1) Explain the terms; Induction training and redundancy.

2) Briefly analyse why Cannell Ltd should be concerned about its rate of labour turnover.

3) Discuss whether or not the managing director is correct to argue that the company should double its spending on training. (10 marks question)

The company behind the soaps and shampoos in hotel bathrooms Cannell Ltd manufactures the soaps, shampoos and other complimentary toiletries that are available in hotel bathrooms. The company operates two factories with a combined workforce of 380, and labour costs are 47 per cent of its total costs. The company is relatively small and, selling throughout Europe, faces intense price competition from larger rivals. Recently the company has had to reduce its prices to retain some major customers. Protability has declined in recent years last year it fell by 14.5 per cent- The company has a highly skilled workforce although its labour turnover gure rose to 23.4 per cent last year from 14.9 per cent the previous year. Cannell Ltd's managing director believes strongly in the importance of training, including induction training. He has proposed doubling the company's expenditure on training. Employees work in teams and the company updates its production line technology whenever it can afford to do so. The company has never had to use redundancy to manage its workforce