Edexcel A2 Business Human Resources Revision PDF

Edexcel A2 Business 3.5.3. Human resources Revisionstation Theme 3 Retrieval Challenge Matrix 1 point 2 points 3 points List the 3 methods of Describe the Explain the trade-off Investment Appraisal limitations of CPA between profit and...

Edexcel A2 Business 3.5.3. Human resources Revisionstation Theme 3 Retrieval Challenge Matrix 1 point 2 points 3 points List the 3 methods of Describe the Explain the trade-off Investment Appraisal limitations of CPA between profit and ethics What is QSF? Compare evidence Explain difficulties in based vs subjective changing an decision making in the established culture film industry What does ‘SWOT’ Describe the Explain how stand for? limitations of decision competitive advantage trees can be achieved through distinctive capabilities You will need the 3.5.3 worksheet for this lesson Calculators will be needed for this topic From Edexcel a) Calculate and interpret the following to help make business decisions:  labour productivity  labour turnover and retention  absenteeism b) Human resource strategies to increase productivity and retention and to reduce turnover and absenteeism:  financial rewards  employee share ownership  consultation strategies  empowerment strategies Starter Did you ever get a certificate for 100% attendance at primary or secondary school? Why do you think your school had this scheme? Calculations and interpretations Definition: Labour productivity Productivity is the output per worker in a time period For example in a car garage we could measure the number of faults fixed by each mechanic in a day Labour Productivity Interpretation Productivity is output per worker and it measures the efficiency of the workforce A business will seek to increase productivity to reduce the average cost per unit to produce Labour productivity can be improved through kaizen, TQM, lean production Labour productivity can be measured by a formula (next slide)  Labour Productivity Formula Total Output _____________________________ Number of Workers Notes Productivity is an indicator (measure) of efficiency Example: if 50 workers produce 10,000 items a day then daily productivity = 10,000/50 = 200 items  Labour productivity sample calculations Company Total Number of Labour Output workers productivi ty rate A 40,000 300 B 1million 524 C 257,524 457 ch company is the most efficient and has the highest productivity figures? A, B or C?  Labour productivity sample answers Company Total Number of Labour Output workers productivi ty rate A 40,000 300 133.33 B 1million 524 1908.40 C 257,524 457 563.51 ch company is the most efficient and has the highest productivity figures? A, B or C? _______B___ Definition: Labour Turnover Labour turnover measures the rate at which employees leave the business in a 1 year period Labour Turnover Calculation A high rate of labour turnover would be bad for business, it means that staff are so unhappy they don’t stay in the business and they leave. The business then has all the costs of recruiting and training another member of staff One of the objectives of s business might be to reduce the rate of labour turnover We can measure the rate of turnover using a formula (next slide)  Labour Turnover formula Number of Employees Leaving __________________________________________ X 100 Average Number of Employees Notes Number of staff leaving a business in a year compared to the total number of staff who work there Example: if 12 staff leave a business employing 200 the labour turnover = 12/200 x 100 = 6%  Labour turnover sample calculations Company Number of Average Labour employee number of Turnover s leaving employee % s A 21 300 B 45 524 C 3 457 hich company has the lowest labour turnover percentage? A, B or C? on’t forget to multiply by 100 to get a %  Labour turnover sample answers Company Number of Average Labour employee number of turnover s leaving employee % s A 21 300 7% B 45 524 8.59% C 3 457 0.66% hich company has the lowest labour turnover percentage? A, B or C? ______________C___________ Labour Turnover Interpretation This is a measure of performance Some industries may naturally have a high turnover so context is important e.g. retail and catering Turnover should be measured against historical figures in the business High labour turnover may be due to poor recruitment, weak induction, lack of challenge in the job and low pay rates If this figure is rising year on year management should see this as a red flag and investigate it Definition: Absenteeism The habitual non-presence of an employee at his or her job. Possible causes of absenteeism include job dissatisfaction, ongoing personal issues and medical problems. Regardless of cause, a worker with a pattern of being absent may put their reputation at risk, and may lose their job.  Absenteeism formula Number of work days lost through absence __________________________________________ X 100 Total possible days worked Notes  Absenteeism sample calculations Company Number of Total Absenteei work days possible sm % lost days through worked absence A 21 730 B 45 1095 C 3 1460 Which company has the lowest absenteeism figures? A, B or C? Don’t forget to multiply by 100 to get a %  Absenteeism sample answers Company Number of Total Absenteei work days possible sm % lost days through worked absence A 21 730 2.88% B 45 1095 4.11% C 3 1460 0.21% Which company has the lowest absenteeism figures? A, B or C? _______C__ Absenteeism Interpretation The results of absenteeism calculations can show if there is low staff morale or job satisfaction This can be caused by; poor management, stress at work through role overload or under load, lack of recognition or poor working conditions Some absenteeism is natural as may be ill (COVID) but too much and it could cost the business in terms of lost orders and poor customer relations Absenteeism can be improved through job enlargement, job rotation, incentive schemes etc. Human resource strategies Ways to reduce absenteeism By introducing more flexible working practices e.g. flexitime or job share By ensuring that jobs are interesting and challenging By improving working conditions and thus reducing dissatisfaction By improving relations between employers and employees By introducing attendance bonuses as an incentive to attend regularly Financial rewards To motivate staff so that they will turn up for work and work harder, is sometimes possible to do so through financial rewards. For example: Commission in sales jobs e.g. car sales Overtime on a weekly wage Bonus on a salaried wage Piece rate which is paid per unit e.g. per garment knitted Fees which is one off payment for work completed, for example editing a book Employee share ownership Shared ownership can also bring a say in who runs the company. On major issues it can be a powerful reason for employees to focus on business improvement However, employee share ownership never means employees taking over business management. Whose job is the strategic management of the business? Consultation strategies Employees are motivated by being consulted (asked for their opinion) on matters relating to work by managers This can reduce absenteeism and labour turnover as it involves the employee in a discussion on; pay, conditions and work matters What impact will consultation have on employees? Empowerment strategies Empowerment means giving employees the authority to make decisions. This shows recognition of an employee’s abilities and trustworthiness, and will boost their self confidence and motivate them hopefully reducing absenteeism and raising productivity Criticism of this method is that it may be an excuse to cut costs, delayer and make managers redundant. What might be another criticism of using empowerment strategies? Plenary Quiz Match the name to the formula Labour Absenteeism Labour turnover productivity Plenary Quiz Answers Labour Labour turnover productivity Absenteeism Sample Edexcel A2 questions Case study for question 1  Sample question 1 Evaluatio Knowledg Applicati Analysis n e4 on 4 6 6 Answer sample question 1  Peer / self marking grid for 20 mark question Mark 1-4 marks Limited knowledge and some recall of business theory, answer may not be in context What went well: You used business terms correctly Even better if: You had discussed the business context given in the case study 5-8 marks Comments are in context, and chains of reason are present but very basic. Unbalanced argument, only discusses one side. What went well: You were able to give chains of reason in context in your answer Even better if: You had given both sides of the argument 9-14 marks Chains of reason are complete and argument shows both sides. Answer is in context, and comparisons between the two options will have been attempted, which may lead to a conclusion What went well: Your analysis was shown in your chains of reason Even better if: You had given a recommendation or proposed a solution 15-20 marks Accurate understanding and knowledge. Logical chains of reason, balanced and fully developed arguments weighing up both sides of each options. All in context leading to a supported judgement, and a conclusion that proposes a solution or recommendation What went well: You had logical chains of reason showing cause and effect Case study for question 2  Sample question 2 Evaluatio Knowledg Applicati Analysis n e2 on 2 3 3 Answe r sampl e questi on 2  Peer / self marking grid for 10 mark question Mark 1-2 marks Limited knowledge and some recall of business theory, answer may not be in context What went well: You used business terms correctly Even better if: You had discussed the business context given in the case study 3-4 marks Comments are in context, and chains of reason are present but very basic. Unbalanced argument, only discusses one side. What went well: You were able to give chains of reason in context in your answer Even better if: You had given both sides of the argument 5-6 marks Chains of reason are complete and argument shows both sides. Answer is in context, an attempt at a assessment using numerical data given in the case study. What went well: Your analysis was shown in your chains of reason Even better if: You had reached a supported judgement 7-10 marks Accurate understanding and knowledge. Logical chains of reason, balanced argument, in context leading to a supported judgement What went well: You had logical chains of reason showing cause and effect Case study for question 3  Sample question 3 Evaluatio Knowledg Applicati Analysis n e4 on 4 6 6 Answer sample question 3  Peer / self marking grid for 20 mark question Mark 1-4 marks Limited knowledge and some recall of business theory, answer may not be in context What went well: You used business terms correctly Even better if: You had discussed the business context given in the case study 5-8 marks Comments are in context, and chains of reason are present but very basic. Unbalanced argument, only discusses one side. What went well: You were able to give chains of reason in context in your answer Even better if: You had given both sides of the argument 9-14 marks Chains of reason are complete and argument shows both sides. Answer is in context, and comparisons between the two options will have been attempted, which may lead to a conclusion What went well: Your analysis was shown in your chains of reason Even better if: You had given a recommendation or proposed a solution 15-20 marks Accurate understanding and knowledge. Logical chains of reason, balanced and fully developed arguments weighing up both sides of each options. All in context leading to a supported judgement, and a conclusion that proposes a solution or recommendation What went well: You had logical chains of reason showing cause and effect Case study for question 4 Sample question 4 Knowledg Applicati Analysis e1 on 1 2 Answer sample question 4  Peer / self marking grid for 4 mark essay question Mark Knowledge 1 Giving a correct business keyword definition, understanding of the question Award 1 mark Application 2 Applying the answer to the business in the question. Not just a name drop, has to be about the product, the market, the objectives or the situation given. Somewhat applied with some general comments – only award 1 mark Very well applied and all about the case study – award 2 marks Analysis 1 Chain of reason, ‘this means’ or ‘which means’ or ‘because’ or ‘therefore’ which is logical and fully developed. xamples of peer review comments: Award 1 mark hat went well: You gave a correct business definition and applied your comments to the case study ven better if: You had more analysis or a complete chain of reason Key terms Labour productivity; rate of output per person in a time period e.g. Knitting one jumper per day Labour turnover; the rate at which employees leave their jobs and need to be replaced in a year e.g. 27% Labour retention; the amount of employees who stay in a business e.g. 98% Absenteeism; Absence from work on a regular basis Revision Video