Component 2 - Analysing non-financial performance Flashcards
Explain : What is meant by Non-Financial Methods of Performance
Non-financial methods of performance - Techniques used to evaluate the effectiveness and efficiency of a business’s operations , without relying solely on financial data
Explain : How non-financial measures,
including
1) customer Satisfaction surveys
2) Employee Engagement surveys
5) A Company’s environmental record,
Can be used to evaluate performance.
1) Customer satisfaction surveys - Provides valuable feedback on the quality of products or services and helps identify areas for improvement.
2) Employee engagement surveys - Employee satisfaction, motivation, and productivity can be measured through surveys, feedback, and performance evaluations.
3) Quality control - Regular quality control checks and inspections can help identify defects, improve quality, and reduce waste.
4 )Environmental performance - Measuring a company’s environmental impact and sustainability efforts can help identify areas for improvement and opportunities for cost savings.
Explain : How non-financial measures,
including customer attitude surveys, employee attitude
surveys, market share, productivity and a company’s
environmental record, can be used to evaluate performance
Customer satisfaction surveys - Customer satisfaction and loyalty provides valuable feedback on the quality of products or services and helps identify areas for improvement.
Employee engagement surveys - Employee satisfaction, motivation, and productivity can be measured through surveys, feedback, and performance evaluations.
Quality control: Regular quality control checks and inspections can help identify defects, improve quality, and reduce waste.
Time and motion studies: Analysing the time it takes to complete specific tasks and the movement of materials and employees can help identify opportunities to increase efficiency and reduce costs.
Environmental performance: Measuring a company’s environmental impact and sustainability efforts can help identify areas for improvement and opportunities for cost savings.
Non-financial methods of performance measurement can provide valuable insights into a company’s operations and help identify areas for improvement beyond just financial metrics. By considering a variety of performance indicators, businesses can develop a more comprehensive understanding of their operations and make more informed decisions about resource allocation and strategy.
Explain : The Advantage of non-financial methods of performance over Financial performance
They can help identify areas for improvement beyond just financial metrics,
Through considering a variety of performance indicators, businesses can gain a comprehensive view of their operations, thus they can make better informed decisions about resource allocation and strategy.
