1. What figure will Cal Jenson report to Fred Donofrio for the amount that absenteeism cost ONO last year?
Answer: Using figure 2-5 on page 52 Cal must compute the total employees hours lost due to absenteeism for the period. ONO lost a total of 539 hours of labor because of absenteeism. Second Cal must compute the weighted average wage or salary totals to $23.50 an hour for an average salary of $47,000. Third one must compute the cost of employee benefits for ONO employees is an additional 33%. Because absent employees are paid Cal must take the compensation lost/hour/absent employee = wage/salary + benefits. Therefore 1.5/539/11=47,000 + 33% = (2.99 or 3). Next Cal must compute the compensation lost to an absent employee by taking the above answer of 3 and multiplying it by 1. Next he must estimate the total supervisory hours lost due to employee absenteeism (1.5hours lost x 67.375) equals a total of 101 supervisory hours lost. Next compare the hourly supervisory salary + benefits which was 41.895. Then estimate total supervisory salaries lost to managing absenteeism problems equaling 4,231.395. Cal must estimate all other costs incidental to absenteeism which totaled to $12,400. Therefore the result Cal should give Fred that the total estimated cost of absenteeism is $16, 634.395 averaging $1, 386.20 per employee including the supervisors. 2. Is absenteeism a serious problem at ONO? Why or why not?
Answer: Yes, I believe there is a problem to the absenteeism at ONO even though the books states “Unfortunately there are no industry-specific figures on the costs of employee absenteeism (F. Cascio, pg.53).” Because it does not mention whether or not any of the employees went past their allotted 12 days sick leave paid we cannot judge whether or not it is a big concern. Some organizations only payout vacation if an employee leaves so most individuals make sure to use their earned sick days so they do not loose them after the
Cited: F.Cascio, W. (2013). Managing Human Resources: Productivity, Quality of Work Life, Profits (9 ed.). New York, NY: McGraw-Hill.