Refer to Table 1. Calculate for 2020: labour turnover
- (a)(i)Refer to Table 1. Calculate for 2020: labour turnover[3]
- (a)(ii)labour productivity.[3]
- (b)You may refer to your results to 2(a) and other information. Assess the effectiveness of Inolla's approach to human resource management (HRM).[12]
Mark scheme
Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.
- [1] (a)(i) (Number of employees leaving / average number of employees) × 100
- [2] (a)(i) 2020 labour turnover = 12 / 40 × 100
- [3] (a)(i) 30% OR 30
- [2] (a)(i) 2019 labour turnover = 20% OR 20 (Other answers - likely error for 2019 data)
- [1] (a)(ii) Labour productivity = Annual output / Employees
- [1] (a)(ii) Annual output = 6000 × 12 = 72 000
- [2] (a)(ii) 2020 labour productivity = 72 000 / 40
- [3] (a)(ii) = 1800
- [1] (a)(ii) Monthly labour productivity = 6000/40
- [2] (a)(ii) = 150
- [3] (a)(ii) 150 × 12 = 1800
- [1] (b) Identification of role of HRM and objectives (Recruitment & selection, Appraisal of employees, Workforce planning, Training)
- [1] (b) Distinction between hard and soft HRM
- [1] (b) Hard HRM: treating employees as a cost, autocratic leadership.
- [1] (b) Soft HRM: focus on training and development, democratic style of leadership, empowerment.
- [1] (b) Knowledge of Taylor, Mayo and Herzberg et al and approaches to managing human resources.
- [1] (b) Knowledge of measuring effectiveness such as absenteeism rates and labour turnover.
- [1] (b) Productivity has decreased by 200 scooters per employee.
- [1] (b) Labour turnover has increased from 20% to 30%.
- [1] (b) Lack of flexibility in shift patterns.
- [1] (b) Weekly production targets given.
- [1] (b) No union allowed to negotiate on behalf of employees.
- [1] (b) Absenteeism has increased. Total days lost in 2020 is 320.
- [1] (b) Link to use of quality control inspectors and the battery fires.
- [1] (b) Training in one specific skill.
- [1] (b) Hard approach to managing employees may negatively impact Inolla: Alienate some employees and this may explain why labour turnover has increased.
- [1] (b) Increased labour turnover may disrupt production, and this could be why productivity has fallen.
- [1] (b) New employees take time to recruit and train and therefore this reduces productivity and increases unit costs.
- [1] (b) Failure to recognise union could cause conflict with employees resulting in disruption to production. This could affect customer satisfaction and therefore sales could decrease.
- [1] (b) Unions could be used to drive productivity agreements and thus reduce costs.
- [1] (b) Unions could provide a means of communicating effectively with employees and this helps achieve objectives such as increasing productivity.
- [1] (b) More extensive training could make employees more flexible and therefore Inolla could be more responsive to customer demands.
- [1] (b) Empowering employees may increase motivation and may help assure quality, improving Inolla's brand reputation and increasing sales.
- [1] (b) Training in one specific skill may impact flexibility of workforce.
- [1] (b) Benefits of hard HRM may include: Controls costs by only paying minimum wage which increases Inolla's competitiveness.
- [1] (b) Recognising trade union could drive up costs making the electric scooters more expensive or reducing profit margins.
- [1] (b) Minimises training costs leaving more cash available for alternative uses such as marketing.
- [1] (b) Some employees will respond positively to being given direct orders and supervision increasing.
- [1] (b) Better control of employees as more closely supervised.
- [1] (b) Decisions may be made more quickly making Inolla more responsive to changes.
- [1] (b) Given the economic situation, employees can easily find other employment so this would suggest that Inolla should take a softer approach to human resource.
- [1] (b) Premium prices require a product that meets quality standards. Will a hard approach ensure this cost effectively as quality inspectors required and employees not given responsibility?
- [1] (b) Extent to which hard approach reduces costs and importance of controlling costs to competitiveness.
- [1] (b) Other factors that might have contributed to the declining workforce performance. Is Li-chun correct in terms of cause and effect?
- [1] (b) Is it Neten that is the problem rather than the hard approach.
- [1] (b) Is labour turnover due to economic growth providing more opportunities for workers.
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