3.2 Flashcards
What are examples of performance data?
Absenteeism
Labour turnover
Productivity
Wastage
Interpreting trends in workforce performance over time
Using industrial averages to make comparisons with other businesses
What is absenteeism?
Relates to the number of days lost due to employees not turning up to work
Number of days employees are absent/total number of working days x 100
Factors of absenteeism?
Costly for the business
Could be caused from low morale, low pay, inappropriate leadership style, repetitive job
High absenteeism is a sign of an unhappy workforce
Lead to low productivity as replacement workers might not be as experienced as skills workers
What is labour turnover?
Expresses the number of employees who leave a business as a percentage of the total workforce employed
Number of employees leaving/total workforce x 100
Factors of labour turnover?
High labour turnover = unhappy workforce
Could be caused from poor working conditions, low pay, lack of promotional opportunities, inappropriate leadership style
Replacing employees is costly
Lead to low morale among employees
What is productivity?
Measure of how efficient a workforce is and shows output per employee
Total output/total no. of workers or work hours
Factors of productivity?
Low productivity = high unit cost leading to low profit margins, lose customers if orders are not met on time
Common causes are lack of training, low morale and poor working conditions
Can be improved by higher pay and piece rates or better working environment and training
What is wastage?
Measures workforce performance, wastage is the amount of defective items produced compared to the total output, as a percentage
Quantity of waste/total output x 100
Factors of wastage?
High wastage = low morale as a result of a poor working environment, lack of training or a flaw in the production process, meaning closer quality control is needed.
High wastage levels lead to low efficiency and probability.
What are solutions to solve poor workforce performance?
Appropriate leadership style
Fair pay and benefits
Training programmes
Corporate image
