Edexcel A2 Business 3.5.3 Human Resources Revision

Edexcel A2 Business 3.5.3 Human Resources Revision

• This section covers human resources.
• It includes various calculations and interpretations, including labour productivity, labour turnover, and absenteeism.
• Calculators will be needed for this topic.
• A worksheet (3.5.3) is required for the lesson.
• A retrieval challenge matrix is provided.

Retrieval Challenge Matrix

• 1 point: List the three methods of investment appraisal; What is QSF?; What does 'SWOT' stand for?
• 2 points: Describe the limitations of CPA; Compare evidence-based vs subjective decision making; Describe the limitations of decision trees.
• 3 points: Explain the trade-off between profit and ethics; Explain difficulties in changing an established culture; Explain how competitive advantage can be achieved through distinctive capabilities.

Human Resource Strategies

• Calculate and interpret: Labour productivity, labour turnover, and absenteeism.
• Strategies to increase productivity and retention: Financial rewards, employee share ownership, consultation strategies, empowerment strategies.

Starter Activity

• Did students get a certificate for 100% attendance in primary/secondary school?
• Why do students think their school had this scheme?

Definitions

• Labour productivity: Output per worker in a time period. (e.g., number of faults fixed by a mechanic in a day).
• Labour turnover: Rate at which employees leave a business in a one-year period.
• Absenteeism: Habitual non-presence of an employee at work.

Labour Productivity

• Productivity is output per worker and measures workforce efficiency.
• Businesses want to increase productivity to cut average per-unit cost.
• Improvements can be made via techniques like kaizen, TQM, and lean production.
• Formula: Total Output / Number of Workers.

Labour Turnover Formula

• Formula: (Number of Employees Leaving / Average Number of Employees) x 100
• High turnover is undesirable.

Absenteeism Formula

• Formula: (Number of Work Days Lost / Total Possible Days Worked) x 100
• Aims to reduce the number of days lost.

Ways to Reduce Absenteeism

• Introduce flexible working (e.g., flexitime, job-sharing).
• Create interesting and challenging jobs.
• Improve working conditions.
• Improve employer/employee relations.
• Offer attendance bonuses.

Financial Rewards

• Examples: Commission (sales), overtime, bonuses, piece rates, fees.

Employee Share Ownership

• Shared ownership gives employees a voice in company running.
• It can be a powerful motivator for improvement.
• However, it doesn't mean employee management takeover.

Consultation Strategies

• Motivates employees by consulting them on work-related issues.
• Discussions on pay, conditions, and work matter can reduce absenteeism and turnover.

Empowerment Strategies

• Empowerment gives employees the power to make decisions.
• This recognizes employees' abilities and boosts confidence.
• Potential criticism is that it can be an excuse to cut costs.

Case Study: Google

• Google prioritizes employees' intelligence, creativity, and ability over experience.
• They foster a collaborative culture, encourage open communication, and actively facilitate discussions between employees and executives.
• Their offices and cafes are designed to encourage interaction and conversation both in work and social contexts.

Case Study: UK Car Manufacturing

• UK car production increased 1.2% in 2014.
• More than £7 billion in investment in production facilities was made in recent years.

Case Study: Gym Surge

• There is a strong January trend in gym memberships.
• Media focus on health and fitness and individual resolution influences this trend; people resolve to work off Christmas indulgence.