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04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 11
Facilitator:Facilitator:Mr. Raza Kamal, Mr. Raza Kamal,
Director, College of Management Director, College of Management Sciences, Sciences,
PAF-KIET.PAF-KIET.
WORKSHOPWORKSHOPONON
QUANTITATIVE TOOLS FOR HR QUANTITATIVE TOOLS FOR HR MANAGERSMANAGERS
Tuesday - 05Tuesday - 05thth Aug, 2008. Aug, 2008. Institute of Bankers, Pakistan.Institute of Bankers, Pakistan.
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OBJECTIVE OF THE OBJECTIVE OF THE
WORKSHOPWORKSHOP
To enhance the effectiveness To enhance the effectiveness of HR managers through the of HR managers through the
use of quantitative tools use of quantitative tools which will also enable them to which will also enable them to benchmark their own results benchmark their own results against other organizationsagainst other organizations
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 33
DEFINITIONDEFINITION
Quantitative approach to Quantitative approach to management requires that decision management requires that decision problems be defined, analyzed, and problems be defined, analyzed, and
solved in a conscious, rational, solved in a conscious, rational, systematic, and scientific manner- systematic, and scientific manner- based on data, facts, information, based on data, facts, information, and logic- and not on mere whim and logic- and not on mere whim
and guess.and guess.
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 44
QUANTITATIVE QUANTITATIVE TOOLSTOOLS
AccurateAccurate Have no BiasesHave no Biases Helps in positioning the actual Helps in positioning the actual
performanceperformance Has an internal locus of controlHas an internal locus of control
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TOPICSTOPICS
Increasing Validity of Interviews.Increasing Validity of Interviews. Yield Ratio and Implication.Yield Ratio and Implication. Measuring Job Satisfaction.Measuring Job Satisfaction. Manpower Planning/Turnover Indices.Manpower Planning/Turnover Indices. HR Audit.HR Audit.
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The most effective employee of The most effective employee of work units are those providing the work units are those providing the
highest possible quantity and highest possible quantity and quality of work at the lowest cost quality of work at the lowest cost
and in the most timely fashion and in the most timely fashion with the minimum of supervision with the minimum of supervision and with a maximum of positive and with a maximum of positive
impact on workers, organizational impact on workers, organizational units and clients/customer units and clients/customer
populationpopulation
PHILOSOPHY OF PHILOSOPHY OF HRMHRM
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RECRUITMENRECRUITMENTT
AND AND
SELECTIONSELECTION
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 88
MOST IMPORTANT MOST IMPORTANT SELECTION METHODSSELECTION METHODS
InterviewInterview Assessment Assessment CenterCenter
Psychology Psychology TestsTests Application FormApplication Form ReferencesReferences N / %N / %
Most Most important important selection selection method (%)method (%)
8585 77 33 55 00178 / 178 / 100100
Second Second most most important important method (%)method (%)
1515 11 3535 3232 1717 148 / 148 / 100100
Third most Third most important important method(%)method(%)
00 00 3535 2020 4545 96/ 96/ 100100
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USE OF SELECTION TESTS USE OF SELECTION TESTS BY EMPLOYEE GROUPSBY EMPLOYEE GROUPS
Employee Employee groupgroup
Cognitive Cognitive Tests (%)Tests (%)
Personality Tests Personality Tests (%)(%)
Literacy / Numeracy Literacy / Numeracy Tests (%)Tests (%)
ManualManual 1414 11 1919
ClericalClerical 3131 1515 4343
GraduateGraduate 2020 2929 1919
Professional/Professional/TechnicalTechnical 66 55 55
Managerial / Managerial / Senior Senior ManagerialManagerial
2929 5050 1414
NN 100 (115)100 (115) 100 (136)100 (136) 100 (174)100 (174)
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 1010
RELIABILITY & RELIABILITY & VALIDITYVALIDITY
ValidityValidity-It refers to ‘what’ a test or -It refers to ‘what’ a test or selection device measures and ‘how well’ selection device measures and ‘how well’ it measures it.it measures it.
Reliability-Reliability-The extent to which interviews, The extent to which interviews, tests, and other selection tools yield tests, and other selection tools yield comparable data over a period of time comparable data over a period of time
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 1111
Measure all job applications on
attribute
Hire some applicants and reject others
Wait for some time period
Measure all newly hired job incumbents’ performance
Obtain correlation between these two sets of numbers
Predictive Validation
Concurrent Validation
GRAPHIC DEPICTION OF GRAPHIC DEPICTION OF CONCURRENT AND PREDICTIVE CONCURRENT AND PREDICTIVE
VALIDATION DESIGNSVALIDATION DESIGNS
Measure all current job incumbents on
attribute
Measure all current job incumbents’
performance
Obtain correlation between these two sets of numbers
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 1212
ACCURACY OF SELECTION ACCURACY OF SELECTION METHODS PREDICTED VALIDITY METHODS PREDICTED VALIDITY
PERFECT PREDICTIONPERFECT PREDICTION
ASSESSMENT CENTRES (PROMOTION)ASSESSMENT CENTRES (PROMOTION)
ABILITY TESTSABILITY TESTS
PERSONALITY TESTS (COMBINATION)PERSONALITY TESTS (COMBINATION)
BIODATABIODATA
STRUCTURED INTERVIEWSSTRUCTURED INTERVIEWS
TYPICAL INTERVIEWSTYPICAL INTERVIEWS
REFERENCESREFERENCES
ASTROLOGYASTROLOGY
READING HANDSREADING HANDS
100100
9090
8080
7070
6060
5050
4040
3030
2020
1010
0h0h
CHANCE CHANCE PREDICTIONPREDICTION
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 1313
TYPE OF INTERVIEWSTYPE OF INTERVIEWS
1.1. UNSTRUCTUREDUNSTRUCTURED
2.2. STRUCTUREDSTRUCTURED
3.3. STRESSSTRESS
4.4. APPRAISALAPPRAISAL
5.5. SITUATIONALSITUATIONAL
6.6. BEHAVIORALBEHAVIORAL
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 1414
Procedure:
1. Frame questions as per requirement.
2. Rate each item of the test according to criteria.• *0 = not necessary on the job• 1 = useful on the job• 2 = essential to the job
3. Apply the content validity ratio.
Ne – N / 2CVR = N / 2
Ne = the number of panel members who give the item a rating of essential to the job ((.e. 2).
N = total number of expertsCVI = average of CVRs
4. Calculate the content validity index.
ESTABLISHING VALIDITY ESTABLISHING VALIDITY OF QUESTIONSOF QUESTIONS
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INCREASING VALIDITY OF INCREASING VALIDITY OF INTERVIEWINTERVIEW
TEST ITEMSTEST ITEMS Judge 1Judge 1 Judge 2Judge 2 Judge 3Judge 3 Judge 4Judge 4
11 00 00 11 11
22 22 22 22 22
33 22 11 11 11
44 22 22 22 22
55 22 22 22 22
*0 = not necessary on the job 1 = useful on the job 2 = essential to the job
Ne – N / 2CVR = N / 2
CVR item 1 = (0 – 2) / 2 = - 1.0 delete itemCVR item 2 = (4 – 2) / 2 = 1.0 retain itemCVR item 3 = (1 – 2) / 2 = - 0.5 delete itemCVR item 4 = (2 – 2) / 2 = 0.0 delete itemCVR item 5 = (4 – 2) / 2 = 1.0 retain item CVR for retained items (1.0 + 1.0) / 2 = 1Content Validity Index (CVI) = average of CVRs.
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 1616
Number of Judges Required Content Validation Ratio
5 .99
8 .75
10 .62
15 .49
30 .33
TABLE 11.3:REQUIRED LEVEL OF CONTENT TABLE 11.3:REQUIRED LEVEL OF CONTENT VALIDATION RATIO TO REACH STATISTICAL VALIDATION RATIO TO REACH STATISTICAL
SIGNIFICANCE AS A FUNCTION OF THE NUMBER SIGNIFICANCE AS A FUNCTION OF THE NUMBER OF JUDGES.OF JUDGES.
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 1717
PICKING PEOPLE – THE BASIC PICKING PEOPLE – THE BASIC RULESRULES
(Peter F. Drucker)(Peter F. Drucker)
•Look at these candidates. Think through the Look at these candidates. Think through the assignment.assignment.
•Think hard about how to look Think hard about how to look
•Look at a number of potentially qualified Look at a number of potentially qualified peoplepeople
•Discuss each of the candidates with several Discuss each of the candidates with several people who have worked with them.people who have worked with them.
•Make sure the appointee understands the job.Make sure the appointee understands the job.
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 1818
FIRM STRATEGY-HUMAN FIRM STRATEGY-HUMAN RESOURCE STRATEGY RESOURCE STRATEGY
RELATIONSHIPRELATIONSHIP Firm StrategyFirm Strategy Human Resource StrategyHuman Resource Strategy
Growth/Expansion
Retrenchment
Diversification
Mergers, Acquisitions
Differentiation
Low-Cost Producer
Luxury/High Quality
Aggressive Hiring, Training, Promotions
Layoffs, Terminations, Early Retirement
New Corporate Staff Configuration, Promotions, Training, Hiring
Corporate Acculturation, Hiring or Laying Off
Staff Reconfiguration, Layoffs, Reassignments
Decentralized Hiring and Training
Cost Reduction, Wage Cuts, Efficiency Improvements
Hiring Highly Skilled Personnel, Training, Special Compensation
Plans
Divestitures
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 1919
YIELD RATIOYIELD RATIO
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 2020
Joined : 20 : 10yR = 2 : 1Offered : 50 : 20yR : 5 : 2
Interview 100 : 50yR = 2 : 1
Tested : 200 : 100yR = 2 : 1
Short listed 2000 : 200yR = 10 : 1
YIELD YIELD RATIORATIO
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Table 10.4: Hypothetical Yield Ratio for Five Different Recruitment Sources
Local University
Renowned University
Employee Referrals
Newspaper Ad
Executive Search Firms
Resumes generated
200200 400400 5050 500500 2020
Interview offers accepted
175175 100100 4545 400400 2020
Yield ratio 87%87% 25%25% 90%90% 80%80% 100%100%
Judged acceptable
100100 9595 4040 5050 1919
Yield ratio 57%57% 95%95% 89%89% 12%12% 95%95%
Accept employment offers
9090 1010 3535 2525 1515
Yield ratio 90%90% 11%11% 88%88% 50%50% 79%79%
Cumulative 90/20090/200 10/40010/400 35/5035/50 25/50025/500 15/2015/20
Yield ratio 45%45% 3%3% 70%70% 5%5% 75%75%
Cost $30,000$30,000 $50,000$50,000 $15,000$15,000 $20,000$20,000 $90,000$90,000
Cost per hire $333$333 $5,000$5,000 $428$428 $8000$8000 $6,000$6,000
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 2222
JOBJOB
SATISFACTISATISFACTIONON
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THE WORKTHE WORK
RELATIONSHIPSRELATIONSHIPS
PROCEDURALPROCEDURAL TECHNICALTECHNICAL
ASPECTSASPECTS ASPECTSASPECTS
Task varietyTask variety
FeedbackFeedback AutonomyAutonomy
JOBJOB
Clarity and Clarity and meaningfulness of meaningfulness of
goals goals
OrganizationOrganization
Department\Department\
BossBoss
EX
PE
CT
AT
I ON
SE
XP
EC
TA
TIO
NS Aspirations Self-conceptAspirations Self-concept
Self-esteem and efficacySelf-esteem and efficacy
Satisfaction and Skill Satisfaction and Skill varietyvariety
Achievement and Achievement and utilizationutilizationFORMALFORMAL INFORMALINFORMAL
StructuralStructural Social contactsSocial contacts
DesignDesign Peer groupPeer group
Quality of managementQuality of management
IND
IVID
UA
LS
’ NE
ED
SIN
DIV
IDU
AL
S’ N
EE
DS
Job design-a more holistic approachJob design-a more holistic approach
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 2424
Low absenteeism and Low absenteeism and staff turnoverstaff turnover
Critical Psychological Critical Psychological StateState Personal and Work Personal and Work
Out comesOut comes
High-quality work High-quality work performanceperformance
Core Job DimensionsCore Job Dimensions
Knowledge of the Knowledge of the actual results of the actual results of the work activitieswork activities
FeedbackFeedback
High satisfaction with High satisfaction with the workthe work
Experienced Experienced responsibility for responsibility for outcomes of the workoutcomes of the work
AutonomyAutonomy
CORE DIMENSIONS OF THE CORE DIMENSIONS OF THE JOBJOB
Experienced Experienced meaningfulness of the meaningfulness of the workwork
High internal work High internal work motivationmotivation
Skill varietySkill variety
Task identityTask identity
Task significanceTask significance
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 2525
MANPOWERMANPOWERPLANNINGPLANNING
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 2626
TRANSITION MATRIX TRANSITION MATRIX (MARKOV ANALYSIS)(MARKOV ANALYSIS)
19971997
19951995 Clerk IClerk I Clerk IIClerk II
Clerk IClerk I 80% (s)80% (s)
Clerk I IClerk I I 60% (s)60% (s)
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 2727
TRANSITION MATRIX TRANSITION MATRIX (MARKOV ANALYSIS)(MARKOV ANALYSIS)
19971997
19951995 Clerk IClerk I Clerk IIClerk II Left Left OrganizatiOrganizationon
TotalTotal
Clerk IClerk I 80% stayed80% stayed 10% 10% promotedpromoted
10%10% 100%100%
Clerk I IClerk I I 10% 10% demoteddemoted
60% (s)60% (s) 30%30% 100%100%
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 2828
MARKOV MARKOV
ANALYSISANALYSIS CATEGORYCATEGORY 44 33 22 11 EXITEXIT
GRADE-4GRADE-4 .7.7 .1.1 00 00 .2.2
GRADE-3GRADE-3 .05.05 .8.8 .1.1 00 .05.05
GRADE-2GRADE-2 00 .1.1 .75.75 .05.05 .1.1
GRADE-1GRADE-1 00 00 .05.05 .9.9 .05.05
STAFFINGSTAFFINGREQUIREMENTREQUIREMENT
250250 120120 4040 2020 00
GRADE-4GRADE-4 175175 2525 00 00 5050
GRADE-3GRADE-3 66 9696 1212 00 66
GRADE-2GRADE-2 00 44 3030 22 44
GRADE-1GRADE-1 00 00 11 1818
TOTALTOTAL 181181 125125 4343 2020 6161
VACANTVACANTPOSITIONSPOSITIONS
6969 +5+5 +3+3 00
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 2929
A HYPOTHETICAL TRANSITIONAL A HYPOTHETICAL TRANSITIONAL MATRIX FOR AN AUTO PARTS MATRIX FOR AN AUTO PARTS
MANUFACTURERMANUFACTURER
1993199319961996
(1) (2) (3) (4) (5) (6) (7) (1) (2) (3) (4) (5) (6) (7) (8) (8)
1. Sales manager1. Sales manager .95 .05.95 .05
2. Sales 2. Sales representativerepresentative
.05 .60 .35.05 .60 .35
3. Sales apprentice3. Sales apprentice .20 .50 .30.20 .50 .30
4. Assistant plant 4. Assistant plant managermanager
.90 .05 .05.90 .05 .05
5. Production 5. Production managermanager
.10 .75 .15.10 .75 .15
6. Production 6. Production assemblerassembler
.10 .80 .10.10 .80 .10
7. Clerical7. Clerical .70 .30.70 .30
8..Not in 8..Not in organizationorganization
.00 .20 .50 .00 .10 .20 .30.00 .20 .50 .00 .10 .20 .30
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 3030
BOWEY TURNOVER BOWEY TURNOVER INDEXINDEX
Purpose: Reflect the stability of manpower index of an org as compared Purpose: Reflect the stability of manpower index of an org as compared to industry.to industry.
Formula:1) Formula:1) Sum of month served by staff currently employedSum of month served by staff currently employed X 100 X 100 2) Sum of possible months in service by full staff2) Sum of possible months in service by full staff
e.g:e.g:Workstation requirement of workers: 20Workstation requirement of workers: 20Pattern of TurnoverPattern of TurnoverPersonsPersons MonthsMonths Possible monthsPossible months 55 XX 24 24 = 120= 120 20 X 24 months : 480 (2)20 X 24 months : 480 (2) 55 XX 12 12 = 60= 60 1010 XX 6 6 = 60= 60
240 (1)240 (1)
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 3131
OPTIONS FOR REDUCING AN OPTIONS FOR REDUCING AN EXPECTED LABOR SURPLUSEXPECTED LABOR SURPLUS
OptionOption SpeedSpeed Human Human SufferingSuffering
DownsizingDownsizing FastFast HighHigh
Pay reductionsPay reductions FastFast HighHigh
DemotionsDemotions FastFast HighHigh
TransfersTransfers FastFast ModerateModerate
Work sharingWork sharing FastFast ModerateModerate
RetirementRetirement SlowSlow LowLow
Natural attritionNatural attrition SlowSlow LowLow
RetrainingRetraining SlowSlow LowLow
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 3232
OPTIONS FOR AVOIDING AN OPTIONS FOR AVOIDING AN EXPECTED LABOR SHORTAGEEXPECTED LABOR SHORTAGE
OptionOption SpeedSpeed Human SufferingHuman Suffering
OvertimeOvertime FastFast HighHigh
Temporary Temporary employeesemployees
FastFast HighHigh
OutsourcingOutsourcing FastFast HighHigh
Retrained TransfersRetrained Transfers SlowSlow HighHigh
Turnover reductionsTurnover reductions SlowSlow ModerateModerate
New external hiresNew external hires SlowSlow LowLow
Technological Technological innovationinnovation
SlowSlow LowLow
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 3333
Entry CohortEntry Cohort Original Original strengthstrength
Number surviving to end of year after engagementNumber surviving to end of year after engagement
Year 1Year 1 Year 2Year 2 Year 3Year 3 Year 4Year 4 Year 5Year 5
AA 4040 3535 2828 2626 2222 2020
BB 3232 2525 2424 1919 1818 1717
CC 4848 3939 3333 3030 2525 2323
DD 3838 3232 2727 2424 2222 1919
EE 4242 3636 3030 2626 2323 2121
TOTALTOTAL 200200 167167 142142 125125 110110 100100
Average Average survival ratesurvival rate 100%100% 83%83% 71%71% 62%62% 55%55% 50%50%
TABLE 24.1: SURVIVAL RATE TABLE 24.1: SURVIVAL RATE ANALYSISANALYSIS
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 3434
PROGRAMME PLANNING PROGRAMME PLANNING
OPTIONSOPTIONS
Do not replace employees who leave Do not replace employees who leave Offer incentives for early retirementOffer incentives for early retirementTransfer or re-assign excess employeesTransfer or re-assign excess employeesUse slack time for employees training or Use slack time for employees training or equipment maintenanceequipment maintenanceReduce work hoursReduce work hoursLay-off employeesLay-off employees
If a surplus of employees If a surplus of employees is expected ….is expected ….
Hire new full-time employeesHire new full-time employeesOffer incentives for postponing retirementOffer incentives for postponing retirementRe-hire retired employees on part-time basisRe-hire retired employees on part-time basisAttempt to reduce turnoverAttempt to reduce turnoverBring in overtime for present staffBring in overtime for present staffSubcontract work to another companySubcontract work to another companyHire temporary employeesHire temporary employeesRe-engineer to reduce needs.Re-engineer to reduce needs.
If a shortage of If a shortage of employees is expected employees is expected ….….
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 3535
HR HR AUDITAUDIT
Debate still in infancyDebate still in infancy Efficient and economic use of resourcesEfficient and economic use of resources Increased attention to contribution of Increased attention to contribution of
employeesemployees Wastage and attrition costWastage and attrition cost Job satisfaction of employeesJob satisfaction of employees
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 3636
SEPARATION COSTSSEPARATION COSTS
1.Exit interview = cost for salary and 1.Exit interview = cost for salary and benefits of both interviewer and benefits of both interviewer and departing employee during the exit departing employee during the exit interview.interview.
2. Administrative and record keeping 2. Administrative and record keeping actionaction
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 3737
REPLACEMENT COSTSREPLACEMENT COSTS
1 1 Advertising for job opening.Advertising for job opening.2 Pre-employment administrative 2 Pre-employment administrative functions and record keeping action.functions and record keeping action.3 Selection interview.3 Selection interview.4 Employment tests.4 Employment tests.5 Final Meeting.5 Final Meeting.
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 3838
TRAINING COSTSTRAINING COSTS
11 Booklets, manuals and reports.Booklets, manuals and reports.2 Training & Education 2 Training & Education 3 Trainer Cost3 Trainer Cost4 Salary and benefits of a new employee 4 Salary and benefits of a new employee during trainingduring training
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 3939
SOURCE COST PER RECRUITSOURCE COST PER RECRUIT
SC/RSC/R =AC = AF + NC / R=AC = AF + NC / R
Where Where AC = advertising costs, total monthly AC = advertising costs, total monthly
expenditureexpenditure AF=agency fees, total for the monthAF=agency fees, total for the month
NC=no-cost applicants, walk-in, non NC=no-cost applicants, walk-in, non profit agencies etcprofit agencies etc
R=total recruits R=total recruits
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 4040
COSTING EMPLOYEE COSTING EMPLOYEE BEHAVIORSBEHAVIORS
EffectEffectPayout Payout
ProbabilityProbability(Costs (Costs Saved)Saved)
Payoff, Option 1(Raisewages)Payoff, Option 1(Raisewages) $5,000$5,000 xx .60.60 == $3,000$3,000
Payoff, Option 2 (Career Payoff, Option 2 (Career tracks)tracks) 3,0003,000 xx .20.20 == 600600
Payoff, Option 3 (Benefits Payoff, Option 3 (Benefits package)package) 2,0002,000 xx .10.10 == 200200
Payoff, Option 4 (Flexible Payoff, Option 4 (Flexible hours)hours) 1,5001,500 xx .10.10 == 150150
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 4141
COSTING EMPLOYEE COSTING EMPLOYEE BEHAVIORSBEHAVIORS
OptionOption Annual CostAnnual CostAnnual Payout Annual Payout
(Benefit)(Benefit)Cost / Cost /
Benefit RatioBenefit Ratio
11 $10,000$10,000 $3,000$3,000 .30.30
22 5,0005,000 600600 .12.12
33 4,0004,000 200200 .05.05
44 3,0003,000 150150 .05.05
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 4242
COMMENTS ENCOURAGEDCOMMENTS ENCOURAGED
04/11/2304/11/23 07:5407:54 IBP PRESENTATIONIBP PRESENTATION 4343
CONCLUSIONCONCLUSION
When an archer misses the mark, When an archer misses the mark, he turns and looks for the fault he turns and looks for the fault within himself. Failure to hit the within himself. Failure to hit the
bull’s eye is never the fault of the bull’s eye is never the fault of the target. To improve your aim- target. To improve your aim-
improve yourself. improve yourself.
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