Topic 20 - Measurng The Effectiveness Of A Workforce

Question 1

What does a high% and a low% labour turnover mean for a business?

Answer 1

High% = dissatisfied employees, high costs

Low% = stagnation of new fresh ideas into the firm

Question 2

2 ways of measuring labour productivity

Answer 2

Average output per employee
(Total value of output / no of employees X100)

Labour cost per unit of output
(Total labour costs / total output X100)

Question 3

One disadvantage of measuring labour productivity

Answer 3

It only accounts for the business as a whole

Question 4

Why is it important to measure the workforce?

Answer 4

Monitors efficiency over time

Info compared to previous years to judge policies effectiveness

Highlights issues to be addressed

Question 5

What is labour turnover?

Answer 5

The percentage, of total employees, who leave the business per year
Formula: no of leavers per year / total employees X100