1. The Significance of the Determination of Employee Contribution
Productivity, Absenteeism, Labour Turnover, Quality, Waste and Accidents

2. Learning Outcomes Define, calculate and interpret - productivity
- absenteeism
- labour turnover
- quality (waste)
- accidents
Evaluate how measures of employee contribution to objectives might assist in managerial decision-making

3. How productive have you been today? How could you measure it?

4. What is Productivity?
Measurement of efficiency in relation to an organisations inputs and outputs

5. Why Does Productivity Matter?
Increased output per
employee
Relatively lower labour
costs
Increase profit margins
Employee starts making 20 items
per day rather than 10
Even if wages remain the same labour costs
per item half
Lower price and sell more units or
Make higher profit margin per unit

6. Labour Productivity Output per period Number of employees per period
20,000,000
48,000
416 per tonnes per person

7. Increasing Productivity
Increase investment in modern equipment
Improve the ability level of those at work
How to increase productivity
Improve employee motivation
The role of management

8. How would you measure teachers…. is it me, or the machinery?
What are the downsides?
How much does machinery cost?
How will your employees feel?
How would you measure teachers…. is it me, or the machinery?
What happens to quality?
Does it always matter?

9. Methods of monitoring productivity
Changes over time
Comparison against other firms
Performance against targets

10. Labour Turnover 36 450 8% 100 Number of staff leaving per year 100
Average number of staff employed in year
100
A firm has 450 employees and 36 leave in a year 36
450 8%
100

11. External Internal Causes of high labour turnover
Poor recruitment & selection
External
Ineffective motivation or leadership
Causes of high labour turnover
More local vacancies
Wages levels are low
Better pay being offered
Internal
Better transport links

12. McDonalds restaurants are renowned for a high turnover of staff.
Why might this be?
What problems might such a company face?
How might they overcome the problems?

13. Those on this side of the room need to think of advantages of high labour turnover
Those on this side of the room need to think about disadvantages of high labour turnover
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14. Calculate Labour Productivity and Turnover for each year
Average number of employees 42 41 43
Number of leavers 3 6 2
Value of output £
1,500,000
1,300,000
1,600,000
1,800,000