U4 AOS1 T1 Flashcards
define change
Change is any alteration in the internal or external environments transitioning individual employees, working teams, functions or the whole business to a new state of operation.
businesses should before
Businesses should be making the necessary changes before they are forced upon you (proactive rather than reactive)
what do poorly managed changes result in
result in employee resistance, tension, anxiety, lost productivity and ultimately, unmet objectives.
business change can involve (6
Changing products to better suit customers needs
Moving production overseas to take account of cheaper labour rates
Changing the motivation strategies you use with your employees
A new manager coming in and changing the traditional management style
Changing an input supplier
Changing the dispute resolution process to take in employee suggestions
signals of change are (7
growth, innovation, redundancy, outsourcing, relocation, diversification competition
To be proactive
is to initiate change rather than simply to react to events.
To be reactive
is to wait for a change to occur and then respond to it.
management strategies required to help change (6
communication skills Delegation skills planning skills Leading skills Decision-making skills Interpersonal skills
how does communication skills contribute to change
Clear communication required in order progress change, as the changes will appear as clear for all staff to understand.
how does delegation skills contribute to change
Managers can oversee all aspects of the change, passing authority ensuring everyone is working toward goals
how does planning skills contribute to change
Plan is required to ensure that there are clear goals to achieve from the change
how does leading skills contribute to change
required to help influence staff to accept any change and thus work towards new objectives. the leadership determines how effectively the change is implemented and how quickly and successfully any resistance is overcome.
how does decision-making skills contribute to change
During the change process decisions will need to be made putting the business in the best position changing the organisation in the most efficient and effective way possible.
how does interpersonal skills contribute to change
change may have a negative impact for employees and managers need to relate and empathise with employees and any other stakeholder impacted by the change.
define key performance indicator
a type of measurement that helps you understand how your business is performing in a certain area, giving the business data, facts, figures etc. to analyse.
To be effective, a KPI must Be:
well-defined and quantifiable. Give you a clear insight into the area of the business you are concerned with Be calculated properly and consistently
benchmarking
occurs when a business measures its performance against that of other leading businesses known for their excellence.
effectiveness
is the degree to which a business has achieved its stated objectives.
efficiency
refers to how well a business uses resources to achieve objectives.
9 KPI’s
Percentage of market shares net profit figures Rate of productivity growth number of sales rate of staff absenteeism level of staff turnover level of wastage number of customer complaints number of workplace accidents
what is the KPI marketshare
represents the percentage of an industry or market’s total sales that is earned by a particular company over a specified time period.
how is marketshare calculated
Market share is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period.
E.g. Company sales of 30,000 units out of a total sales in the industry of 100,000
30,000 x 100 = 30%
100,000
Reasons for lowering marketshare 3
Customers are not happy with the product
Competitors are gaining a competitive advantage
Our prices may be too high and we need to lower production costs
how can Customers are not happy with the product
be solved
Quality strategies could be implemented
• Staff training could be improved
how can Competitors are gaining a competitive advantage be solved
Reduce labour costs via global manufacture, lower labour entitlements
how can Our prices may be too high and we need to lower production costs be solved
• Or increase productivity rates via investment in technology strategies
what is the kpi net profit
is what the company has earned after all expenses are deducted, it is found on the last line of the income statement, which is why it’s often referred to as the bottom line.
how is net profit calculated
Net profit is calculated by subtracting a company’s total expenses from total revenue, thus showing what the company has earned (or lost) in a given period of time.
reasons for faults in net profit 2
Customers are not happy with the product
– decreasing sales and decreasing revenue.
Our costs and expenses are too high and we need to cut back.
ways to improve Customers are not happy with the product
– decreasing sales and decreasing revenue. 2
Quality strategies need to be looked at
Staff training, staff motivation
ways to improve Our costs and expenses are too high and we need to cut back. 4
Cost cutting measures •
Lean production techniques •
Reduce labour costs via global manufacture, lower labour entitlements •
Or increase productivity rates via investment in technology strategies
what is the kpi the rate of productivity growth
measures the efficiency of a company’s production process being the percentage increase in productivity over time.
how is the rate of productivity growth calculated
Productivity is calculated by dividing the outputs produced (sales, goods) by a company by the inputs (Labour, hours, capital, natural resources) used in its production process.
reasons for faults in the rate of productivity growth 3
Machinery is failing to produce as quickly. Aging machinery.
Staff are failing to produce as quickly.
There is a log jam in inputs arriving on time which is stopping production.
