the outcomes of learning and assessment criteria. 6 Centre and qualification approval The centre must be approved before delivering and assessing customised qualifications on Pearson s Self-regulated Framework. Centres that have not previously been approved will need to apply for, and be granted, centre recognition as part of the process for approval to offer this qualification. Before you offer this qualification you must meet both centre and qualification approval requirements. Please refer to the centre approval guidance on our website at: www.edexcel.com/iwantto/pages/customised-qualification-approval.aspx Approvals agreement All centres are required to enter into an approval agreement that is a formal commitment by the head or principal of a centre to meet all requirements. If the centre does not comply with the agreement this could result in the suspension of certification or withdrawal of approval. 7 Quality assurance Quality assurance is at the heart of customised qualifications on Pearson s Selfregulated Framework. The centre internally assesses this customised qualification and is responsible for making sure that all assessors and Internal Verifiers adhere to their internal verification processes, to ensure consistency and validity of the assessment process. Pearson uses quality assurance to check that all centres are working to the agreed standard. It gives us the opportunity to identify and provide support, if needed, to safeguard certification. For guidance, please refer to the Pearson s Self-regulated Framework (SRF) Quality Assurance Handbook on our website at: www.edexcel.com/quals/cust/pages/srf.aspx Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 5

8 Programme delivery The centre is free to offer this qualification using any mode of delivery (for example full-time, part-time, evening only, distance learning) that meets their learners needs. Please refer to the policy pages on our website at: www.edexcel.com/policies Whichever mode of delivery is used, the centre must make sure that learners have access to the required resources, outlined in the specification, and to the subject specialists delivering the units. Centres must give due regard to Pearson s policies that may apply to different modes of delivery. For this qualification, delivery methods include: face-to-face tutor-led classes for full-time learners work-based learning for part-time learners. 6 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

9 Access and recruitment Pearson is committed to providing qualifications with no artificial barriers. A full statement, included in our Equality Policy, can be found on our website at: www.edexcel.com/policies Equality and fairness are central to our work. We are committed to making sure that qualifications do not discriminate and all learners achieve the recognition they deserve from undertaking a qualification and that this achievement can be compared fairly to the achievement of their peers. Restrictions on learner entry Centres should review potential learners' prior qualifications and/or experience, considering whether this profile shows that they have the potential to achieve the qualification. This qualification is suitable for learners aged 18 and above. Centres must give due regard to Pearson s policies that apply to the fair and equal recruitment of learners to all Pearson qualifications. Full-time learners Qualification requirement (one of the following): Pearson BTEC Level 5 HND Diploma in Business, or in another sector e.g. Design/Engineering if the learner is actively self-employed or a start-up owner OR European equivalent at EQF Level 5 (120 ECTS) OR International equivalent at UK Level 5 (240 UK credits). Note: Work experience is desirable for full-time learners entering this programme. Part-time learners Qualification or experience requirement (one of the following): Pearson BTEC Level 5 HND Diploma in Business, or in another sector e.g. Design/Engineering if the learner is actively self-employed or a start-up owner OR European equivalent at EQF Level 5 (120 ECTS) OR International equivalent at UK Level 5 (240 UK credits) OR 1 to 3 years management experience. Note: For part-time learners the minimum age requirement is 18, however in most cases learners will be 25+. Part-time learners should have confirmation that their current or prospective employer will support the work-based learning mode. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 7

10 Understanding the units All units in this qualification have the following sections. Title The title is a short description of the content of the unit. Level The level of the unit indicates the complexity and demand expected to achieve it. The level places the unit on a framework of comparability with other units and qualifications at that level. Notional Learning Hours (NLH) Notional Learning Hours (NLH) are the total amount of time a learner is expected to take, on average, to complete the unit to the required standard, including teaching, study and assessment time. Unit value The unit value is calculated by dividing the Notional Learning Hours (NLH) by 10. SRF unit code The unique approval code for the unit. Unit aim Says what the aims of the unit are in terms of what is covered and what the unit will enable learners to do. Unit introduction The introduction gives a short description of the unit, and details the key knowledge, skills and understanding the learner will gain through studying the unit. The introduction highlights the focus of the unit and how it links to the vocational sector to which the qualification relates. Outcomes of learning Outcomes of learning state what a learner can be expected to know, understand or be able to do as a result of completing a programme of learning for the unit. Assessment criteria Assessment criteria specify the standard required by the learner to achieve each outcome of learning. 8 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content In the unit content section topics are listed as bullets to provide detail on what is required to design and deliver a programme of learning. Not all topics have to be covered to be able to meet the assessment criteria. Centres are able to select the topics they deliver, ensuring that learners produce evidence of sufficient depth and breadth to meet the assessment criteria. Information for delivery staff This section gives delivery staff information on delivery and assessment. It contains the following subsections. Delivery guidance offers guidance on possible approaches to delivery of the unit. Assessment guidance gives information about the evidence that learners must produce, together with any additional guidance if appropriate. This section should be read in conjunction with the assessment criteria. Suggested resources indicates resource materials that can be used to support the teaching of the unit, for example books and journals. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 9

10 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Units Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 11

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Unit 1: Financial Principles and Techniques for Non-specialists Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20440E This unit is internally assessed Unit aim This unit aims to give the learner understanding of some financial accounting and reporting principles, together with the skills to apply financial and management accounting principles in business. Unit introduction This unit provides an introduction to the context of both financial and management accounting and financial reporting. It looks at how the financial statements of a range of business entities differ, as well as the common elements between them. Learners will be able to explain the constituent elements and purpose and uses of the three main financial statements. Learners will also gain practical experience of preparing both the statement of financial position and income statement for limited companies, and the balance sheet and profit and loss account for sole traders. Learners will gain practical experience of analysing the performance of a business through the use of financial ratios and become familiar with the components of published financial statements. The unit covers the role of external auditors and the debate surrounding the development of international accounting standards. The unit then deals with cost accounting for businesses. Learners will gain experience of determining the unit costs of production. Finally, the unit looks at budgetary control procedures and performance evaluation. Learners will gain practical experience of producing budgets, flexing budgets based on actual output, and calculating variances between budgeted and actual results. Learners will be able to identify possible causes of variances and suggest corrective actions to be taken by management. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 13

Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand the principles of financial accounting and financial reporting Assessment criteria 1.1 Explain the role of UK and international accounting standards in financial accounting 1.2 Critically evaluate the impact on businesses of one set of accounting standards being used on a worldwide basis 1.3 Analyse the differences in the accounts of a range of different types of business 1.4 Describe the constituent elements of the statement of financial position and income statement for companies 1.5 Analyse the constituent elements of the balance sheet and profit and loss accounts for sole traders 1.6 Evaluate the importance and structure of a cash-flow statement for companies 2 Be able to apply the principles of financial accounting and financial reporting 2.1 Prepare financial statements for given businesses, making adjustments and from incomplete records 2.2 Evaluate the importance of consolidated financial statements for groups of companies 2.3 Evaluate the significance and importance of the constituent parts of a given annual report 2.4 Analyse the results and position of a given company using financial ratios 2.5 Analyse the importance of the relationship between a company s external auditor and its directors 3 Be able to apply principles of management accounting to a given business 3.1 Calculate the unit costs of a given business using appropriate techniques 3.2 Suggest improvements to reduce costs and enhance value in a given business 3.3 Select appropriate budgeting methods for a given business and its needs 3.4 Prepare a cash budget from given information for a given business 3.5 Calculate variances from flexed budget, identify possible causes and recommend corrective action 3.6 Prepare an operating statement reconciling budgeted and actual results 3.7 Report findings to management in accordance with identified responsibility centres 14 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content 1 Understand the principles of financial accounting and financial reporting Role of accounting standards: UK and international, comparability, harmonisation process Entity financial statements: sole trader, partnership, limited company, charity Constituent elements of financial statements: financial position and financial performance, assets, liabilities, equity, revenue, expenses, cash flows, accrual accounting Cash flow statement: cash flows from operating activities, financing activities and investing activities 2 Be able to apply the principles of financial accounting and financial reporting Preparation of financial statements: recording of financial transactions preparation of statement of financial position, balance sheet, income statement, profit and loss account Consolidated financial statements: rationale for consolidation Annual reports: financial statements, notes to accounts, auditors report, chairman s statement Financial ratio analysis: profitability, management performance, liquidity, gearing, efficiency, investor ratios comparisons with competitors and previous accounting periods Role of external auditors: appointment, role, independence, agency theory Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 15

3 Be able to apply principles of management accounting to a given business Unit cost measurement: cost types (materials, labour, overheads, direct and indirect, fixed, variable and semi-variable) measurement appropriate techniques improvements cost reduction value enhancement The budgeting process: purpose benefits links with organisational objectives/strategy the budget manual budgets as planning, coordinating, motivation and control devices behavioural aspects Budget preparation: limiting or key factors master, subsidiary and functional budgets cash budgets the preparation of sales budget, debtors budgets, creditors budgets, production costs, raw materials and finished goods budgets Budgeting methods: incremental zero-based fixed and flexible Variances: types analysis calculation flexed budget possible causes corrective action 16 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Reporting: operating statement reconciliation of budgeted and actual results Responsibility centres: relevance to budgeting identification of responsibility for variances Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 17

Information for tutors Delivery guidance This unit provides an essential background to external financial accounting and reporting and internal management accounting for both companies and sole traders. It will enable learners to understand the wider accountancy framework within which businesses operates. Delivery of the unit can be undertaken in a variety of ways, ranging from an integrated approach to discrete topic delivery. The unit could be delivered in the outcome of learning order, or alternatively outcomes of learning 1 and 2 could be taught alongside each other as part of a larger assignment. Alternatively, outcome of learning 3 could be delivered first if accompanied by a suitable introduction. If the unit order is followed for delivery purposes, then there could either be separate assignments for each outcome of learning, or preferably a case study could be constructed which links all or some of the outcomes of learning together. An integrated approach could be based upon a hypothetical business, for which learners are required to prepare both internal and external reports of a company. External financial reports could be prepared from either incomplete records or from detailed accounting transactions. Learners could then be asked to provide advice for a company if it were to become part of a larger group as well as to use ratio analysis to interpret the financial performance over a number of years. Internal management reports could be prepared starting with the subsidiary budgets culminating in the master budget. Variance analysis could then be performed to compare actual results with the original and flexed budgets. There are many websites that can provide basic information for learner research. Learners could be encouraged to undertake research regarding the layout of the financial statements of a range of business entities which are freely available. Representatives from local accountancy and audit firms may also be able to provide some input. Assessment guidance It is important that assessment shows the learner s understanding of the different accountancy roles both within and external to a business. Ideally this should be achieved through application in case studies and business scenarios investigating real or simulated businesses. 18 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Suggested resources Books Atrill P and McLaney E Accounting and Finance for Non-specialists with MyAccountingLab, 7th Edition (Financial Times/Prentice Hall, 2010) ISBN 978-0273745969 Dyson J R Accounting for non-accounting Students, 8th Edition (Financial Times/Prentice Hall, 2010) ISBN 978-0273722977 Gowthorpe C Business Accounting and Finance for Non-specialists, 2nd Edition (Cengage Learning EMEA, 2005) ISBN 978-1844802005 Walsh C Key Management Ratios, 4th Edition (Financial Times/Prentice Hall, 2008) ISBN 978-0273719090 Weetman P Financial and Management Accounting: An Introduction, 5th Edition (Financial Times/Prentice Hall, 2010) ISBN 978-0273703693 Journals Accountancy (CCH) Accountancy Age (Incisive Financial Planning Limited) Accounting Technician (Association of Accounting Technicians) PQ Magazine (PQ Publishing) Websites www.accountancyage.com www.accountingweb.co.uk www.bized.co.uk www.bizhelp24.com www.businesslink.gov.uk www.canterbury.gov.uk www.ons.gov.uk www.thetimes100.co.uk www.tutor2u.net Accounting news, information and case studies Accounting news, information and case studies A business education resource site Help and support for businesses Business guidance for businesses, including accounting An example of a specific local business support website Office for National Statistics UK government statistics, including the Retail Price Index The Times 100 case studies Educational website for business and economics Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 19

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Unit 2: Strategic Management Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20441E This unit is internally assessed Unit aim This unit aims to give the learner understanding of the importance of strategy to an organisation in providing direction and scope over the long term. The unit also gives the learner the skills to assess an organisation s strategic position in order to gain an advantage through combining its competencies and resources. Unit introduction Strategic management is constantly changing and it is important that learners understand the strategic position of an organisation. This involves the analysis of business environments, the evaluation of strategic capability and the development of strategic purpose. Learners will examine how an understanding of culture can help managers develop the strategies of their organisations. The cultural web model which allows managers to analyse culture and its influence on strategy will be introduced. Strategic choices are concerned with decisions about an organisation s future and the way in which it needs to respond to the pressures and influences. The consideration of strategies must take into account the realities of turning strategy into action which in turn can be a significant constraint on strategic choice. The strategy of going international is considered, including the sources of advantage and the methods of market selection and entry. The importance of effective change management is explored which is a critical success factor in strategic management. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 21

Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand how strategic choices are made in organisations 2 Understand the importance of culture within strategic positioning in organisations 3 Understand the risks involved in an organisation deciding to internationalise 4 Be able to assess the strategic position of an organisation 5 Understand the importance of change in strategic management Assessment criteria 1.1 Analyse the different levels of strategy in an organisation 1.2 Compare methods of strategy evaluation in organisations 2.1 Assess the importance of culture in organisations 2.2 Evaluate how organisational culture influences strategy in an organisation 2.3 Analyse the cultural web of an organisation 3.1 Evaluate the drivers that encourage organisations to internationalise 3.2 Critically evaluate national and international sources of advantage for an organisation 3.3 Assess methods of market selection and entry for an organisation 4.1 Carry out an analysis of the business environment of an organisation 4.2 Evaluate the strategic capability of an organisation 4.3 Develop a strategic purpose for an organisation 5.1 Explain the methods for diagnosing change situations 5.2 Critically evaluate different change management styles and roles 5.3 Evaluate the management of strategic change programmes in organisations 22 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content 1 Understand how strategic choices are made in organisations Levels of strategy: business level strategy corporate level strategy Ansoff s Product/Market Growth Matrix international strategies Strategy evaluation: suitability of the strategy threats, opportunities, weaknesses, strengths (TOWS matrix) ranking strategic options decision trees scenarios acceptability returns analysis (financial, cost benefit, shareholder value, risk, ration, sensitivity) feasibility of the strategy financial resources deployment of resources 2 Understand the importance of culture within strategic positioning in organisations Culture: national and regional cultures the organisational field sets of assumptions, norms and regimes organisational culture Organisational culture and strategy: the management of culture culture as a driver of strategy development of strategy implementation of new strategies assessing corporate performance adopting a suitable paradigm Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 23

Cultural web: tool for analysing culture elements of the web paradigm 3 Understand the risks involved in an organisation deciding to internationalise Drivers to internationalise: Yip s drivers of globalisation National and international sources of advantage: Porter s Diamond model the international value network international strategies simple export complex export multidomestic strategy global strategy Market selection and entry: market characteristics political, economic, social, legal, competitive characteristics entry modes exporting joint ventures and alliances licensing foreign direct investment 4 Be able to assess the strategic position of an organisation The business environment: macro environment industries and sectors competitors Porter s five forces framework industry life cycle strategic groups market segments opportunities and threats 24 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Strategic capability: methods for evaluating strategic capability Strategic purpose: corporate governance business ethics and corporate social responsibility stakeholder expectations stakeholder power organisational purpose, values, mission, vision, objectives 5 Understand the importance of change in strategic management Methods for diagnosing change situations: types of strategic change big bang, incremental, realignment, transformational, cultural context force field analysis Change management styles and roles: roles in managing change strategic leadership education, participation, intervention, direction, coercion Management of strategic change programmes: strategic reconstruction turnaround strategy managing revolutionary and evolutionary strategic change Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 25

Information for tutors Delivery guidance For outcome of learning 1, learners need to understand the strategic position of an organisation. This could involve the learners working in small groups undertaking a review of the business environment of selected organisations from different sectors. They should be encouraged to apply Porter s five forces to the particular area under investigation and to use SWOT analysis and the value chain to assess strategic capability. A review of strategic purpose should also take place which should focus on corporate governance, business ethics and corporate social responsibility. For outcome of learning 2, learners need to understand the importance of culture within strategic positioning which could involve small group work examining case studies focusing on particular cultures within a variety of organisations and the impact these cultures have on their strategic positioning. Learners need to understand that culture is a key driver of strategy and that culture in any organisation can be analysed using the tool known as the cultural web. Learners could through case studies or with reference to their own organisations use the cultural web to analyse the cultural arrangements in place. For outcome of learning 3, learners should also understand that when an organisation makes a strategic decision to go international, a series of risks will emerge. Learners need to be made aware of the key drivers that exist that encourage organisations to go international. Again case studies can be used to identify sources of advantage of entering foreign markets and the decision making process involved associated with market selection and entry. For outcome of learning 4, learners need to understand the importance of strategy development and the difference between intended and emergent strategies. Class and small group discussions can help learners identify these various strategic developments in place in their own organisations. Learners will also need to understand the importance of organisation structure and the effective management of resources both physical and human in strategy development. For outcome of learning 5, learners need to understand that when change is to take place in an organisation, there are various different types of change situations and that these can be diagnosed using various tools and techniques. The importance of change management styles and roles also needs to be examined and this can be successfully delivered through case study material, information from the learners own organisations and relevant guest speakers who can take learners through the various stages of successful change management programmes that they may have been involved with. Assessment guidance The preferred method of assessment for this unit is to have one full unit assignment allowing the learner to research aspects of strategic management in their own organisation or another organisation that will allow them access. The assignment could if desired, be broken down into 2, 3 or 4 or smaller assignments. The evidence could be in the form of a presentation or report covering the five outcomes of learning and all the assessment criteria. It is advisable to teach the outcomes of learning in their outcome of learning order (1 to 5) as each outcome of learning builds on the knowledge of the previous one. 26 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Suggested resources Books Asch D and Bowman C Readings in Strategic Management (Palgrave Macmillan, 1989) ISBN 978-0333518090 Barney J Gaining and Sustaining Competitive Advantage (Prentice-Hall, 2007) ISBN 978-0131355026 Davenport T and Norton D The Strategy-focused Organization (Harvard Business School Press, 2000) ISBN 978-1578512508 Cusumano M and Markides C Strategic Thinking for the Next Economy (Jossey Bass, 2001) ISBN 978-0787957292 De Wit B and Meyer R Strategy: Process, Content, Context (Thomson Learning, 2004) ISBN 978-1405119993 Grant R Contemporary Strategy Analysis (Blackwell, 2004) ISBN 978-0470972205 Gratton L Living Strategy: Putting People at the Heart of Corporate Purpose (Prentice Hall, 2000) ISBN 978-0273650157 Harrison J Strategic Management: Concepts and Cases (Wiley, 2002) ISBN 978-047122927 Johnson G, Scholes K and Whittingham R Exploring Corporate Strategy (Prentice Hall Ed 8, 2008) ISBN 978-0273711926 Johnson G Exploring Public Sector Strategy (Prentice Hall, 2000) ISBN 978-0273646877 Kaplan R and Norton D The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment (Harvard Business School Press, 2000) ISBN 978-1578512508 Lynch R Corporate Strategy (Prentice Hall, 2005) ISBN 978-0273701781 McGee, J, Thomas, H and Wilson D Strategy: Analysis and Practice (McGraw-Hill, 2005) ISBN 978-0077107055 Mintzberg H The Rise and Fall of Strategic Planning (Prentice Hall, 2000) ISBN 978-0273650379 Mintzberg H, Ahlstrand B and Lampel J Strategy Safari: A Guided Tour through the Wilds of Strategic Management (Prentice Hall, 2001) ISBN 978-0273656364 Pettigrew A, Thomas H and Whittington R The Handbook of Strategy and Management (Sage, 2001) ISBN 978-0761958932 Schwartz P The Art of the Long View (Wiley, 1997) ISBN 978-0471977858 Stacey R Strategic Management and Organisational Dynamics (Prentice Hall, 2002) ISBN 978-0273658986 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 27

Journals Academy of Management Journal (Academy of Management) British Journal of Management (Blackwell) California Management Review (University of California, Berkeley) European Management Journal (Elsevier) Harvard Business Review (Harvard Business School) Journal of Business Strategy (Blackwell) Journal of Management Studies (Blackwell) Long Range Planning (Elsevier) MIT Sloan Management Review (MIT Sloan School of Management) Strategic Change (John Wiley & Sons Ltd) Strategy and Leadership (Emerald) Websites www.ft.com www.managers.org.uk www.sps.org.uk Financial Times Chartered Management Institute Strategic Planning Society 28 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit 3: Innovation and Creativity in Business Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20442E This unit is internally assessed Unit aim This unit aims to give learners an understanding of the importance to organisations of creativity and innovation. The unit also gives learners the skills to overcome barriers and influence others to support innovation in business. Unit introduction Innovation is becoming essential to growth and prosperity of business organisations and countries. In this unit, learners start by exploring the need for business organisations to continuously innovate in order to maintain competitive advantage and the impact of innovation on national economies. Learners study the work of theorists seeking to understand the processes of creativity in individuals. They then experiment with using some of the many techniques designed to encourage creativity and innovation in individuals and groups. Learners will examine the theoretical approaches to the fostering or conversely the stifling of innovation in organisations. This includes exploration of types of motivation, culture, climate, leadership and innovation management processes found in organisations. Learners will plan the development and implementation of an innovative idea of their own and in doing so apply some of the theory from this unit. In the final outcome of learning, learners identify and plan to overcome barriers to the implementation of their innovative idea. This includes examination of internal barriers such as culture and resistance to change, as well as external barriers such as the market, legislative framework and infrastructure issues. Overall, the unit examines innovation in business from viewpoints of individual creativity in individuals through to the drivers and actions of organisations and national government. It links theory with practical application. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 29

Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand the importance of innovation to business 2 Understand how creativity can be fostered Assessment criteria 1.1 Explain the value of innovation to organisations 1.2 Evaluate support for a recent innovation in a selected organisation 2.1 Analyse key theoretical concepts about creativity in individuals 2.2 Use analytical tools to identify potential creative ideas 2.3 Critically evaluate key theoretical concepts about creativity 3 Understand how innovation can be fostered in an organisation 4 Be able to influence others to effect innovative change in an organisation 3.1 Analyse how to lead others in an organisation to positively embrace innovation 3.2 Critically evaluate current processes for managing innovation within a selected organisation 4.1 Plan a creative idea to effect innovative change in an organisation 4.2 Produce an appropriate rationale to persuade stakeholders of an organisation of the benefits of a creative idea 4.3 Communicate the idea to effect innovative change in an organisation to stakeholders 4.4 Critically evaluate the idea and its prospects of success 5 Be able to plan to overcome barriers to implementation of creative and innovative ideas in an organisation 5.1 Assess the barriers to the implementation of a creative and innovative idea in a selected organisation 5.2 Plan a strategy to overcome identified barriers to the implementation of a creative and innovative idea in an organisation 5.3 Evaluate the extent to which the plan will increase the likelihood of success of an innovation within an organisation 30 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content 1 Understand the importance of innovation to business Innovation in engineering: definitions of innovation formats of innovation level of change innovation space mapping Importance to organisations: increasingly competitive trading environment building and maintaining competitive advantage types of competitive advantage Support for innovation: government policies supporting innovation 2 Understand how creativity can be fostered Key theoretical concepts: comparison of approaches forms of creativity creative process personality traits for innovation Creativity tools and techniques: positive negative interesting (PNI) mind mapping visioning fishbone diagram problem-solving techniques Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 31

Analytical tools: SWOT (strengths, weaknesses, opportunities and threats) cost/benefit analysis Pareto analysis risk analysis value Evaluation: criticisms of theoretical concepts and tools and techniques 3 Understand how innovation can be fostered in an organisation Fostering innovation in organisations: theoretical approaches culture and climate encouraging innovation intrinsic versus extrinsic motivation impact of type of tasks Leadership: climate reward work roles to support innovation Innovation strategies: pioneering versus following leapfrog speed to market perfection market hedge product hedge outsource and alliance innovation protection strategies Organisational processes: innovation strategies innovation process management development and models 32 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

4 Be able to influence others to effect innovative change in an organisation Plan creative idea: identify problem/opportunity human resource, physical and technical requirements working environment idea generation Rationale for stakeholders: identification of stakeholders analysis of stakeholder viewpoints and importance benefits of innovative idea Communicate/evaluate idea: segmentation and targeting of stakeholders communications mix media selection stakeholder group interaction evaluation and selection processes financial measures market factors 5 Be able to plan to overcome barriers to implementation of creative and innovative ideas in an organisation Internal/external barriers to innovation: organisational culture organisational climate resistance to change types of resistance to change legislation infrastructure lack of government support market reaction Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 33

Overcoming barriers: participation education involvement communication staff selection and rewards relocation lobbying adaptation Evaluation /increasing success: measures of success factors enhancing success rates causes of failures 34 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Information for tutors Delivery guidance This unit draws from a variety of disciplines and a variety of learning methods could be used. A range of recent work of theorists on innovation is included and this contextualised into the business studies world through drawing on established principles from marketing, economics, finance and management. As consumers and users of services, learners will be familiar with the results of innovations, e.g. social media, and case studies of how these organisations innovate would be valuable in bringing this unit to life. Learners with experience of working in innovative or traditional organisations or that fall somewhere between these two opposites, could be encouraged to use and share their experiences in group discussions and in their assessed work. Outcome of learning 1 sets the context and enables learners to explore why innovation is regarded as so important at both organisational and national level. It would be beneficial for learners to be exposed to a wide variety of current material from the business world through reading quality newspapers and journals. Learners could collect key statistics on innovations over a recent time period and then share them with fellow learners. It would also be useful for learners to hear the views of those involved in government or in running businesses on government support for innovation in business. In outcome of learning 2, learners study the work of theorists investigating the somewhat mysterious processes of creativity in individuals. Traditional styles of delivery such as lectures and reading can be used for this content. This outcome of learning also includes a practical element whereby learners can experiment with using different techniques for developing creative ideas. The well-known methods given in the unit content can be used, however other less well-known methods could be tested by learners instead or as well as the methods given. Learners could be given problems relevant to their own lives. Books or websites based on developing creative thinking could also provide suitable exercises. A technique sometimes used is for learners to keep an innovation or creativity log throughout their programme of study. Outcome of learning 3 is about the theory relating to how innovation can be fostered or discouraged by the way the organisation is managed. The theory could be taught through lectures or through learners reading selected materials. The theory could be further explored through applying it to organisations with which learners are familiar and to case study material. Outcome of learning 4 is less abstract and more practical and learners will be applying the theory learnt in the other outcomes of learning and also revisiting learning from other units in the programme. Learners should have already studied stakeholders, marketing communications and project evaluation techniques so for these areas teaching should complement what has gone before and help learners to relate it to the management of the development of an innovative idea. Some techniques, such as the bubble diagrams, are specific to this unit but the factors used within it are common to many business studies units. Learners could be given opportunities to practise using all the techniques in small groups, using a case study or a hypothetical idea for the development of a service in their own institution. Outcome of learning 5 is practical rather than theoretical and focuses on the implementation of an innovative idea. Much of the content follows on from the theoretical content from the other outcomes of learning although some content relates to resistance to change which learners may need to explore through lectures Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 35

or reading before practising application of the principles to case studies. Analysis of a current campaign which supports a controversial change could provide an interesting way of delivering this part of the programme. Assessment guidance Assessment for this unit could be in the form of one large assignment covering all criteria or it could be split into two or perhaps three assessments. It is envisaged that outcomes of learning 4 and 5 would be assessed together and linked to outcome of learning two. The theme of this assignment would be the development and planning for the introduction of an innovative idea. Outcomes of learning 1 and 3 could be linked into an assignment based on a study of an organisation. In designing the assessments, consideration should be given to ensuring these learners can adequately research the organisation used for many of the outcomes of learning, especially 4 and 5. Learners will need to be able to fully understand factors in the internal operations of the business and its external environment. Learners who are in employment may have access to this information through their work roles. For other learners, assessments for this unit could be based on a period of work experience, or from an in-depth study of an organisation. Case-study material could be provided and then supplemented by learners own research. The learning institution could provide a context for an assessment whereby learners plan innovative ideas for tackling current challenges faced by different sections of the organisation. In this case, it is recommended that a different organisation is used for the other assignment in the unit so that learners have exposure to innovation in a commercial environment. It is unlikely that a fictitious context could provide enough detail to enable the learners to cover the criteria. There is a need to ensure that the assessment programme includes opportunities for learners to use the analytical tools and it may be that this is better done in groups. If group work is used for any of the criteria it is necessary to ensure that the guidance on the use of group work is followed. Evidence should be produced identifying that each learner has achieved each assessment criterion. Assessment outcomes for most of the assessment criteria are likely to be in the form of reports, plans and presentations. Suggested resources Books Ahmed P K and Shepherd C D Innovation Management: Context, Strategies, Systems and Processes (Financial Times/Prentice Hall, 2010) ISBN 978-0273683766 Drucker P F Innovation and Entrepreneurship (Butterworth-Heinemann, 2007) ISBN 978-0750685085 Hammer M and Champy J Reengineering the Corporation: A Manifesto for Business Revolution (Harper Paperbacks, 2004) ISBN 978-0060559533 Jones T Innovating at the Edge: How Organizations Evolve and Embed Innovation Capability (Butterworth-Heinemann, 2002) ISBN 978-0750655194 Kotler P, Armstrong G, Wong G and Saunders J Principles of Marketing, 5th Edition (Financial Times/Prentice Hall, 2008) ISBN 978-0273711568 Tidd J and Bessant J Managing Innovation: Integrating Technological, Market and Organizational Change, 4th Edition (John Wiley and Sons, 2009) ISBN 978-0470998106 36 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Journals British Journal of Management (John Wiley and Sons) Harvard Business Review (Harvard Business Publishing) Journal of Product Innovation Management (John Wiley and Sons) Financial Times (The Financial Times Ltd) Websites www.cambridgeaudits.com www.enchantedmind.com www.haygroup.com/uk www.managers.org.uk Cambridge Strategy Audits offers scoreable company self-audits on innovation and related topics A non-profit educational institution offering research findings in areas of creative leadership The Hay Group website provides materials on the business climate and encouraging innovation Chartered Management Institute searchable database which members can use to access Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 37

38 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit 4: Supply Chain Management Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20443E This unit is internally assessed Unit aim This unit aims to give the learner an understanding of why supply chains are important to organisations for gaining sustainable competitive advantage and success and the skills to apply strategic supply chain management issues and to assess the impact of technology on supply chains. Unit introduction The unit provides a comprehensive review of the constantly developing and changing area of supply chain management. The unit focuses on the fact that supply is a dynamic strategic process and not an administrative function. The unit begins by considering how the function and profile of supply chain management (SCM) within organisations has changed significantly. Different types of sourcing strategies are reviewed, as well as how organisations strategically select suppliers. The unit then introduces the strategic supply wheel model which was developed to explain the main principles and concepts of supply management. At the centre of the model is the development of supply policy and strategy. The model allows organisations to identify if supply and corporate strategies are aligned and helps determine the competencies and skills required for successful strategic supply. Building on the above, the unit examines how performance is measured in supply strategy, including associated costs as well as discussing how inter-business relationships are managed. The strategic issues involved in supply chain management are reviewed, these include environmental issues, the importance of supplier involvement in new product development and the special nature of public procurement. The unit then examines the important impact of technology on supply chain management. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 39

Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand the key supply decisions that have to be made in businesses 2 Understand how businesses develop supply strategy 3 Understand the role of performance management in developing supply strategy 4 Be able to apply strategic issues in supply chain management Assessment criteria 1.1 Analyse sourcing strategies that are used by businesses 1.2 Critically evaluate how businesses strategically select suppliers 2.1 Assess the importance of the strategic wheel in developing supply strategy 2.2 Analyse how supply strategies are aligned to corporate/organisational strategies 3.1 Compare the different types of performance measurement used in developing supply strategy 3.2 Assess the measurement of costs in developing supply strategy 3.3 Review how inter-business relationships are managed 4.1 Examine the environmental issues in supply chain management which affect a given business 4.2 Analyse the benefits of involving suppliers in new product development in a given business 4.3 Assess the special nature of public procurement in a given business 5 Be able to assess the impact of technology on supply chain management 5.1 Analyse how information technology improves communication between supply chain partners 5.2 Critically evaluate the advantages of different forms of electronic exchanges in supply chain management in a given business 40 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content 1 Understand the key supply decisions that have to be made in businesses Sourcing strategies: Kraljic s product and service positioning Porter s five forces impact on business supply structure and design Supplier selection: four stages of supplier selection 2 Understand how businesses develop supply strategy The strategic wheel: three basic approaches to strategic supply interrelationships between each of the strategic elements of an organisation Supply and corporate strategies: supply chain strategy supports and facilitates corporate strategy information sharing translation of competitive priorities into supply function objectives translating supply function objectives into supply chain practices 3 Understand the role of performance management in developing supply strategy Performance measurement: methods Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 41

The measurement of costs: cost benefit analysis price versus cost total cost of ownership purchasing activities contributing to total cost of ownership management of purchasing function delivery administration service costs communication costs price negotiations quality costs Inter-business relationships management: development of supply chain and relationship management Strategic Relationship Positioning Model (SRPM) 4 Be able to apply strategic issues in supply chain management Environmental issues: from outside and inside a business s internal and external sources Suppliers and new product development (NPD): current issues competitive advantage costs increasing product complexity reduced product life cycles managing technological change resources and knowledge required to innovate benefits of involvement Public procurement: public scrutiny of sourcing decisions no competitive markets in which to operate regulation EU procurement objectives 42 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

5 Be able to assess the impact of technology on supply chain management Information technology and communication: electronic data interchange (EDI) development of Open Systems Integration (OSI) internet technologies Electronic exchanges: marketplace in which goods and services are traded global, connecting buyers and sellers, auctions, VPNs, one to many, many to many, web marketplace, vortices, butterfly hubs advantages Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 43

Information for tutors Delivery guidance For outcome of learning 1, learners need to understand the key decisions that have to be made by supply chain managers which have a bearing on whether the organisation will be successful. The most important decision for any organisation is whether to make or buy what they need. Having decided that they may need to purchase, strategies need to be produced to identify where products can be sourced. Learners can be given case studies and asked to apply some of the tools and techniques which assist sourcing strategy decision making, e.g. Porter s five forces. Finally, learners need to consider the important aspect of supplier selection and the multitude of tests that can be applied to ensure the selection is correct. For outcome of learning 2, learners need to understand how organisations develop supply strategy. They should apply the strategic wheel to case study material to identify the strategic relationships between each of the strategic elements within an organisation. Building on this knowledge learners should be able to recognise the link between supply chain management and the corporate strategies that exist. Again, case studies and group work can help learners to understand these important links. Learners also need to appreciate that in developing a supply strategy the organisation needs to have appropriate competencies and skills within the organisation to enable supply chain objectives to be met. For outcome of learning 3, learners need to understand that in any strategic supply chain initiative must be performance measured using criteria such as costs, quality and supplier performance. Case studies and class discussions can help learners to gain an appreciation of the necessity of performance management, including the various methods of cost measurement. Finally, learners need to understand the importance of the management of inter-firm relationships in the development of supply strategy. A guest speaker from a business with well-developed supply chain management would be useful for delivering this part of the outcome of learning, covering relationship management and strategic collaboration. For outcome of learning 4, learners need to be made aware of some of the more important issues impacting on supply chain management. Class and small-group discussions can help learners identify the various internal and external environmental issues that are relevant, including customers, suppliers, regulatory authorities, employees and organisational departments. Learners also need to understand the benefit of involving suppliers in new product development, this can impact on issues such as quality and delivery frequency. The particular situation of supply chain management in the public sector must also be delivered and this could be taught by a public sector supply chain officer covering the regulations in place and the process of tendering. For outcome of learning 5, learners need to understand the impact of technology on supply chain management and in particular the role of information technology in improving communication throughout the supply chain. Learners also need to examine the important role of electronic exchanges in supply chain management. A class visit to a business with good supply chain management systems with appropriate technology would be very useful in delivering this part of the outcome of learning. It is advisable to teach the outcomes of learning in their outcome of learning order (1 to 5) as each outcome of learning builds on the knowledge of the previous one. 44 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Assessment guidance The preferred method of assessment for this unit is to have one full unit assignment allowing the learner to research aspects of supply chain management in their own organisation or another organisation that will allow them access. The assignment could if desired, be broken down into two, three or four or smaller assignments. The evidence could be in the form of a presentation or report covering the five outcomes of learning and all the assessment criteria. Suggested resources Books Chopra S and Meindl P Supply Chain Management: Strategy, Planning and Operation, 4th Edition (Pearson Education, 2009) ISBN 978-0136094517 Chaffey D E-Business and E-Commerce Management: Strategy, Implementation and Practice, 4th Edition (Financial Times/Prentice Hall, 2009) ISBN 978-0273719601 Christopher M Logistics and Supply Chain Management, 4th Edition (Financial Times/Prentice Hall, 2010) ISBN 978-0273731122 Harvard Business Review on Managing the Value Chain (Harvard Business School Press, 2000) ISBN 978-1578512348 Harvard Business Review on Supply Chain Management (Harvard Business School Press, 2006) ISBN 978-1422102794 Stadtler H and Kilger C Supply Chain Management and Advanced Planning: Concepts, Models, Software and Case Studies, 4th Edition (Springer, 2007) ISBN 978-3540745112 Turban E, King D, Lee J K, Liang T P and Turban D Electronic Commerce 2010: A Managerial Perspective, 6th Edition (Pearson Education, 2009) ISBN 978-0137034659 Journals European Journal of Purchasing and Supply Management (Elsevier) The Journal of Supply Chain Management (Institute for Supply Management) Supply Chain Management: An International Journal (Emerald) Websites www.cips.org www.iwvaluechain.com www.logistics.about.com/mbody The Chartered Institute of Purchasing and Supply Industry Week s The Value Chain News about logistics and the supply chain Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 45

46 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit 5: Management and Leadership Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20444E This unit is internally assessed Unit aim This unit aims to give the learner an understanding of the links between leadership and management. The unit also gives learners the skills to be able to apply this understanding in an organisational context. Unit introduction There is debate about whether the use of these terms should be restricted or used interchangeably. In this unit, learners will have the opportunity to assess the merits of this debate. Learners will gain an insight into the current thinking on leadership from an organisational perspective and they will examine the links between leadership and management. Learners will have the opportunity to consider current theories of leadership and management and investigate how the can be applied in an organisational context. This will enable learners to compare and evaluate the usefulness of these theories as they seek to apply them to the specific leadership requirements in an organisation. All organisations need leaders at every level of the business. However, the leadership qualities that are required to make a good leader can vary in different organisations, at different levels of the organisation, in teams and in different organisational situations. Learners will look at the importance of leadership qualities and they will explore how they link to leadership behaviour. The unit will enable learners to understand the impact of management and leadership styles on organisational decisions in differing situations, through examining the skills and styles of successful leaders. Applying management and leadership theories and models to specific situations will enable learners to assess the impact that different leadership styles can have on organisational direction. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 47

Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand the relationship between management and leadership 2 Understand the features that underpin effective leadership Assessment criteria 1.1 Discuss the similarities between management and leadership 1.2 Assess the merits of the argument that management is different from leadership 1.3 Evaluate the impact of both management and leadership styles on staff in organisations 2.1 Assess the relationship between leadership style and leadership behaviour 2.2 Explain how leadership behaviour is linked with leadership qualities in effective leaders 2.3 Evaluate the importance of context on leadership styles and qualities 3 Be able to apply theories of management and leadership in organisational contexts 4 Be able to advise on the management and leadership skills required for selected roles in an organisation 3.1 Examine the argument that leaders are born and not made 3.2 Critically assess the impact of leadership in a selected organisation using appropriate theories 3.3 Review the impact of selected theories of management and leadership on organisational direction of a selected organisation 4.1 Propose methods to identify the skills required for leadership of a given role in a selected organisation 4.2 Recommend a style of leadership that is suitable to the role and appropriate to the culture in a selected organisation 4.3 Make justified evaluations of recommended leadership skills required for a selected role in an organisation 48 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content 1 Understand the relationship between management and leadership Management and leadership: definitions of management perspectives on leadership Management and leadership style: autocratic, charismatic, persuasive, participative influences on style emotional leadership styles differentiation between management and leadership styles in given situations Blake and Mouton s managerial/leadership grid 2 Understand the features that underpin effective leadership Leadership behaviour: theories differences between management and leadership in terms of behaviours Leadership qualities: honesty, enthusiasm, confidence, charisma, intelligence, knowledgeable, able, good communicator, respect, compassion, sensitivity, strong values Context: organisational context situational context 3 Be able to apply theories of management and leadership in organisational contexts Theories current theories: types of power and authority great man theory Universal theories: difference between transformational and transactional leadership charismatic leadership leaders who fulfil these definitions Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 49

Situational theories: Adair s Action Centred Leadership model Tannenbaum and Schmidt s continuum of leadership behaviour Handy s best-fit approach Hersey and Blanchard s leadership styles difference between situational and contingency theory, e.g. Fiedler Impact of leadership: efficiency, reliability, innovation, adaptation and human resources in the organisation and sub-units, vision, cultural issues levels of leadership size and stage of development of organisation, e.g. business start-up versus established business turnaround leadership 4 Be able to advise on the management and leadership skills required for selected roles in an organisation Development of management and leadership skills: different methods of developing leaders through formal learning different on the job methods benefits of self-help activities developing leaders versus recruiting as needed creating a learning climate model for assessing future leadership requirements, e.g. Council for Excellence in Leadership and Management diagnostic tools leadership competencies 50 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Information for tutors Delivery guidance A good starting point for outcome of learning 1 is a whole-class discussion. For example, the tutor could ask if prominent figures are leaders or managers. This will almost certainly generate some lively debate of delivery of this outcome of learning. All learners will have had some experience of working with managers and leaders in social activities and/or in the workplace. Some learners may hold these positions in the workplace or in other situations. Learners can draw on their own experiences by working in small groups to discuss the similarities and differences between leadership and management. Some tutor input will be required to develop understanding of leadership. Learners could draw on their own experiences to identify situations where these styles have been demonstrated. This could be followed by case studies with learners working in small groups to discuss the management and leadership styles in each of the situations. A good way to conclude outcome of learning 1 is to return to the opening discussion on the two prominent figures. This could be an open discussion or it could be conducted in pairs or small groups. Learners could be asked if their initial perceptions about leadership and management have changed and to feedback to the class on their current views. Outcome of learning 2 will require some input from the tutor on leadership behaviour and leadership qualities. This can be approached by using topical examples of situations where leadership qualities and behaviour are in the public eye. A good starting point here is to take some examples of current prominent leaders. Video clips may be available if the leaders have appeared on television. Learners can then be put into small groups with a list of agreed qualities and behaviours and be asked to score the leaders against these lists. They can also be asked to compare the strengths and weaknesses of the leaders in terms of their qualities and behaviour. Learners can be introduced to the importance of context to the leadership styles used through the use of case studies. Historical and contemporary examples can be equally effective here. Learners could work in pairs to discuss the leadership style of leaders such as Winston Churchill in the contrasting contexts of war and peace situations. They could look at the leadership style of a contemporary industry leader such as Willie Walsh in the context of the British Airways cabin crew dispute. Learners could feed back their conclusions to the group. For outcome of learning 3, there will need to be tutor input on the theories of leadership and management. There are many theories of management and leadership which have evolved and developed over a long period. There can be a great deal of overlap between them. Tutors could give an overview of the development of the different approaches as an introduction. This could be followed by a more detailed look at selective theories from the main schools of thought. Tutors could use the theories to lead group discussions on leaders who are facing the challenges raised by current issues. For outcome of learning 4, tutors will need to provide learners with guidance on the methods of identifying leadership skills. A useful way of consolidating learning is to ask learners to apply this and to identify a given role in their own organisation. It could be their own role or it could be the role of a superior or a subordinate provided that they are in a leadership or management position in the organisation. Learners could work in pairs or in small groups to discuss the methods that they would use to identify the leadership skills required for these roles. They could also identify which methods would be the most appropriate in different circumstances and different organisational contexts. The tutor could use the results of this exercise by asking learners to apply their understanding of leadership styles covered in outcome of Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 51

learning 1. They could work in the same groups to discuss their choice of leadership style for their selected roles. Assessment guidance The learner must apply their understanding of management and leadership to a given role either within their own organisation or a real or simulated organisation in a case study. Suggested resources Books Adair J Effective Leadership: How to be a Successful Leader (Pan, 2009) ISBN 978-0330504195 Adair J How to Grow Leaders: The Seven Key Principles of Effective Leadership Development (Kogan Page, 2009) ISBN 978-0749454807 Anderson M The Leadership Book (Pearson, 2010) ISBN 978-0273732044 Dalton K Leadership and Management Development: Developing Tomorrow s Managers (Pearson, 2010) ISBN 978-0273704706 Gold J, Thorpe R and Mumford A Leadership and Management Development (CIPD, 2010) ISBN 978-1843982449 Kouzes J M and Posner B Z The Leadership Challenge, 4th Edition (Jossey-Bass, (2008) ISBN 978-0787984922 Mullins L J Management and Organisational Behaviour, 9th Edition (Financial Times/Prentice Hall, 2010) ISBN 978-0273724087 Radcliffe S Leadership: Plain and Simple (Pearson, 2009) ISBN 978-0273730897 Journals Management Today (Haymarket Business Media) People Management (Chartered Institute of Personnel and Development) Professional Manager (Chartered Management Institute) Training Journal (www.trainingjournal.com) 52 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Websites www.cipd.co.uk www.leadershipnow.com www.managementhelp.org www.managers.org.uk www.peterhoney.com www.businessballs.com www.teamtechnology.co.uk Chartered Institute of Personnel and Development Articles and blogs on leadership challenges Free management library for articles and blogs on leadership Chartered Management Institute searchable database that members can use to access journal articles and other publications Questionnaires and trainer packs Free management library with articles Case studies/articles on leadership and management Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 53

54 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit 6: Entrepreneurship in Business Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20445E This unit is internally assessed Unit aim The aim of this unit is to provide an understanding of successful entrepreneurship and the need for it in today's economy. The unit also provides the skills to plan a viable entrepreneurial business idea and strategies for its growth. Unit introduction Across the world, entrepreneurial ventures are creating and bringing to market new products and services, and this has an important impact on the pace of social and economic change. The unit introduces learners to the nature of entrepreneurship and then considers how the entrepreneurial process is used to exploit business opportunities in established organisations, and the potential and challenges this entrepreneurship brings. Developing a strategy to provide vision and direction for the venture is essential for success and learners will examine ways that entrepreneurs develop a business idea, and through using market research methods, learners will have the opportunity to develop a business plan, taking account of any legal, financial and ethical issues. Growth of the business venture needs to be approached from a number of perspectives and in this unit learners will examine the issues affecting growth in the key areas such as finance, marketing, resources and personal skills development. On completion of the unit learners will have an understanding of the characteristics of successful entrepreneurship and how strategies can be planned to develop business ventures. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 55

Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand the scope for entrepreneurship in established organisations in today s economy 2 Understand how to develop successful entrepreneurial business ideas Assessment criteria 1.1 Discuss how entrepreneurship can be encouraged within organisations 1.2 Analyse what may limit entrepreneurship within organisations 1.3 Evaluate how the entrepreneurial process contributes to the economy 2.1 Explain how successful business entrepreneurs develop business ideas 2.2 Explain the purpose of a feasibility analysis when developing business ideas 2.3 Critically evaluate methods for exploring opportunities and generating business ideas 3 Be able to plan a strategy for a viable entrepreneurial business idea 4 Be able to plan the future growth of a viable entrepreneurial business idea 3.1 Develop a strategy for a viable entrepreneurial business idea 3.2 Conduct market research to inform a business plan for a viable business idea 3.3 Prepare a detailed business plan for a viable business idea, taking account of any current legal, ethical and financial implications 4.1 Assess own entrepreneurial skills and characteristics to meet future requirements of a viable business idea 4.2 Analyse potential barriers to growth of a viable entrepreneurial business idea 4.3 Recommend alternative strategies for the growth of a viable business idea 56 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content 1 Understand the scope for entrepreneurship in established organisations in today s economy Encouraging entrepreneurship: definition of entrepreneur and entrepreneurship reasons for becoming entrepreneurs definition of corporate entrepreneurship or intrapreneurship benefits for intrapreneurial companies culture of corporate innovation levels of intrapreneurial activity how organisations can encourage advantages for self and others Limitations for entrepreneurship in established organisations: resistance questioning change existing managers comfort zone decision-making control sufficient rewards for the effective intrapreneur Entrepreneurial process contribution to the economy: stages of process impact on both the economy and society 2 Understand how to develop successful entrepreneurial business ideas Generating and developing ideas and opportunities: methods difference between an opportunity and an idea approaches used environmental trends creative process unique selling points protecting ideas Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 57

Feasibility analysis: definition importance analysis of industry/market analysis of product/service organisational analysis primary and secondary research concept test industry attractiveness obstacles to overcome 3 Be able to plan a strategy for a viable entrepreneurial business idea Developing a strategy: articulating the vision achieving aims focus taking calculated risks Market research: purpose primary research methods secondary research Business plan: purpose full analysis of the situation medium for communication with stakeholders objectives of the business summary of the proposition physical and financial resources marketing and promotion Risk management: assessing implications legal requirements and constraints ethical considerations financial risks 58 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

4 Be able to plan the future growth of a viable entrepreneurial business idea Assessing own entrepreneurial skills: skills audit development planning setting goals producing development plan Barriers to growth: expansion strategy consistent with the capabilities of the venture resources risk overcoming barriers to growth procurement availability of essential supplies availability of skilled workforce Strategies for growth: internal growth external growth franchising advantages and disadvantages of internal and external growth strategies Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 59

Information for tutors Delivery guidance This unit will help learners to develop an understanding of the characteristics of successful entrepreneurship and the need for it in today's economy, together with the skills to create a business plan for an entrepreneurial business idea and develop strategies for its growth. It is recommended that centres use a wide range of teaching and learning methods in order for learners to meet all the outcomes of learning in the unit. These could include lectures, seminars, workshops, project work, individual and group assessments. The teaching/learning methods used should draw on material from industry wherever possible, also learners own experiences. This will help learners to develop the transferable skills necessary in a changing and dynamic environment. Learners will develop skills to plan a strategy for future growth of a viable business idea. To introduce the unit learners could discuss the creativity and innovation of emerging entrepreneurs, identifying the most common characteristics and qualities. Learners should be encouraged to talk to local entrepreneurs about their experiences, so that they can understand the steps of the entrepreneurial process, and appreciate the contribution of entrepreneurial firms to the economy s strength and stability. There are many misconceptions concerning who entrepreneurs are and what motivates them to launch firms and develop their ideas, so learners should explore some of the common myths and the realities. For outcome of learning 1, the potential and role of entrepreneurship as change master in established organisations intrapreneurship can be investigated through examining the factors of successful ventures of intrapreneurial companies. For example how 3M encourages internal competition and duplication of resources whilst most efficient companies try to eliminate them. Learners need to understand that, although intrapreneurism exploits new opportunities and innovations whilst reducing risk, it does present some challenges for the intrapreneur and the organisation, and case studies should be used to illustrate this. For outcome of learning 2, a guest speaker from a decision-maker in business, preferably an entrepreneur or someone involved in developing new business ideas at a large company, could talk about how they assess ideas and the chances of their success. Learners should have the opportunity to practise application of different techniques for generating ideas through examining as many business ideas as possible. They could then apply the four areas of feasibility analysis to these ideas to determine the most viable. Learners need to understand that not all good ideas are viable business opportunities, and case study examples can be used to illustrate the importance of feasibility analysis in developing successful business ideas. To analyse the industry/market, learners could select an industry, e.g. the soft drink beverage industry, and work through Porter s five forces model in class, discussing how these five factors assess the attractiveness of the industry. For outcome of learning 3, the importance of producing a well-defined strategy can be illustrated through the tutor providing examples of completed and effective business plans for learners to examine. A powerful, motivating personal vision is one of the defining characteristics of entrepreneurial management. Guest speakers could be used to explain how they articulate this vision to give the venture a sense of direction and purpose. Learners need to understand the difference between primary and secondary research and questionnaires can be devised, tested and evaluated in the learner group. Case 60 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

study material can be used to illustrate the differences between qualitative and quantitative data, and learners should appreciate the difficulties for an entrepreneur in collecting relevant information in order to inform the business plan. Finally, in order to plan the future growth of a viable business idea for outcome of learning 4, learners need to assess their own entrepreneurial skills and attributes against the needs of the business idea. A guest speaker, preferably a human resources professional, could provide guidance and advice on the usefulness of psychometric tests and how they appraise the results. Learners can access psychometric tests on the internet some are free of charge, some require a fee. By the time learners study outcome of learning 4 they should have examined a range of different strategies for growth from a wide range of case studies. This will help them to consolidate their learning in order to recommend the suitability of alternative strategies for growth of a viable business idea. Assessment guidance Assessment for this unit should be evidenced through research carried out on entrepreneurial organisations and individual entrepreneurs, using either a selected organisation or a case study approach. Where possible, learners should be encouraged to use examples from their own organisations. If case studies are used they must be sufficiently detailed to enable learners to apply their evaluative skills. A range of assessment methods can be used, for example presentations, management reports, essays, or professional discussion. All evidence presented must support achievement of the assessment criteria. One assignment could cover the evidence requirements for this unit, broken down into four separate tasks, although centres should write their own assignments to meet local needs. The learner could act as a business consultant advising on entrepreneurship, the need for it in today's economy and the skills necessary in order to plan an entrepreneurial business idea and strategies for its growth. Learners could analyse the characteristics of successful entrepreneurs and how this dynamism is exploited in an established business, and create a plan for a viable business idea, ensuring that strategies for growth are considered. For example, outcomes of learning 1 and 2 could be addressed by one assignment task on the nature of entrepreneurship and intrapreneurship. The research on the process for generating business ideas for outcome of learning 2 could be developed into the plan for outcome of learning 3. The planning for growth for outcome of learning 4 could be evidenced through a separate task whereby learners assess the skills and strategies needed to achieve growth. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 61

Suggested resources Books Barringer B and Ireland R D Entrepreneurship Successfully Launching New Ventures (Pearson 3rd Edition, 2010) ISBN 978-0138158088 Robson C Confessions of an Entrepreneur The Highs and Lows of Starting Up (Pearson Education, 2010) ISBN 978-0273721482 Wickham P A Strategic Entrepreneurship (FT Prentice Hall 4th Edition, 2006) ISBN 978-0273706427 Journals International Journal of Gender and Entrepreneurship (Emerald EarlyCite) International and Entrepreneurship Management Journal (Springer) The Economist Newspapers The Financial Times Websites www.bookbutler.co.uk www.businessballs.com www.businesslink.gov.uk www.fsb.org.uk www.peterjones.tv www.sfedi.co.uk Database and book price comparison site Business resources including a template business plan Business link site for guidance on skills, planning and legislation for entrpreneurs Federation of Small Businesses Peter Jones website and resources UK Sector Skills Body for Enterprise 62 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit 7: Change Management Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20446E This unit is internally assessed Unit aim This unit aims to give learner understanding of the management of change in organisations and the skills to engage in the process of proposing change in an organisational context. Unit introduction All organisations are in a state of flux, changing their focuses, expanding or contracting their activities and rethinking their products and services. Many established organisations often look nothing like they did five years ago and it is highly likely that over the next five years, organisations will not look as they do today. Learners will understand that organisational change is often provoked by some major external driving force such as substantial cuts in funding or competition from emerging nations such as China or India. Typically, organisations must undertake organisation-wide change to evolve to a different level in their life cycle. Learners will discover that successful organisations respond intelligently to regional, national and global factors which precipitate change. Economic climates, political trends, changes in consumer demands, management policy or structure, employment levels and financial resources all these elements are constantly at play. Although the unit is underpinned by an exploration of the relevant theoretical models, the intention is that learners will apply their learning to specific organisations. This will then enable them to identify issues that require change and to use appropriate tools and techniques to develop a model for change in an organisation. Learners will understand that managers have to be able to introduce and manage change to ensure that the organisational objectives of change are met. They will learn that managers have to ensure that they gain the commitment of their people and that this may involve managing resistance to change, both during and after implementation. Often, at the same time, they also have to ensure that business continues as usual. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 63

Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand the background to change management in organisations 2 Understand issues relating to change in organisations Assessment criteria 1.1 Discuss models of change management 1.2 Evaluate the relevance of models of change management to selected organisations in the current economy 2.1 Examine the need for change in an organisation 2.2 Critically evaluate factors that are driving the need for change in selected organisations 2.3 Explain issues which hinder the process of change 3 Be able to present proposals for change in an organisation 3.1 Identify an area for change in an organisation 3.2 Develop an appropriate model for change in an organisation 3.3 Plan a model for implementing change in an organisation 3.4 Examine the resource requirements for implementing change in an organisation 3.5 Present a proposal for change to relevant stakeholders in an organisation 4 Be able to prepare to manage the change process 4.1 Develop appropriate measures to monitor and evaluate the progress of change in an organisation 4.2 Create a strategy for managing resistance to change in an organisation 64 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content 1 Understand the background to change management in organisations Models: Kotter Kübler-Ross Prosci ADKAR (awareness, desire, knowledge, ability, reinforcement) model McKinsey s 7S (strategy, structure, systems, shared values, skills, style, staff) framework Kurt Lewin s change management model Burke-Litwin s causal change model action research gap analysis 2 Understand issues relating to change in organisations Need for change: reasons changes in markets, economic downturns, customer expectations, competitive edge, budget pressures, legislation, size, demographics, mergers, acquisitions, change in mission, restructuring operations, new technologies, major collaborations, rightsizing, new programmes such as Total Quality Management (TQM), re-engineering Factors driving change: change drivers economics political environmental financial new/loss of markets technological advances new chief executive funding cuts be competitive mergers acquisitions Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 65

Factors hindering change: structural inertia existing power structures employee attitudes communication barriers embedded values exclusion from the change process process failures 3 Be able to present proposals for change in an organisation Areas for change: restructuring functional areas organisation structures technological change change of mission, downsizing, rightsizing Models for change: planned versus unplanned incremental/slow/gradual change/transformational/radical/fundamental/easy/difficult change light/ medium/ complex models project management processes Resource requirements: human resources, e.g. restructuring, interviewing and hiring, redundancies, training physical resources, e.g. equipment, vehicles, buildings financial resources, e.g. costs of training, redundancy costs, relocation costs new building, refurbishment of existing buildings 66 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

4 Be able to prepare to manage the change process Measures to monitor and evaluate change: action planning flow diagrams task analysis, standards performance tolerance agreeing timescales setting and measuring outcomes measuring input/output feedback processes/systems control loops target revision regular and exception reporting surveys and interviews iterative processes formal and informal knowledge channels quantitative and qualitative measures 80/20 rule disseminating awareness sustainability records/data strengths and weaknesses indicators of efficiency and effectiveness qualitative and quantitative analysis review and evaluate progress make recommendations Strategies for overcoming resistance to change: education and communication participation and involvement negotiation and agreement manipulation and co-option implicit and explicit coercion push-pull principle exchange principle Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 67

Information for tutors Delivery guidance Outcome of learning 1 provides tutors with an opportunity to draw on the experiences of learners in their own organisations. Learners could be encouraged to discuss and share their experiences of change within their own workplaces. It is likely that all employed learners will have different experiences of change in their workplace. They could be encouraged to discuss the reasons why change was seen to be necessary in their organisations and to compare the key drivers of that change. Learners will have different experiences of factors that may have hindered the change in their organisations and it will be useful for the tutor to draw out these factors in discussions. Tutors could also draw on topical examples of change. For example, the ways in which local authorities are considering changes to their operations following the cuts in public expenditure by the current government. Having considered the underlying background to change, outcome of learning 2 provides tutors with an opportunity to introduce learners to theoretical models of change. There is likely to be some lecturing or other form of presentation and the learning from this can be consolidated through small group discussions based on analysis of case studies or on how the material applies to organisations familiar to the students. Learners could conduct their own research into the models and identify how these could be appropriate to organisations in the current economic climate. Topical case studies are a useful method of examining the different ways in which organisations approach the need to change. For example, the Legal Services Commission s strategy focused on changing work practices and reducing wasteful expenditure. Tutors could use a case study such as this to examine the process of change in an organisation and to link the application back to theoretical models. Outcome of learning 3 focuses on learners being able to present proposals for change to relevant stakeholders in an organisation. Learners should discuss their proposals with their organisation and with the tutor before embarking on their research. When covering outcome of learning 3, learners could be encouraged as much as possible to apply the theoretical models to their selected organisation. Small group discussions can be a valuable vehicle for testing ideas as their proposals begin to develop. Tutors can lead group discussions on the resource implications of change using case studies to illustrate this. Learners can present their findings to relevant stakeholders. A good starting point for outcome of learning 4 is the experience of learners themselves. It is likely that they will all have experienced change either in a workplace or in a social situation. Small group discussions are a good method of drawing out these experiences and of linking them to the issues surrounding resistance to change in organisations. Tutor input would be required on ways to monitor and evaluate change. This could be accompanied by case studies on organisations that have experienced significant change such as Corus Steel or Unison. Tutors could use case studies to draw out comparisons about the ways in which the organisations have monitored and evaluated the change process and outcomes. 68 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Assessment guidance For AC1.1, learners will need to show that they understand the different approaches to models of change management. They need to discuss a minimum of three established models, highlighting the differences in approach. For AC1.2, learners will need to show that they are able to evaluate the usefulness of the models of change management in organisations of their own choice. They need to use examples from organisations to explain how the model is appropriate in the context of the selected organisation. For AC2.1, learners will have identified the need for change from their research of their selected organisation. They will need to provide reasons why the change is required and this will need to be linked to their research on the organisation and its operations. For AC2.2, it is important that learners show an understanding of the factors that can hinder change in organisations. Showing an understanding, needs to be more than just a list of factors that can hinder the change process. Learners need to demonstrate that they can link the factors to organisational contexts and explain how these factors have hindered the process of change in organisations. For AC2.3, learners need to demonstrate that they have researched the organisations and that they are able to assess the factors in the organisations that are hindering the process of change. For AC3.1, learners need to research information from a selected organisation and identify an area for change. It should be realistic and it should be agreed in the organisation and with the tutor before the learner proceeds. For AC3.2 and 3.3, the learner needs to use the results of their research to develop a model for change in the area of the organisation which has been identified as an area that requires change. It is expected that learners will apply their knowledge from AC 1.1 when developing their model. Learners will then need to plan how the model would be utilised in the organisation. For AC3.4 and 3.5, learners will need to present their proposals to a group of relevant stakeholders. This could be presented in a number of ways including a PowerPoint presentation or a briefing session with handouts. It is expected that the presentation will include a session where stakeholders will have the opportunity to probe and ask questions. For AC4.1, learners will need to develop appropriate measures to monitor and evaluate the progress of change in an organisation. This will need to be more than just a list of general measures. The measures will need to be practical, workable and appropriate to the organisational context. For AC4.2, learners need to create a strategy for managing resistance to change. It needs to address the issues and provide a workable approach to overcome the resistance to change. The strategy will need to show awareness that resistance to change can come from all levels and all sections of an organisation. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 69

Suggested resources Books Blake I and Bush C Project Managing Change: Practical Tools and Techniques to Make Change Happen (Financial Times/Prentice Hall, 2008) ISBN 978-0273720454 Cameron E Making Sense of Change Management, 2nd Edition (Kogan Page, 2004) ISBN 978-0749453107 Carnall C Managing Change in Organizations, 5th Edition (Financial Times/Prentice Hall, 2007) ISBN 978-0273704140 Diamond M A and Allcorn S Private Selves in Public Organizations: The Psychodynamics of Organizational Diagnosis and Change (Palgrave Macmillan, 2009) ISBN 978-0230613096 Dunphy D, Griffiths A and Benn S Organizational Change for Corporate Sustainability (Routledge, 2007) ISBN 978-0415393300 Fullan M Leading in a Culture of Change (Jossey-Bass, 2007) ISBN 978-0787987664 Green M Change Management Masterclass (Kogan Page, 2007) ISBN 978-0749445072 Helms-Mills J, Dye K and Mills A J Understanding Organizational Change (Routledge, 2008) ISBN 978-0415355773 Herold D M and Fedor D B Change the Way You Lead Change (Stanford University Press, 2008) ISBN 978-0804758758 Kehoe D Leading and Managing Change (McGraw-Hill Professional, 2007) ISBN 978-0070137882 Leban B Managing Organizational Change, 2nd Edition (John Wiley and Sons, 2007) ISBN 978-0470897164 Lewis S, Passmore J and Cantore S Appreciative Inquiry for Change Management (Kogan Page, 2007) ISBN 978-0749450717 Nelson S Implementing for Results (ALA Editions, 2009) ISBN 978-0838935798 Stewart Black J and Gregersen H B It Starts with One: Changing Individuals Changes Organizations (Pearson Education/Wharton School Publishing, 2008) ISBN 978-0132319843 70 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Journals Academy of Management Journal (Academy of Management) British Journal of Management (John Wiley and Sons) California Management Review (University of California, Berkeley) European Management Journal (Elsevier) Harvard Business Review (Harvard Business Publishing) Journal of General Management (Braybrooke Press Ltd) Journal of Management Studies (John Wiley and Sons) Management Today (Haymarket Business Media) MIT Sloan Management Review (Massachusetts Institute of Technology) Websites www.businessballs.com www.changingminds.org www.managementhelp.org www.themanager.org www.mindtools.com www.12manage.com Change management articles and links Useful articles on change management by leading theorists Articles on strategic change and further links The 7s model of change Lewin s change management model Articles on the framework for change Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 71

72 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit 8: Contemporary Issues in Business Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20448E This unit is internally assessed Unit aim This unit aims to give the learner understanding of contemporary issues in business resulting from changes in the business environment, together with the skills to apply this understanding in an organisational context. Unit introduction The contemporary issues in engineering result from the ever-changing business environment. All organisations, whatever their size and whether in the public or private sector, operate in a constantly changing environment. Within this change, organisations have the opportunity to develop and grow. This unit explores the issues and the resultant skills needed to work effectively in this changing environment. Organisations need to be concerned with the social, cultural and moral issues that affect their business activities and in this unit learners will examine the implications of this behaviour for an engineering organisation and its stakeholders. Taking an ethical stance on topical issues such as whistleblowing, work-life balance and using social networking as a business communication tool are all issues that learners will investigate in this unit. Learners will understand that key aspects of the business environment overlap and interlink and that any changes cannot be neatly fitted into one specific area. This unit will enable learners to appreciate the importance of understanding an organisation s environment in order to assure business success by being able to react to and anticipate any changes that might affect it. Finally, learners will assess how changes in the environment impact on business skills requirements. They will investigate what business skills they need and the communication requirements as a result of changes to the environment. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 73

Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand the social, cultural and moral issues that affect organisations in the current business environment 2 Understand the ethical issues that affect organisations in the current business environment 3 Be able to evaluate current ethical issues in a business 4 Be able to assess how changes in the environment are impacting on business skills requirements Assessment criteria 1.1 Explain ways in which organisations can improve workplace welfare 1.2 Assess approaches used by organisations to the management of diversity 1.3 Evaluate the impact on stakeholders of the social, cultural and moral issues facing a selected organisation 2.1 Explain the ethical issues businesses should consider in the current business environment 2.2 Evaluate the implications of ethical behaviour on the stakeholders and the business 3.1 Research a current ethical issue which is affecting a selected organisation 3.2 Propose ways in which an organisation could improve the ethics of their operations 4.1 Examine the drivers for change affecting required business skills 4.2 Report on the impact of changes on business skill requirements in a selected organisation 4.3 Plan to improve communication skills requirements 74 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content 1 Understand the social, cultural and moral issues that affect organisations in the current business environment Social, cultural and moral issues: equal opportunities, diversity disability discrimination racism harassment bullying whistleblowing privacy confidentiality (up-to-date legislation covering these issues must be used) workforce profiling dignity in the workplace multi-culturalism, stereotyping labelling prejudice, glass ceilings human rights moral imperatives value rigidity empowerment management styles work-life balance childcare provision professional development employee participation Implications: adapting business behaviour influence of stakeholders and pressure groups impact on competitiveness reputation public image ethical trade value-added complying with relevant legislation and codes of practice Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 75

2 Understand the ethical issues that affect organisations in the current business environment Ethical issues: corporate governance corporate social responsibility environment sustainability human rights corruption trading fairly legal and regulatory compliance business practices working conditions individual ethical responsibilities stakeholders interests 3 Be able to evaluate current ethical issues in a business Issues: ethical issues, e.g. corporate social responsibility, globalisation, cultural imperialism, ecology, environment, fair trade, corruption, child labour, carbon footprint, sources of timber, outsourcing, personal attitudes, whistleblowing, contribution of business to the community, ethics in sales and marketing, product placement, green washing, ethics in intellectual property (software piracy, counterfeiting, peer-to-peer file sharing) Implications: responding to ethical pressures; implementing ethical practices global, e.g. environment corporate, e.g. legal and regulatory compliance, policies and practices individual (employee, consumer) 4 Be able to assess how changes in the environment are impacting on business skills requirements Drivers for change: drivers, e.g. technology, globalisation, information need for instant information current business and economic climate political trends 76 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Business skills: cross-cultural skills collaborative working management style customer service team development social and interpersonal skills entrepreneurial skills online and direct communication processes social networking impact of technology on interpersonal skills communication etiquettes Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 77

Information for tutors Delivery guidance The approach to delivery should provide a theoretical underpinning and draw from current news media or professional journals. An active learning environment should be provided in which learners are encouraged to explore the implications of the contemporary issues raised in this unit. Activities should be designed to encourage learners to develop the ability to evaluate issues from different viewpoints. The delivery of outcome of learning 1 could begin with a group exercise where learners discuss how to improve workplace welfare. Learners should be encouraged to draw on their own experiences of work and they could record their discussions on paper that is posted around the classroom to enable other learners to share their thoughts. The tutor could then use this work to conduct a whole-class discussion on the implications of any recommendations on organisations and on individuals. Other useful classroom activities include learners using the internet to research examples of good and bad practice relating to the social, cultural and moral issues raised. It is important that the tutor thoroughly examines each of the social, cultural and moral issues affecting organisations and provides up-to-date information on relevant legislation. Where possible, tutors should bring in current examples from organisations. For outcome of learning 2, it is important that the tutor provides a theoretical underpinning of the ethical issues raised, as well as drawing on current ethical issues from news media. It would be a useful exercise to look at leading examples of ethical business and explore the implications on stakeholders and the organisation. For outcome of learning 3, learners will build on what they have already studied about ethical issues by exploring the impact of ethical issues on selected organisations. Learners could be asked to lead the delivery of this outcome of learning by individually selecting a different ethical issue and exploring how it is affecting a selected business. Learners could then share their findings with the rest of the class. This activity could contribute towards their assessment. In outcome of learning 4, learners will study drivers for change and how these drivers impact on business skills requirements. It should be possible to build on learners existing knowledge of changes in the environment and the tutor could conduct a tutor-led discussion on the impact of these changes on work skills. Looking at some current, well-selected examples from business that illustrate this process would be beneficial. It may be an interesting exercise for learners to explore their own work skills and assess whether they need to plan to improve their skills based on changes in the environment. In doing this the tutor could provide a workshop-style session where learners take part in a carousel of activities designed to update their work skills based on the changing environment. 78 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Assessment guidance The assessments need to be based on carefully selected and well-developed case studies or on real organisation(s). The assessment can be designed to direct learners to find their own organisations or learners can be given suitable real organisations. If learners are employed they may be able to use their own organisations for some of the assessment criteria. Where possible, an organisation can be used for more than one or all of the outcomes of learning but it is equally acceptable to use a different organisation for each outcome of learning. For outcomes of learning 1 and 2 learners could be given a scenario where they have to provide an information pack for organisations to help them understand current social, cultural, moral and ethical issues affecting organisations. Learners need to provide enough detail with required analysis and evaluation to show that they have met the assessment criteria. A number of tasks are needed to ensure that learners have met the assessment criteria and tasks should direct learners to provide an explanation of ways in which organisations can improve workplace welfare and an assessment of approaches used by organisations to manage diversity and ethical issues in the current business environment. Learners also need to select an organisation to use to evaluate the impact of social, cultural and moral issues on stakeholders and the impact of ethical behaviour on stakeholders and the organisation. The organisation used could be the same one that the information pack is directed towards or the learner could bring in other organisations. For outcome of learning 3 learners could produce a report on the findings of their own research into how one current ethical issue is affecting a selected organisation. It is likely that the organisation selected will be one that has received negative media attention for its business ethics. The report should include their own proposals about how the organisation could improve the ethics of their operations. For outcome of learning 4, learners could be given a made-up scenario where they have been asked to provide training for their colleagues of a selected organisation about how changes in the environment impact on business skills requirements. This could involve learners producing a presentation where they examine, in general, how drivers for change are affecting required business skills, before exploring how these drivers have brought about change in the business skill requirements in a selected organisation. Finally, learners need to put together a plan to help their colleagues to improve communication skills in a selected organisation. Suggested resources Books Crane A and Matten D Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization (Oxford University Press, 2006) ISBN 978-0199284993 Kotler P and Lee N Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause (John Wiley and Sons, 2005) ISBN 978-0471476115 Mallin C Corporate Governance (Oxford University Press, 2009) ISBN 978-0199566457 Solomon J Corporate Governance and Accountability (John Wiley and Sons, 2010) ISBN 978-0470695098 Visser W, Matten D, Pohl M and Tolhurst N The A to Z of Corporate Social Responsibility (John Wiley and Sons, 2010) ISBN 978-0470686508 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 79

Journals Management Today (Haymarket Business Publications) Professional Manager (Chartered Management Institute) The Economist (The Economist Group) has articles on corporate social responsibility from time to time. The Times (Times Newspapers Ltd) has daily business pages which feature items on a corporate social responsibility from time to time. Websites www.businesslink.gov.uk Government s online resource for businesses including advice on environmental issues and efficiency www.unodc.org/unodc/en/treaties/cac/index.html United National Convention Against Corruption www.un.org/documents/ga/conf151/aconf15126-1annex1.htm Rio Declaration on Environment and Development 80 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit 9: Applying Lean Principles to Business Operations Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20447E This unit is internally assessed Unit aim The aim of this unit is to provide the understanding needed to evaluate the effectiveness of the quality management of business operations, and to develop the skills needed to apply lean tools and techniques for planning a quality change. Unit introduction Business operations includes how organisations produce goods and services. Every organisation has an operations function. In this unit learners will consider the meaning and role of business operations and its importance and management in all types of organisation. This knowledge will enable learners to evaluate the suitability of the management processes in the business operations of an organisation in their pursuit of quality. Learners will gain knowledge and understanding of the principles and concepts associated with quality management. This unit gives learners the opportunity to look at how managers can improve business operations through using different approaches. The lean philosophy has been transposed to non-manufacturing organisations and in this unit learners will assess the suitability of using different tools and techniques to improve work activities. Learners will examine the practices needed for planning a quality improvement programme. Through identifying and planning the resources needed to meet specific organisational objectives, learners will be able to make a significant contribution to planning the introduction of a quality change to improve organisational performance. Critical thinking and self-directed study are important aspects of working at this level. Finally, learners will consider the performance measurement methods available to evaluate the impact of the improvement on the business activities. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 81

Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand the suitability of the management of business operations in an organisation 2 Understand the role of quality management in an organisation 3 Be able to use lean methods to improve the management of business operations in an organisation Assessment criteria 1.1 Discuss why the management of business operations is important in any organisation 1.2 Evaluate the suitability of existing business operations management for a selected organisation 2.1 Explain the importance of a total quality approach to achieving organisational excellence 2.2 Critically evaluate the suitability of existing quality processes for a selected work activity in an organisation 3.1 Compare the benefits of using lean tools and techniques with other approaches when managing the improvement of business operations in an organisation 3.2 Propose lean tools and techniques which can be used for improvement in selected work activities in an organisation 3.3 Justify the most appropriate approach for promoting continual improvement of business operations in a selected organisation 4 Be able to plan a quality improvement in an organisation 5 Be able to evaluate the impact of quality improvement on an organisation 4.1 Plan for a quality change to improve organisational performance 4.2 Recommend resources, tools and systems to support business processes in a quality improvement in an organisation 5.1 Critically evaluate the impact of the quality improvement on business activities in a selected organisation 82 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content 1 Understand the suitability of the management of business operations in an organisation Operations management: activity of managing the resources needed for the production and delivery of products and services managing processes operations as a core function and as an activity transformation process importance relevance for all managers and organisations 2 Understand the role of quality management in an organisation Quality: definitions quality gurus evolution of quality product quality and service quality, benchmarking best practice self-assessment vision continuous improvement quality models quality characteristics Total Quality Management (TQM): definition philosophy, principles, methods, techniques quality costs Importance of quality management: improvement in quality of the final product or service reduction in wasted resources increased productivity as effective use of time by staff long-term increase in market share, leading to sustained competitive advantage motivated workforce as employees realise their full potential Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 83

3 Be able to use lean methods to improve the management of business operations in an organisation Lean principles: philosophy definition background benefits design and state of the workspace differences between lean production and lean organisation techniques Lean tools and techniques: applying the tools tools 4 Be able to plan a quality improvement in an organisation Planning for a quality change: identifying improvement needs developing plan gap analysis setting aims and objectives justification prioritising activities identifying constraints success criteria review Designing systems: process, objectives, systems and operations layout and flow of processes approaches to improvement 84 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Resources, tools and systems: project-management techniques facilities workforce machinery transportation technology quality systems quality circles TQM aligning resources with objectives resource constraints Benefits of a quality change: improved business performance, corporate image, reputation, standing competitor response impact on other functions and departments 5 Be able to evaluate the impact of quality improvement on an organisation Performance measures: key performance indicators objectives balanced scorecard difference between performance measurement and performance management benchmarking Evaluation of quality improvement: monitoring and evaluation techniques action learning business performance indicators customer feedback effect on sales and profit Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 85

Information for tutors Delivery guidance This unit will help learners develop an understanding of the factors involved in lean quality management operations through considering a quality improvement in the business operations of an organisation. It is recommended that centres use a wide range of teaching and learning methods so that learners achieve all of the outcomes of learning in the unit. These could include lectures, seminars, workshops, project work, individual and group assessments. The teaching/learning methods used should draw on material from industry wherever possible, also learners own experiences. This will help learners to develop the transferable skills necessary in a changing and dynamic environment. Learners will develop skills to apply lean tools and techniques when planning a quality change. To introduce the unit and outcome of learning 1, it would be useful for learners to have a discussion on the historical development of operations management. Learners could then explore the functions and activities of operations management in an organisation, including their own. Learners need to understand how operations management impacts on the achievement of organisational objectives and through individual and group work, they could reflect and evaluate whether their own and other organisations operations management has been successful or not. Case studies can be used to demonstrate the importance of operations management. For outcome of learning 2, learners need to understand the importance of managing quality in an organisation to achieve organisational excellence. Learners could assess quality management in their own organisations and guest speakers could be used to give learners useful information on how other organisations manage quality. For outcome of learning 3, learners need to understand the concept of lean as an approach to operations management that emphasises the continual elimination of waste. A guest speaker could explain how the principles and techniques of lean manufacturing have affected non-manufacturing environments to improve business performance. Learners could research the lean techniques used in their own organisations, and use case study exercises to apply these techniques and explore the differences between the improvement approaches in terms of a gradual, continuous approach to change or a more radical breakthrough change. For outcome of learning 4, learners will need to understand the processes involved in order to plan a quality change and the resources needed to achieve success. Group activities can involve simulation exercises to plan a quality improvement, identifying the resources, tools and systems that need to be in place. Again, case studies and visiting speakers can be used to help learners understand the importance of planning to ensure a successful outcome. For outcome of learning 5, learners need to understand how to evaluate the outcomes of a quality improvement. Tutors could encourage learners to use their experiences and knowledge gained in their own organisations where quality improvements may have been introduced. They also need to know about the various evaluation methods and how they can be put in place to measure success. Case studies or guest speakers would be useful to help examine the impact of the improvement on the business. 86 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Assessment guidance Assessment for this unit should be evidenced through research carried out on the operations management either in a selected organisation or using a case study approach. Where possible, learners should be encouraged to use examples from their own organisations. If case studies are used they must be sufficiently detailed to enable learners to apply their evaluative skills. A range of assessment methods can be used, for example presentations, management reports, essays, or professional discussion. All evidence presented must support achievement of the assessment criteria. One assignment could cover the evidence requirements for this unit, although centres should write their own assignments to meet local needs. The learner could act as a lean quality operations consultant for an organisation of their choice that wants to improve its quality management operations. They could investigate the existing quality operations within the organisation, and apply lean tools and techniques to plan a quality improvement for a selected work activity, ensuring that monitoring systems are in place to evaluate the outcomes of the improvement. Suggested resources Books Aikens C H Quality Inspired Management (Prentice Hall, 2011) ISBN 978-0131197565 Fliedner EB Lean Management (Business Expert Press, 2011) ISBN 978-1606492475 Goetsch D L and Davis S B Quality Management for Organisational Excellence, 6th Edition (Pearson, 2010) ISBN 978-0135019672 Johnston R, Chambers S, Slack N, Harrison A and Harland C Cases in Operations Management, 3rd Edition (Financial Times/Prentice Hall, 2002) ISBN 978-0273655312 Oakland J S TQM: Text with Cases, 3rd Edition (Butterworth-Heinemann, 2003) ISBN 978-0750657402 Slack N, Chambers S and Johnston R Operations Management, 6th Edition (Financial Times/Prentice Hall, 2010) ISBN 978-0273731603 Journals Production, Planning and Control (Taylor and Francis) The TQM Magazine (Emerald) Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 87

Websites www.efqm.org www.hse.gov.uk www.iso9000.org www.managerwise.com www.praxiom.com www.quality.co.uk www.uk.kaizen.com EFQM helping European organisations learn from each other and improve performance Health and Safety Executive International Quality Systems Directory Business management information and resources ISO quality standards translated into understandable language Quality Network a guide to subject of quality management Information on Kaizen tools and techniques 88 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit 10: Project Management for Engineering Level: 6 Notional Learning Hours: 150 Value (NLH/10): 15 SRF unit code: 20449E This unit is internally assessed Unit aim The aim of this unit is to give learners an understanding of the techniques and skills required for effective project management. Unit introduction Over the last decade companies and organisations have taken a much more strategic interest in project management as they seek to address pressures to reduce costs and manage projects effectively. Although projects are undertaken in all areas and sectors, it is the failure of engineering projects to deliver on time and on cost that provide unwanted headlines. Knowledge and expertise in effective project management is an important employability skill which enables engineers to combine academic subject expertise with project management to contribute to profitability. Outcome of learning 1 raises learners awareness of the status of project management and enables understanding of project-management processes. Outcome of learning 2 examines the characteristics and attributes of project managers together with human resources issues, including planning and risk assessment for project personnel. Project organisation and costing are covered in outcome of learning 3. Here the concept of earned value is extended to encompass value and risk management as a technique for optimising project benefits and costs. Outcome of learning 4 allows learners to demonstrate their project-management expertise by applying the knowledge and skills gained from outcomes of learning 1 to 3 to a real project in their workplace. Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 89

Outcomes of learning and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the outcomes of learning. The assessment criteria determine the standard required to achieve the unit. Outcomes of learning 1 Understand projectmanagement processes Assessment criteria 1.1 Describe the role of professional bodies in setting standards for project management 1.2 Describe in detail the concept of the project lifecycle 1.3 Describe in detail the important features of the five project-management processes 1.4 Compare and contrast project lifecycle and projectmanagement processes 2 Understand personnel issues in project management 3 Understand project execution 2.1 Critically evaluate the role of the project manager 2.2 Devise the staffing management plan for a project involving more than ten personnel 2.3 Devise the personnel risk-management plan for a project involving more than ten personnel 3.1 Describe in detail how project breakdown structure and work breakdown structure are used for project scheduling 3.2 Compare and contrast cost control techniques used in project management 3.3 Critically evaluate the role of value and riskmanagement plans in project management 4 Be able to undertake projectmanagement activities 4.1 Apply techniques and procedures to monitor and report project progress 4.2 Plan actions arising from project progress measurement information 4.3 Critically evaluate project outcomes 90 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Unit content 1 Understand project-management processes Emerging standards in project management: standards and professional recognition, e.g. Project Management Body of Knowledge (PMBOK), Projects IN Controlled Environments (PRINCE2), Association for Project Management (APM) Project lifecycle: lifecycle models, e.g. spiral development, Concept Assessment Development Manufacturing In-Service Disposal (CADMID) project phasing, e.g. milestones, phases, stage gates front end loading Project-management processes: project process groups (initiating, planning, executing, monitoring and controlling, closing) 2 Understand personnel issues in project management Project manager: roles responsibilities training decision making ethics professional practice communication skills, e.g. IT, written, verbal, meetings liaison skills, e.g. with project sponsor, with contractors, with consultants managerial skills, e.g. people management, time management, change management, information management, negotiation, delegation Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 91

Project team: staffing management plan recruitment (processes, timetable, release) organisational charts (roles, responsibilities) skills matrix motivation training teamwork performance assessment health and safety equal opportunities Risk management personnel: risk assessment, e.g. recruitment gaps, skills gaps, absenteeism, ill health, injury personnel risk analysis risk-mitigation risk management plan 3 Understand project execution Project organisation: project breakdown structure (PBS) work breakdown structure (WBS) scheduling techniques (relationship between schedules WBS and PBS) project integration management Gantt charts milestones deliverables critical path analysis execution strategy 92 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Project costing: procurement plan estimating budget allocation cost breakdown structure cost performance analysis cost control cash flow analysis (committed costs, actual costs, contingency) optimisation of benefits and costs concept of earned value value management (value drivers, key performance indicators) Risk management project execution: project organisation (risk analysis, risk mitigation) project costing (risk analysis, risk mitigation) time-cost-quality triangle value and risk-management plans 4 Be able to undertake project-management activities Planning and programming: techniques for scheduling and programming material (diagrams and charts), equipment, financial and human resources Project progress and control: techniques and procedures (control, monitor and report progress) progress management information, e.g. completed work, work in progress, costs, claims for variations, delays, disruption, cash flow post-project appraisal Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 93

Information for tutors Delivery and assessment guidance Outcomes of learning 1 to 3 are likely to require learners to read the recommended textbooks and undertake internet searches in order to fully appreciate and understand the importance and status of project management. Outcome of learning 4 should, if possible, be based on a project or projects in the learner s workplace. If this is not possible, case study materials will need to be made available. The project management unit covers project management in its widest sense for middle management and above, personnel involved in large projects, i.e. more than ten personnel. Care must be taken in assessing learner work to ensure that the level of discussion, analysis, evaluation and reflection meets expectations for professional project managers and academic work at final year degree level, i.e. level 6. Suggested resources Books Nokes S and Kelley S The Definitive Guide to Project Management (Prentice Hall, 2007) ISBN 978-0273710974 Duncan W R A Guide to the Project Management Body of Knowledge (Project Management Institute, 2009) ISBN 978-1933890517 Lock D Project Management (Gower Publishing Ltd, 2007), ISBN 978-0566087721 Dallas M F Value and Risk Management: A Guide to Best Practice (Wiley-Blackwell, 2006) ISBN 978-1405120692 Websites www.apm.org.uk www.prince2.com The Association for Project Management Formation about PRINCE 2 courses and certification for project management 94 Specification Pearson SRF BTEC Level 6 Professional Diploma qualification

Specification Pearson SRF BTEC Level 6 Professional Diploma qualification 95

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