Performance Measurement

Managers require an objective, unbiased way to measure the performance of personnel. There are four key indicators used to do this:

• Labour poductivity
• Labour turnover
• Absenteeism
• Waste levels

Labour productivity is often seen as the single most important measure of how well a firm is doing. The higher thThe more productive a firm is, the more competitive it will be.

Labour productivity = output per period / number of employees per period.

Labour turnover measures the rate of change of a firm's workforce.

Labour…