Labor Turnover (Cost Accounting)

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. Career point university 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:

4. R easons 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 11 th 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:

12. www.slideshare.com www.wikipedia.com www.mcdonalds.com www.ukessays.com Bibliography:

13. Thank You

14. Presented by : Yamini Kahaliya(K13341) Krishna Chetiwal (K13836) Tanmay Khatri (K13838) Bhupen Sharma (K13322)