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LABOUR TURNOVER
A firm needs to measure whether:
1. The workforce is motivated
2. Workforce is fully productive
3. HR are helping the business meet its goals
The two performance indicators are
Labour productivity
Labour Turnover
Labour productivity ­ is the number of outputs per
worker
Output per period divide by number of employees
Labour Turnover ­ measure of the rate of change of a
workforce
Number of staff leaving divide by average number of
staff X 100
Poor productivity and high turnover could mean poor
management
Good managers analyse and identify ­
1. changes over time
2. How the firm is performing compared to other firms
3. Performance against targets…read more

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Poor recruitment
and selection
process
Economic Sate Poor Management
Causes of Labour
Turnover
Better Transport Poor wages/
to Jobs further
out conditions
Local Job
Dissatisfaction
Vacancies…read more

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CONSEQUENCES OF
LABOUR TURNOVER
New ideas and Cost of
enthusiasm recruitment
Could have the Cost of training
skills
Time taken to
Different be productive
perspectives
Learn the firms
New ways to culture
solve problems
Positives Negatives…read more

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MOTIVATION IN
THEORY
Taylor ­ believe management had to decide
how tasks should be completed, give
workers the tools to do the tasks. Believe
people only work fro money.
Time and Motion Study
Task Broken Down
Equipment to speed up tasks
Piece Rate ­ Paid on amount produced
Mayo - Relay Assembly Test
Methods used were bonuses, rest periods,
refreshments and different layout
With each change productivity increased
People like to control their environment,
work as a team mean work harder,
communication with mangers is important,
relationships with others is important…read more

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THEORY
Maslow
Self -
Actualisation
Esteem
Social
Safety Needs
Physical Needs
1. Self ­ actualisation ­ to develop ones full potential
2. Esteem ­ Power, Trust, Status, Responsibility
3. Social ­ Team Working, Communications
4. Safety Needs - Clear Job Role, Job Security,
Accountability
5. Pay Levels, Work Conditions…read more

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