A large manufacturing firm, ‘SteelStrong Ltd,’ has invested heavily in automation to increase production efficiency. While the rate of productivity growth has increased significantly, the number of workplace accidents has also risen. Which of the following actions would BEST allow SteelStrong Ltd to comprehensively analyse the impact of this change?
Focus solely on the rate of productivity growth to justify the investment in automation, as this is the primary goal.
Compare the increase in the rate of productivity growth with the increase in the number of workplace accidents to assess the overall effect on efficiency and safety.
Disregard the number of workplace accidents, as they are an unavoidable consequence of increased automation and production speed.
Only analyse the net profit figures to determine the financial success of the automation investment, ignoring other KPIs.
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Create Free Account Log inThis is a free VCE Units 3 & 4 Business Management practice question worth 1 mark, testing your understanding of Key performance indicators. It falls under Reviewing performance – the need for change in Unit 4: Transforming a business. Submit your answer above to receive instant AI-powered marking and personalised feedback.
Businesses are under constant pressure to adapt and change to meet their objectives. In this unit students consider the importance of reviewing key performance indicators to determine current performance and the strategic management necessary to position a business for the future. Students study a theoretical model to undertake change and consider a variety of strategies to manage change in the most efficient and effective way to improve business performance. They investigate the importance of effective management and leadership in change management. Using one or more contemporary business case studies from the past four years, students evaluate business practice against theory.
In this area of study students develop their understanding of the need for change. Managers regularly review and evaluate business performance through use of key performance indicators and use the results to make decisions affecting the future of a business. Managers can take both a proactive and reactive approach to change. Students investigate the ways a business can search for new business opportunities as a source of future business growth and consider current forces for change on a business. They apply Lewin’s Force Field Analysis theory to contemporary case studies from the past four years and consider approaches to strategic management using Porter’s Generic Strategies.
key performance indicators as sources of data to analyse the performance of businesses, percentage of market share, net profit figures, rate of productivity growth, number of sales, rates of staff absenteeism, level of staff turnover, level of wastage, number of customer complaints, number of website hits and number of workplace accidents
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