Flashcards in U4 AOS1 T1 Deck (85)
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
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
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
occurs when a business measures its performance against that of other leading businesses known for their excellence.
is the degree to which a business has achieved its stated objectives.
refers to how well a business uses resources to achieve objectives.
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%
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
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.