HR - Improving HR and analysing HR performance

Question 1

What is the overall aim of HRM?

Answer 1

• maximise the contribution of employees, on an individual and group level, to the organisation’s overall objectives.

Question 2

Give 3 examples of HRM objectives.

Answer 2

• the number, skills and location of employees
• diversity
• employee engagement and involvement

Question 3

Give 2 examples of internal influences on HR objectives and decisions.

Answer 3

• financial pressures felt by the business
e.g cash flow problems

• changing marketing objectives

Question 4

Give 2 examples of external influences on HE objectives and decisions.

Answer 4

• economical factors
e.g recession/boom - shortage of employees

• legal factors
e.g laws, discrimination, wages etc.

Question 5

What is hard HRM?

Answer 5

• treats employees simply as a resource of the business.
• minimal communication from the top down.
• tall organisational structures.

Question 6

What is soft HRM?

Answer 6

• treats employees as the most important resource in the business.
• strong and regular two-way communication.
• flatter organisational structure.

Question 7

How do you measure labour productivity?

Answer 7

Labour productivity =

Output per time period / number of employees

Question 8

What is employee costs as a percentage of turnover?

Answer 8

Employee costs as a % of turnover =

( employee costs / sales turnover ) x 100

Question 9

What is the calculation for labour cost per unit?

Answer 9

Labour cost per unit =

Labour costs / units of output

Question 10

What is labour turnover as a percentage?

Answer 10

Labour turnover as a % =

( no. of staff leaving during year / average no. of staff employed by business during the year ) x 100

Question 11

Give 3 causes for higher labour turnover.

Answer 11

• poor recruitment process (wrong staff selected)
• wage levels lower than other firms
• more local vacancies (for staff to leave)

Question 12

What’s an advantage of high labour turnover?

Answer 12

• new workers with new ideas, skills and enthusiasm.

Question 13

What a disadvantage of high labour turnover?

Answer 13

• costs of recruitment and training.

Question 14

What is the calculation for employee retention rate?

Answer 14

Employee retention rate (%) =

( no. Of employees at end of period — number of leavers )
————————————————————— x 100
number of employees at the end of period