3.6 Decision making to improve human resource performance

Question 1

internal factors influencing HR Objectives

Answer 1

• The culture within the business influences HR objectives.
• Other departments within the business influence HR. They give HR the information that they need to predict workforce needs.
• The amount of funding available within the business

Question 2

external factors influencing HR Objectives

Answer 2

• The general state of the economy (boom or recession) will affect HR activities such as recruitment and training.
• All UK businesses are subject to UK employment laws. HR might have to change their objectives to fit in with new legislation
• Current ethical and environmental issues can influence HR objectives

Question 3

labour productivity calculation

Answer 3

output per period (units) / number of employees at work

Question 4

labour cost per unit

Answer 4

labour cost / units of output

Question 5

employee costs as a % of turnover

Answer 5

employee cost / sales turnover x 100

Question 6

labour turnover

Answer 6

number of employees leaving during period / average number employed during period x 100

Question 7

benefits of high staff turnover

Answer 7

• Constant stream of new ideas through new staff
• Firm can recruit staff who’ve already been trained by competitors - saves money
• If sales fall, firms can reduce workforce through natural wastage rather than costly redundancy.

Question 8

disadvantages of high staff turnover

Answer 8

• Lack of loyal and experienced staff who know the business
• Firm loses staff it has trained, often to direct competitors
• Training costs money and productivity drops while new staff get trained