Performance Indicators

Business Management

AOS 1: LSOs in Context

LSO’s

• Definition• Characteristics

(how to identify them)

• Typical management functions

• How to distinguish between various kinds of LSO’s (ownership, focus, activity)

• Mission and vision statements

Environments of businesses

• Positive/ negative contributions of LSO’s

• What are stakeholders

• Interests and conflicts of stakeholders

• How they relate to environments

• Internal and external environment

• Internal, operating and macro environment

Where to next: KPI’s

• How do we evaluate the performance of businesses

• What is efficiency/effectiveness

• What are some specific indicators to assess performance

Where to next: Further on LSOs

• The SMART way of objectives

• Hierarchy and types of objectives

• Typical management functions (more depth)

• LSO Economic Contributions (more depth)

AREA OF STUDY 1 – LSOs In Context

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Performance Indicator Terms

Efficiency – The way the organisation uses its available resources to achieve its goals and objectives.

- Examine inputs/resources and how they are turned into outputs.

Productivity – is a quantitative measure of efficiency, measuring the relationship between inputs and outputs.

Effectiveness – The ability of an organisation to achieve its goals and objectives

KPIs – are criteria used to measure the performance of the organisation in terms of efficiency and effectiveness. They can be financial or non-financial.

VCE Performance Indicators you need to know:

• Percentage of market share• Net profit figures• Rate of productivity growth• Number of sales,• Results of a staff and/or customer satisfaction

survey• Level of staff turnover• Level of wastage• Number of customer complaints • Number of workplace accidents