U4: AOS1 (Reviewing Performance) Flashcards
1) What is the concept of Business change?
2) Examples
1) Transitioning employees, functions, or the entire business to a new state of operation.
2)
- Creating different products
- Offshoring
- Implementing new motivation strategies
- New managers/suppliers
Why might a Business change?
- Better tailor to customer’s needs
- Improve business
- Avoid redundancy
- Achieve competitive edge
1) What is Market Share?
2) How is it calculated?
1) The percentage of an industry or market’s total sales that is earned by a particular business.
2) Calculated by dividing company’s sales by total sales of industry.
1) Why might Market Share decrease?
2) How can this be overcome?
1)
- Customers dissatisfied with product
- Competitors gaining competitive edge
- Prices are too high/production too costly
2)
- Implement Quality strategies
- Innovate/change products
- Reduce labour costs
1) What are Net Profit Figures?
2) How is it calculated?
1) The amount of money a company has earned after all expenses have been deducted.
2) Calculated by subtracting expenses from revenue.
1) Why might Net Profit Figures decrease?
2) How can this be overcome?
1)
- Customers dissatisfied (not buying)
- Prices are too high/production too costly
2)
- Implement Quality strategies
- Lean production techniques (no wastage, reduce costs)
- Innovate/change products
1) What is Rate of Productivity Growth?
2) How is it calculated?
1) The efficiency of a company’s production process to effectively create quality products.
2) Calculated by dividing outputs by the amount of inputs used.
1) Why might Rate of Productivity Growth decrease?
2) How can this be overcome?
1)
- Machinery is outdated and failing
- Manual labour is not effective
- Delays in input arrivals is blocking productivity
2)
- Investment in new technology
- Increase staff training/motivation
- Improve suppliers/supply chain
1) What are Number of Sales?
2) How is it calculated?
1) The total quantity of products/services sold.
2) Adding the total number of products which have been sold to customers.
1) Why might Number of Sales decrease?
2) How can this be overcome?
1)
- Customers dissatisfied with product
- Price of product is too high
- Product has not been advertised well
2)
- Implement Quality strategies
- Lower product price and production costs
- Improve marketing techniques
1) What are Rates of Staff Absenteeism?
2) How is it calculated?
1) The total number of days employees are absent from work in a specific period.
2) Number of days absent divided by total number of working days
1) Why might Rate of Staff Absenteeism increase?
2) How can this be overcome?
1)
- Job dissatisfaction
- Ongoing personal/medical problems
2)
- Increase employee motivation/training
- Staff support (counselling, health practices)
1) What are Levels of Staff Turnover?
2) How is it calculated?
1) The amount of employees leaving the business in a particular period of time.
2) Calculated by dividing the number of departed employees by the average number of employees working at one time.
1) Why might Levels of Staff Turnover increase?
2) How can this be overcome?
1)
- Dissatisfaction w/ job
- Alluring jobs w/ competition
2)
- Increase employee motivation/training
- Provide support, transitional help (retirement/dismissal)
1) What are Levels of Wastage?
2) How is it calculated?
1) The amount of stock (raw materials/equipment) used in processing which gets discarded.
2) Calculation of total weight/volume of waste materials
1) Why might Levels of Wastage increase?
2) How can this be overcome?
1)
- Insufficient storage
- Production process is inefficient
2)
- Total Quality Management/recycling practices
- Lean management
- Use new technology
1) What are Number of Customer Complaints?
2) How is it calculated?
1) The recorded number of individuals who report a fault, issue or defect with the good/service they received.
2) Calculated by adding the total number of complaints.
1) Why might Number of Customer Complaints increase?
2) How can this be overcome?
1)
- Quality of product is declining
- Customer service is declining
- Invest in technology
2)
- Implement Quality strategies
- Staff training/motivation
1) What are Number of Workplace Accidents?
2) How is it calculated?
1) The recorded number of worker/customer related injuries that occur in a business.
2) Calculated by adding the total number of accidents.
1) Why might Number of Workplace Accidents increase?
2) How can this be overcome?
1)
- Lack of safety training
- Dangerous environment
- Dangerous equipment
2)
- Staff training
- Investment in safety technology
What is the concept behind Lewin’s Force Field Theory?
Change is ever present in business. Lewin’s theory determines which forces in the workplace drive and which forces resist proposed changes.
1) What are driving forces?
2) Examples
1) Forces which initiate, encourage, and support change to assist the business in achieving its goals.
2)
- Managers
- Employees
- Competitors
1) What are restraining forces?
2) What are some examples?
1) Forces which work against change, creating resistance and hindering the achievement of business goals.
2)
- Managers
- Employees
- Time
