2.1 ways in which businesses can improve productivity/ 2.2 ways buienesses structure the working enviroment Flashcards
what is efficiency
Efficiency is about producing goods without wasting any resources such as time, effort and money.
what is productivity
Productivity is used to measure efficiency. The idea is to:
increase your output (final product) & decrease your input (resources) without jeopardising the quality of the output
investment in applications of technology
Technology assists manufacturing industries to produce products in greater quantity of consistent quality and in shorter production time.
what is innovation
The introduction of new things or methods; improving the current work practices, procedures and products.
what is capital investment in equipment and faculties
Equipment and facilities need to be regularly maintained and also replaced.
Efficiency can also be increased by
- redesigning workstations - moving equipment to create a more logical flow - assessing the best storage areas for stock
what is just in time inventory management system
- An inventory management system that aims to avoid holding any stock (inputs or finished products).
- Supplies arrive just as needed for production and finished products are immediately dispatched or sold to customers.
Just in time inventory management systems
BENEFITS
No need to pay for storage
No out-of-date stock
No stock loss due to theft
POTENTIAL PROBLEMS
Insufficient stock increase in Efficient inventory control necessary
what is training and upskilling the workforce
Well-trained, motivated and loyal workforce increase in More productive and efficient workforce
Multiskilled employees increase in More flexible, creative and innovative workforce
Valued employees increase in More willing to adapt to change
difference in multiskilling and up-skilling the workforce
Up-skilling: Improving on a skill you already have or learning a new aspect of that skill.
Multi-skilling: Having skills in different but related areas. This makes you more efficient and proficient at various tasks.
what is a business structure
It is important for businesses to have an organisational structure in place.
Organisation structure = how a business organises their employees
An organisation structure determines:
- Who does what
- Who is responsible for whom and for what
- Who makes the decisions
features of hierarchal business structure
Large businesses tend to use the hierarchical structure (also known as the vertical structure).
Features:
Employees are arranged into layers and levels from senior management
Positions, roles and responsibilities are clearly identifiable
Span of control (number of employees reporting to a manager) is clearly defined
Centralised decision-making (most decisions are made by senior management)
what is features of flatter organisational structures
Smaller businesses tend to use the flatter structure.
Features:
Improved communication due to fewer layers of staff
Employees are now involved in the decision making
Increased use of employee knowledge, skills and experience
Workers feel greater levels of empowerment and motivation
what are the features of the network structure
Features:
Functions are outsourced (outside the company)
Flexible and can adapt to changes in consumer demand and choices
what are the features of the matrix structure
Often used when businesses are undertaking a project or an assignment
Features:
Forms a team of specialists from different functional areas (e.g. marketing, finance)
Improved communication channels
Interdepartmental rivalries (competition between departments are reduced
Increased number of innovations being put forward due to the ‘cross-pollution’ of ideas
what is the matrix structure defined
A matrix Structure involves teams with specialists from different functional areas