THE IMPACT ON GROWTH OR RETRENCHMENT ON HUMAN RESOURCES

Question 1

What does HR measure

Answer 1

HR measures of performance (How to measure HR performance) - how will these be affected:

Labour turnover
Absenteeism
Employee costs as a % of turnover
Labour productivity
Labour cost per unit
Motivation

Question 2

EXAMPLE

Answer 2

For this example: The PSA Groups (owners of citroen, peugeot etc) in 2017 purchased 2 brands from General Motors: Opel and Voxhual. What impact might this growth (PSA group buying/ taking over those 2 companies) how would that affect operations?:

What might be an impact on human resources:

Communication issues - different languages - this could add to costs, and create difficulties.

Training requirements - To understand the cultural differences between these organisations - May be a cost that the managers/ owners hadn’t thought of before.

Impact on motivation - Closing down factories which does not maximise capital utilisation so that the company can increase capital utilisation - This would probably lead to job losses, which would lead to a lack of motivation, as other workers could fear they don’t have job security.

It may lead to increased labour productivity - Utilising benchmarking, to identify what certain factories need to do differently to increase labour productivity. Which would lead to falling labour costs per unit.

Falling labour costs per unit