Reviewing Performance 10

Question 1

KPIs

Answer 1

Measures data and evaluates business’ progress towards business objectives, analyse performance, can be compared to previous data or other businesses to show where improvements have been made and where they can improve further
measurable, specific, reliable,

Question 2

Percentage of market share

Answer 2

Percentage of sales of a product, compared to similar products of other businesses within the same market

Question 3

Net profit

Answer 3

Amount left after all expenses have been paid (revenue-expenditure)

Question 4

Rate of productivity growth

Answer 4

Increase or decrease of a businesses’ ability to transform inputs into outputs efficiently.

Question 5

Number of sales

Answer 5

Total quantity of sales of a product (objectives met? trends help with planning)

Question 6

Rates of staff absenteeism

Answer 6

Percentage of workdays lost due to unscheduled leaves, especially without good reason, evasion of workplace (increases cost, decreases productivity)

Question 7

Level of staff turnover

Answer 7

Number of employees that leave and have to be replaced, in a given time period
may be a waste of time and money for advertising, recruitment, training, also affects reputation

Question 8

Level of wastage

Answer 8

The inputs that have not been converted to outputs in the production process, indicates and measures efficiency in production process

Question 9

Number of customer complaints received

Answer 9

Received written or verbal complaints of dissatisfaction from customers about products
Affects reputation, competitive edge, market share

Question 10

Number of workplace accidents

Answer 10

Number of unplanned events that interrupt workflow (injuries, property damage, machine malfunction,
If data of number of workplace accidents indicate a large number of accidents that disrupt productivity, a business could increase workplace safety to reduce likelihood of injury or death, maintenance of machinery and correct procedures (OH&S) for employees, reduces disruptions (time and production), reputation, places importance on employees boosting morale and loyalty

Question 11

Why should businesses use KPIs

Answer 11

To evaluate progress towards business objectives and forecasts are being met, also determines effectiveness of current work procedures and accentuates where improvement can occur