1) Labour Turnover. These measures the number of employees who leave a business per year, expressed as a percentage of the total number of people employed. It is calculated using the following formula: A high labour turnover rate could be a sign that the workforces have low levels of job satisfaction and motivation. This could be due to poor wages, poor management techniques, or better remuneration packages being offered by competitors. This high rate will inevitably lead to the business having to spend a large amount of money on recruitment and training of new employees.
These measures the proportion of the workforce who is absents from work in a particular period of time. It is calculated using the following formula: Ideally, the business would wish the figure to be as low as possible, since a high figure could indicate that the employees have low rates of morale, job satisfaction and motivation. A high rate will inevitably lead to the business having to spend a large amount of money on training and paying temporary workers who are performing the jobs of the absent employees. 3) Labour Productivity. This reflects the efficiency of the workforce, and it is measured by the amount of output per worker.
It is calculated using the following formula: It can be argued that labour productivity is the most important measure of employee effectiveness, since it directly affects the average cost of production and, therefore, the competitiveness of the business. An increase in labour productivity will benefit the business since it means that more output can be produced for a given amount of inputs, hence the production cost per unit will fall. 4) Waste levels. ‘Waste’ products refers to lost and damaged raw materials, poor quality output which has to be reworked, and output which has to be discarded due to its poor workmanship.
It is calculated using the following formula: If a business has a high percentage of ‘waste’ products, then this could be due to a poorly trained workforce with low levels of both motivation and job satisfaction. In this case, the business should ensure that the employees are all adequately trained for their specific tasks, and investigate any other reasons for the poor quality of the output. It is vital that the reasons for this are discovered quickly, since the effect on customer loyalty and reputation could be disastrous if the business supplies poor quality output to its customers.
Performance evaluations Performance evaluations, like other personnel management functions, must be job-related. One of the most job-related approaches toward performance evaluation is known as behaviourally anchored rating scales (BARS). BARS has a relatively low rate of rater error and that BARS is relatively effective in fostering communication between employees and supervisors about job performance’s BARS are based on statements (behavioural anchors) about job behaviour and worker activity that is under the control of the employee being rated.
These statements are attached to scales in order to rate performance as good, fair, or poor. The development of a BARS system relies on a panel (or panels) of incumbents, supervisors, clients, and others familiar with the job. For this exercise, using such a panel is not necessary or practical. 7. 3 Exploration of human resources function The human resource function can employ the right potential staff. Human resources managers can contribute and have an effective to how the business performs, and competitiveness of the business.
For example if staff have been working over a year in Marks and Spencer, they may feel they need a pay increase. The human resources management can help by contracting the finance department about staff cost. If staff are paid well they perform better because they ah higher moral and they feel a belonging need to Marks and Spencer. If staff perform well the business perform well and it becomes competitive. The human resources management can help also by development of staff. The reason why it’s important for the human resources management, because they manage how well staff can perform.