Question

Dice LLC has extracted the following data from HR department for the last year: Number of workers working for the company at the beginning of the year was 1,000 while at the end of the year 1,200. During the year, 50 workers resigned from their jobs, 60 workers were terminated by the company. A total of 240 workers were recruited. Out of total recruitment, 80 workers are recruited in place of the staff that left the company for any reason, while the rest were hired for expansion purpose. Required: Calculate the labor turnover rate using, addition method, separation method, replacement method, and flux method. Answer in the Word document (ANSWER SHEET) and Upload as attachment below Question 5 Not yet answered Marked out of 10.0 Not flaggedFlag question Question text a) Explain, in detail what Job Order Costing System of cost accumulation. What kind of businesses could possibly benefit from this costing system? How are the manufacturing and non-manufacturing costs allocated under this system? b) There are various techniques of materials control. Just-In-Time Inventory System is one of them. Discuss how this technique was developed, its features, and the benefits it offers. How a business can prepare itself to adopt this technique. c) Every organization is highly concerned in understanding the efficiency of its employees. Various methods have been developed to address this need. Discuss any four methods of rating employees’ efficiency.

Answer 1

Labour turnover

Separation Method = No. of workers left or separated * 100 / avg. no. of workers on role

= (50+60)*100/1100 = 10%

Avg. no. of workers = (1000+1200)/2

Replacement Method = No. of workers replaced * 100 / avg. no. of workers on role

= (80)*100/1100 = 7.27%

Replacement Method = (No. of workers separated + no. of workers replaced) * 100 / avg. no. of workers on role

= (50+60+80)*100/1100 = 17.27%

Ques 5

a. Job order costing or job costing is a system for assigning and accumulating manufacturing costs of an individual unit of output. The job order costing system is used when the various items produced are sufficiently different from each other and each has a significant cost.

A company that does jobs based on the clients needs could benefit from Job order costing. In this way the company would order as and when the goods are required to complete a particular job. Certain examples of job order costing are:

• Designsing and producing custom-made machines and/or machine tooling
• Constructing custom-designed buildings
• Modifing trucks to meet customers' special needs

Manufacturing and costs are allocated job wise in this type of costing. Costs are aligned with particular jobs for which they are incurred

b.Just in time is an effort to have materials delivered by suppliers just as the materials are needed, thereby eliminating the need for the buyer to store inventories of component parts. Obviously, the buyer is relying on the dependability of the supplier.

The management technique originated in Japan and is often attributed to Toyota. However, many believe that Japan's shipyards were the first to develop and successfully implement this approach. Its origins are seen as three-fold: Japan's post-war lack of cash, lack of space for big factories and inventory, and Japan's lack of natural resources. Thus the Japanese "leaned out" their processes, and JIT was born.

The features of JIT are that it eliminates storage costs, less wastage of time in maintaining the stocks and inventory. The system encourages faster production machinery setup. Involves a small lot of products manufacturing accurately aligned with the current demands.

The key to just-in-time inventory management is rigorously monitoring your use of supplies and timing replacement deliveries when they are needed. Use of technology and reduction in miscounts should be kept in mind while implementing Just in Time Inventory approach.

c.

1. Management by objectives (MBO) is the appraisal method where managers and employees together identify, plan, organize, and communicate objectives to focus on during a specific appraisal period. After setting clear goals, managers and subordinates periodically discuss the progress made to control and debate on the feasibility of achieving those set objectives.

2. The next method is assessment centre method which enables employees to get a clear picture of how others observe them and the impact it has on their performance. The main advantage of this method is that it will not only assess the existing performance of an individual but also predict future job performance.

3. Behaviorally anchored rating scales (BARS) bring out both the qualitative and quantitative benefits in a performance appraisal process. BARS compares employee performance with specific behavioral examples that are anchored to numerical ratings.

Each performance level on a BAR scale is anchored by multiple BARS statements which describe common behaviors that an employee routinely exhibits. These statements act as a yardstick to measure an individual’s performance against predetermined standards that are applicable to their role and job level.

4. Psychological appraisals come in handy to determine the hidden potential of employees. This method focuses on analyzing an employee’s future performance rather than their past work. These appraisals are used to analyze seven major components of an employee’s performance such as interpersonal skills, cognitive abilities, intellectual traits, leadership skills, personality traits, emotional quotient, and other related skills.