Unit 4 Area of Study 1 Flashcards
what is business change
- change is any alteration in internal and external environment
- adopts a new idea or behaviour as a result
- change is also relative
Difference between proactive and reactive change
- one difference between is that proactive change foresees change
- in contrast reactive change lets the change impact the business before making a change
- another difference is the proactive change uses KPI results to identify possible problems
Definition of KPI’s (5 points)
- used to evaluate performance
- KPI’s are criteria used to measure success
- Measure efficiency and effectiveness
- measure a particular area of business performance
- provides data that drives change for a business
what is a force fields analysis theory/ key principles
a model that describes how you can determine which forces drive and which resist proposed change
- driving forces initiate encourage and support change
- Restraining forces work against the change, creating resistance
- any business looking to implement change must consider the forces
how can something be a driving force and a restraining force
- Managers are considered driving forces as they support and initiate change in the business
- vested interest
- internal driving forces as incentivise push for change
- considered restraining forces as they may be unwilling to introduce change
Use a contemporary business and define forces on how it has effected the business - 4 marks
- The Chief Executive Officer of NAB announced a net profit of $5.8 billion
- 2000 new jobs
- external driving force of technology as implementing technology will help NAB remain competitive
- loss of 6000 jobs in the next 3 years
- due to employees concerned about job security from tech developments
effectiveness
-indicates to what degree a business has accomplished the objectives it set out to achieve
Efficiency
refers to how well a business uses the resources needed to achieve a goal.
Percentage of market share (KPI)
-ratio refers to the business’s share of the total industry sales for a particular good or service, expressed as a percentage
Net profit figures (KPI)
profit is what remains when expenses related to operating the business are deducted from the revenue earned
Rate of productivity growth
-Productivity is a measure of performance that indicates how many inputs (resources) it takes to produce an output (good or services
Number of Sales (KPI)
-Number of Sales of a product is a measure of the amount of goods or services sold by a business in a given period of time
Rate of Staff absenteeism (KPI)
measures the number of workers who neglect to turn up for work
Level of Staff turnover (KPI)
-can also be used as an indicator of the degree of staff satisfaction
Level of wastage (KPI)
-can be considered the volume of resources consumed by inefficient or non-essential activities, the amount of unwanted material left over from a production process
