Measuring And Increasing Proft & Measuring Workforce Effectiveness

Question 0

What is the formula for percentage change in profit?

Answer 0

Percentage change in profit = (current profit - previous profit) / previous profit X 100

Question 1

Name two ways a business can increase profit?

Answer 1

Increasing / decreasing selling price (depends on elasticity), increasing demand, reducing costs

Question 2

Define gross profit with a formula

Answer 2

Gross profit is the amount left over when the cost of making the products is taken away.
Gross profit = revenue - variable costs

Question 3

Define net profit with a formula

Answer 3

Net profit is the amount left over after all costs are taken away.
Net profit = revenue - total costs

Question 4

Define net profit margin with formula

Answer 4

Net profit margin shows how profitable a business or product is by showing what percentage of the selling price is profit
Net profit margin = net profit / revenue X 100

Question 5

Name three jobs of HRM

Answer 5

Recruit staff, work out how many employees a business needs, how to train and reward staff, letting go off staff, managing performance in the business.

Question 6

Define labour productivity with the formula

Answer 6

Labour productivity measures how much each employee produces.
Labour productivity = output per period / number of employees

Question 7

What are the two ways to improve labour productivity?

Answer 7

Training and improved worker motivation.

Question 8

Define absenteeism with its formula

Answer 8

Absenteeism measures the proportion of time employees are off work.
Absenteeism = number of staff days lost / number of working days X 100

Question 9

Name three possible causes of absenteeism

Answer 9

Poor working conditions, poor relationships with managers/staff, stress, disillusionment, poor motivation.

Question 10

Why is high absenteeism bad?

Answer 10

High absenteeism increases costs from lost opportunities

Question 11

Name three ways to reduce absenteeism

Answer 11

Job enrichment, improve working relationship, improve working conditions, flexitime.

Question 12

Define labour turnover with its formula

Answer 12

Labour turnover measures the proportion of staff leaving each year.
Labour turnover = number of staff that has left / average number of staff X 100

Question 13

Name three causes of high labour turnover

Answer 13

Regional unemployment levels, action of competitors, poor motivation of staff, low wages, no chance of promotion, poor recruitment.

Question 14

Name three ways to improve labour turnover

Answer 14

Increased delegation, job enrichment, higher wastage, better training.

Question 15

Name two benefits of having high labour turnover

Answer 15

New staff means new ideas flowing through a business, can recruit already trained staff, enthusiasm of new staff can motivate employees.

Question 16

Name two disadvantages of having high labour turnover

Answer 16

Lack of loyal and experienced staff, lose trained staff, training costs money, recruitment is expensive.