Core Activity C Flashcards
What are key methods to Measure and Analyse Performance?
Use KPIs, financial ratios (e.g. ROCE, ROI), trend analysis, variance analysis, and benchmarking to assess current and past performance and identify areas for improvement.
What is a SMART objective?
A goal-setting framework: Specific, Measurable, Achievable, Relevant, and Time-bound. Ensures clarity and accountability.
What are the stages of Negotiation?
1) Preparation (gather facts), 2) Opening (state positions), 3) Bargaining (find middle ground), 4) Closing (reach agreement), 5) Implementation.
Name the four Responsibility Centres.
Cost Centre (controls cost), Revenue Centre (generates income), Profit Centre (controls costs and revenue), Investment Centre (manages capital investment and profitability).
What does Controllability of Costs mean?
Managers should only be held accountable for costs or outcomes they can directly influence to ensure fair performance evaluation.
Name key Financial Performance Measures.
ROCE (efficiency of capital use), RI (residual return above cost of capital), EVA (economic profit), Net/Operating Profit Margins, ROI (investment return).
What are examples of Non-financial Performance Measures?
Customer satisfaction, employee turnover, service quality, market share, brand awareness, and product innovation.
Give examples of KPIs.
Revenue per customer, sales per employee, retention rate, customer acquisition cost, lead conversion rate.
What are the types of Benchmarking?
Internal (within organisation), Competitive (against rivals), Functional (across sectors), Strategic (against industry leaders).
What are the four Balanced Scorecard perspectives?
1) Financial – profitability and cost efficiency, 2) Customer – satisfaction and loyalty, 3) Internal – process efficiency, 4) Learning & Growth – staff training and innovation.
What is Employee Empowerment?
Giving employees authority to make decisions and take initiative, increasing engagement, responsibility, and innovation.
What is Employee Engagement?
The emotional commitment and involvement an employee has toward the organisation and its goals. High engagement leads to higher performance.
Give examples of Rewards and Sanctions.
Rewards: bonuses, promotions, praise. Sanctions: verbal warnings, written warnings, suspension or termination.
What workplace culture factors affect performance?
Employee morale, staff turnover, productivity, absenteeism, leadership quality, alignment with organisational values.
Name characteristics of High Performing Teams.
Clear goals, mutual trust, accountability, diversity of skills, open communication, and adaptability.
What is important in Conflict Management?
Address issues early, focus on interests not positions, use mediation if needed, aim for win-win outcomes.
Define Power, Authority, Delegation and Empowerment.
Power: ability to influence. Authority: formal right to make decisions. Delegation: assigning tasks. Empowerment: enabling autonomy.
Types of Leadership Styles?
Autocratic (directive), Democratic (collaborative), Laissez-faire (hands-off), Transformational (visionary), Transactional (performance-focused).
Leadership in different contexts?
Effective leaders adapt style to the situation (e.g. team maturity, urgency, organisational culture) using situational or contingency theories.
What is Transactional Leadership?
Focuses on structured tasks, clear roles, and performance monitoring with rewards/punishments.
What is Transformational Leadership?
Inspires and motivates teams through vision, innovation, and personal influence to achieve long-term goals.
What are challenges in leading Virtual Teams?
Communication barriers, time zones, trust issues, lack of face-to-face interaction, cultural differences, and accountability.
Why is Ethical Leadership important?
Builds trust, promotes integrity, ensures compliance, fosters a strong culture, and protects brand reputation.
What is a Cost-Conscious Culture?
An organisational mindset where cost efficiency is a shared value and cost-saving behaviour is encouraged across all levels.
