3.5.3 Human Resources

Question 1

key measures of hr performance

Answer 1

Labou turnover and staff retention.
Labour productivity.
absenteeism

Question 2

labour turnover and staff retention

Answer 2

percentage of staff who leave during a period

Question 3

labour productivity

Answer 3

output per employee

Question 4

absenteeism

Answer 4

percentage of staff who are absent from work

Question 5

labour productivity formula

Answer 5

total output / number of workers

Question 6

ways to improve labour productivity

Answer 6

measure performance and set targets.
streamline production process.
invest in capital equipment.
invest in employee training.
improve working conditions.

Question 7

problems of trying to increase labour productivity

Answer 7

potential trade off with quality - higher output must still be of the right quality.
potential for employee resistance.
employees may demand higher pay for their improved productivity

Question 8

labour turnover formula

Answer 8

number of employees leaving / average number of employees x 100

Question 9

problems of high staff turnover

Answer 9

higher costs = increased recruitment / training costs.
increased pressure on remaining staff.
disruption to production / productivity.
harder to maintain required standards of quality and customer service

Question 10

factors affecting staff turnover

Answer 10

type of business.
pay and other rewards.
working conditions.
opportunities for promotion.
competitor actions.
standard of recruitment.
quality of communication in business.
economic conditions.
labour mobility.
employee loyalty

Question 11

ways to improve staff turnover

Answer 11

effective recruitment and training.
provide competitive pay and other incentives.
job enrichment.
reward staff loyalty

Question 12

define absenteeism

Answer 12

an employees intentional or habitual absence from work

Question 13

why can absenteeism be a significant issue in business

Answer 13

a significant business cost.
key to understand reasons - genuine or not.
often predictable

Question 14

absenteeism formula

Answer 14

number of staff absent during period / number employed during period x 100

Question 15

absenteeism formula - alternative

Answer 15

number days taken off for unauthorised absence / total days worked by workforce over the period x 100

Question 16

causes of absenteeism

Answer 16

serious accidents / illnesses.
low morale
poor working conditions.
boredom on the job.
lack of job satisfaction.
inadequate leadership / poor supervision.
poor physical fitness.
problems getting to work.
stress.
workload.

Question 17

ways to reduce absenteeism

Answer 17

introducing more flexible working practices.
ensure jobs are interesting and challenging.
improve work conditions to reduce dissatisfaction.
improve relations between employers and employees.
introducing attendance bonus

Question 18

human resource strategies

Answer 18

financial rewards
employee share ownership.
consultation strategies
empowerment strategies.

Question 19

financial rewards

Answer 19

motivates staff so they will turn up for work and work harder
commission = sales jobs
overtime on a weekly wage.
bonus on a salaried wage.
piece rate = paid by results.
fees = one off payment for work completed

Question 20

employee share ownership

Answer 20

brings a say in who runs the company.
can be a powerful reason for employees to focus on business improvement.

Question 21

consultation strategies

Answer 21

employees are motivated by being consummated on matters relating work by managers.
can reduce absenteeism and labour turnover as it involves the employee in a discussion.
employees are less likely to be frustrated and leave

Question 22

empowerment strategies

Answer 22

giving employees the authority to make decisions.
shows recognition of an employees abilities and trustworthiness.
can boost self confidence and motivate them