Analysing HR Performance:

Question 1

Calculating and interpretating HR data: Assessing performance of employees

Answer 1

• Labour productivity (most fundamental indicator of performance for employees, depends on capital equipment available and motivation.)
• Unit Labour costs (determined by costs of employing workers and their productivity)
• Employee costs as a % of turnover (influenced by productivity of workforce, wage rates, nonwage employment costs and management of capacity)
• Labour turnover and retention (attempt to balance Turnover as getting the balance between new ideas and recruitment costs is important)

Question 2

Using data for HR decision making and planning : Starting of planning

Answer 2

1) Consider corporate objectives of the business
2) Take a strategic view of employees
3) Make a judgement about the size and type of workforce required over next couple of years
4) desired compared to available workforce
5)Decide on policies e.g recruitment, training etc

Question 3

Range of data managers will have to use to meet desired workforce:

Answer 3

1) Information about the current workforce: number, current skills, Labour productivity, current Labour costs and age.

2) Information from outside the business: expected rate of unemployment for workers with skills required, forecast wage rates, expected demand and prices.

External data extremely important when there is limited historical data

Question 4

Potential of using HR data in decision making:

Answer 4

• Can provide insights into individual employees
• Offers a clear advantage in making good quality HR decisions
• performance indicators such as Labour productivity and unit Labour costs
• Can provide competitive edge

Question 5

Reluctance of managers to use HR data for decision making:

Answer 5

• HR data will not give managers sufficient information to take major decisions, but may help
• Many companies do not use HR data to inform decision making can be timely and costly