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-Gurpreet Kaur
Wastage analysis
Manpower wastage is an element of labour
turnover
Wastage is severance from the organization ,
which includes:
- Voluntary retirement
-
Normal retirement
Resignations
Deaths
Dismissals
Induction
Crisis
Levers
Differential
Transit
Settled Connection
Weeks
Time
Months/years
Explanation
The above curve identifies three different
phases
Fist Phase:
During induction phase, marginal employees leave
Second Phase:
During differential transit period, an employee learns about the
Organisation and identifies his role in it.
Third Phase:
While during the period of settled
connection, an employee settles down and
Decide to stay longer
Do you Know?
Wastage decrease with the increase of length of
service
Wastage also decreases with the increased skill
exercises and age of employees.
Wastage of manpower is more in female than
male employees.
Working conditions and size of the firm are also
important variables of manpower wastage.
Different methods of
Wastage Analysis
Labour Turnover Index
Stability Index
Cohort Analysis
Census Analysis
Stability Index
This index indicates stable workforce
percentage for a given period and
can be computed as under:
Number with more than 1 year service now
Total Employed one year ago
* 100
Cohort Analysis
Cohort means homogeneous groups.
Cohort analysis takes into account the length
of service
EXAMPLE:
In the table below, we have illustrated a
cohort analysis, assuming number of people
engaged in the beginning of a year as 500
and number
of leavers for different length
of service as under
Cohort Analysis
EXAMPLE
Length of
Service
No. Leaving
Cumulative
Leavers
Remaining
Survival as
% of leaving
500
100
50
50
450
90
45
95
405
81
40
135
365
73
35
170
330
66
30
200
300
60
1st Year
50
2nd Year
45
3rd Year
40
4th Year
35
5th Year
30
Cohort Analysis
The percentage remaining in column 5 can
be presented on a graph paper, which is
known as survival curve.
which is obtained by using following
formula
* 100
Census Analysis
Census analysis requires three
sets of data as under:
i. The number of employees at the
beginning of the census,
ii. The number of employees at the end of
the census, and
iii. The number of leavers during
the census period