3.5

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Human Resource Management Mind Map

👥 HUMAN RESOURCE MANAGEMENT

➡ Focus: improving workforce performance and efficiency

🔹 1. LABOUR PRODUCTIVITY

✅ What is it?

  • Measures output per worker

  • Shows how efficiently employees are working

🔢 How is it calculated?

\text{Labour Productivity} = \frac{\text{Output}}{\text{Number of Employees}}

📉 If LOW → HR improvements:

  • Training → improves skills and efficiency

  • Motivation (bonuses, incentives) → increases effort

  • Better technology → speeds up production

  • Improved management/leadership → clearer direction

🔹 2. LABOUR TURNOVER

✅ What is it?

  • Percentage of employees leaving a business over time

🔢 How is it calculated?

\text{Labour Turnover} = \frac{\text{Number leaving}}{\text{Average number employed}} \times 100

📉 If HIGH → HR improvements:

  • Increase pay / financial rewards

  • Improve working conditions

  • Career progression opportunities

  • Better recruitment (hire the right people)

🔹 3. LABOUR RETENTION

✅ What is it?

  • Ability of a business to keep employees

👉 (Opposite of labour turnover)

🔢 How is it calculated?

  • Not always a formula, but often:
    \text{Retention Rate} = 100\% - \text{Turnover Rate}

📉 If LOW → HR improvements:

  • Employee benefits (e.g. pensions, perks)

  • Job security

  • Training & development

  • Employee share ownership schemes

🔹 4. ABSENTEEISM

✅ What is it?

  • Measures how often employees are absent from work

🔢 How is it calculated?

\text{Absenteeism Rate} = \frac{\text{Days lost through absence}}{\text{Total possible working days}} \times 100

📉 If HIGH → HR improvements:

  • Flexible working

  • Better working conditions

  • Health & wellbeing support

  • Strong management / monitoring systems