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UNIT 4 - AOS2 (A) (Management strategies to respond to key performance…
UNIT 4 - AOS2 (A)
Management strategies to respond to key performance indicators
Percentage of market share
is the businesses share of the total industry sales for a particular good or service, expressed as a percentage
Strategies include;
increasing spending on advertising and marketing
increasing innovation by developing new lines of stock, new products or new processes to allow cheaper production can also lead to an increase
Net Profit Figures
are what remains when expenses related to the operation of the business are deducted from the revenue earned
Strategies include;
cutting costs - through changing suppliers, reducing utility costs (electricity, phone and gas), reducing wage costs (through downsizing or replacing labour with technology)
Rate of productivity growth
is a measure of performance that indicates how many inputs it takes to produce an output
Strategies include;
reducing wages
Staff training to use new technology (improved skill)
Improving quality in production through increasing the speed of production to allow greater output to be produced per hour/day
Using new and improved technology
Productivity
refers to the level of output produced from a given level of inputs
Number of Sales
is a measure of the number of goods/services sold. Increasing sales relates to improving competitiveness in terms of price, quality and service
Strategies include;
cost reduction strategies
quality needs to be ensured
service is improved through staff training
Rate of staff absenteeism
is the number of staff choosing not to turn up to work when scheduled to do so
Strategies include;
changing the style of management
holding social events
staff training
developing a new vision statement
Level of staff turnover
is the number of staff leaving the business
Stategies include;
staff motivation
staff training
change in management styles or management skills
Level of wastage
is the amount of waste created by the production process. Minimising waste should be a goal of all businesses. The reduction in harm to the environment should be a consideration for all businesses as this demonstrates a commitment to social responsibility. Most waste is a cost to business therefore reduction in waste will reduce the cost to the business
Strategies include;
initiating lean production techniques
redeployment of resources
Number of customer complaints
refers to communications that indicate whether or not customers are satisfied with the performance of the business. Customers are the people that have a large say in the success or failure of a business
Stategies include;
enrolling staff in training programs to better equip them for their role and improve their skills in dealing with customers
improve quality of the product/service
reduce the price of the product/service
Number of workplace accidents indicates how safe the workplace is for employees. To reduce workplace accidents businesses should ensure;
they comply with all workplace laws and requirements
consult staff about improvements to facilities
schedule regular maintenance of equipment and audits of the business
Strategies include;
staff trianing opportunities to maintain or improve skills
reduction in workplace accidents will reduce cost, improve morale and staff satisfaction and productivity
The importance of leadership in change management
Leadership
is the process of positively influencing and encouraging individuals to set and achieve objectives
Leaders need to display empathy and posses good listening skills
Employees are generally more prepared to accept the risks involved with change if they feel their manager is concerned about their welfare
Managers who concentrate . on the needs of their employees are most effective, building high-performance teams that attain their objective
A successful leader will need to;
market and promote the change in a manner that will achieve cooperation and acceptance
Resolve conflicts caused by change
Key an opened mind, seek out new ideas and freely share information
Cultivate a sense of stability, while at the same time implementing even more change
Show confidence in people, share credit and recognition
Build and communicate a clear vision