Absenteeism “It is the practice of being an Absence and an absentee is one who habitually stays away” www.ppttopics.com

types Authorized absenteeism unauthorized absenteeism Willful absenteeism Absenteeism caused by circumstances beyond one’s control www.ppttopics.com

causes Difficult to adjust with the working conditions Social and religious ceremonies Alcoholism Low level of wages Unsound personnel policies Indebt ness Inadequate leave facilities Industrial fatigue Unhealthy working conditions Unsatisfactory housing www.ppttopics.com

calculation Absenteeism rate= number of man days lost number of man days scheduled to work * 100 www.ppttopics.com

Minimizing absenteeism Adoption of suitable recruitment procedure Training and counseling Employee welfare measures Good work environment Two way communication Disciplinary actions Leave provisions Prompt redressal of grievances www.ppttopics.com

Employee attrition “The rate of change in the working staff of a concern during a definite period, commonly a month” www.ppttopics.com

reasons Employee related factors Organization related factors www.ppttopics.com

Calculation of attrition rate Total seperations during the year average number of employees * 100 www.ppttopics.com

Retention strategies Exist interview Package for long term stay Intangible benefits Matching jobs and individuals Work environment persuasion Employee relationship management www.ppttopics.com

Managing separations and rightsizing Separation means cessation of service of agreement with the organization for one or other reason. Ex: layoffs, resignation and dismissals Rightsizing means reducing the size of workforce or increasing it to maintain the employee strength at the most desired level. www.ppttopics.com

Guidelines to manage rightsizing Consider the human element Freeze hiring Engage part time employees Restrict overtime Implement early retirement programmes Delay and no pay hikes www.ppttopics.com

Compensation and benefits administration Meaning: “compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employee to strive for higher levels of productivity” “Compensation management refers to payment systems which determine employee wages or salary, direct and indirect rewards” www.ppttopics.com

Need for sound salary administration Internal equity External competitiveness Built in incentive Link with productivity www.ppttopics.com

objectives To establish a fair and equitable remuneration To attract competent personnel To retain the present employees To improve productivity To control costs To improve union management relations To improve public image of the company www.ppttopics.com

Factors affecting wage and salary levels Labour market Bargaining power Cost of living Condition of product market Comparative wages Ability to pay Productivity of labour Job requirements Government policy Goodwill of the company www.ppttopics.com

Salary structure Basic pay Bonus Dearness allowance House rent allowance City compensatory allowance Travel allowance Fixed medical allowance Tiffin allowance Conveyance allowance Children education allowance Hostel allowance www.ppttopics.com

Salary fixation Principles of pay fixation Economic position of the country Cost of living and price level State as the model employer Equal pay for equal work Prevailing market rate Policy of the government www.ppttopics.com

Wage salary survey It helps W/S administrator to acquire useful and necessary information concerning community rates and practices to have inter industrial equity concept and provide information to design effective W/S structures and wage payment systems www.ppttopics.com

types Commissioned survey External survey Internal survey www.ppttopics.com

process Planning for the purpose Selecting sources of data and sample and tools Conducting surveys Analyzing and interpreting data Concluding www.ppttopics.com

incentives An incentive scheme is a plan to motivate individual for good performance. An incentive is built on monetary rewards and also include non-monetary rewards www.ppttopics.com