The document discusses various methods for analyzing employee turnover and wastage in an organization, including:
- Labor turnover index, stability index, cohort analysis, census analysis, and attrition analysis. Cohort analysis examines retention rates by tracking groups of employees over time. Census analysis takes a snapshot of different cohorts at a point in time. Attrition analysis identifies reasons for employees leaving through voluntary or non-voluntary means. Calculating turnover, retention and attrition rates provides insights into reducing employee wastage.
Grid organizational development - comprehensive OD interventions - Organiza...manumelwin
Designed by Robert R. Blake and Jane S. Mouton.
Six phase program lasting about 3-5 years.
An organization can move systematically from the stage of examining managerial behavior and style to the development and implementation of an ideal strategic corporate model.
This PPT contains about wage differentials or compensating differentials. it is an HR concept. it has meaning, reason, factors, types, and determinants of inter and intra industry wage differential.
Grid organizational development - comprehensive OD interventions - Organiza...manumelwin
Designed by Robert R. Blake and Jane S. Mouton.
Six phase program lasting about 3-5 years.
An organization can move systematically from the stage of examining managerial behavior and style to the development and implementation of an ideal strategic corporate model.
This PPT contains about wage differentials or compensating differentials. it is an HR concept. it has meaning, reason, factors, types, and determinants of inter and intra industry wage differential.
Interventions are necessary for an organization to apply for effectiveness in functioning of an organization. this presentation is about part of interventions known as structural intervention.
Wastage Analysis is an element of labor turnover which includes voluntary retirement, normal retirement, resignations, deaths & dismissals
Tailstocks institute of Human Relations, UK suggested a curve in wastage analysis.
During induction phase, marginal employees leave.
During differential transit period, an employee learns about the organization & identifies his role in it.
While during the period of settled connection, an employee settles down & decides to stay long.
Wastage decreases with the increase of length of service. Wastage also decreases with the increased skill exercises & age of employees.
Wastage of manpower is more in female than male employees.
Working conditions & size of the firm are also important variable of manpower wastage.
Cohort Analysis: Cohort means homogeneous groups.
It takes into account the length of service, which is an important variable of wastage analysis.
This eliminates the defect of labor turnover index.
It is more accurate for a small homogeneous group.
(Number remaining at given time/number engaged at the start)*100.
Census analysis can eliminate the problem of Cohort analysis (it studies small group), taking into account a cross-section of the organization, for example all the age specific wastage rates at a given time & applying a smoothing algorithm to the resulting data to identify a general pattern.
The number of employees at the beginning of the census.
The number of employees at the end of the census.
The number of leavers during the census period.
For assessing effectively internal manpower supply, it is important for an organization to maintain Skills Inventory containing various information about individuals & their suitability for different jobs.
A typical skills inventories include the name of the employee & a listing or inventory of job-related skills, training, & experience which could prove useful in a future assignment.
The purpose of skills inventories is to quickly identify those candidates who possess the needed qualification & other required attributes for a specific assignment.
With the availability of standard HRIS packages, maintaining skills inventories in the organization has now become much more easier.
Interventions are necessary for an organization to apply for effectiveness in functioning of an organization. this presentation is about part of interventions known as structural intervention.
Wastage Analysis is an element of labor turnover which includes voluntary retirement, normal retirement, resignations, deaths & dismissals
Tailstocks institute of Human Relations, UK suggested a curve in wastage analysis.
During induction phase, marginal employees leave.
During differential transit period, an employee learns about the organization & identifies his role in it.
While during the period of settled connection, an employee settles down & decides to stay long.
Wastage decreases with the increase of length of service. Wastage also decreases with the increased skill exercises & age of employees.
Wastage of manpower is more in female than male employees.
Working conditions & size of the firm are also important variable of manpower wastage.
Cohort Analysis: Cohort means homogeneous groups.
It takes into account the length of service, which is an important variable of wastage analysis.
This eliminates the defect of labor turnover index.
It is more accurate for a small homogeneous group.
(Number remaining at given time/number engaged at the start)*100.
Census analysis can eliminate the problem of Cohort analysis (it studies small group), taking into account a cross-section of the organization, for example all the age specific wastage rates at a given time & applying a smoothing algorithm to the resulting data to identify a general pattern.
The number of employees at the beginning of the census.
The number of employees at the end of the census.
The number of leavers during the census period.
For assessing effectively internal manpower supply, it is important for an organization to maintain Skills Inventory containing various information about individuals & their suitability for different jobs.
A typical skills inventories include the name of the employee & a listing or inventory of job-related skills, training, & experience which could prove useful in a future assignment.
The purpose of skills inventories is to quickly identify those candidates who possess the needed qualification & other required attributes for a specific assignment.
With the availability of standard HRIS packages, maintaining skills inventories in the organization has now become much more easier.
Impact of Labor Turnover on Organizational Performance in it Sector With Spec...ijtsrd
In the recent years impact of labor turnover has received considerable attention by senior management, human resource professionals, and industrial psychologists. It has been proven to be one of the most seemingly intractable human resource challenges confronting organizations. Labor plays a significant role for the performance of any business firm. The efficiency, productivity and effectiveness of the Organization are highly influenced by a competent and well experienced workforce. This research was carried out to examine the impacts of labor turnover on Organization performance in IT sector WITH SPECIAL EMPHASIS ON IT DEPARTMENT OF TCS NOIDA .The main purpose of the study was to determine the impact of employee turnover on the performance of an organization. The research study supports the argument of Derek 2006 that the employees' turnover positively associated with the organization inefficiency. The sample study comprised fifty respondents, both qualitative and quantitative data have been used and the questionnaires were individually administered. It is clearly evidenced that there is negatively relationship between organizational performance and the employees' turnover. The general objective of this study was to assess the impacts of labor turnover on Organizational performance at TCS Noida. The study recommended that the Management continue employing people who are well trained and who perceive their jobs as expected. Organizations should not only employ to fill a job but also consider a fit between the person and the organization. It is highly recommended that management should give attention to those factors that they can easily manage. Management has to understand that people are different and appreciates those differences. Lovelesh Joshi | Dr. Deepak Dhariyal "Impact of Labor Turnover on Organizational Performance in it Sector (With Special Emphasis on it Department of TCS Noida)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd26753.pdfPaper URL: https://www.ijtsrd.com/management/organizational-behaviour/26753/impact-of-labor-turnover-on-organizational-performance-in-it-sector-with-special-emphasis-on-it-department-of-tcs-noida/lovelesh-joshi
5 EXERCiSE Evaluating the Financial Impact of Human Resour.docxgilbertkpeters11344
5 EXERCiSE
Evaluating the Financial Impact of Human Resource Management
Activities: Reduced Turnover Costs
I. OBJECTIVES
A. To provide you with practice in analyzing data and drawing conclusions regarding
managerial implications.
B. To make you aware of the potential costs of controllable, dysfunctional turnover and
its impact on nel income or profit.
e. To make you aware of the potential benefits of human resource management activities
to an.organization's "bottom line."
II. OUT-OF-CLASS PREPARATION TIM E: 2 hours
Ill. IN-CLASS TIME SUGGESTED: 45 minutes
IV. PROCEDURES
Read the entire exercise, including the "Background" on the Charlotte Health System and the
three exhibits. Using the data in the exhibits, do the calculations (on your OWI1, prior to class)
requested on Fonn 2. Then as.~emble groups of three to five students during the class period
and discuss each of the questions. At the end of the class period, have a spokesperson for
each group discuss the group's answers and rationale with the entire class.
BACKGROUND
The health care industry has undergone dramatic change and restructuring during the past
decade. Mergers, consolidations, and downsizing were the norm as organizations struggled to
prOVide more cost-effective, high-quality services demanded by managed-care organizations
and corporate employers. A major response to these pressures has been the development of
"integrated delivery systems" which typically combine multiple units of hospitals, physician
practices, outpatient facilities, long-term care facilities, and insurance.
While the goal of these systems is to provide "seamless" care through internal referrals, a
common medical record, common policies and procedures, etc., the reality has been somewhat
less than a total success. Among the problems identified have been differences in values and
incentives between the organizational units, lack of top management knowledge of some of the
units acquired, and inability to "integrate" the differl'rlt units clinically and manageriaUy.
The Charlotte (North Carolina) Health System was developed from a base of a public
hospital to which various delivery sites were added after Mr. Harry Majors became CEO 15
years ago. Since his arrival, Majors and his executive team have created the dominant health
system in North Carolina. Despite this success, the system continues to be under pressure
from employers and managed-care organizations to further reduce its costs and document
both clinical quality and cost-effectiveness.
Almost four years ago, Majors and the board of directors decided tbat the time had come to
"professionalize" the human resource function because the organizations they had purchased or
aligned with were exhibiting varying degrees of sophistication and vastly different policies and
procedures. Ms. Betty Williams was recruited from another health system as the new vice
president for human resources. Williams came t.
Delve into our students' project on employee retention, highlighting data-driven strategies to enhance workforce stability. Explore how analytics can predict turnover, identify key retention drivers, and improve employee engagement. Gain insights into HR analytics, predictive modeling, and innovative approaches to employee retention. To learn more, do check out https://bostoninstituteofanalytics.org/data-science-and-artificial-intelligence/
1. Wastage Analysis
In human services, turnover, or employee withdrawal behavior,
has become a serious personnel problem.
- Turnover creates
a. considerable costs for the organization,
b. decreases productivity,
c. disrupts worker relationships,
d. can increase waste and accidents.
- Thus turnover must be considered during human resource
planning especially in regard to supply forecasting.
2. It is an element of labour turnover.
It is severance from the organization, which includes
voluntary retirement, normal retirement, resignations,
deaths and dismissals.
It decreases with the increase of length of service
It also decreases with increased skill exercise and
age.
3. Organizations must expect a certain amount of turnover,
but they must also be able to calculate and evaluate their
turnover rate.
To calculate turnover rates, administrators must first define
a "turnover." Discharges, retirements, and deaths may be
areas that create problems in the definition.
Once a definition is determined, however, data collection
and calculation of turnover rates is relatively
straightforward:
Count the number of turnovers and then compare that
number with the total number of employees. From this, a
percentage rate is determined.
4. Turnover rates depend on employees’ demographic, social
and economic characteristics, as well as on labor market
conditions. Usually, exit rates are higher (Taylor 2005):
− the lower the age of an employee,
− the shorter the span of work in a particular company,
− the lower the employee skills and responsibility,
−the lower the unemployment rate in the economy
5. Evaluation of turnover- ways to conduct turnover
analysis-
1. Comparison studies are among the simplest.
Administrators may want to compare the turnover rate in
their organizations with that of other organizations, with
data presented by government agencies or trade
organizations, or with organizational objectives.
6. 2. Internal turnover comparisons often involve the dividing
of employees who have left by a variety of factors:
a. department,
b. supervisor,
c. performance level,
d. length of employment,
e. career path (external hire or internal hire/promotion).
The division of employees in this way can provide insight
into the causes of turnover.
7. 3. Qualitative information to supplement the analysis
can be obtained by –
a. job satisfaction surveys
b. exit interviews.
Ultimately, solutions or preventative strategies can be
sought.
8. Methods of Wastage Analysis
1. Labor Turnover Index:- It indicates the number of leavers
as percentage to average number of employees.
Number of employees leaving 100
Average number of employees employed
9. 2. Stability Index :
number with more than 1 year service now 100
total employed 1 year ago
10. Cohort analysis
Cohort A group of people sharing a common temporal
demographic experience who are observed through time.
For example, the birth cohort of 1900 is the people born in that
year. There are also marriage cohorts, school class cohorts, and
so forth.
Cohort Analysis - Reverse of Turnover Analysis, also known as
Survivor Analysis and used to calculate retention rate
Manpower Cohort is a Group of staff who are more or less
Homogenous and who joined the organisation at the same time.
11. COHORT ANALYSIS :
The theory behind this method was developed by K.F. Lane
and J.E. Andruo
Eg.
No. of employee engaged in the beginning of a year = 500
No. of employee leavers for different length of service as
1st Year = 50
2nd Year = 45
3rd Year = 40
4th Year = 35
5th Year = 30
12. Survivor Analysis = No. of emp. remaining at a given time 100
No. of emp. engaged at the start
13. Census Analysis
Cohort analysis was good only for small homogeneous group.
Census analysis can eliminate this problem, taking into
account a cross-section of the organization.
Census analysis involves taking a snapshot of different cohort
at a point in time and combining them to estimate survival by
length of service.
14. Census analysis requires three sets of data –
a. number of employees at the beginning of the census.
b. number of employees at the end of the census.
c. number of leavers during the census period.
15. Length of service as
on 01-01-2018 in yrs
No. of employees
as on 01-01-2018
Employee separated
during 2018
No of employees
as on 31-12-2018
Turnover
rate
Survival
rate
0-1 20 6 14 0.3 0.7
2-3 20 4 16 0.2 0.8
3-4 25 5 20 0.2 0.8
4-5 10 3 7 0.3 0.7
5-6 18 3 15 0.16 0.83
6-7 24 4 20 0.16 0.83
7-8 10 2 8 0.2 0.8
8-9 15 3 12 0.2 0.8
9-10 8 1 7 0.12 0.87
Total 150 31 119 0.206 0.793
16. Attrition Analysis
Attrition is the reduction in the number of employees through
resignation, retirement and death.
Attrition analysis contributes to the details generated by HR
managers on employees leaving the company.
Types of attrition –
a. Voluntary
b. Non-voluntary
18. Benefits of Attrition Analysis:
It brings to fore the cause of employee disengagement.
Enables HR managers develop long-term strategies to reduce attrition.
Competitive measures to enhance company brand image.
Develops and shapes drills that benefit both the management and the
employees.
Enhanced work culture
19. Attrition Rate
The rate of attrition or the inverse retention rate is the most
commonly used metric while trying to analyze attrition.
Attrition rate = No. of attritions / average no. of employees * 100
20. Example-
Suppose a telecommunications company had 150 employees
as of April 1, 2015. During that month, 20 employees
voluntarily left the company. Also, the company hired 25 new
employees. Calculate the monthly attrition rate.
Calculate its attrition rate for the second quarter of 2015. This
would be April, May and June 2015.The beginning number of
employees on April 1, 2015 was 150. Over the course of the
quarter, 30 people left and 40 new employees were hired.
21. Suppose the telecommunications company in the above
example had a total of 62 attrition for the year. They
typically hire 20 percent more employees for the last
quarter of the year for their busy season. The average no of
employees for every last 3 quarters is 155.
Calculate the annual attrition rate.