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objectives","correct":true,"explanation":"Human resource performance assesses how effectively employees help the business achieve its objectives, such as greater productivity, lower costs, improved quality or higher customer satisfaction."},{"text":"employee preferences","correct":false,"explanation":"Employee preferences may influence motivation and retention, but they are not the ultimate benchmark. Human resource performance measures the workforce’s contribution to business objectives."},{"text":"industry regulations","correct":false,"explanation":"Complying with industry regulations is a legal requirement rather than the overall purpose of HR performance measurement. The workforce’s contribution to business objectives is being assessed."},{"text":"competitor strategies","correct":false,"explanation":"Competitor strategies may affect business decisions, but employees do not contribute directly to them. Human resource performance concerns how well the workforce supports business objectives."}]},{"id":"6bc26579-d0ea-4d95-b224-060f7e7436f0","cardType":"basic","points":1,"front":"If employees leave during the year, which HR measure is affected?","back":"Employee turnover.","mcqOptions":[{"text":"Employee turnover.","correct":true,"explanation":"Employee turnover measures the proportion of employees who leave a business during a specified period, usually expressed as a percentage of the average workforce."},{"text":"Absenteeism.","correct":false,"explanation":"Absenteeism records employees missing scheduled work, not permanently leaving employment. Employees who leave during the year affect employee turnover."},{"text":"Employee productivity.","correct":false,"explanation":"Employee productivity compares workforce output with labour input; it does not count departures. Employees leaving during the year affect employee turnover."},{"text":"Labour retention.","correct":false,"explanation":"Retention focuses on employees who remain with the business, which reverses the measure asked for. Departures during the year are recorded through employee turnover."}]},{"id":"7886cd48-e528-448d-a1b1-3a0e6ebfdf6e","cardType":"basic","points":1,"front":"If staff miss scheduled shifts, which HR measure is affected?","back":"Absenteeism.","mcqOptions":[{"text":"Absenteeism.","correct":true,"explanation":"Absenteeism measures the amount or proportion of scheduled working time missed by employees, including occasions when staff fail to attend planned shifts."},{"text":"Employee turnover.","correct":false,"explanation":"Employee turnover measures staff leaving the organisation, not staff missing individual shifts. Missed scheduled working time is measured by absenteeism."},{"text":"Employee productivity.","correct":false,"explanation":"Employee productivity measures output relative to labour input rather than attendance directly. Missing scheduled shifts is recorded through the absenteeism measure."},{"text":"Labour retention.","correct":false,"explanation":"Labour retention measures how successfully a business keeps its employees, not whether they attend scheduled shifts. Missed shifts affect absenteeism."}]},{"id":"1b86fb4e-bbd6-4e4b-b830-4dbe2bc683ca","cardType":"basic","points":1,"front":"If output per worker changes, which HR measure is affected?","back":"Employee productivity.","mcqOptions":[{"text":"Employee productivity.","correct":true,"explanation":"Employee productivity measures output in relation to labour input, commonly as output per employee or per hour worked. A change in output per worker therefore changes productivity."},{"text":"Employee turnover.","correct":false,"explanation":"Employee turnover measures the proportion of staff leaving, not the output generated by each worker. Output per worker is an employee productivity measure."},{"text":"Absenteeism.","correct":false,"explanation":"Absenteeism measures scheduled working time lost through employee absence. It may influence output indirectly, but output per worker specifically measures employee productivity."},{"text":"Labour retention.","correct":false,"explanation":"Labour retention concerns how many employees remain with the organisation, not how much each employee produces. Output per worker indicates employee productivity."}]},{"id":"71a96ec2-1d65-45fd-8291-cf2d6f37837e","cardType":"basic","points":2,"front":"Why can high employee turnover increase labour costs?","back":"Recruitment and training costs rise.","mcqOptions":[{"text":"Recruitment and training costs rise.","correct":true,"explanation":"Employees who leave must often be replaced, creating expenditure on advertising, selection, induction and training. Frequent replacement therefore increases recruitment and training costs."},{"text":"Market research and advertising costs rise.","correct":false,"explanation":"Market research and advertising are marketing costs rather than necessary consequences of replacing employees. High turnover raises labour costs through additional recruitment and training."},{"text":"Interest and dividend costs rise.","correct":false,"explanation":"Interest and dividends relate to business finance and ownership, not staff replacement. High employee turnover increases labour costs because recruitment and training are repeatedly required."},{"text":"Depreciation and maintenance costs rise.","correct":false,"explanation":"Depreciation and maintenance concern non-current assets rather than employees leaving. Turnover raises labour costs through the recruitment and training of replacement workers."}]},{"id":"4ae4c047-3c2c-45d8-ae77-362f7c8fce31","cardType":"basic","points":2,"front":"Why can high absenteeism increase labour costs?","back":"Overtime or temporary staff costs rise.","mcqOptions":[{"text":"Overtime or temporary staff costs rise.","correct":true,"explanation":"Absent employees leave work uncovered, so the business may pay existing staff overtime or hire temporary workers to maintain its output and service levels."},{"text":"Interest or dividend payment costs rise.","correct":false,"explanation":"Interest and dividends are financing distributions, not costs caused by missed shifts. High absenteeism raises labour costs when overtime or temporary staff cover absent employees."},{"text":"Advertising or market research costs rise.","correct":false,"explanation":"Advertising and market research are marketing activities unrelated to covering employee absence. Absenteeism raises labour costs through overtime payments or hiring temporary staff."},{"text":"Depreciation or equipment repair costs rise.","correct":false,"explanation":"Depreciation and repairs relate to business assets, not employees missing work. High absenteeism increases labour costs because overtime or temporary cover may be needed."}]},{"id":"2410382a-8e0d-49dc-99cf-7ff6a69c3e0a","cardType":"cloze","points":null,"front":"Employee turnover rate = [ ] ÷ [ ] × 100.","back":"Employee turnover rate = number of employees leaving ÷ average number of employees × 100.","mcqOptions":[{"text":"Employee turnover rate = number of employees leaving ÷ average number of employees × 100.","correct":true,"explanation":"The turnover rate expresses employee departures as a percentage of the average workforce. Dividing the number leaving by the average number employed allows meaningful comparison between periods or businesses."},{"text":"Employee turnover rate = number of employees leaving ÷ number of employees at the start × 100.","correct":false,"explanation":"Using only the starting workforce ignores changes in employment during the period. The number leaving should be divided by the average number of employees, then multiplied by 100."},{"text":"Employee turnover rate = number of employees joining ÷ average number of employees × 100.","correct":false,"explanation":"Counting employees joining measures workforce inflow rather than turnover through departures. The numerator must be the number of employees leaving, divided by the average workforce."},{"text":"Employee turnover rate = average number of employees ÷ number of employees leaving × 100.","correct":false,"explanation":"This reverses the numerator and denominator, producing an inverse percentage rather than a turnover rate. Divide the number leaving by the average number of employees."}]},{"id":"84126858-66ea-47cb-bac6-83ef81719f0b","cardType":"basic","points":1,"front":"Which denominator is normally used in employee turnover calculations?","back":"The average number of employees during the period.","mcqOptions":[{"text":"The average number of employees during the period.","correct":true,"explanation":"The average workforce accounts for changes in employee numbers throughout the period, making it the normal denominator when calculating an employee turnover percentage."},{"text":"The number of employees employed at the start.","correct":false,"explanation":"Using only the opening workforce ignores employees joining or leaving during the period. Turnover is normally calculated using the average number of employees as the denominator."},{"text":"The number of employees leaving during the period.","correct":false,"explanation":"The number leaving is the numerator in the turnover calculation, not the denominator. The denominator is normally the average number of employees during the period."},{"text":"The total number of scheduled shifts during the period.","correct":false,"explanation":"Scheduled shifts are relevant to attendance measures rather than employee turnover. Turnover uses the average number of employees during the period as its denominator."}]},{"id":"235b7c4e-e392-4e03-b885-7f34b541c331","cardType":"cloze","points":null,"front":"Average number of employees = ([ ] + [ ]) ÷ 2.","back":"Average number of employees = (employees at start + employees at end) ÷ 2.","mcqOptions":[{"text":"Average number of employees = (employees at start + employees at end) ÷ 2.","correct":true,"explanation":"The average workforce is calculated by adding employee numbers at the beginning and end of the period, then dividing the total by two."},{"text":"Average number of employees = (employees at start + employees who left) ÷ 2.","correct":false,"explanation":"Employees who left are a flow during the period, not an ending workforce figure. The calculation uses employees at start plus employees at end, divided by two."},{"text":"Average number of employees = (employees who joined + employees at end) ÷ 2.","correct":false,"explanation":"Employees who joined do not represent the opening workforce. The average is found from employees at start plus employees at end, divided by two."},{"text":"Average number of employees = (employees who left + employees who joined) ÷ 2.","correct":false,"explanation":"Leavers and joiners measure workforce movements rather than workforce size. Average employment uses employees at start plus employees at end, divided by two."}]},{"id":"96f6f7d0-d9c9-4a6d-8fa3-200ad15f3fd7","cardType":"basic","points":2,"front":"A business has 320 employees at the start and 290 at the end. What is the average number of employees?","back":"305 employees.","mcqOptions":[{"text":"305 employees.","correct":true,"explanation":"Adding 320 and 290 gives 610, and dividing by two gives an average workforce of 305 employees."},{"text":"610 employees.","correct":false,"explanation":"This adds the opening and closing workforce figures but omits the final division by two. Dividing 610 by two gives 305 employees."},{"text":"30 employees.","correct":false,"explanation":"This finds the decrease in employment rather than the average workforce. The correct calculation is $(320 + 290) \\div 2$, giving 305 employees."},{"text":"315 employees.","correct":false,"explanation":"This results from averaging 320 with an incorrect closing figure of 310. Using the stated figures, $(320 + 290) \\div 2$ gives 305 employees."}]},{"id":"173e7ecc-e298-47e1-a38c-f86366240da7","cardType":"basic","points":2,"front":"45 employees leave and average employment is 305. What is the turnover rate?","back":"14.8%.","mcqOptions":[{"text":"14.8%.","correct":true,"explanation":"Employee turnover is leavers divided by average employment, multiplied by 100. Therefore, $45 \\div 305 \\times 100$ gives approximately 14.8%."},{"text":"14.1%.","correct":false,"explanation":"This uses the starting workforce of 320 as the denominator. Turnover uses average employment, so $45 \\div 305 \\times 100$ gives 14.8%."},{"text":"15.5%.","correct":false,"explanation":"This uses the ending workforce of 290 instead of average employment. Dividing 45 by the correct average of 305 gives a turnover rate of 14.8%."},{"text":"85.2%.","correct":false,"explanation":"This is the approximate percentage that did not leave, found as the complement of turnover. The proportion leaving is $45 \\div 305 \\times 100 = 14.8\\%$."}]},{"id":"2633314a-ff51-4c45-bd7f-a833e1c87c19","cardType":"basic","points":2,"front":"What does a 14.8% turnover rate mean in plain terms?","back":"About 15 in every 100 employees left.","mcqOptions":[{"text":"About 15 in every 100 employees left.","correct":true,"explanation":"A rate of 14.8% means 14.8 employees per hundred left during the period, which rounds to about 15 in every 100 employees."},{"text":"About 15 in every 1,000 employees left.","correct":false,"explanation":"Percentages describe an amount out of 100, not 1,000. A 14.8% turnover rate means about 15 in every 100 employees left."},{"text":"About 85 in every 100 employees left.","correct":false,"explanation":"This confuses turnover with its approximate complement. About 85 in every 100 remained, while about 15 in every 100 employees left."},{"text":"About 15 in every 100 employees remained.","correct":false,"explanation":"Turnover measures the proportion leaving, not remaining. A 14.8% turnover rate means about 15 in every 100 employees left during the period."}]},{"id":"e3a75a0a-0d64-4117-b001-9ad63603fe21","cardType":"basic","points":2,"front":"Why is high employee turnover not automatically bad?","back":"It can bring in new skills.","mcqOptions":[{"text":"It can bring in new skills.","correct":true,"explanation":"Replacing some departing employees can introduce different expertise, ideas and experience, so a high turnover figure is not necessarily entirely harmful to the business."},{"text":"It can eliminate recruitment costs.","correct":false,"explanation":"High turnover normally creates recruitment and training costs rather than eliminating them. Its potential benefit is that replacement employees can bring new skills into the business."},{"text":"It can guarantee higher morale.","correct":false,"explanation":"Frequent departures can disrupt teams and may lower morale, so improvement is not guaranteed. High turnover can still be beneficial if recruits bring new skills."},{"text":"It can preserve experienced staff.","correct":false,"explanation":"High turnover means employees are leaving, so experience may be lost rather than preserved. It is not automatically bad because new recruits can bring new skills."}]},{"id":"6a6f046a-9ad9-4cdb-8e0d-d99fabf41bdc","cardType":"cloze","points":null,"front":"Absenteeism rate = [ ] ÷ [ ] × 100.","back":"Absenteeism rate = total days absent ÷ total possible working days × 100.","mcqOptions":[{"text":"Absenteeism rate = total days absent ÷ total possible working days × 100.","correct":true,"explanation":"Absenteeism measures lost working days as a percentage of all available working days, so total days absent is divided by total possible working days."},{"text":"Absenteeism rate = total days present ÷ total possible working days × 100.","correct":false,"explanation":"Using days present calculates the attendance rate rather than absenteeism. Absenteeism uses total days absent divided by total possible working days, multiplied by 100."},{"text":"Absenteeism rate = total days absent ÷ total employees × 100.","correct":false,"explanation":"Dividing by employee numbers gives average absence days per employee, not an absenteeism percentage. The denominator must be total possible working days."},{"text":"Absenteeism rate = total possible working days ÷ total days absent × 100.","correct":false,"explanation":"This reverses the numerator and denominator, producing a figure above 100% in typical cases. Total days absent must be divided by total possible working days."}]},{"id":"864e5a00-b413-4350-8550-b304fa126e3d","cardType":"basic","points":1,"front":"How are total possible working days calculated for absenteeism?","back":"Employees × scheduled working days.","mcqOptions":[{"text":"Employees × scheduled working days.","correct":true,"explanation":"Each employee contributes the scheduled number of available working days, so multiplying employee numbers by scheduled working days gives the total possible working days."},{"text":"Employees + scheduled working days.","correct":false,"explanation":"Adding the two figures does not count every employee’s available days. They must be multiplied to calculate total possible working days."},{"text":"Employees ÷ scheduled working days.","correct":false,"explanation":"Division does not calculate the combined working-day capacity of the workforce. Total possible working days equal employees multiplied by scheduled working days."},{"text":"Employees × total days absent.","correct":false,"explanation":"Days absent are the numerator in the absenteeism calculation, not the scheduled availability per employee. Possible working days equal employees multiplied by scheduled working days."}]},{"id":"0864a09e-2de0-4169-9420-3b521b4a0080","cardType":"basic","points":2,"front":"185 days are absent out of 2,640 possible working days. What is absenteeism?","back":"7.0%.","mcqOptions":[{"text":"7.0%.","correct":true,"explanation":"Dividing 185 absent days by 2,640 possible days and multiplying by 100 gives approximately 7.0076%, which rounds to 7.0%."},{"text":"0.07%.","correct":false,"explanation":"This treats the decimal proportion as though it were already a percentage and omits multiplication by 100. The absenteeism rate is approximately 7.0%."},{"text":"93.0%.","correct":false,"explanation":"This is the attendance rate, calculated as the complement of absenteeism. The proportion of possible working days lost through absence is 7.0%."},{"text":"14.0%.","correct":false,"explanation":"This effectively doubles the number of absent days before dividing by possible days. Using $185 \\div 2{,}640 \\times 100$ gives approximately 7.0%."}]},{"id":"1cc37c12-b305-4057-b6fe-fd2384cafe50","cardType":"basic","points":2,"front":"Why should high absenteeism not automatically lead to discipline?","back":"It may have a legitimate cause.","mcqOptions":[{"text":"It may have a legitimate cause.","correct":true,"explanation":"Absence may result from genuine illness, caring responsibilities or another authorised reason. Managers should investigate the circumstances before deciding whether disciplinary action is justified."},{"text":"It always indicates high motivation.","correct":false,"explanation":"Frequent absence does not indicate high motivation and may sometimes indicate the opposite. Discipline should not be automatic because the absence may have a legitimate cause."},{"text":"It guarantees higher productivity.","correct":false,"explanation":"Absenteeism generally disrupts operations rather than guaranteeing greater productivity. Managers should avoid automatic discipline because employees may have legitimate reasons for being absent."},{"text":"It proves there is overstaffing.","correct":false,"explanation":"Absence levels alone cannot establish that a business employs too many people. High absenteeism should be investigated because it may have a legitimate cause."}]},{"id":"ed74ea44-5de2-41bd-ac01-4ba9c18f3d52","cardType":"cloze","points":null,"front":"Employee productivity = [ ] ÷ [ ].","back":"Employee productivity = output in a period ÷ number of employees.","mcqOptions":[{"text":"Employee productivity = output in a period ÷ number of employees.","correct":true,"explanation":"Employee productivity measures the average output generated by each employee, so total output for the period is divided by the number of employees."},{"text":"Employee productivity = number of employees ÷ output in a period.","correct":false,"explanation":"This reverses the calculation and measures employees required per unit of output. Employee productivity is output in a period divided by the number of employees."},{"text":"Employee productivity = output in a period ÷ number of customers.","correct":false,"explanation":"Dividing by customers measures output per customer, not employee productivity. The correct denominator is the number of employees working to produce the output."},{"text":"Employee productivity = revenue in a period ÷ total wage costs.","correct":false,"explanation":"This compares revenue with labour expenditure and is a financial efficiency measure. Employee productivity divides output in a period by the number of employees."}]},{"id":"fceb7944-046c-40d2-84c5-e6b9591dfddc","cardType":"basic","points":2,"front":"Why use FTE rather than headcount when many staff are part-time?","back":"FTE makes comparisons fairer.","mcqOptions":[{"text":"FTE makes comparisons fairer.","correct":true,"explanation":"Full-time equivalent adjusts for differences in working hours, combining part-time hours into equivalent full-time roles. This produces fairer workforce and productivity comparisons than headcount."},{"text":"FTE makes recruitment faster.","correct":false,"explanation":"FTE is a workforce measurement and does not itself speed up recruitment. It makes comparisons fairer by accounting for the reduced hours worked by part-time staff."},{"text":"FTE makes wages automatically lower.","correct":false,"explanation":"Using FTE does not change employees’ wage rates or automatically reduce labour costs. It converts working hours into full-time equivalents so comparisons are fairer."},{"text":"FTE makes headcount more accurate.","correct":false,"explanation":"FTE does not improve the accuracy of headcount, which simply counts individuals. It provides a fairer alternative by reflecting the hours contributed by part-time workers."}]},{"id":"dadf15ce-8b80-4db8-bc19-21e4c79c3001","cardType":"basic","points":2,"front":"40,000 components are made by 50 employees. What is productivity?","back":"800 units per employee.","mcqOptions":[{"text":"800 units per employee.","correct":true,"explanation":"Productivity equals total output divided by the number of employees. Dividing 40,000 components by 50 employees gives 800 units per employee."},{"text":"2,000 units per employee.","correct":false,"explanation":"This results from dividing by 20 rather than the stated 50 employees. The correct calculation is 40,000 ÷ 50, giving 800 units per employee."},{"text":"80 units per employee.","correct":false,"explanation":"This is a place-value error that makes the result ten times too small. Dividing 40,000 by 50 gives 800 units per employee."},{"text":"8,000 units per employee.","correct":false,"explanation":"This is a place-value error that makes productivity ten times too large. The correct division, 40,000 ÷ 50, produces 800 units per employee."}]},{"id":"a3ff8fee-42c2-44b2-bff5-ccace733f9b5","cardType":"basic","points":2,"front":"Productivity rises from 800 to 1,000 units per employee. What is the percentage increase?","back":"25%.","mcqOptions":[{"text":"25%.","correct":true,"explanation":"The increase is 200 units, measured against the original 800. Calculating 200 ÷ 800 × 100 gives a productivity increase of 25%."},{"text":"20%.","correct":false,"explanation":"This uses the new value of 1,000 as the denominator. Percentage increase must use the original 800, so 200 ÷ 800 × 100 equals 25%."},{"text":"12.5%.","correct":false,"explanation":"This effectively halves the correct percentage, often through an extra division by two. The increase of 200 is 25% of the original 800."},{"text":"125%.","correct":false,"explanation":"This expresses the new productivity as a percentage of the original rather than finding the increase. The rise itself is 200 ÷ 800 × 100 = 25%."}]},{"id":"69831e67-be54-4f23-aa91-256e1255c600","cardType":"cloze","points":null,"front":"A HR percentage is more useful when compared with a [ ] or [ ].","back":"A HR percentage is more useful when compared with a target or previous period.","mcqOptions":[{"text":"A HR percentage is more useful when compared with a target or previous period.","correct":true,"explanation":"A target shows whether performance meets expectations, while a previous period reveals the direction of change. These comparisons give the HR percentage meaningful context."},{"text":"A HR percentage is more useful when compared with a target or current percentage.","correct":false,"explanation":"Comparing a figure with itself adds no context or evidence of change. It should be compared with a target or a previous period to assess performance."},{"text":"A HR percentage is more useful when compared with a raw total or previous period.","correct":false,"explanation":"A raw total is measured differently from a percentage, so direct comparison is misleading. A target provides an appropriate benchmark alongside comparison with a previous period."},{"text":"A HR percentage is more useful when compared with a number of products or sales revenue.","correct":false,"explanation":"Product numbers and sales revenue use unrelated measures and do not directly benchmark an HR percentage. A target or previous period provides relevant context for interpretation."}]},{"id":"96d7e223-70be-4993-995b-5fce6d6b3e0f","cardType":"basic","points":2,"front":"High turnover and high absenteeism together may suggest what problem?","back":"Low motivation.","mcqOptions":[{"text":"Low motivation.","correct":true,"explanation":"Unmotivated employees may be more likely to miss work or leave the organisation. High absenteeism and turnover together can therefore indicate low workforce motivation."},{"text":"High productivity.","correct":false,"explanation":"High absenteeism and turnover tend to disrupt output and increase replacement costs rather than demonstrate high productivity. Together, they may indicate low employee motivation."},{"text":"Strong job satisfaction.","correct":false,"explanation":"Employees with strong job satisfaction are generally less likely to leave or be absent without good reason. Both measures being high may instead suggest low motivation."},{"text":"Effective workforce planning.","correct":false,"explanation":"Effective workforce planning aims to maintain suitable staffing and reduce avoidable disruption. Persistently high turnover and absenteeism are more likely to signal low motivation."}]}]}],"examCountdown":{"examDate":"2027-05-13","paperLabel":"Paper 1"},"heading":"Measuring human resource performance","title":"Measuring human resource performance Flashcards","topbar":{"backHref":"/a-level/business/ocr/flashcards"},"topicSidebar":"$L39"}]}],"topicId":"f9834b04-d7b2-59e4-a9d1-4c38aad93ddf","walled":"$L3a"}],"$L3b","$L3c"]