ACCA Applied Knowledge · Business and Technology · Consequences of ineffectiveness at work
Ineffective supervision in a department leads to high absenteeism and many resignations. Which of the following is the most likely additional cost to the organisation?
The most likely extra cost is recruitment and training expense to replace leavers. High resignations and absenteeism force the organisation to find, select and train new staff, with lost productivity meanwhile. Wage rates, dividends and information needs are not reduced by poor supervision.
- ARecruitment and training costs to replace leaversCorrect
- BLower wage rates being paid to all staff
- CReduced need for management information
- DIncreased shareholder dividends
Explanation
High labour turnover means the organisation must advertise, recruit, select and train replacements, and productivity is lost while new staff learn the role. Poor supervision does not cut wage rates or dividends, and information needs do not fall.
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