HR performance Flashcards
What is labour productivity equation
Total output per time period/number of employees at work
pros of high LP
lowers unit cost
increased profit
increase efficiency
Lower selling price (more sales?)
competitive advantage
Factors affecting LP (4)
skills/ability of staff
motivation
reliability of suppliers
extent and quality of equipment
How does skills affect LP
improve skills with training will increase efficiency of production
How to increase LP
staff training
set targets
automation
reward staff
labour turnover equation
number of staff leaving in a year/average number of staff
what does high labour turnover show?
Low motivation
Increased cost (why?)
Poor job design
Why does high labour turnover increase costs?
Because the business has to recruit and train new employees
