Indicators

Question 1

Indicators

Answer 1

• performance measures used to evaluate organisational or individual effectiveness
• can be compared to those of best practice (b)’s or internal divisions to determine strengths + weaknesses - process = benchmarking

Question 2

Indicators

- Corporate culture

Answer 2

• refers to values, ideas, expectations + beliefs shared by members of (b)
• inclusive, friendly, productive, professional + positive = first step in empowering employees to be efficient + hardworking (increased profitability)
• positive work climate, cohesive teams, clear + positive + productive communication = signs of effective HR management shown through positive CC → indicated through high staff morale + applications
• indicators of poor corporate culture: high staff turnover + absenteeism, poor customer service, accidents, disputes + internal conflict
• can build positive CC through: high training levels, trust

Question 3

Indicators

- Benchmarking key variables

Answer 3

• process of measuring employee performance against established standards e.g. output per worker, level of faults/breakdowns, levels of customer satisfaction
• main purpose = compare (b) performance against most successful (b) → initiate change + foster improvement
• Types of benchmarking:
  → Informal: strategies such as networking through informal discussion with colleagues in other (b)’s
  → Performance: involves comparing performance levels of a process/activity with other (b)’s
  → Best practice: compares levels with best practice (b)’s in specific areas using a structured process to gain skills + knowledge
  → Balanced scorecard: measures whether activities of a (b) are meeting its objectives established in strategic plan
• approach used needs to be chosen for its suitability to (b)’s needs + resources as can be very costly + time-consuming process
• negatives: focus excessively on costs rather than what is actually being achieved, reactive, comparability
  HR Audits
• can be used to systematically analyse + evaluate HR activities + their effectiveness
• can be performed: benchmarked against ‘best practice’ to determine areas of weakness + improvement, outside consultant conducts research to analyse problems + suggest solutions, variable evaluated by management, legal compliance analysis = variance from laws + policies, management by objective approach (against targets)
• shift from quantitative variables to qualitative info

Question 4

Indicators

- Changes in staff turnover

Answer 4

• refers to the loss of employees by a (b) who leave for a variety of reasons
• may indicate staff dissatisfaction = HR needs to address reasons why staff leaving e.g. conduct interviews
• varies b/w different industries = important for (b)’s to benchmark their turnover against other (b)’s in industry + determine the type of staff leaving + their reasons
• pull factors: seek new opportunities or obtain promotion as a result of skill being further developed
• push factors: ‘toxic’ workplace with internal politics
• costs of high labour staff turnover are great - due to payouts for entitlements, recruitment, induction + training
• productivity, service quality, time, corporate skills + knowledge are lost
• some level of turnover = healthy in (b), as new ideas are brought in + often stimulate innovation in work practices
• major increase or change in turnover = warning sign

Question 5

Indicators

- Absenteeism

Answer 5

• refers to a worker who neglects to turn up for work when they were scheduled to do so
• high levels of absenteeism and/or lateness may indicate workers are dissatisfied or there is conflict within the workplace
• Firms need to have higher/adequate staff levels to cope with high absentee levels
• if not managed effectively = lost revenue, decreased productivity + higher labour costs
• reasons for absenteeism: job dissatisfaction, poorly designed jobs, lack of strong employer/employee r/s’s

Question 6

Indicators

- Accidents

Answer 6

• all (b)’s need to adopt a systematic, legally compliant approach to managing WHS - failing if high accidents
• total cost in Aus = $60 billion a year
• can be minimised by following WHS standards, developing + regularly reviewing accident + safety plans + recording accident data
• low levels = measure of the effectiveness of T+D
• Best practice (b)’s:
  → have regular safety audits + comprehensive safety programs + use data to improve
  → Build a culture of safety + communicate (visible signs)
  → Provide careful induction + regular ongoing training = ensure awareness of rules + prepared for emergencies
  → Consult employees + health + safety personnel
• save on compensation claims, absenteeism, loss of morale, replacement costs for damaged equipment = also improve (b) image + reputation

Question 7

Indicators

- Levels of disputation

Answer 7

• disputes indicate unhappy workplace
• level + seriousness + frequency with which they occur indicate extent to which HR are successfully managing
• need to identify why disputes are occurring + rectify practices that cause the disputes
• Monitoring frequency + severity = indicate effectiveness of grievance procedures + dispute resolution processes
• cost of industrial disputes + action e.g. strikes include an increase in no. of working days lost, lower productivity + lower staff morale
• Indicators of Industrial Disputation
  → Work bans (overt) - refusal to work overtime, handle a product, piece of equipment, process or even refusal to work with particular individuals
  → work to rule (overt) - refuse to perform any duties additional to work they normally are required to perform
  → Go slow - employees work at slower rate than normal = customer complaints + expensive backlog of work to be caught up
  → sabotage (covert) - vandalism, cyber attacks + internal theft
• could indicate workers have not adjusted to rapid expansion = company failed to implement adequate T+D
  → must prepare staff for changes or disputes may occur

Question 8

Indicators

- Workers satisfaction

Answer 8

• refers to whether employees are happy, contented + fulfilling their desires at work
• key factor in employment commitment, job performance + staff turnover
• satisfaction surveys + polls = useful in helping measure + understand staff feelings about work, management + culture of org
• used to improve management style + processes, benefits + reward systems, working env, employee r/s’s
• employees who have good r/s’s with coworkers, enjoy work, receive T+D + gain opportunities to grow = more likely to be satisfied + stay with (b)
• must adopt a holistic approach which values + cares for employees = most effective in building commitment, satisfaction + retaining effective staff
  → value work life balance, adequate breaks + rewards
• high worker satisfaction = better customer service, less absenteeism, improved productivity, innovation + loyalty
• employee wellbeing + wellbeing policy = vital