Unit 4 outcome 1.1 Flashcards
Change
Any alternation in the internal or external environments
Business change
The adoption of new ideas or behaviour
Proactive
To initiate change rather than simply to react to events
Reactive
To wait for a change to occur and then respond it
Efficiency
How well a business uses resources to achieve objectives
Effectiveness
The degree to to which a business achieved its stated objectives
Key performance indicators
Specific criteria used to measure the efficiency and effectiveness of the business’s performance
Driving forces
Those forces that support the change
Restraining forces
Those forces that work against the change
Percentage of market share
The business’s share of the total industry sales for a particular good or service, expressed as a percentage. It is calculated by dividing a business’s sales by the total sales of all businesses in that industry and expressing this as a percentage.
Net profit figures
What remains when expenses related to operating the business are deducted from the revenue earned.
Rate of productivity growth
A measure of performance that indicates how many inputs (resources) it takes to produce an output (goods or services).
Number of sales
A measure of the amount of goods or services (products) sold by the business in a given period of time.
Rate of staff absenteeism
A measures the number of workers who neglect to turn up for work when they are scheduled to do so
Level of staff turnover
It measures the number of staff who are leaving the business, for whatever reason, and need to be replaced
Level of wastage
The amount of unwanted or unusable material created by the production process of a business
Number of customer complaints
Refers to the number of customers who contact the business to express their disappointment with the business — the goods or service purchased, the quality, price or the customer service received.
Number of workplace accidents
Refers to any unplanned event that results in personal injury or property damage at the workplace that is reported to management.
List Driving forces
Innovation, Societal attitudes, Managers, Employees, Technology, Competitors, Legislation, Pursuit for profit, Reduction of costs, Globalization
List Restraining forces
Manager, Employee, Legislation, Time, Financial consideration, Organizational inertia
Forces field analysis theory (Lewin)
1)Outlines the proposed change
2)Identifying the driving forces
3)Identifying restraining forces
4)Analyse each force to determine their strength ( Giving rank out of 5)
5)Create an action plan to help reduce the strength of restraining forces and even possibly increase the strength of the driving force
Limitations of a Force Field Analysis
Difficult to identify all forces (make it difficult to plan effectively)
Weighting are subjective which can influence decision making
Benefits of a Force Field Analysis
Managers are able to identify and analyse the forces for and against the change
Can help determine if the change is worth pursuing
Allow actions and timelines to be developed so restraining forces can be reduced
Managers
Managers have the responsibility of operating a profitable or successful business.
Employees
Employees working for a business expect to be paid fairly, trained properly and treated ethically in return for their vital contribution to production.
Legislation
Laws can be passed that require a business to stop doing something or to start doing something. It is a legal requirement for businesses to comply with the law or face substantial fines or even imprisonment of individuals
Pursuit of profit
All businesses, regardless of size, need to earn a profit, of which they return a portion to owners/shareholders.
Reduction of costs
A business will incur a range of costs. Supplies, materials, utility costs, government charges and taxes, interest and other finance costs and wages are all costs associated with operating a business.
Globalisation
Globalisation is the movement across nations of trade, investment, technology, finance and labour brought about by the removal of trade barriers.
Technology
Technology allows a business to operate its processes and practices more efficiently and effectively, cutting costs and improving productivity.
Innovation
Innovation is a process that occurs when something already established is improved upon.
Societal attitudes
Society’s attitudes about what is right and wrong are constantly changing and this affects the ways in which businesses operate.
Time
Time allows people to think about the change, accept it, and implement it.
Organisational inertia
refers to a business’s inactivity or lack of response when faced with proposed changes.
Financial considerations
The immediate and long term costs of a proposed change may make it difficult for the change to be implemented successfully
