6.2 Human Resource Performance (AQA A Level Business): Flashcards
Exam code: 7132
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Why do businesses collect and analyse HR data?
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Why do businesses collect and analyse HR data?
To make informed decisions that improve performance, reduce costs and plan for future workforce needs.
Name two ways HR data helps managers.
It helps them identify problems and plan ahead (it also improves performance and controls costs).
Define labour turnover.
Labour turnover measures the proportion of employees leaving a business during a specific period, shown as a percentage.
State the formula for labour turnover.
Labour turnover = (number of staff leaving ÷ average number of staff) × 100.
Domus had 432 head office staff and 54 left during the year. Calculate labour turnover.
(54 ÷ 432) × 100 = 12.5%.
Give two internal causes of high labour turnover.
Poor management and low wage levels (also a poor recruitment and selection approach).
Give one problem of high labour turnover.
Increased recruitment, selection and training costs (productivity also falls as new workers settle in).
Define labour productivity.
Labour productivity measures output per worker during a specified period of time.
State the formula for labour productivity.
Labour productivity = output ÷ number of workers.
A firm produces 46,000 units with 50 workers. Calculate labour productivity.
46,000 ÷ 50 = 920 units per worker.
Labour productivity rose from 920 to 1,150 units per worker. Calculate the percentage change.
(1,150 − 920) ÷ 920 × 100 = 25% increase.
State the formula for employee costs as a percentage of turnover.
Employee costs as % of turnover = (employee costs ÷ turnover) × 100.
Employee costs are £2,894m and turnover is £5,297m. Calculate employee costs as a % of turnover.
(2,894 ÷ 5,297) × 100 = 54.6%.
State the formula for labour cost per unit.
Labour cost per unit = total weekly wages ÷ number of units produced.
100 employees each paid £250/week produce 2,500 units. Calculate labour cost per unit.
Total weekly wages = 100 × £250 = £25,000; £25,000 ÷ 2,500 = £10 per unit.
Higher labour productivity improves a business's .
Higher labour productivity improves a business's competitiveness.
True or False?
A rise in labour productivity always means the business has hired more workers.
False.
Productivity is output per worker, so it can rise through better training, technology or motivation without hiring anyone.
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