Analysing Hr Performance

Question 1

What does human rescource asses

Answer 1

The current and future capabilities of a businesses workforce and sets out actions necessary to fulfil needs

Question 2

What data can you calculate from hr

Answer 2

• labour productivity
• unit labour costs
• labour turnover and retention
• employee costs as a percentage of turnover

Question 3

How to calculate labour productivity

Answer 3

Output per period/ number of employees per period

Question 4

Why is labour productivity important

Answer 4

-Represents efficiency
-More productivity the less costs
- Remain competitive

Question 5

Formula for unit labour costs

Answer 5

Total labour costs/ total unit of output

Question 6

Relationship with unit labour costs and labour productivity

Answer 6

Inverse relationship
as labour productivity increases unit labour costs decrease and vise versa

Question 7

What does lowering labour costs mean for the business

Answer 7

Can produce same output for lower cost

Question 8

What does increasing labour productivity mean for the business

Answer 8

Businesses can produce more output for the same labour costs

Question 9

How do you increase productivity/decrease unit labour costs

Answer 9

• train staff
• recruit right employees
• motivate employees
• improve tech&capital equipment

Question 10

how to calculate labour turnover

Answer 10

Number of staff leaving during year x 100/ average number of staff

Question 11

What is labour turnover

Answer 11

Measures proportion of a workforce leaving their employment over a period of time usually a year

Question 12

factors that lead to increasing staff turnover (leaving the business)

Answer 12

• low wages
• inedequate training
• poor morale
• ineffective recruitment process

Question 13

What is labour retention

Answer 13

The extent to which a business holds on to its employees

Question 14

Formula for labour retention

Answer 14

Number of employees employed for one year or more x100/ average number of staff

Question 15

what does a business with a skilled workforce want

Answer 15

Lowest labour turnover rate

Question 16

What does an unskilled workforce/seasonal workforce business want

Answer 16

May not be concerned with a high level of labour turnover

Question 17

What is the formula for employee cost as a % of turnover

Answer 17

Employee costs/ sales revenue x100

Question 18

What are employee costs in relation to revenue influenced by

Answer 18

• productivity rates of the workforce, leads to increased revenue
• wage rates, higher employee costs
• non wage employment costs, higher employee costs
• management of capacity

Question 19

Four stages of human rescource planning

Answer 19

1) consider corporate objectives of business
2) take a strategic view of employees and whether they are meeting said objectives
3) make a judgement of what size of workforce/ skills that the business needs
4) decide upon the actions taken to convert existing workforce into desired one