Reducing Labour Turnover and Absenteeism/ Human Resources (3.5.3) Flashcards
What is Flexible working?
Working contracts allowing staff to balance their work and home life more appropraitely for them.
What does flexible working do to an employees motivation?
Increases their motivation
What is bad about flexible working?
Could limit productivity if teams become out of sync with each other
What is Multi-skilling?
Allowing staff to train in different departements and rotate around job roles
What is good and bad about multi-skilling?
Good- More skills could mean more progression opportunities, increasing motivation
Bad- Could reduce experience within teams meaning job roles performed to lower standard
What are the Financial methods of motivation? (5)
-Piece Rate
-Commission
-Bonuses
-Profit Share
-Performance-Related Pay
What are the Non- Financial methods of motivation? (6)
-Delegation
-Consultation
-Empowerment
-Teamworking
-Flexible working
-Job rotation
What is Piece Rate?
Employers pay piece-rate workers for the number of tasks they perform, or per unit of work they complete
What are the dangers of piece-rate?
Some piece-rate workers may overwork themselves to earn more money which could ultimately damage an employees wellbeing if they overextend themselves or work long hours
What is commission?
A fee paid to an agent or employee for transacting a piece of business or performing a service. Get a percentage from each e.g. car sells.
What are the dangers of commission?
Lacks job security compared to fixed hourly wages or annual salary
What is Job rotation?
Practice of moving employees between jobs in an organization. Happen between jobs on the same level so not considered a promotion
What are the dangers of job rotation?
Your business could suffer, its costly and time consuming. Employees can also make mistakes as they are acquiring a new skill
What does Herzberg argue motivates someone?
Salary. So e.g. piece rates, bonuses and commission only encourage the wrong behavior. Workers will become wasteful or pushy in pursuit of their extra cash
What is Human Resources?
Refers to the department or function within an organization that is responsible for managing and overseeing the workforce. HR plays a crucial role in ensuring that the company has the right people in the right roles, and it is responsible for a range of activities that contribute to the effective management of employees.
What human resources metrics do businesses monitor?
-Labour Productivity
-Labour Turnover
-Labour Retention
-Absenteeism
What is Labour Productivity?
Measure of output per employye
How is it calcualted?
Total Output/ Number of employees
What is the Advantage and Disadvantage of High Labor productivity?
Advantage:
-The higher the productivity the lower the unit costs, becoming a competitive advantage for the
company
Disadvantage:
-Boosting productivity can involve heavy investment in new technology, training and R+D
What is Labour Turnover?
Labour turnover measures the proportion of employees leaving a business during a specific time period
How do you calculate Labour Turnover?
Number of staff leaving/ Average number of staff x100
What can a rising rate of labour turnover cause?
Can signal internal human resource management problems like:
-Poor management
-Poor recruitment and selection
-Low wage levels
What external factors can also increase labour turnover?
-Buoyant local economy where workers are attracted to employment opportunities elsewhere
-Improved Transport links that provide and opportunity for workers to seek work across a wider geographical area
What are the problems and opportunities that come from high labour turnover?
Problems:
-Increased recruitment and selection costs
-Increased induction and training costs
-Lower productivity levels as workers settle into new roles
Opportunities:
-Workers with existing skills can be recruited to reduce need for training
-New ideas and creativity introduced to business
-New perspective and approaches problem-solving can improve business performance
What is the Advantage and Disadvantage of High Labor Turnover?
Advantage:
-‘New Blood’ can bring fresh ideas and a different skill set that can boost the company
Disadvantage:
-The higher the turnover the greater the threat to culture, efficiency and customer service
What is Labour retention?
Measures the proportion of employees remaining in the business during a specific time period
How can this be calculated?
Number of staff remaining/ number of staff x100
What does a high level of staff retention mean?
A high level of labour retention means that few staff are leaving the business during a given period of time
What is absenteeism?
Refers to the habitual or frequent absence of an employee from work or other duties without a valid or justifiable reason. Measure of the proportion of staff absent from work during a specific period of time
How is it calculated?
Number of staff absent/ number of staff employed x100
What problems can high levels of absenteeism cause?
-Absence due to illness requires sick pay to be paid
-Hiring temporary staff to cover for those absent increases costs
-Output is likely to be temporarily reduced if staff are key to production process
-Other staff may become demotivated if they have to constantly cover for absent workers
-A wider culture of absenteeism may develop
What is the Advantage and Disadvantage of High Absenteeism?
Advantage:
-Staff may be highly productive but personal circumstances that require time off, so there is no impact on their value to the company
Disadvantage:
-The higher the absenteeism the lower your business may be able to output, holding your business back
What are HR startegies to improve employee performance?
-Offering financial rewards
-Offering employees shares within the company
-Consultation(views of employees taken into account with decisions)
-Empowerment
