Labor Turnover

What is Turnover?

The process in which employees leave an organization and have to be replaced

A measure of separations from an

employing organization

Separations consist of resignations,

retirements, discharges, reductions-in-

force, deaths, interagency transfers

Expressed as turnover rate

Calculated during a fiscal year or calendar

year

Impact of Turnover

Inability to achieve business goals

Loss of “image” to attract other individuals

High costs of turnover and replacement

—hiring new workers while laying off others

Types of Turnover

• Voluntary turnover consists of employees exercising their free choice to leave

• Involuntary turnover consists of separations where an employee unwilling leaves.

• Functional turnover when low performing employees leave

• Dysfunctional turnover when high performing employees leave

Calculating Turnover

For example, let’s say we lose four employees out of 200.

Job and job levels

Department, units, and location

Reason for leaving

Length of service

Demographic characteristics

Education and training

Knowledge, skills, and abilities

Performance ratings/levels

Ways to Measure Turnover

How to reduce turn over

Retention

Retention of Human Resources

Myths about Retention

1. Money is the main reason people leave.

2. Hiring has little to do with retention.

3. If you train people, you are only training them for another employer.

4. Do not be concerned about retention during organizational change.

5. If solid performers want to leave, the company cannot hold them.

•

Drivers of Retention

ABSENTEEISM

absenteeism is a habitual pattern of

absence from a duty or obligation

absenteeism has been viewed as an

indicator of poor individual

performance, as well as a breach of an

implicit contract between employee and

employer

• He has a genuine personal crisis.

• He’s unhappy or bored at work

• He’s genuinely sick or injured.

• To avoid unsafe or unhealthy workplace

conditions

• He’s disabled

• He has drug or alcohol dependency problems

• He faces unavoidable transport problems.

Personal factor

Personal Attitude

The Employees with strong workplace ethics will respect their work and appreciate the contribution they make to their companies. Such employees will not engage themselves in taking unscheduled off. On the other hand, employees with very low or no work ethics are indiscipline and have lot of integrity and behavioral issues. Since, they feel no obligation towards the company, absenteeism comes easily to them.

Age

The younger employees are often restless. They want to spend time with their friends and have fun, rather than being tied down with work responsibility. This lack of ownership often leads them to take unauthorized time off. With age, people gain experience and maturity, which makes them focused and responsible. Their approach is rather professional and they prefer to stick to their chairs to get the work done. If ever they are found absent, then it could be due to sickness.

Seniority

Employees, who have been with the company for a long time are well-adjusted with the working culture and the job, therefore, they find no reason to be absent without permission. On the other hand, new hires are more prone to taking ad hoc breaks to unwind themselves

Gender

Women generally do a balancing act by shuffling their time between home and work. Family, being their foremost priority, they don't think twice before taking a step towards absenteeism.

Workplace Factors

i. Stress: The pressure at work sometimes takes a toll on the employees. This results in

increased levels of stress. The employees then resort to excuses that can help them stay away

from work.

ii. Work Routine: Doing the same job over a period of time can get monotonous. The

employees find the job functions boring. They rather choose time off to do something

interesting than come to work.

iii. Job Satisfaction: If employees do not find their job challenging, dissatisfaction creeps

in. That leads to more absenteeism in the workplace.

R

E

M

E

D

I

E

S

• Improving the working condition in the factory

• Providing adequate wages, Protection from accident

and sickness

• Providing facilities for obtaining leave for rest

• Suitable housing facilities

• Creating a sense of responsibility in workers

towards industry

• Workers participation in the management of industry

• Introducing incentive wage scheme and linking wages

and bonus with production

• And adequate transport facilities

• Besides, an affectionate and mild behavior of the

employer will be helpful in reducing the rate of

absenteeism.

Gherao

GHERAO

Means – Encirclement Origin – Hindi a protest in which workers prevent employers leaving a

place of work until demands are met It denotes a tactic used by labor activists and union

leaders in India Usually, a group of people would surround a politician or

a government building until their demands are met, or answers given

Subodh Banarjee was referred to as the Gherao minister

Work Stoppage

Work Stoppa

ge

The collective stoppage of work by employees in a business or an industry to protest working conditions.

concerted cessation of work by a group of employees usually more spontaneous and less serious than a strike

Discipline

DisciplineIs the bridge between

Goal & Accomplishment

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“

”

Positive discipline does not replace reason but applies reason to the achievement of a common objective.

- William R. Spriegel, Management Professor

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“

”

The word “discipline” is derived from the Latin word “disciplina”, which means teaching, learning and growing.

Meaning

Discipline is the process of training a worker so that he can develop self-control and can become more effective in his work.

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Management of Discipline

The word discipline reinstates well defined code of conduct, difference between ethical and unethical standards. The literal meaning of discipline is the mode of life in accordance with prescribed rules, regulations, procedures or other modes of behavior.

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Types of DisciplineDiscipline involves engagement in behavior

according to prescribed mode. This behavior is achieved either through rewarding the disciplined behavior known as POSITIVE or punishing the indiscipline behavior known as NEGATIVE.

Discipline

PositiveDiscipline

NegativeDiscipline

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Positive Discipline

Positive discipline, also known as preventive or self discipline, involves actions taken to encourage employees to follow rules and standards so that infractions do not occur. The objective is to encourage the employees to maintain self-discipline. In this way employees maintain their own discipline rather than have management imposed it.

Employees maintain self discipline when :

► Standard of behavior are stated positively instead of negatively, and when the reasons behind such standards are told so that it will make sense to them.

► Standards of behavior match with the required behavior for job performance.

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Negative Discipline

It is also known as enforced, corrective or autocratic discipline, involves the use of external force or the threat of its use to restrain employees from engaging in behaviours which are contrary to rules and standards. Such behaviours are known as indiscipline which can be corrected by disciplinary actions.

The objective of negative discipline is:►To reform the offender so that he changes his behavior.►To defer others from similar actions.►To maintain consistent, effective group of behavior.

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Causes of Indiscipline

Environmental Factor

Individual Factor

Organizational Factor

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Environmental FactorVarious environmental factors affects the organizational

processes including people-oriented processes, it has to be affected by the general pattern of discipline being observed in the society. Individual organizations act only as modifying factor and, therefore, some variance can be observed in the problems of indiscipline in an organization vis-à-vis society.

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Organizational Factor

The effectiveness of modifying factor of any org. depends on the degree to which an organization ca insulate itself from the external problem of indiscipline. The org. which are vulnerable to external factors such as public sector org. and govt. depts. Face the problem of indiscipline more. Some important practices which results in indiscipline are:

► Organizational climate loaded with politicking behavior.► Ineffective leadership and supervision.► Undesirable behaviors of superiors.► Discriminatory practices based on considerations such as caste, religion, place

of origin and so on.

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Individual Factor

All individuals in an org. do not behave in the same way even if they are put at par in the org. This happens because of individual differences caused by such factors as education,intelligence,motivation pattern,personality,attitudes,values etc.

Some individual features which leads to indiscipline behavior are:► Individuals having non-conformist values.► Individuals differs in terms of work ethics.► Individuals differs in terms of locus of control.

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Disciplinary Action

If the act of indiscipline takes place, the org. should have effective machinery for taking disciplinary action. It includes administration of punishment for indisciplined behaviour. To make the action effective, certain guidelines should be followed :• There should be clearly specified behaviours which fall under the

category indiscipline and require disciplinary action.• The action should be taken immediately after the commitment of

indiscipline.• The action taken should meet the criteria of natural justice.• The disciplinary action should be taken in private.• Before taking action, the employee should be allowed to put his

explanation.• After the action is taken, the employee should be treated in

normal manner which will encourage him.

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Procedure for Disciplinary Action

• The employee charged with misconduct should be given an opportunity to present witness of his choice.• The employee should be given an opportunity to cross examine

the management to establish true facts.• No material should be used against the employee without giving

him an opportunity to explain.• The enquiry against the employee should be fair and conducted by

impartial person/s.• The punishment awarded should not be out of proportion to the

misconduct committed.

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Punishment• The type of punishment or penalty depends on the nature of misconduct.

The figure below shows the type of punishment that may be awarded.

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Types of punishment

MinorOral reprimand

Written reprimandLoss of privileges

FinesPunitive Suspension

transfer

MajorWithholding of increments

DemotionSuspensionDischarge

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Code of Discipline

Code of discipline contains various do’s and don’ts for governing the behavior of those for whom the code is framed.

The main objective of codes are:►To promote constructive criticism at all levels of management and

employees►To avoid stoppage of work and litigation►To secure the settlement of disputes and grievances.►To facilitate a free growth of trade unions.►To maintain discipline in the industry.

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Conclusion

Discipline plays a vital role in proper and efficient functioning of any organization. Both positive and negative discipline are necessary but negative discipline should be used when there is need. Any organization will be productive if there is proper management of discipline.

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Thank you