1. COSTING & CONTROL OF LABOUR
Objectives of Labour Cost Control
To Motivate workers so that the output is enhanced
To maintain a reasonable level of labour cost based on Industry standards
To contribute to overall organizational profitability

2. LABOUR TURNOVER Rate of change in the Composition of Labour force
during a particular period

3. CAUSES OF LABOUR TURNOVER
AVOIDABLE
Dissatisfaction with remuneration, hours of work, etc.
Bad relationship with mgt., fellow employees, etc.
Lack of training facilities, etc.
UNAVOIDABLE
Death,retirement,illness,accident,etc.
Personal betterment
Marriage(in case of woman)

4. MEAUREMENT OF LABOUR TURNOVER
SEPERATION METHOD
= No. of separations during a period X 100
Avg. No. of employees during the
period.
REPLACEMENT METHOD
= No.of replacements made during period X 100

5. FLUX METHOD
= No. of separation+ No. of replacement
Avg. No. of employees

6. Wages and Incentives Taylor Differential Piece Rate System
Merrick differential piece rate system
Grant Turk and bonus system
Emersion’s efficiency system

7. Taylor Differential Piece Rate System
Percentage of Efficiency
Less than 100%
Equal to or more than 100%
Piece Rate
83% of normal piece rate
125% of normal piece rate

8. Merrick differential piece rate system
Percentage of Efficiency
Up to 83%
From 83% to 100%
Above 100%
Piece Rate
Normal piece rate
110% of normal piece rate
120% of normal piece rate

9. Grant Turk and bonus system
Percentage of Efficiency
Output below standard
Output at standard
Output above standard
Piece Rate
Guaranteed time rate
Time rate+ 20% bonus on time rate
Piece rate including 20% bonus of time rate

10. Emersion’s efficiency system
Percentage of Efficiency
Less than 66.67%
Above 66.67% and up to 110%
Above 110%
Piece Rate
Guaranteed time rate
Time rate + increasing bonus from 0.01% to 1 maximum of 20%
120% of time rate+ 1% increase for 1% increase in output

11. HALSEY PREMIUM PLAN Wage= (Time taken X time rate) +
(50% of Time saved X time rate)

12. HALSEY-WEIR PREMIUM PLAN
Earning= (Time taken X time rate) +
(1/3 X Time saved X time rate)

13. (Actual time X time saved X time rate)
ROWAN PLAN
Earning= (hours worked X time rate) +
(Actual time X time saved X time rate)
Time allowed