3.6.2 Analysing human behaviour

Poor recruitment + selection procedure - may appoint wrong person to wrong post. If happens, evrually misplaced workers wish to leave, find post more suited to interests/talents.

Ineffective motivation/leadership -> workers lacking commitment to firm.

Wage levels lower than being earned by similar workers in other local firms. If wage rates not competitive, workers likely to look elsewhere to find better reward for similar job.

More local vacancies arising eg due to setting up/expansion of other firms in area.

Better transport links, wider geographical area acceptible for workers. New public transport systems allow workers to take employment previously out of reach - more competition.

Cost of recruiting replacements.

Cost of training replacements.

Time taken for new recruits to settle into business + adopt firm's culture.

Loss of productivity whil new workers learn new ways of working (reach peak on learning curve).

New workers can bring new ideas + enthusiasm to firm.

Workers w/ specific skills can be employed rather than having to train existing workers from scratch.

New ways of solving problems may be identified by workers w/ diff perspective, whereas existing workers may rely on tried + trusted techniques worked in past.

Productivity + labout turnover provide firm w/ commentary on performance - poor productivity + high labour turnover - poor management. Most effective comparisons, good managers analyse figures to identify:
 - changes over time
 - how firm performing compared to similar firms (benchmarking against best performers in sector)
 - performance against targets

Comparisons tell firm how performing in relation to yardstick. Indicates where performing well + where there's a problem. Firm must investigate reasons for performance before can judge how well personnel function operating.