causes and effects of change Flashcards
labour productivity calculation
total output divided by number of workers
labour turnover calculation
staff left in time period divided by total staff
absenteeism calculation
number of staff absent in time period divided by total staff
causes of change
change in size of organisation
most businesses have a key cooperate strategy of growth
e.g. changing from sole trader/partnerships to a public limited company
causes of change
change in size of organisation
poor performance
new ownership
transformational leadership
why a business may change
-more profit
-more sales
-larger range of products
-satisfies shareholders and other stakeholders as they will get dividends
what will change in business lead to
-restructuring
-changes in workforce
-changes in culture
-production methods
e.g. job-batch-flow
-changing policies/processes
-highly geared-means using lots of external finance to grow your business
-allow business to achieve a competitive advantage
examples of poor performance within business
lower sales=lower prices
revenue declined
higher costs
-operating expenses
-variable costs
products are less appealing
either due to reduced consumer trends or increased competition
new ownership
sole trader/partnership-private limited company/public limited company/takeovers/mergers
impact on shareholder-more dividends but loss of control
transformational leader
new leader that will make radical, innovative changes
have to be inspiring
new vision, motivation and strategies that will improve business performance
