Human Resource Management

Question 1

What are labour costs relative to other costs in manufacturing firms and service firms?

Answer 1

Manufacturing = 20-40% 
Service = 50-70%

Can control labour costs more than raw materials or technology

Question 2

Smart HR can help reduce the ___________ of production or service delivery

Answer 2

Unit labour cost

Question 3

Who says that staff are a cost not an asset?

Answer 3

Michael O’Leary of Ryanair

Question 4

What is the formula for unit labour cost?

Answer 4

E(w+f)) / Q

E= number of employees
W= wage
F= fringe benefits
Q= units produced

Question 5

What are the two best ways to reduce unit labour costs?

Answer 5

1) control wage costs

2) raise productivity

Question 6

How can you raise productivity?

Answer 6

• careful recruitment
• talent management
• job design
• training
• motivation through EPI

Question 7

What are some challenges of HRM?

Answer 7

1) humans are unpredictable
2) difficult to evaluate their impact
3) many people are not trained

Question 8

What are some sources of competitive advantage?

Answer 8

Cheaper raw materials / suppliers
Design of innovative products
Technology
Marketing tactics