A Level Business Numerical Calculation Work Pack PDF

A Level Business Numerical Calculation Work Pack HRM Calculations HRM Calculations Worksheet For this lesson you will need: A calculator The worksheet that goes with this PowerPoint Scrap paper Selection of coloured pens A ruler Contents Calculate and interpret the following t...

A Level Business Numerical Calculation Work Pack HRM Calculations HRM Calculations Worksheet For this lesson you will need: A calculator The worksheet that goes with this PowerPoint Scrap paper Selection of coloured pens A ruler Contents Calculate and interpret the following to help make business decisions: labour productivity labour turnover and retention absenteeism Introduction to HRM calculations Labour productivity Labour turnover and retention Absenteeism These three sets of calculations enable a business to; monitor, manage and control their staff. Data from calculations is useful to make decisions and to inform management. In the exam case studies you will get graphs and tables Look for trends or significant spikes in data! Labour productivity Labour productivity - method Labour productivity is a number which measures To find labour productivity: how productive the staff are. This is most useful when we look at data compared over time, for example one year against another Have a go at the example Where: on the next slide TO is Total Output in units NOW is Number of Workers Labour productivity example Year 1 Year 2 Year 3 Year 4 Year 5 Total Output 85000 1250000 515000 758000 2.5m (per month) Number of 24 30 72 300 2000 Workers Labour productivity (Per worker) Calculate the productivity per worker per month for all 5 years  Labour productivity example Year 1 Year 2 Year 3 Year 4 Year 5 Total Output 85,000 125,000 515,000 758,000 2.5m (per month) Number of 24 30 72 300 2000 Workers Labour 3541.67 4166.67 7152.78 2526.67 1250 productivity (Rounded up) (Per worker) Units per worker per month 1. What is happening in years 1-3? What happens in years 4 and 5? 2. What does this productivity data show you? 3. What advice might you give the business? 4. Can you link this to Economies of Scale? Labour productivity example Year 1 Year 2 Year 3 Year 4 Year 5 Total Output 85,000 125,000 515,000 758,000 2.5m (per month) Number of 24 30 72 300 2000 Workers Labour 3541.67 4166.67 7152.78 2526.67 1250 productivity (Rounded up) (Per worker) Units per worker per month 1. What is happening in years 1-3? Years 1-3 steady increase in productivity and efficiency in the business. 2. What happens in years 4 and 5? Years 4 and 5 productivity dips. 3. What does this productivity data show you? That as output increases productivity decreases. 4. What advice might you give the business? Reduce output to increase productivity 5. Can you link this to Economies of Scale? Over 515000 output per month the business Labour turnover and retention Labour turnover and retention - method Keeping staff is important, it costs a lot to recruit To find labour turnover: staff and if the business has to keep recruiting new staff it becomes critical This labour turnover data can help managers make decisions and spot critical trends Where: Have a go at the example NOEL is Number of Employees Leaving ANOE =is Average Number of Employees on the next slide Labour turnover and retention example Year 1 Year 2 Year 3 Year 4 Year 5 Number of 6 7 9 22 31 employees leaving Average 456 522 645 801 925 number of employees Labour turnover % Calculate the labour turnover % for all 5 years Labour turnover and retention example Year 1 Year 2 Year 3 Year 4 Year 5 Number of 6 7 9 22 31 employees leaving Average 456 522 645 801 925 number of employees Labour 1.32% 1.34% 1.40% 2.75% 3.35% turnover % 1. What is happening in years 1-3? 2. What happens in years 4 and 5? 3. What does this labour turnover data show you? 4. What advice might you give the business? Labour turnover and retention example Year 1 Year 2 Year 3 Year 4 Year 5 Number of 6 7 9 22 31 employees leaving Average 456 522 645 801 925 number of employees Labour 1.32% 1.34% 1.40% 2.75% 3.51% turnover % 1. What is happening in years 1-3? In years 1-3 labour turnover is around normal levels, given that some staff may move, retire or simply leave 2. What happens in years 4 and 5? In year 4 the turnover rate starts to climb and in year 5 clearly they have a problem. 3. What does this labour turnover data show you? That something happened in the business in year 4, perhaps a new manager arrived that staff disliked or a new policy or a reduction in bonus. Something happened to make the staff unhappy. 4. What advice might you give the business? The managers should look carefully at trading in year 4 until they identify what was causing staff to leave. They may Absenteeism Absenteeism- method When staff are absent the work that they should have done has been lost to the business To find absenteeism: Measuring absenteeism is another indicator of the health of a business Unhappy staff take more time off, unhappy staff are unproductive and may leave Have a go at the calculations Where: NOWDLTA = Number of Work Days Lost and questions on the next Through Absence slides. TPDW = Total Possible Days Work Practice question 1 - step 1 First calculate the number of possible days, in a year, that can be worked by 20 staff You have to give your staff holidays so it’s not 52 TPDW = 20 x 48 x 5 = weeks a year, its 48 4800 days Your staff won’t work 7 days a week so 5 is your maximum Practice question 1 step 2 Now calculate the 127 / 4800 x 100 = 2.65% absenteeism % if the number of work days lost Show your answer to 2 to absence is 127 over the year decimals rounded up Use the formula: Practice question 2 Year 1 Year 2 Year 3 Year 4 Year 5 NOWDLTA 271 283 299 350 425 TPDW 4800 4800 4800 4800 4800 Absenteeism % Calculate the absenteeism % for all 5 years Practice question 2 Year 1 Year 2 Year 3 Year 4 Year 5 NOWDLTA 271 283 299 350 425 TPDW 4800 4800 4800 4800 4800 Absenteeism 5.65% 5.90% 6.23% 7.29% 8.85% % 1. Looking at the absenteeism data over the last 5 years, what can this tell you about the performance of the business over time? 2. What advice would you give this business? Practice question 2 Year 1 Year 2 Year 3 Year 4 Year 5 NOWDLTA 271 283 299 350 425 TPDW 4800 4800 4800 4800 4800 Absenteeism 5.65% 5.90% 6.23% 7.29% 8.85% % 1. Looking at the absenteeism data over the last 5 years, what can this tell you about the performance of the business over time? Absenteeism is increasing over time, without productivity or output data we cannot know what is happening, but there is definably a problem. Perhaps the manager is too weak, not chasing staff, or staff are unhappy because of the working conditions. 2. What advice would you give this business? They need to examine more closely the operations of the business and perhaps survey staff anonymously to find out what the problems are that are leading to high absenteeism rates. It Top tips Be prepared to say what you see. In the exam keep your cool, do your calculations and then say what they show you. It may seem obvious but your examiner is looking to see if you have spotted any trends. For every question imagine a real business Is your data increasing over time? owner has just asked for Is there a significant spike at any your advice. point, can you guess as to what might have caused it