Assessing competitiveness, managing change 3.5, 3.6

Front

Gearing ratio

Back

Measures the performance of a business that is financed from long term borrowing. Highly geared is over 50%. Calculated as non-current liabilities/capital employed x100.

Front

Return on capital employed

Back

The profit of a business as a percentage of the total amount of money used to generate it. Calculated as Operating profit/Capital employed x100.

Front

Return on investment

Back

The financial benefits or profits made from an investment, such as setting up a production location in another country.

Front

Absenteeism

Back

The number of staff who are absent as a percentage of the total workforce. Calculated as number of staff absent on a day/ total number of staff x100.

Front

Consultation strategies

Back

When the management actually engage in discussions with employees about strategies and working practices.

Front

Employee share ownership

Back

Where key employees will be paid a tranche of shares if the business reaches important performance targets.

Front

Empowerment strategies

Back

Achieved by granting employees more authority in the workplace.

Front

Human resources

Back

The set of people who make up the workforce of a business, including the recruitment, training, and redundancy of employees.

Front

Labour productivity

Back

A measure of how efficiently a business uses its employees to produce output, expressed as output per employee per time period. Calculated as Total output/average number of employees.

Front

Labour retention

Back

The number of employees that remain in the business over a period of time.