ADMS 1000 Lecture Notes - Lecture 2: Opportunity Cost, Job Analysis, Tangent

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Paulette Burgher

Document Summary

This function is a very important one in organizations as it deals with managing people. Although human beings are referred to as resources, there are important differences in the way; a resource such as a machine is managed compared to a person who has needs and emotions. Previously managing people involved mainly recurred keeping and complying with legal requirements. However with the realization that people could actually provide a competitive edge brought about the change in the mindset of business and human resource management become an important function like marketing and finance sector. It refers to number of people leaving a business in a year and is calculated as. Labor turnover (%) = no. of people leaving in a year / average no. of people employed during the year. Although some level of labor turnover is inevitable in any organization, too high a level could cause problems as follows. Additional costs are incurred to recruit and train new employees.