3.5.3 Human Resources Flashcards
key measures of hr performance
Labou turnover and staff retention.
Labour productivity.
absenteeism
labour turnover and staff retention
percentage of staff who leave during a period
labour productivity
output per employee
absenteeism
percentage of staff who are absent from work
labour productivity formula
total output / number of workers
ways to improve labour productivity
measure performance and set targets.
streamline production process.
invest in capital equipment.
invest in employee training.
improve working conditions.
problems of trying to increase labour productivity
potential trade off with quality - higher output must still be of the right quality.
potential for employee resistance.
employees may demand higher pay for their improved productivity
labour turnover formula
number of employees leaving / average number of employees x 100
problems of high staff turnover
higher costs = increased recruitment / training costs.
increased pressure on remaining staff.
disruption to production / productivity.
harder to maintain required standards of quality and customer service
factors affecting staff turnover
type of business.
pay and other rewards.
working conditions.
opportunities for promotion.
competitor actions.
standard of recruitment.
quality of communication in business.
economic conditions.
labour mobility.
employee loyalty
ways to improve staff turnover
effective recruitment and training.
provide competitive pay and other incentives.
job enrichment.
reward staff loyalty
define absenteeism
an employees intentional or habitual absence from work
why can absenteeism be a significant issue in business
a significant business cost.
key to understand reasons - genuine or not.
often predictable
absenteeism formula
number of staff absent during period / number employed during period x 100
absenteeism formula - alternative
number days taken off for unauthorised absence / total days worked by workforce over the period x 100
causes of absenteeism
serious accidents / illnesses.
low morale
poor working conditions.
boredom on the job.
lack of job satisfaction.
inadequate leadership / poor supervision.
poor physical fitness.
problems getting to work.
stress.
workload.
ways to reduce absenteeism
introducing more flexible working practices.
ensure jobs are interesting and challenging.
improve work conditions to reduce dissatisfaction.
improve relations between employers and employees.
introducing attendance bonus
human resource strategies
financial rewards
employee share ownership.
consultation strategies
empowerment strategies.
financial rewards
motivates staff so they will turn up for work and work harder
commission = sales jobs
overtime on a weekly wage.
bonus on a salaried wage.
piece rate = paid by results.
fees = one off payment for work completed
employee share ownership
brings a say in who runs the company.
can be a powerful reason for employees to focus on business improvement.
consultation strategies
employees are motivated by being consummated on matters relating work by managers.
can reduce absenteeism and labour turnover as it involves the employee in a discussion.
employees are less likely to be frustrated and leave
empowerment strategies
giving employees the authority to make decisions.
shows recognition of an employees abilities and trustworthiness.
can boost self confidence and motivate them