this presentation is on labor turnover with example of Mc Donald
the presentation covers the details about following points :-
Introduction of Labour Turnover
Reasons/Factors of Labour Turnover
Impact of Labour Turnover
How to Control Labour Turnover
Technical analysis
Conclusion
1. Cost analysis & control
(SML-204)
Submitted to:
Prof. Jai Bansal
School of commerce and
management
2.
Introduction of Labour Turnover
Reasons/Factors of Labour Turnover
Impact of Labour Turnover
How to Control Labour Turnover
Technical analysis
Conclusion
Bibliography
CONTENT:
3.
Labour turnover refers to the rate at which
employees leave employment.
Labour turnover can be evaluated by relating the
number of employees leaving their employment
during a period of time to the total or average
numbers employed in that period.
Introduction of Labour
Turnover:
5.
Labour turnover is harmful and costly. It results in increased cost
of production due to the following reasons:
With frequent changes in Labour force, production planning cannot be
properly executed resulting in substantial loss in production.
Since the new workers have no previous experience in production there is
loss arising out of defective work, increased spoilage and wastage
resulting in high cost of production.
Newly recruited workers are likely to mishandle tools and equipment
which results in breakages.
The organisation has to incur extra cost for workers’ training.
Labour turnover causes increased replacement cost.
Labour cost increases because of lower productivity of newly recruited
workers as they do not possess the same expertise as the old workers who
have left the organisation.
Impact of Labour
Turnover:
6.
No discrimination.
Good working conditions
Fair remuneration.
Maximum non-monetary benefits (i.e., fringe
benefits).
An employee suggestion box.
Men-management relationships should be improved
by encouraging labour participation in management.
And so on.
How to Control Labour
Turnover:
7.
McDonalds has 31,000 restaurants in 119 countries
is one of the biggest family restaurants in the world
The first restaurant in UK was opened during 1974 in
Woolwich High Street
the first franchised restaurant opened in 1986.
In UK there are now 1,190 restaurants employing more than
70,000 people, of which 51% is operated by franchisees.
World’s leading food service retailer serving 47 million
customers each day.
Opened its first store at basant lok, new delhi on 11th october,
1996
Owner Ronald Mc donald (1953)
Company profile:
8.
an ill tempered manager
making an employee work more so that they don't
have to recruit another staff
less pay to the employees
an employee interaction with other employees
when they are not rewarded for their hard work
Reasons/Factors of Labour
Turnover:
9.
Cost as a result of Employee Turnover
The most important factor of high employee
turnover that affects any organization is the cost.
recruitment costs,
training costs,
lost productivity costs,
new hire costs
lost sales costs, and
cost of replacement
Impact of Labour
Turnover:
10.
McDonalds provides high levels of training to its employees
working in various positions at the restaurants.
It provides medical insurance and offers health care.
McDonalds now gives quarterly bonus to its crew and
manager's instead of yearly bonus, this was a step taken
towards motivating it's employees.
The organization gives five weeks holiday per annum and they
are going to increase that to six weeks from April 2009.
Computerized English language classes are conducted.
In 2009, McDonald's aims to provide Apprenticeships to up to
6000 of its 72,000 UK workforce and later will be increased to
10,000 from 2010.
How the company Control
Labour Turnover:
11.
We found out that the employees at McDonalds were not
happy with the way managers behaved with them, less pay as
compared to the amount of work done and lack of training
facility were the main reasons why employees leave
McDonald's. We also found that most employees working for
McDonald's were students and most of them worked part-time.
What attracted them to work for McDonald's was the flexibility
in the work pattern. They could choose which days they would
want to work and how many hours they want to work each
week. In order to meet their monthly expenses, this was the
best job they could have. However, they were not really
ambitious about working for McDonald's in the long run. We
also found the various challenges they face due to high
employee turnover and how McDonalds tries to retain their
employees
Conclusion:
