3.5.3 Human Resources Flashcards
Define absenteeism
The habitual non-presence of an employee at his or her job.
What are possible causes for absenteeism?
-Job dissatisfaction
-Personal issues + medical problems
What is labour productivity?
The output per worker in a time period.
What is the calculation for labour productivity?
Total Output / No. workers
Labour productivity interpretation
-Productivity is output per worker + if measures the efficiency of the workforce.
-A business will seek to ^ productivity to reduce the avg cost per unit.
-Labour productivity can be improved through kaizen, TQM + lean production.
What is labour turnover?
Labour turnover measures the rate at which employees leave the business in a 1 year period.
What would high labour turnover mean for a business?
-A high rate of labour turnover would be bad for a business, it means that staff are unhappy —> leave business.
-The business then has all the costs of recruiting + training another member of staff.
What is the calculation for labour turnover?
Number of employees leaving / Avg number of employees X 100
Labour turnover interpretation
-A measure of performance.
-Some industries may naturally have a high turnover (context-important).
-Turnover should be measured against historical figures in the business.
-High labour turnover may be due to poorer recruitment, weak induction, lack of challenge in the job + low pay rates.
How do you calculate absenteeism?
Number of work days lost through absence / Total possible days worked X 100
Absenteeism interpretation
-Results of absenteeism calculations can show if there is a low staff morale.
-This can be caused by; poor management, stress at work through role overload/under load, lack of recognition or poor working conditions.
-Some absenteeism is natural as staff retire or move on to new challenges but too much + it could cost the business in terms of orders + poor customer relations.
-Absenteeism can be improved through job enlargement, job rotation, incentive schemes etc.
What are the 5 ways to reduce absenteeism?
-Introducing more flexible working practices
-Ensuring that jobs are interesting + challenging
-Improving working conditions + thus reducing dissatisfaction
-Improving relations between employees + employers
-Introducing attendance bonuses as an incentive
Financial rewards
-Motivating staff is sometimes possible through financial rewards.
-For example depending on the business context some of the following may be suitable;
-Commission
-Overtime on a weekly wage
-Bonus on a salaried wage
-Piece rate
-Fees (one off payment)
Employee share ownership
-Shared ownership can also bring a say in who runs the company.
-On major issues it can be a powerful reason for employees to focus on business improvement.
-However, employee share ownership never means employees taking over business management.
-This continues to be the directors’ job.
Consultation strategies
-Employees are motivated by being consulted on matters relating to work by managers.
-This can reduce absenteeism + labour turnover as it involves the employee in a discussion on; pay, conditions + work matters.
-Employees are less likely to be frustrated + leave the business if they feel that they have a valid influence on management decisions.
