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Wastage Analysis-Gurpreet Kaur


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Wastage analysis

Manpower wastage is an element of labourturnover

Wastage is severance from the organization ,

which includes: -Voluntary retirement - Normal retirement

- esignations

- !eaths

- !ismissals


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Wastage "nalysis curve

Weeks Time Months/years

Levers

Induction

Crisis

Differential

Transit

Settled Connection

!o


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#$planation

%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


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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)


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Diferent methods oWastage Analysis

+abour %urnover nde$

tability nde$

.ohort "nalysis .ensus "nalysis


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%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

#/"M0+#:

"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$)


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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++


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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

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.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


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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 ,+

#/"M0+#


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.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

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.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