Monetary benefits payable immediately: Salaries and wages, dearness and other allowances, productions incentive or bonus.

Monetary benefits after some time in the future: Employer’s contribution to P.F., E.S.I., pension etc. Gratuity, Profit linked bonus

Non-monetary benefits (fringe benefits): Free or subsidized food, free medical or hospital facilities, free or subsidized education to the employees children, free or subsidized housing etc.

Payroll accounting is concerned with the maintenance of records for the amounts due to the employees like salaries, wages, allowances, contributions to P.F and E.S.I. etc.

Labour cost accounting is concerned with identifying the amount of labour cost to be charged to individual jobs and overhead accounts.

Time rate methods Piece rate method Group bonus plans

Halsey Premium bonus Plan-Total wages =

(Time taken X Hourly rate) + 50 X Time saved X 100Hourly rate

Rowan Premium Bonus Plan-Total wages =(Time taken X Hourly rate)+ Time saved X

Time Standard time

taken X Hourly rate

Straight Piece Rate Method-

wages = No of pieces produced X rate per piece

Taylor’s differential Piece rate System-

Formula:

80% of normal piece rate when below standard (low piece rate)

120% of normal piece rate when at or above standard(High piece rate)

Merrick’s Differential Piece Rate System-

Efficiency Piece rate applicable

Upto 83 1/3% Normal piece rate

Above 83 1/3% to 100% 110% of normal piece rate

Above 100% 120% of normal piece rate

Where the worker completes his work in half the time allowed; the bonus under both the plans will be same

If time saved is less than 50% of time allowed, the Rowan plan is beneficial for the worker.

If time saved is more than 50% of the standard time, the Halsey plan is advantageous to the worker.

It should be simple to understand by the workers

It should be transparent It should be simple to administer and

reduce clerical work It should act as a motivational scheme It should guarantee the minimum day

wages.

Labour turnover is the movement of people into and out of the organization.

Measurement of Labour Turnover- Labour turnover rate Separation rate

= Number of separations Average number of employees Replacement Rate = Number of employees replaced

Average number of employees on rolls

Flux Rate = Number joining plus number leavingaverage number of employees

Avoidable causes: Dissatisfaction with wages and rewards Dissatisfaction with working conditions Dissatisfaction with personnel policies Lack of transport facilities, accommodation, medical

and other facilities Dissatisfaction with working hours Bad relation with co-workersUnavoidable causes:

Family circumstances Climatic conditions Community conditions Retirement and death Marriage( in case of woman) Personal betterment

Pay problems Employees leaving to further their career Employees leaving due to conflict The induction crisis Shortage of labour Changes in working requirements Losses of unstable recruits Adequate statistical control Joint control Use of exist interviews

Preventive costs Personnel administration Medical services Welfare Pension schemes Better scales, Bonus and Perquisite

Replacement costs Inefficiency of New worker Employment department Training and Induction Loss of output due to delay in obtaining new

workers Cost of tool and machine breakage Accident frequency Cost of scrap and defective work