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Flashcards in Chapter 11 Deck (25):

what is Labour productivity?

Labour productivity is the output per worker in a given time period


how to calculate labour productivity?

total output in time period, e.g. 1 year
total staff employed


How might labour productivity increase?

1 Improved staff motivation and higher levels of effort
2 More efficient and reliable capital equipment
3 Better staff training
4 Increased worker involvement in problem solving to speed up methods of production, e.g. kaizen and quality-circle groups
5 Improved internal efficiency, e.g. no waiting for new supplies of materials to arrive


what is Absenteeism?

Absenteeism measures the rate of workforce absence as a proportion of the employee tota


how to calculate Absenteeism

Absenteeism (%) = no. of staff absent x 100
total no. of staff


what Labour turnover?

Labour turnover measures the rate at which employees are leaving an organisation


how to calculate Labour turnover?

number of staff leaving in 1 year x100
average number of staff employed


Costs of high labour turnover

1 costs of recruiting, selecting and training new staff
2 poor output levels and customer service due to staff vacancies before new recruits are appointed
3 difficult to establish loyalty and regular, familiar contact with customers
4 difficult to establish team spirit


Potential benefits of high labour turnover

1 low-skilled and less-productive staff might be leaving – they could be replaced with more carefully selected workers
2 new ideas and practises are brought into an organisation by new workers
3 a business that plans to reduce staff numbers anyway – due to rationalisation – will find that high labour turnover will do this, as leaving staff will not be replaced


The techniques frequently used to increase employee performance are?

1 Regular appraisal of performance against agreed pre-set targets
2 Training to increase efficiency and offering opportunities for general educational qualifications to stretch and challenge every worker
3 Quality circles – small groups of workers encouraged to take responsibility for identifying and suggesting solutions to work-related problems
4 Cell production and autonomous work groups where teams of workers are given multi-skilling training and the opportunity to take responsibility for a complete section of work
5 Financial incentives linked to the profits of the business or an offer of a stake in the ownership of the company, such as share-option schemes


Management by objectives (MBO)

This system is designed to motivate and coordinate a workforce by dividing the organisation’s overall aim into specific targets for each division, department and individual.


what are the MBOs?



MBO – the possible benefits

1 Each manager and subordinate will know exactly what they have to do. This will help them prioritise their time. It will also help them to see the importance of what they do to the whole organisation.
2 By using the corporate aim and objectives as the key focus to all departmental and individual objectives, everyone should, be working to the same overall target
3 Objectives act as a control device. By setting targets agreed with the people who have the authority to reach them, managers are able to monitor everyone’s performance and measure success or failure.


MBO – the possible problems?

1 The process of dividing corporate objectives into divisional, departmental and individual targets can be very time consuming, especially as this is best performed only after full consultation with those most affected
2 Objectives can become outdated very quickly and fixing targets and monitoring progress against them can be less than useful if the economic or competitive environment has changed completely
3 Setting targets does not guarantee success, despite what some managers might believe.


what is Labour legislation

This section considers the role of the state in passing labour laws affecting trade unions and industrial relations


how does the state intervene?

1 Through industrial-relations laws
2 Through agencies set up to improve industrial relations, such as arbitration councils
3 Through its own policies as a major employer


what is a trade Union?

A trade union is an organisation of working people with the objective of improving the pay and working conditions of their members and providing them with support and legal services


the role of a trade union?

1 Power through solidarity’ has been the basis of union influence and this is best illustrated by their ability to engage in collective bargaining
2 Individual industrial action – one worker going on strike, for example, is not likely to be very effective but collective industrial action could result in much more influence over employers during industrial disputes
4 Provide legal support to employees who claim unfair dismissal or poor conditions of work
5 Unions pressurise employers to ensure that all legal requirements are met, e.g. health and safety rules regarding the use of mach


what is Union recognition

Trade union recognition occurs when an employer formally agrees to conduct negotiations on pay and working conditions with a trade union rather than bargain individually with each worker


what is Single-union agreement

Single-union agreement means that an employer recognises just one union fir purposes of collective bargaining


what is No-strike agreements

A no-strike agreement is a situation where unions agree to sign a no-strike agreement with employers in exchange for greater involvement in decisions that affect the workforce


how can a union achieve its objectives?

1 Negotiations
2 Go slow
3 Work to rule
4 Overtime bans
5 Strike action


employers what actions can they take to settle disputes with unions?

Public relations
Threats of redundancies
Changes of contract


what is Conciliation

Conciliation is the use of a third party in industrial disputes to encourage both employer and union to discuss an acceptable compromise solution


What is Arbitration

Arbitration is resolving an industrial dispute by using an independent third party to judge and recommend an appropriate solution