HR - Revision Notes - LEV

  • Created by: robbie97
  • Created on: 10-04-14 09:47

Consequences Of Increasing Prodcutivity

Some companies reward an inc in productivity by using as piece rate - encourages workers to produce more but the problem is..... the quality may suffer in the process - desatisfied custom - loss in custom - red.chance of gaining new custom due to bad WOM - signifcantly decreasing revenue.

Increased labour prodcutivity means redundancies and a losss of staff unless sales increase aswell - avoid upsetting staff as it will cause a bad working morale for remaning staff - make it difficult to emply new staff as old staff may give bad WOM on working for a certain business - halting productivity - preventing business from meeting demand - loss in custom - loss in rev - neg cash flow - inc chance of failure.

Labour Turnover - measure…


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