Theme 3 Topic 15 - Human Resources and Competitiveness Flashcards
Define Labour Productivity
Measures the output per worker
Labour Productivity =
Total Output/Average Number of Workers
What are three ways to improve labour productivity?
Investing in new machinery, Training, Financial incentives
What are three reasons labour productivity is important for competitiveness?
Important measure of efficiency, Higher labour productivity results in lower unit costs, Lower unit costs means they can charge lower prices or enjoy higher profit margins
Define Labour Turnover
The proportion of staff leaving a business over a period of time
Labour Turnover =
Number of Staff Leaving/Average Number of Staff x 100
What are three problems of labour productivity?
Increased recruitment and selection costs, Increased induction training costs, Low productivity as new employees take time to learn
Define Labour Retention
Measures the rate at which employees stay with a business
Labour Retention =
Number of Staff Staying/Average Number of Staff x 100
Define Absenteeism
Measures the number of days taken off work by the employees of a business
Absenteeism =
Number of Staff Absent/Total Number of Staff x 100
What are four financial motivators businesses use?
Piece rate, Performance related pay, Commission, Profit share
What are three advantages of financial rewards?
Motivates staff, Higher productivity, Lower labour turnover
What are three disadvantages of financial rewards?
Employees might begin to expect it, Increases businesses costs, Quality might suffer if focus is on quantity
Define Employee Share Ownership
Some businesses reward employees by giving them shares in the business
