Management strategies to respond to KPI's Flashcards
Staff straining
Training is focused on employees current job and is aimed at improving employee skills, knowledge, attitudes and behaviour to allow employees to do their job more efficiently and effectively than before. When employee performance is negatively impacting the performance of a business and its objectives, staff training can be used to increase the quality, productivity and safety of a business.
• On the job
o Coaching: being taught by an existing employee how to perform the job
o Mentoring: watching an existing employees perform the job and learn from the experience/advice
o Job rotation: Completing a number of jobs in a field of the businesses see how they all interconnect
o Job shadowing: following an experienced worker for a few days, watching what they do and how they do it
• Off the job training
o Conferences
o Lectures
o Simulations
o Role-plays
o Workshops
o Online tutorial
Staff training effect of KPIs
Can reduce Staff Absenteeism – due to improved job satisfaction
Can increase No. of Sales – due to improved sales skills of staff
Can improve Rate of Productivity - due to increased skills of employee
Staff motivation
motivation is concerned with a desire to do things, in the business the manager clearly wants the employees to do the things that will achieve “their” objectives. Motivation strategies can be introduced when staff commitment and enthusiasm is low in the workplace. The use of these strategies can lead to employees increasing their level of focus, being more productive and engaging in communication with management. • Motivation theories include insuring there is: o Sufficient pay o Job security o Opportunities for social interaction o Opportunities for developing self-esteem o Opportunities for personal development o Goals to strive for o Fulfilment of personal drives • Motivation strategies including: o Performance related pay o career advancement o Support and sanction
Staff motivation effect on KPIs
Reduce Staff Turnover – due to improved job satisfaction
Reduce Staff absenteeism – as employees are more engaged with work
Improve Rate of Productivity - motivated employees will work harder
Change in management styles
A change in management styles or skills is managers altering their way of directing and interacting with staff. The complexity of tasks, experience of employees, time, and manager preferences should be considered when adjusting management styles and skills to respond to KPIs. As management style and skills directly influence staff engagement and coordination of staff and business activities, changes can be made to improve employee morale as well as the efficiency of tasks. • Management styles o Autocratic o Persuasive o Consultative o Participative o Laissez faire • Management skills o Communication o Delegation o Decision-making o Planning o Leading o Interpersonal
Change in management styles effect on KPIs
Reduce Staff Turnover – feel more valued in the workplace
Reduce Staff Absenteeism – as staff are more involved in decision making
Improve Rate of Productivity – ideas from employees are implemented
which can improve the efficiency of the workplace
Increased investment in technology
Investment in technology may include upgraded manufacturing equipment, increased automation of tasks, improved online capabilities. When businesses experience low performance and competitiveness in the market, investment in technology can improve business productivity, market share and profitability. • Types of technology that can be used: o Automated production lines o Computer aided design (CAD) o Computer aided manufacture (CAM) o Website development
Increased investment in technology effect on KPIs
Increase No. of Sales – due to improved online convenience for customers
Improve Rate of Productivity - as new technology improved efficiency
Increased Market Share – as new technology implemented has created a
competitive advantage over rivals
Improving quality in production
Quality relates to goods and services that fully meet customer expectations. Therefore if your product or service has better quality than a rival then you will have competitive advantage over them. Quality strategies can be implemented by a business when productivity levels and customer satisfaction is low.
• Quality can be improved by implementing:
o Quality control
o Quality assurance
o Total quality management strategies
Improving quality in production effect on KPIs
Decrease No. of Customer Complaints – due to reduced errors and/or defects
Improve No. of Sales – due to producing higher quality products and improved
reputation
Cost cutting
This focuses on reducing expenses. Businesses will look to reduce costs without having a significant impact on the overall value of consumers. To implement the cost-cutting strategy a business must assess all of their expenses and determine which expenses can be reduced.
• A business can cut costs by:
o merging staff roles to reduce the number of employees required.
o shutting down business locations that do not add significant value.
o stopping the production of goods with high amounts of unsold stock.
o sourcing materials from cheaper suppliers.
o recycling/reusing materials used in the production process.
o reducing employee wages.
Cost cutting effect on KPIs
Improve Net Profit Figures – if a business can maintain it’s sales and reduce its
costs it can increase its overall Net Profit
Improve Rate of Productivity – if less inputs such as staff are required to produce
the same amount of output productivity can improve
initiating lean production techniques
Lean production is about minimising the waste produced in a business while improving the value to the end customer. Lean production techniques can be used by businesses when productivity and business performance is low in order to improve the efficiency and effectiveness of operations. • Lean production techniques can include: o Eliminating waste o Minimising inventory o Avoiding excess motion o Reducing defects o Eliminating waiting times o Avoiding over production
initiating lean production techniques effect on KPIs
Improve Rate of Productivity – if less inputs are required and the business is more
efficient productivity can improve
Improve Net Profit Figures – as lean production techniques can reduce a
businesses operating costs and increase it Net Profit
Redeployment of resources
Redeployment is the transfer of resources from one place in the business to another to improve their effectiveness and efficiency. This allows the business to make better use of their resources.
• There are 3 types of resources that can be redeployed:
o Labour resources: the transfer of an employee to another job within the business or an associated entity.
o Natural resources: using money or other assets for a different purpose than the one they were originally intended for
o Capital resources: reusing and repurposing of raw materials. For example, a farmer may redeploy land if it can be put to better use to produce an alternative product.
