Podcast
Questions and Answers
What does the presence of 39 employees working for over 20 years at Richer Sounds indicate?
What does the presence of 39 employees working for over 20 years at Richer Sounds indicate?
- Ineffective management strategies
- Effective employee retention practices (correct)
- High employee turnover rates
- Low employee satisfaction
Which strategy is NOT mentioned as a way to improve employee productivity and retention?
Which strategy is NOT mentioned as a way to improve employee productivity and retention?
- Providing flexible working hours
- Implementing a strict work schedule (correct)
- Empowerment strategies
- Consultation before decisions
How does empowering employees affect their perception of the company?
How does empowering employees affect their perception of the company?
- It leads to increased frustration with management
- It makes them feel undervalued
- It creates a sense of pride and loyalty (correct)
- It causes confusion about company goals
What would be a probable benefit of providing flexible working hours to employees?
What would be a probable benefit of providing flexible working hours to employees?
What is suggested as a potential drawback of implementing empowerment and consultation strategies?
What is suggested as a potential drawback of implementing empowerment and consultation strategies?
How does employee ownership at Richer Sounds potentially impact productivity?
How does employee ownership at Richer Sounds potentially impact productivity?
What was the profit per employee at Richer Sounds in 2018?
What was the profit per employee at Richer Sounds in 2018?
What does a decline in ROCE potentially indicate for Richer Sounds?
What does a decline in ROCE potentially indicate for Richer Sounds?
What effect might a decrease in share price have on employees at Richer Sounds?
What effect might a decrease in share price have on employees at Richer Sounds?
How might employee ownership influence decision-making at Richer Sounds?
How might employee ownership influence decision-making at Richer Sounds?
What is a potential drawback of a high level of employee ownership?
What is a potential drawback of a high level of employee ownership?
What was the trend in earnings per share from 2017 to 2018 at Richer Sounds?
What was the trend in earnings per share from 2017 to 2018 at Richer Sounds?
What is one potential benefit of employee ownership for Richer Sounds?
What is one potential benefit of employee ownership for Richer Sounds?
Flashcards
Employee Ownership
Employee Ownership
When employees own shares or interests in a company.
Employee Motivation
Employee Motivation
Increased enthusiasm and drive from employees, often due to financial incentives.
Productivity
Productivity
The efficiency with which employees complete tasks.
Profit Per Employee
Profit Per Employee
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Employee Retention
Employee Retention
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Share Price Decrease Impact
Share Price Decrease Impact
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ROCE
ROCE
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Earnings per Share (EPS)
Earnings per Share (EPS)
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Employee Participation in decision-making
Employee Participation in decision-making
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Employee Retention
Employee Retention
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Employee Empowerment
Employee Empowerment
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Consultation
Consultation
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Flexible Working Hours
Flexible Working Hours
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Productivity
Productivity
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Labour Turnover
Labour Turnover
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Employee Loyalty
Employee Loyalty
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Financial Strategies
Financial Strategies
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Non-Financial Strategies
Non-Financial Strategies
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Study Notes
Employee Ownership at Richer Sounds
- Richer Sounds, a record company, gives employees shares in the business.
- Employee ownership (60% of business) aims to increase productivity and retention.
- Employee ownership creates financial incentives, motivating employees for increased productivity and loyalty.
- Profit per employee in 2018 was £19,690 highlighting employee value.
- Ownership might improve sales and profitability, benefitting employees.
- Employees might be more motivated to sell more electrical equipment for more profit.
Potential Drawbacks
- Share price decrease can negatively impact employee motivation and productivity.
- Return on capital employed (ROCE) declined from 52.1% in 2016 to 33.6% in 2018.
- Earnings per share decreased in 2018 compared to 2017, potentially decreasing incentive.
- Lower returns may disincentivize employees from increasing productivity.
Employee Retention and Productivity
- Significant portion of employees (39) have worked for Richer Sounds over 20 years.
- Labour turnover/employee retention isn't a significant problem.
- Employees appear happy.
Other Strategies for Improving Productivity and Retention
- Empowerment strategies (consultation, flexible working hours).
- Flexible hours (shorter working weeks, such as 4-day weeks) can boost productivity.
- Consulting employees on big decisions demonstrates company value.
- Combined financial and non-financial strategies for employee motivation are beneficial.
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