U4A1 (a) business change Flashcards
concept of business change
the transition of individual employees, working teams, functions, or the whole organisation to a new state of operation as a result from pressure in the business’s internal or external environments.
reactive change
unplanned approach that occurs after a business is affected by pressures in the environment
proactive change
planned approach that occurs before a business is affected by pressures in the environment.
transformational change
impacts the whole structure of a business
incremental change
impacts on only some/minor functions
9 key performance indicators
- percentage of market share
- net profit figures
- rate of productivity growth
- number of sales
- rates of staff absenteeism
- level of staff turnover
- level of wastage
- number of customer complaints
- number of workplace accidents
how is KPI “percentage of market share” calculated
company sales divided by total industry sales over the same period
how is KPI “net profit figures” calculated
revenue minus expenses
how is KPI “rate of productivity growth” calculated
amount of goods or services produced divided by total hours labour used to produce this amount.
how is KPI “number of sales” calculated
quantity of products or services sold in one period of time minus another period of time.
how is KPI “rates of staff absenteeism” calculated
number of says staff are absent as a percentage of the total number of days staff could normally be working.
how is KPI “level of staff turnover” calculated
number of employees that have left in a period divided by the average number of employees working in that period
how is KPI “level of wastage” calculated
number of units or total weight/volume of waste in one period compared to another period
how is KPI “number of customer complaints” calculated
recording how many complaints are made by customers in one period compared to another period
how is KPI “number of workplace accidents” calculated
recording how many accidents occur in one period compared to another period
