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The employment relations department of a small manufacturing business has provided the following data from its annual audit - HSC - SSCE Business Studies - Question 7 - 2003 - Paper 1
Question 7
The employment relations department of a small manufacturing business has provided the following data from its annual audit. Number of employees 2002 20 2003 20 ... show full transcript
Worked Solution & Example Answer:The employment relations department of a small manufacturing business has provided the following data from its annual audit - HSC - SSCE Business Studies - Question 7 - 2003 - Paper 1
Step 1
Which of the following would describe the changing state of employment relations in this business?
Answer
To determine the correct answer, we analyze the provided data. The number of employees remained constant at 20 from 2002 to 2003. However, there was a significant reduction in the number of days lost due to disputes, dropping from 250 days to 20 days. This indicates a substantial improvement in resolving disputes, suggesting employees are less dissatisfied.
The absenteeism per employee increased from 5 to 10 days, which might seem concerning, but in conjunction with the reduced disputes, it doesn't indicate dissatisfaction.
Importantly, staff turnover remains consistent at 10%, showing no increase in dissatisfaction. Thus, the significant decrease in the number of days lost due to disputes indicates an overall improvement in employment relations, and the grievance procedures likely are now functioning more effectively.
The correct choice is (D): There has been an overall improvement in employment relations, indicating that the grievance procedures are now working.