absenteeism

“It is the practice of being an

Absence and an absentee is
one who habitually stays
away”
 types
 Authorized absenteeism
 unauthorized absenteeism
 Willful absenteeism
 Absenteeism caused by
circumstances beyond one’s control
 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
 calculation
 Absenteeism rate= number of man
days lost number of man
days scheduled to work * 100
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
 Employee attrition

“The rate of change in the working

staff of a concern during a definite
period, commonly a month”
 reasons
 Employee related factors
 Organization related factors
 Calculation of attrition
rate
 Total seperations during the year
average number of employees * 100
 Retention strategies
 Exist interview
 Package for long term stay
 Intangible benefits
 Matching jobs and individuals
 Work environment
 persuasion
 Employee relationship management
 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.
 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
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”
 Need for sound salary
administration
 Internal equity
 External competitiveness
 Built in incentive
 Link with productivity
 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
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
 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
 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
 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
 types
 Commissioned survey
 External survey
 Internal survey
 process
 Planning for the purpose
 Selecting sources of data and sample
and tools
 Conducting surveys
 Analyzing and interpreting data
 Concluding
 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
 Profit sharing plan
 Is a compensation plan that results in
the distribution of a predetermined
percentage of the firm’s profits to
employees.

 Profit sharing plans can aid in

recruiting, motivating and retaining
employees
 ESOP
 An employee stock option is a call option on the
common stock of a company, issued as a form
of non-cash compensation.
 Employee stock options are mostly offered to
management as part of their executive
compensation package.
 It allows employees to become owners of stock
in the company they work for
 bonus
 The word Bonus refers to extra pay
due to good performance.

 It means a cash payment made to

employees in addition to wages
 Pay for performance
 It is any type of financial reward that
is provided only when certain
specified performance results occur
 Objectives of PFP
 Motivation.
 Increase the commitment.
 Reinforce cultures and values.
 Alignment with company
performance.
 Discriminate equitably between
employees based on performance.
 Measuring performance
 Competence related pay
 Contribution related pay
 Benefits administration
 It involves the creation and management of
employee benefits, as well as providing a
means for employees to be trained in
understanding how benefits work
 Involves making sure that benefits plan are
running smoothly
 Health insurance coverage for qualified
employees
 Investment and retirement programme
 problems
 Mismanagement of employee
benefits administration
 Lack of employees participation
 Lack of interest in managers about
benefits programs
 Lack of awareness in employees
about benefit packages
Employee welfare