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  • 7/25/2019 Wastage Analysis.pptx


    Wastage Analysis-Gurpreet Kaur

  • 7/25/2019 Wastage Analysis.pptx


    Wastage analysis

    Manpower wastage is an element of labourturnover

    Wastage is severance from the organization ,

    which includes: -Voluntary retirement - Normal retirement

    - esignations

    - !eaths

    - !ismissals

  • 7/25/2019 Wastage Analysis.pptx


    Wastage "nalysis curve

    Weeks Time Months/years






    Settled Connection


  • 7/25/2019 Wastage Analysis.pptx



    %he above curve identi&es three di'erentphases

    Fist Phase:!uring induction phase, marginal employees leave

    Second Phase:!uring di'erential transit period, an employee learns about the

    (rganisation and identi&es his role in it)

    Third Phase:While during the period of settled

    connection, an employee settles down and

    !ecide to stay longer

  • 7/25/2019 Wastage Analysis.pptx


    Do you Kno"#

    Wastage decrease with the increase of length ofservice

    Wastage also decreases with the increased s*ille$ercises and age of employees)

    Wastage of manpower is more in female thanmale employees)

    Wor*ing conditions and size of the &rm are alsoimportant variables of manpower wastage)

  • 7/25/2019 Wastage Analysis.pptx


    Diferent methods oWastage Analysis

    +abour %urnover nde$

    tability nde$

    .ohort "nalysis .ensus "nalysis

  • 7/25/2019 Wastage Analysis.pptx


    +abour %urnover nde$

    %his inde$ indicates the number of levers aspercentage to average number of employees)

    "verage number of employees employed in agiven time period is decided by adding theemployees at the beginning and end and thendividing the same by two


    "t the beginning of a year, a &rm has 123employees, while at the end it has 143) "ssumeno recruitment has been made in between

    .ompute labour turnover nde$)

  • 7/25/2019 Wastage Analysis.pptx


    +abour %urnover nde$

    Solution:$u%&er of e%ployees lea'ing ( )*+-),+ ( )+

    A'erage nu%&er of e%ployees e%ployed ( )*+),+


    a&our Turno'er (

    Number of employees leaving

    Average number of employees employed

    = 20/240*100= 8.33%

    0 1++

  • 7/25/2019 Wastage Analysis.pptx


    tability nde$

    %his inde$ indicates stable wor*forcepercentage for a given period andcan be computed as under:

    Number with more than 1 year service now Total Employed one year ago

    0 1++

  • 7/25/2019 Wastage Analysis.pptx


    .ohort "nalysis

    .ohort means homogeneous groups)

    .ohort analysis ta*es into account the lengthof service

    #/"M0+#: n the table below, we have illustrated a

    cohort analysis, assuming number of peopleengaged in the beginning of a year as 233

    and number

    of leavers for di'erent length

    of service as under

  • 7/25/2019 Wastage Analysis.pptx


    Length ofService

    No. Leaving CumulativeLeavers

    Remaining Survival as% of leaving

    1 2 3 4 5

    0 0 0 500 100

    1 *+ *+ .*+ 2+

    ) .* 2* .+* 31

    , .+ 1,* ,4* 5,

    . ,* 15+ ,,+ 44

    * ,+ )++ ,++ 4+

    .ohort "nalysis

    1stear *+

    )ndear .*

    ,rdear .+

    .thear ,*

    *thear ,+


  • 7/25/2019 Wastage Analysis.pptx


    .ohort "nalysis

    %he percentage remaining in column 2 canbe presented on a graph paper, which is*nown as survival curve)

    which is obtained by using followingformula

    Number remaining at a given time Number engaged at the start

    0 1++

  • 7/25/2019 Wastage Analysis.pptx


    .ensus "nalysis

    Census analysis requires threesets o data as under:

    i) %he number of employees at thebeginning of the census,

    ii) %he number of employees at the end ofthe census, and

    iii) %he number of leavers during

    the census period