Bus Man Chapter 4 Flashcards
Define the term ‘key performance indicator’.
Key performance indicators (KPIs) are criteria that measure a business’s efficiency and effectiveness in achieving its different objectives. KPIs can be used to evaluate a business’s performance before and after implementing change to see whether the change has been successful in achieving the business’s desired objectives. It’s a type of measurement that helps a business understand how they’re performing in a certain area. It should be well defined and quantifiable, be calculated properly and consistently, give a clear insight into the area of the business you’re concerned with, provide quantatitative data to analyse as well as be the data itself rather than a method of obtaining data. A good KPI should act as a compass, guiding businesses towards the path they need to follow to achieve their business objectives.
Define what is meant by a ‘proactive approach’ to business change.
A proactive approach to change is when a business changes to avoid future problems or take advantage of an opportunity to gain a competitive advantage. A business may pursue a proactive approach to change if it wishes to get ahead of its competitors by fulfilling a gap in the market or being the first to take advantage of new market trends and opportunities.
Compare proactive and reactive approaches to change.
Both approaches are used by a manager or business to implement change. Both approaches require the support of the manager, who must utilise management skills if the change is to be implemented successfully. Proactove change occurs when a business takes advantage of an opportunity and avoids future problems. Reactive change occurs in response to a situation or crisis that is essentially forcing the business to change. Proactive is more planned, coordinated, and controlled, with fewer pressures acting on the business throughout the change. Reactive change is more spontaneous, urgent and pressured.
list BENEFITS OF COMPLETING A
FORCE-FIELD ANALYSIS
- Making a balanced and informed decision
- Harness forces that support change
- Reduce or eliminate restraining forces
- Considers stakeholders perspective on change
- Provides a timeline, list of resources and skills required
Define effeciency.
It is how well the business uses its resources to achieve its objectives.
Define Effectiveness.
It’s how well a business is able to achieve its set objectives.
What are restraining forces for?
they are forces that pressure against and restrict change
What are driving forces for?
they are forces that encourage and drive change
Define the term ‘restraining forces’.
Restraining forces are internal and external factors that resist a business change or actively try to stop it. Restraining forces include managers, employees, time, legislation, Organisational inertia and financial consideration.
Outline how employees could be both a driving and restraining force for change.
employees are often in the thick of daily activities, and as a result, can identify areas of the business that could change to better achieve the company’s objectives, while also making their own daily tasks more efficient and effective. However, employees could act as a restraining force on change. Employees who are concerned that proposed changes might threaten their position may be resistant and not actively support the change process. Some employees might also resist if they feel that it’s a bad idea, or if they lack the skills to manage the change process.
Outline how managers can act as both a driving and restraining force for change.
A manager’s role is to ensure the business remains competitive and profitable, achieves its objectives, and provides a return for shareholders. A manager can act as a driving force for change as they are encouraged to find ways that optimise business performance, because enacting successful change can provide them with a sense of financial and job security. On the other hand, as leaders and decision-makers of a business, managers can act as a restraining force by not introducing or implementing change that they do not support or threatens their position.
Distinguish between driving forces and restraining forces.
Driving forces are the factors affecting the business environment that promote and support business change. On the other hand, restraining forces are factors that resist a business change or actively try to stop it. The key difference between driving and restraining forces is that driving forces are in favour of the change and encourage it to occur, whilst restraining forces actively attempt to resist change from occurring.
Explain Lewin’s Force Field Analysis theory and outline a benefit of conducting a Force Field Analysis.
Lewin developed his Force Field Analysis theory as a way of identifying various driving forces for change and restraining forces on change. Driving forces can be described as those forces that provide movement and positive momentum in order for change to occur. They are seen as forces that support the direction of the change and push the proposed change forward. Restraining forces are those that restrain or hinder the driving forces. They work against the change that a manager or a business is attempting to implement. Once the driving and restraining forces have been identified, the management team should then weigh and rank them, and if necessary, consider strengthening some of the driving forces or weakening some of the restraining forces in order to achieve successful change. Once change is implemented, the business can then evaluate how successful the desired change was, and what further action, if any, is now necessary.
One benefit of conducting a Force Field Analysis is that the business can ascertain whether the change is likely to be successful in its current set up, or whether the business needs to strengthen any of the driving forces or reduce the power of any of the restraining forces by targeting strategies at them, in order to improve the chances of success of the planned change program.
define the term percentage of market share.
% of market share represents the proportion of an industry or market’s total sales that is earned by a particular company over a specified time period.
define the term Net Profit figures.
a company’s total revenue, excluding its total expenses, showing what the company has earned or lost in a given period of time.
Define the term ‘driving forces’.
Driving forces can be described as those forces that provide movement and positive momentum in order for change to occur. They are seen as forces that support the direction of the change and push the proposed change forward.
Explain the concept of business change.
Business change can be described as the process of adapting or varying a business so that it takes on a new or revised form. This change can occur as a result of driving forces placed on the business to change aspects of its operations, activities, processes, management styles, etc., or even its culture. Business change could affect an entire business, or just a smaller aspect of it.
define the term percentage of market share.
% of market share represents the proportion of an industry or market’s total sales that is earned by a particular company over a specified time period.
Define the term ‘driving forces’.
Driving forces can be described as those forces that provide movement and positive momentum in order for change to occur. They are seen as forces that support the direction of the change and push the proposed change forward.
EWRIE stands for
Establish, Weighting, Ranking, Implementing, Evaluating
acronym for Force Field analysis as well as what they stand for
EWRIE, Establish, Weighting, Ranking, Implementing, Evaluating
STIRE McPLOG stands for
Societal attitudes, Technology, Innovation, Reduction of costs, Employees, Managers, competitors, Pursuit of profit, Legislation, Owners, Globalisation
define the term rate of productivity growth
it’s the increase in outputs produced from a given level of inputs over time. it measures the effeciency of a company’s production process.
rate of productivity growth = new productivity rate - old productivity rate (divide whole thing by the old productivity rate) and then multiply it by 100
Define number of sales
it refers to the measure of the total amount of goods and services sold in a given reporting period. it’s an indicator of customer popularity not necessarily of financial improvement
define number of cutomer complaints
it’s the number of cutomers who notified the business of their dissatisfaction over a specific period of time. valuable when comparing between two periods
define the term rate of productivity growth
it’s the increase in outputs produced from a given level of inputs over time. it measures the effeciency of a company’s production process.
rate of productivity growth = new productivity rate - old productivity rate (divide whole thing by the old productivity rate) and then multiply it by 100
Define number of sales
it refers to the measure of the total amount of goods and services sold in a given reporting period. it’s an indicator of customer popularity not necessarily of financial improvement
define rates of staff absenteeism
it’s the average number of days employees are not present when scheduled to be at work for a specific period of time. can be worked out by by dividing total number of days staff are absent divided by total number of staff
