Business literacy is the knowledge and understanding of the financial, accounting, marketing, and operational functions of an organization.
It refers to “Educating all employees about the firm’s business so they understand how it operates as a financial enterprise.”
Business literacy means educating the employees to make them able for using business and financial information for understanding and making decisions that assist the business achieve success.
A workforce is called business literate when all employees have a functional knowledge of the following:
- Goals and objectives: Employees know the measurable as well as global goals and objectives of the organization.
- Measurement: Employees understand the way success can be measured. Generally, it means having the ability to read and describe one or more of the financial statements such as balance sheet, income statement, and cash flow statement and understand the main measures of success for their company or organization.
- Line of sight: Employees know the way their work affects the goals and objectives, main measures, and financial statements of the organization.
Business literacy training gives the framework and context for employees to take part in intelligently, developing participative competence.
More from this Section
- Orientation program
Orientation program is a series of activities that gives the new employees information ...
Efficiency is how productively a firm utilizes its assets relative to its revenue and ...
- Knowledge worker
Knowledge worker refers to employees whose job functions are primarily of an intellectual ...
- Management by Objective (MBO)
Management by Objective (MBO) is a performance appraisal strategy in which subordinates ...
- Markov Model
Markov model is a model that produces a series of matrices that detail the various patterns ...