Chapter 11 Flashcards
what is Labour productivity?
Labour productivity is the output per worker in a given time period
how to calculate labour productivity?
total output in time period, e.g. 1 year
total staff employed
How might labour productivity increase?
1 Improved staff motivation and higher levels of effort
2 More efficient and reliable capital equipment
3 Better staff training
4 Increased worker involvement in problem solving to speed up methods of production, e.g. kaizen and quality-circle groups
5 Improved internal efficiency, e.g. no waiting for new supplies of materials to arrive
what is Absenteeism?
Absenteeism measures the rate of workforce absence as a proportion of the employee tota
how to calculate Absenteeism
Absenteeism (%) = no. of staff absent x 100
total no. of staff
what Labour turnover?
Labour turnover measures the rate at which employees are leaving an organisation
how to calculate Labour turnover?
number of staff leaving in 1 year x100
average number of staff employed
Costs of high labour turnover
1 costs of recruiting, selecting and training new staff
2 poor output levels and customer service due to staff vacancies before new recruits are appointed
3 difficult to establish loyalty and regular, familiar contact with customers
4 difficult to establish team spirit
Potential benefits of high labour turnover
1 low-skilled and less-productive staff might be leaving – they could be replaced with more carefully selected workers
2 new ideas and practises are brought into an organisation by new workers
3 a business that plans to reduce staff numbers anyway – due to rationalisation – will find that high labour turnover will do this, as leaving staff will not be replaced
The techniques frequently used to increase employee performance are?
1 Regular appraisal of performance against agreed pre-set targets
2 Training to increase efficiency and offering opportunities for general educational qualifications to stretch and challenge every worker
3 Quality circles – small groups of workers encouraged to take responsibility for identifying and suggesting solutions to work-related problems
4 Cell production and autonomous work groups where teams of workers are given multi-skilling training and the opportunity to take responsibility for a complete section of work
5 Financial incentives linked to the profits of the business or an offer of a stake in the ownership of the company, such as share-option schemes
Management by objectives (MBO)
This system is designed to motivate and coordinate a workforce by dividing the organisation’s overall aim into specific targets for each division, department and individual.
what are the MBOs?
1 INDIVIDUAL TARGETS 2 DEPARTMENTAL OBJECTIVES 3 DIVISIONAL OBJECTIVES 4 CORPORATE OBJECTIVES 5 MISSION 6 AIM
MBO – the possible benefits
1 Each manager and subordinate will know exactly what they have to do. This will help them prioritise their time. It will also help them to see the importance of what they do to the whole organisation.
2 By using the corporate aim and objectives as the key focus to all departmental and individual objectives, everyone should, be working to the same overall target
3 Objectives act as a control device. By setting targets agreed with the people who have the authority to reach them, managers are able to monitor everyone’s performance and measure success or failure.
MBO – the possible problems?
1 The process of dividing corporate objectives into divisional, departmental and individual targets can be very time consuming, especially as this is best performed only after full consultation with those most affected
2 Objectives can become outdated very quickly and fixing targets and monitoring progress against them can be less than useful if the economic or competitive environment has changed completely
3 Setting targets does not guarantee success, despite what some managers might believe.
what is Labour legislation
This section considers the role of the state in passing labour laws affecting trade unions and industrial relations
