3.5.3 human resources

Question 1

human resource data is

Answer 1

Human resource data is quantifiable information that can be used to measure workforce performance
This will help inform decision making e.g. is corrective action needed, should bonuses be paid, are staff motivated?

Question 2

Human resource data includes:

Answer 2

Labour productivity
Labour turnover and retention
Absenteeism

Question 3

define labor productivity

Answer 3

Labour productivity is a measure of workforce performance that looks at output per worker

Question 4

labour productivity formula

Answer 4

Total output/ Number of workers

Question 5

define labor turnover

Answer 5

Labour turnover is the rate of change in a firm’s labour force

Question 6

labour turnover formula

Answer 6

Number of staff leaving/ Average number of staff x100

Question 7

define retention rates

Answer 7

Retention rates are a measure of a firm’s ability to keep its workforce within the business normally for more than one year

Question 8

retention rates definition

Answer 8

number of employees serving for more than 1 year /

average number of staff x100

Question 9

Low retention rates may present a threat to a business:

Answer 9

High recruitment, selection and training costs
Risk of loss of important information (secrets)
Loss of talent

Question 10

define Absenteeism

Answer 10

Absenteeism can be defined as the number of staff who miss work as a proportion of the total number of staff

Question 11

Absenteeism formula

Answer 11

Number of staff absent per time period/ Total number of staff days worked per time period x100

Question 12

what are financial rewards

Answer 12

Financial rewards are the variety of methods that have a money value and are used to reward the workforce and influence their behaviours at work

Question 13

Financial methods of motivation include:

Answer 13

piece rate 
commission 
bonus
profit share
Performance related pay (PRP

Question 14

define piece rate

Answer 14

Piece rate is when payment is based on the number of items (pieces) produced by an employee

Question 15

define commission

Answer 15

Commission is when payment is based on the number of units sold

Question 16

define bonus

Answer 16

Bonus is an additional, lump sum, one off payment to an employee for meeting individual, team or company targets

Question 17

define profit share

Answer 17

Profit share is when a proportion of employee pay varies with the profits of the company

Question 18

define Performance related pay (PRP

Answer 18

Performance related pay (PRP) is when employees receive a bonus based on the performance of the employee measured against a pre agreed range of criteria

Question 19

Human resource strategies to increase productivity and retention and to reduce turnover and absenteeism

Answer 19

Employee share ownership
-Giving employees shares or the option to buy shares in the company
The employee therefore directly benefits from the success of the company
-Dividends received
Increased share value

Consultation strategies
Seeking the thoughts and opinions of employees prior to making decisions
Involving employees in decision making
Increases feeling of worth and involvement
Easier to implement change as staff feel involved in the decision making process
Employees have valuable input as they are often the ones working within functions and understanding key issues e.g. production problems of customer service

Empowerment strategies
Delegating greater responsibility to employees
Allowing them to use their abilities and to have a greater say in the decision making process

Consultation and empowerment strategies can be achieved through:
Matrix structure
Employee/employer groups e.g. works councils or trade unions
Open, two way communication channels
Meetings and forums