Effectiveness of Human Resource Strategies Flashcards
How is corporate culture an indicator of strategy effectiveness?
Corporate culture refers to the workplace culture and attitudes within an organisation
An effective corporate culture is one that is believed, demonstrated and acted upon by management and employees
Teamwork is a sign of strong corporate culture
In 2014 McDonald’s was ranked 11th globally in the AON Top Companies for leaders report
How is benchmarking key variables an indicator of effectiveness?
Benchmarking is the process of measuring an employee’s performance against established standards
These standards are set by businesses that are leaders in an industry
It is a form of control, and can help employers note whether employees are meeting goals
In 2013, 89% of McDonald’s Australia staff were satisfied that they had received the training necessary to do a good job
How do changes in staff turnover indicate effectiveness?
Staff turnover is the rate at which employees leave a business
A high level of staff turnover caused by voluntary separation is indicative of poor employment relations within a business
It is also a costly process - entitlements must be paid, and there is the cost of recruiting and developing new employees
In 2018, McDonald’s UK indicated that “the average length of time a crew member stays with us has increased from 18 months to two and a half years”
How do absenteeism rates indicate effectiveness?
Absenteeism refers to employees not attending work, and can be used to express dissatisfaction
Absenteeism cost Australian businesses $2.7 billion annually
The costs relate to having to pay employees who are off work as well as pay others to cover that work
How do accident rates indicate effectiveness?
Human error in organisations can result in concerns relating to health and safety
Each year, more than 100,000 workplace injuries are reported to WorkCover NSW
Effective HR management ensures that work health and safety within a business is paramount
How do levels of disputation indicate effectiveness?
The level of disputation refers to the number of times each year issues arise between an employer and its employees
The level of disputation, the seriousness of disputes and the frequency at which they occur indicate the extent to which employers are successfully managing the HR function
The more disputes, the less effective management is being
How do levels of worker satisfaction indicate effectiveness?
Worker satisfaction means that employees are contented at work, and that their job fulfils their needs and desires
Satisfied employees often work more efficiently, and value the organisation that they work for
An effective HR management structure will implement strategies to measure worker satisfaction
A 2016 internal report found that 95% of current and previous employees believed working at McDonald’s helped to to succeed in life
