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ACCA Applied Knowledge · Business and Technology · Consequences of ineffectiveness at work

Which of the following is most likely to be a direct financial consequence for an organisation of persistently high employee absenteeism caused by poor management?

The most direct financial consequence is the extra cost of covering absent staff, such as overtime or temporary workers, often on top of sick pay. Absenteeism does not change share capital or depreciation, and it usually harms rather than improves morale.

  1. AIncreased costs of covering absent staff, such as overtime or temporary labourCorrect
  2. BA reduction in the organisation's share capital
  3. CAn increase in the organisation's tax-deductible depreciation
  4. DAutomatic improvement in staff morale

Explanation

Absenteeism forces the organisation to pay for cover through overtime or temporary staff while often still paying the absent employee, raising costs. Share capital and depreciation are unrelated to attendance, and morale tends to fall rather than rise as remaining staff carry extra workload.

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