Human resources Flashcards
Define absenteeism.
The habitual non-presence of an employee at his or her job. Possible causes of absenteeism include job dissatisfaction, ongoing personal issues and medical problems. Regardless of cause, a worker with a pattern of being absent may put their reputation at risk, and may lose their job.
What is labour productivity?
Productivity is the output per worker in a time period
What is the formula for labour productivity?
Total output
no. of workers
How can labour productivity be improved?
Through kaizen, TQM and lean production
What is labour turnover?
Labour turnover measures the rate at which employees leave the business in a 1 year period
A high rate of labour turnover would be bad for business, it means that staff are so unhappy they don’t stay in the business and they leave. The business then has all the costs of recruiting and training another member of staff
What is the formula for labour turnover?
No. of employees leaving
———————————— x100
No. of employees
Explain labour turnover interpretation.
This is a measure of performance
Some industries may naturally have a high turnover so context is important e.g. retail and catering
Turnover should be measured against historical figures in the business
High labour turnover may be due to poor recruitment, weak induction, lack of challenge in the job and low pay rates
If this figure is rising year on year management should see this as a red flag and investigate it
What is the formula for calculating absenteeism?
No. days lost through absence
——————————– x 100
Total possible days worked
Explain absenteeism interpretation.
The results of absenteeism calculations can show if there is low staff morale or job satisfaction
This can be caused by; poor management, stress at work through role overload or under load, lack of recognition or poor working conditions
Some absenteeism is natural as staff retire or move on to new challenges but too much and it could cost the business in terms of lost orders and poor customer relations
Absenteeism can be improved through job enlargement, job rotation, incentive schemes etc.
What are some ways to reduce absenteeism?
introducing more flexible working practices
ensuring that jobs are interesting and challenging
improving working conditions and thus reducing dissatisfaction
improving relations between employers and employees
introducing attendance bonuses as an incentive to attend regularly
Explain financial rewards as a way to reduce absenteeism.
To motivate staff so that they will turn up for work and work harder - is sometimes possible to do through financial rewards. For example depending on the business context some of the following may be suitable;
Commission – sales jobs e.g. car sales
Overtime on a weekly wage
Bonus on a salaried wage
Piece rate – paid by results e.g. per garment knitted
Fees – one off payment for work completed, for example editing a book
Explain employee share ownership as a way to reduce absenteeism.
Shared ownership can also bring a say in who runs the company. On major issues, it can be a powerful reason for employees to focus on business improvement.
However, employee share ownership never means employees taking over business management. This continues to be the directors’ job
Explain consultation strategies as a way to reduce absenteeism.
Employees are motivated by being consulted (asked for their opinion) on matters relating to work by managers
This can reduce absenteeism and labour turnover as it involves the employee in a discussion on; pay, conditions and work matters
Employees are less likely to be frustrated and leave the business if they feel that they have a valid influence on management decisions
Explain empowerment strategies as a way to reduce absenteeism.
Empowerment means giving employees the authority to make decisions. This shows recognition of an employees abilities and trustworthiness, and will boost their self confidence and motivate them hopefully reducing absenteeism and raising productivity
Criticism of this method is that it may be an excuse to cost cut, delayer and make managers redundant. Also that employees being empowered is a smoke screen for more work on the same pay.
