BEC 1 - Topic 2 Flashcards
What are the Non financial measures?
External Benchmarks - Productivity measures which includes the following:
Total Factor Productivity Ratios
Partial Productivity Ratios
What are Internal Benchmarks?
Techniques to Find and Analyze Problems.
Control Charts - Determine “zero” defects
It has goalpost conformance and keep deviations within acceptable range
What is Pareto diagrams?
Pareto diagrams are used to determine quality control issues. It is shown as histogram and frequency.
What is cause and effect “Fishbone” Diagram?
Managers use the diagram to identify the sources of problems in the production process by resource and take corrective action.
What are the characteristics of effective performance measures?
It promotes achievement of goals. It balance long and short term issues.
What are marketing practices?
Transaction marketing: Lowest price
Interaction-based relationship marketing: Repeat business/ loyalty business
Database marketing: Information used from databases
E-marketing: used through internet
Network marketing: Focuses on relationships and referrals.
How are performance incentives determined:
Sales volume for transaction marketing
Customer satisfaction and quality measures for relationship based marketing.
How is incentive compensation determined?
Motivate, compensate and retain.
Includes bonuses and stock options
What are the design choices for management compensation?
Cash bonuses, restricted stock options.
