Human Resource (HR) Question:

This question is checking whether you have done your research and also to see if you can think on your feet. It's also seeing if you have made the crucial link between the work of the human resource department and the effectiveness of the workforce. This is where your research into personnel issues will pay off: you might talk about better training of staff; the merits and demerits of appraisal schemes; performance related pay; change management, etc.

You will not be expected to solve any efficiency problems they are currently experiencing. Neither will they be expecting you to come up with some kind of correct answer. They will be more interested in the way you list the different issues regarding efficiency and whether you feel there are typical areas of, for example, recruitment inefficiency which can be addressed.