Pack 28 - Workforce Performance

Question 1

What is meant by workforce performance?

Answer 1

The effectiveness of human resource management (HRM) policies

It includes measurable elements like absenteeism, labour turnover, and labour productivity.

Question 2

Define labour productivity.

Answer 2

A measurement of the efficiency with which a firm’s labour force generates output

It measures output per worker over a given time period.

Question 3

What is the formula for calculating labour productivity?

Answer 3

Total output per period of time / Average number of employees per period of time

Must specify ‘efficiency’ and refer to a time period.

Question 4

What does absenteeism measure?

Answer 4

The number of staff absent as a % of the total number of staff employed

High absenteeism can lead to increased costs and lower output.

Question 5

What is the formula for calculating absenteeism?

Answer 5

(Total number of staff absence days per period of time / Total number of working days that should have been worked) x 100

This helps quantify the impact of absenteeism on workforce performance.

Question 6

What is labour turnover?

Answer 6

The rate at which employees are leaving an organisation

It is a measure of personnel effectiveness.

Question 7

What is the formula for calculating labour turnover?

Answer 7

(No of staff leaving per period of time / Average number of staff employed) x 100

This helps assess employee retention and recruitment needs.

Question 8

True or false: High labour turnover can lead to increased recruitment costs.

Answer 8

TRUE

Constant training and induction are needed, which can strain resources.

Question 9

List three problems caused by high absenteeism levels.

Answer 9

• Increased sick pay costs
• Lower output
• Disruption to progress on projects

High absenteeism can also lead to a culture of ‘calling in sick’.

Question 10

What are two methods to improve labour productivity?

Answer 10

• Increase motivation
• Implement technological improvements

These methods can lead to a more efficient workforce and higher output.

Question 11

Fill in the blank: Labour productivity is a measurement of the efficiency with which a firm’s labour input generates _______.

Answer 11

[output]

It is crucial for assessing overall business performance.

Question 12

What are the benefits of low absenteeism levels?

Answer 12

• Lower costs (sick pay, cover staff)
• Better customer service
• Signal of better motivation

Low absenteeism often correlates with higher employee morale.

Question 13

Identify one factor that can cause high labour turnover.

Answer 13

Low pay

Workers may leave for better-paying jobs, impacting retention.

Question 14

What is the impact of improved workforce performance on shareholders?

Answer 14

Lower costs and raised profits

Higher profits can lead to increased dividends and share prices.

Question 15

Which industries might you expect a high absenteeism rate?

Answer 15

• Call centres
• Fast food outlets

These jobs often involve monotonous tasks and may attract unskilled workers.

Question 16

What is one problem caused by high labour turnover?

Answer 16

Inconsistent customer service

Frequent changes in staff can disrupt service quality.

Question 17

What is one advantage of some labour turnover for a business?

Answer 17

New staff can bring new ideas and experience

This can enhance productivity and innovation.

Question 18

True or false: Implementing job rotation may require additional training and investment.

Answer 18

TRUE

This could be a short-term cost to the business.

Question 19

What are two potential benefits of introducing performance-related bonuses or flexible working policies?

Answer 19

• Improve retention
• Reduce long-term costs of recruiting and training new staff

While this could increase payroll costs, it may lead to better employee satisfaction.