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EMPLOYEE PRODUCTIVITY
Productivity:
Labour Productivity:
Output for man-hour,
output
Labour productivity = ------------------
Man-hours used
Labour hours per unit of output,
Here we calculate for n-units and not for n-th unit for
which we go in for logarithmic analysis.
Logarithmic Analysis:
Time taken to produce the n-th unit is
Tn = T1(nb )
T1 time taken to produce 1 unit
b- slope of the learning curve
b- depends on learning rate.
Learning rate b
70%
75% -0.515
-0.415
80%
85% -0.322
-0.234
90% -0.152
Uses and Limitations of Learning Curve:
Used in
1.Man-power planning
2.Cash flow analysis
Advantages:
Since 80% less then 83% only the base piece rate is given.
Earnings = 80 X 0.10 = Rs 8
Case 2 : Output = 90 units
Efficiency = (90 / 100 ) X 100 = 90 %
Since the efficiency is more then 83% and less then 100%
So 100% of the base piece rate applies there fore
d. Emerson Plan
• Standard time is set for each job
• Efficiency is determined by dividing the time taken by
standard time
• Upto 67% worker is paid at time rate after which a
granted bonus which amounts to 20% of 100% efficiency.
• Additional 1% is added for 1% of efficiency
Standard output in 10 Hours = 100 Units
Rate per hours = Re 1
Time wage = 10 X 1 = Rs 10
Bonus = (20/100)X10 = Rs 2
Bonus = (30/100)X10 = Rs 3
Total = Rs15
Group Incentive Plans:
• All of now we saw was for individual direct workers.
• In some works we have groups involved for particular
operations where individuals cannot be measured so
group
incentive scheme is followed.
• First total earning of the groups is calculated and then
divided for individual
• If individual contribution is different then the bonus is
divided proportionately according to their work they do.
Advantages:
Disadvantages: