Performance Indicators AOS 1: LSOs in Context Business Management AREA OF STUDY 1 – LSOs In Context LSO’s Environments of businesses • 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 • 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/effective ness • 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) ☐ 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