Analysing Human Resource Performance Flashcards
1
Q
Labour productivity
A
- In general a higher productivity figure is preferable.
- Improvements in labour productivity allows businesses to enjoy increased profit margins or to reduce prices hopefully leading to increased sales.
- Depends on factors such as the extent and quality of capital equipment available as well as the workforce’s degree of motivation
2
Q
Why is it important to consider factors when analysing labour productivity data
A
- Which businesses or aspects of a specific business are covered by labour productivity data.
- Labour productivity data ignores wage rates.
- Labour productivity for direct rivals.
3
Q
Unit labour costs
A
- Measures the labour cost per unit of output produced.
- They are determined by the cost of employing workers and the speed at which they make products.
- A rise in labour productivity can help to control unit labour costs.
4
Q
Interpreting unit labour costs data
A
- It can be useful to look at unit labour costs over a period of time as heavy investment in training may increase short term labour costs before rising productivity reduces them once more.
- Reducing unit labour costs will not improve price competitiveness if other costs are rising quickly.
5
Q
Employee costs as a percentage of revenue
A
- This is an important measure of employee performance for businesses that supply such as health care, where labour costs are a high proportion of total costs.
- Employee costs related to revenue are influenced by the productivity rates of the workforce, wage rates, non wage employment costs and management of capacity.
6
Q
Labour turnover and retention
A
- Labour turnover measures the proportion of a workforce leaving their employment at a business over some period of times.
- Low wages, inadequate training and ineffective recruitment procedures can cause high levels of labour turnover.
- Managers seek some level of labour turnover to bring new ideas into a business.
- Labour retention is the extent to which a business holds onto its employees.
7
Q
Interpreting labour turnover and retention data
A
- High rates of labour turnover can impose significant recruitment and training costs on businesses and may be unsettling for other employees as teams and working groups are disrupted.
- Most businesses will seek lower figures to avoid incurring costs.
- What is an acceptable labour turnover rate will differ according to the type of business.
- A company that operates theme parks may accept a much higher rate of labour turnover.
8
Q
Data and human resource planning
A
- The starting point of human resource planning is to consider the overall objectives of a business.
- The next stage is to take a strategic view of employees and to consider how Human Resources can be managed to assist in attaining the business’s corporate objectives.
- Have to make judgements about the size and type of workforce the organisation will require over future years.
- This desired future workforce is compared with that available to the business at the time of planning.
- Once this comparison is complete, the firm can decide upon policies necessary to convert the existing workforce into the desired one.
9
Q
The potential of using HR data in decision making
A
- HR data can lead directly to improved performance by businesses.
- HR data can provide and insight into the performances of workforces and individual employees.
- Using HR data to report and analyse on what has and is taking place within a business’s workforce offers clear advantages in making good quality Human Resources decisions.
10
Q
The reluctance of managers to use HR data for decision making
A
- Human resource data alone will not give managers sufficient information to take what can be major decisions in these areas.
- It does offer a quantitative element which may support qualitative information and help human resource managers to arrive at a well informed decision.
