3.5.3 Human Resource Performance

Question 1

what roles do HR departments have?

Answer 1

-design jobs, also determine whether the job holder is motivated and effective
-design and implement reward systems
-develop communication systems can work, and ensure an appropriate level of consultation through meetings or other methods is maintained

Question 2

what will the HR department do if the corporate objective is: growth?

Answer 2

need to recruit the right number of extra staff with the right skills in the right places

Question 3

what will the HR department do if the corporate objective is: adjust products and services sold

Answer 3

use training to help staff develop skills and expertise, also recruitment
-may let staff go who don’t have the skills that are needed

Question 4

what will the HR department do if the corporate objective is: cost reduction

Answer 4

combine jobs, boost productivity, redeployment of staff, redundancy programmes, reducing training budgets

Question 5

how can the effectiveness of management and HR be assessed?

Answer 5

labour productivity
labour turnover
absenteesim

Question 6

what is labour productivity?

Answer 6

a measure of workforce performance that looks at output per worker

Question 7

formula for labour productivity

Answer 7

total output/ number of workers
(per period)

Question 8

what factors affect labour productivity?

Answer 8

-motivation and morale (job security)
-employee skill and training expertise
-efficiency of machines/ use of technology
-management and leadership style
-financial incentives or promotion opportunities
-working conditions
-company culture

Question 9

what is labour turnover?

Answer 9

this measures the percentage of the workforce that have left during a year

Question 10

formula for labour turnover

Answer 10

number of staff leaving the firm in a year / average number of staff during the year
x 100

Question 11

what do retention rates measure?

Answer 11

a firm’s ability to keep its workforce within the business normally for more than one year

Question 12

how is labour retention calculated?
(formula)

Answer 12

number of employees serving for more than 1 year / average number of staff
x 100

Question 13

why are low retention rates a threat to a business?

Answer 13

-high recruitment, selection and training costs
-risk of loss of important information- to competitors or rivals
-loss of talent

Question 14

what is labour turnover?

Answer 14

the measure of the rate of change of a firm’s workforce

Question 15

formula for labour turnover

Answer 15

number of staff leaving the firm per year/ average number of staff
x 100

Question 16

what internal causes can increase labour turnover?

Answer 16

-poor recruitment and selection, wrong people are appointed
-poor motivation or leadership
-wage rates below the local norms

Question 17

what external causes can increase labour turnover?

Answer 17

-more local vacancies arising, tempting staff to look for better opportunities
-better transport links allowing staff to look for alternative jobs further away

Question 18

what are negative implications of a higher labour turnover?

Answer 18

-extra recruitment and training costs to find replacements
-time taken for replacement to settle in and become productive
-loss of productivity while replacements are found, trained and finding their feet

Question 19

what are positive implications of a high labour turnover?

Answer 19

-new workers bring new ideas and enthusiasm
-new workers with appropriate skills may be brought in to save time re training existing staff
-new way of looking at problems in the business can bring solutions

Question 20

what is absenteeism?

Answer 20

the amount of time missed by workers who do not come to work when they are supposed to

Question 21

formula for absenteeism

Answer 21

number of days absent in a period / total number of days that could have been worked
x 100

Question 22

what do high levels of absenteeism cause?

Answer 22

extra costs and lost productivity that damages a firm’s competitiveness

Question 23

what HR strategies can be implemented to improve employee performance (increase productivity and retention, to reduce turnover and absenteeism)?

Answer 23

-financial incentives
-employee share ownership
-empowerment strategies
-consultation strategies

Question 24

how can financial incentives improve employee performance?

Answer 24

e.g. performance related bonuses can motivate staff, but normally only temporarily
-Herzberg’s theory (once reward disappears, improvement in performance will too)

Question 25

how can employee share ownership improve employee performance?

Answer 25

likely to work in small more than large businesses -staff feel as though their own performance has no serious impact on the overall profits of the business -if staff work better, the company will make more profit, allowing higher dividends to be paid to shareholders, including the employees

Question 26

how can consultation strategies improve employee performance?

Answer 26

show that employee views are genuinely being considered, boosting employee engagement and performance -consultation involves seeking and listening to the views of employees as part of a decision-making process -technology can help staff have their say in forums, this becomes challenging as a business grows

Question 27

how can empowerment strategies improve employee performance?

Answer 27

(Maslow and Herzberg theories) -empowering staff can bring increases in employee performance as staff are given the authority to decide what tasks need doing in the first place -this can be difficult for managers who are still held accountable for the work of subordinates