Department of Admin Sciences

,
Allama Iqbal Open University, Islamabad

WELCOME TO THE PARTICIPANTS

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

“LABOR PLANS & INCENTIVE SCHEMES”

Presented By: M. Hammad Manzoor MBA HRM II Roll No. 508195394 Supervised By: Dr. Amir Hussain Shah (AIOU) (April, 2012)
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Email: explorationist@gmail.com M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Agenda Items for Presentation

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

• • • • • • • • • •

Introduction about Author and Project Acknowledgement Abstract Introduction to the Topic Practical Study – Cere – e - Noor Data Collection Method / Analysis SWOT analysis Conclusions Recommendations Q & A Session

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,

Introduction about Presenter and Project

Allama Iqbal Open University, Islamabad

• •

Introduction about Presenter “My Self”

Introduction about Project “ Labor Plans & Incentive Scheme” Philosophy of the project is, “How to understand the problem and find out a patent solution”

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Acknowledgement

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

• • • • • • •

To Almighty ALLAH To Honorable Faculty AIOU, Mr. Sajid Saeed To Mr. Mansoor , AIOU, Karachi Campus To Mr. Usman Ahmed–Manager Production (Cere-e-Noor) To my Class fellows of MBA – II (Waleem, Javed, Sohail & Zehra etc) To my students at Islamabad (Bahria University, Islamabad) To my colleagues at my Office

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Abstract •

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

• •

• •

Introduction to project Objective: 1) What is Labor? 2) Forms of Labor Control? 3) Types of Labor? 4) Renumeration and Incentive Systems? Understanding the Problem Methodology Used • Research Methodology • Primary Data Used • Modeling of Different Methods • Merits & Demerits Analysis Conclusions Recommendations

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

INTRODUCTION

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Labor-Plans & Incentive Scheme Admin Sciences,
Allama Iqbal Open University, Islamabad

Labor  Work, Effort, Employment, a contract one being a employer and one being employee.  Incentive  Incentive is token of thanks in the form of Encouragement, Motivation, inducement.

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Labor Cost Control Types

Department of Admin Sciences,

Allama Iqbal Open University, Islamabad

Direct Labor Cost

Direct labor refers to labor engaged directly in the production of a product. Direct labor cost is the cost of all labor expended in converting raw materials into manufactured articles.


In-Direct Labor Cost

It is the remuneration paid to those workers, who are not directly engaged in converting raw materials into finished products. Such costs cannot be conveniently identified with a particular product.
M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

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Time Keeping Methods

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Allama Iqbal Open University, Islamabad

Hand Written Method Token / Disc Methods Time Recording Clock

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Normal Idle Time Abnormal Idle Time Overtime

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Turn Over

It is a common thing that workers in an undertaking leave the employment and new workers join in place of those leaving. The change in work force is known as labor turnover.

Methods to calculate Turn Over  Separation Method  Replacement Method  Flux Method

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Remuneration Methods & Incentive Schemes  Remuneration

The salaries, wages and statutory benefits put together are remuneration. called as


Incentive Schemes
The incentives are payments and benefits given to stimulate better performance or paid in return for a better performance. The incentives could be in monetary as well as non-monetary terms. While the remuneration is always individual based, incentives could be based on group performance.

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Classification of the Payments  Time Rate

Those paid on the basis of time spent by an employee output produced by him, called Time Rate. irrespective of

Piece Rate
Those paid on the basis of output given by the employee irrespective of the time spent by him, called Piece Rate

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Various Remuneration Methods
Various Remuneration Methods

Time Based

Result Based

Combined time and piece rate

Bonus System

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Various Remuneration Methods Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Practical Study of

Cera-e-Noor
www.cera-a-noor.com

Manufacturer of finest tableware Ceramics

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Cera-e-Noor plant located in the industrial area of city of Hub in Lasbela, Balochistan province of Pakistan


• •

It was acquired by the Hashoo Group in the year 2000.
It is a state-of-the-art facility for the manufacture of crockery (tableware). The plant was designed and commissioned with the collaboration of French ceramic giant, Bernardaud Liamoges and technical/engineering expertise from other major players in the French ceramic industry such as Ceric and Cerlim.

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

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Email: explorationist@gmail.com

M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Turn Over Benchmarks
• To achieve a target of PKR 222 million (2 million pieces) within the 1st year • To achieve a target of PKR 400 million (4 million pieces) within the 2nd year • To achieve a target of PKR 1 billion (8 million pieces) within the 3rd year

Profit Oriented Benchmarks
• To achieve profit at the rate of 2% within the 1st year 2007-08 • To achieve profit at the rate of 4% within the 2nd year of 2008-9 • To achieve profit at the rate of 8 % within the 3rd Year of 2008-09

Sales Benchmarks
• To achieve a target net sales of Rs. 222 million within the1st year of 2007-08 • Expand the number of dealers by 10 % • To achieve a target net sales of Rs. 400 million within the 2nd year of 2008-09 • Expand the number of dealers by 30 % • To achieve a target net sales of Rs. 1billion within the 3rd year of 2009-10 • Expand the number of dealers by 50 %

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

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Email: explorationist@gmail.com

M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Turn Over Calculations for 2010:
Number of workers on 1 Jan 2010 Number of workers on 31 Dec 2010 Number of workers resigned Number of workers discharged Number of replacement Average Number of workers Number of workers left 1. Separation Rate (70+20) 1000 1200 70 20 80 (1000+1200)/2 =1100 = 90 (90/1100)/100 = 8.18%

2. Replacement Rate
3. Flux Rate

(80/1100)/100 = 7.27%
((90+80)/1100)/100 = 15.45%

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Time Wage System at Cere-e-Noor: Time wage system is also being used at Cere-e-Noor production department; around 150 of the labor are working on time wage system. One of the practical calculations regarding the time wage system is as follow: A worker gets Rs. 15 per hour. He works for 8 hours per day. He has been present for duties on 25 days during the month. What is his wage for the month? Solution: His wage based on Time Rate will be: Rs.15X8X25=Rs.3000/www.aiou.edu.pk
M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Email: explorationist@gmail.com

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Piece Wage System at Cere-e-Noor: Piece wage system is also being used at Cere-e-Noor production department; around 300 of the labor are working on piece wage system. One of the practical calculations regarding the time wage system is as follow: The rate of labour per tea set is Rs. 80/- The worker has completed 20 tea sets during a week. What is the wage of the worker? Solution: His wage based on piece rate will be: Rs. 80 X 20 = Rs.1600
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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Email: explorationist@gmail.com

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Merits & Strengths:
1. Premier local manufacturer of porcelain tableware. 2. Part of the elite Hashoo group -the owners and operators of two leading chains of hotels namely Marriott and Pearl Continental 3. Holds good repute for salaries and wages disbursement 4. Holds the time wage plans 5. Holds the Piece Wage Plans 6. Utilizes the Incentive Bonus Schemes plans 7. Hasley Plans are applied in incentive schemes. 8. Profit sharing schemes are also utilized in the production department
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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Email: explorationist@gmail.com

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Demerits & Weakness:
1. Result based programs schemes are plans are generally apply to the less numbers of labors. 2. Co-partnership is offered less in number to the workers of the company 3. Cultural Events are generally hold once in a year. 4. Flexible work hours are not in practice in general 5. No medical insurance to the kids of the general labour

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Opportunities:
1. Huge growing domestic market 2. Enhancement of the factory units will provide the opportunity of employment 3. Growing purchasing power of people within the economy 4. More and more consumers are becoming brand conscious 5. Modern lifestyles markets are growing.

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Threats:
1. 2. 3. 4. 5. Turnover of the labor is increasing Skilled labor may join other factories in Increasing prices of raw material Political stability is at a decline Growing Manufacturing Power of China (they can do reasonable quality at low cost) 6. Increasing energy costs.(Oil & Electricity)

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Recommendations:
1. Enhance the application of the various numeration methods for better results of the production and profitability. 2. Combined Piece time and piece rates should have to apply in more appropriate way. 3. Enhance the manufacturing plant capacity to get the maximum number 4. Co-partnership should be offered to the labor staff for more confidence level to the lower staff. 5. Enhance the labor wages per hours and monthly salary

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Recommendations:
6. Enhance HRD to meet the appropriate professional needs for onward competition 7. Medical facility should also be provided to the children of the labors. 8. Flexible hours should be mandatory part of the working for the labors. 9. Pension plans should be implemented for the future satisfaction of the labor. 10. Exclusive incentive plans should be adopted for better competition.

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

Department of Admin Sciences,
Allama Iqbal Open University, Islamabad

Thanks

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M. HAMMAD MANZOOR, MBA HRM - II Roll No. 508195394, Karachi Campus

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