Unformatted text preview: that rewards its 40,000 employees for attendance. Twice a year, Continental holds a raff le and gives away eight new sport utility vehicles. Only employees who have not missed a day of work during the previous six months are eligible. This lottery system thus, follows a variableratio schedule where management credits the lottery with significantly reducing the company’s absence rate (Robbins, 2003). 2. Well pay vs. sick pay Organizations with paid sick leave programs experience almost twice the absenteeism of organizations without such programs. One of the Midwest organizations in USA implemented a well pay program. It paid a bonus to employees who had no absence f or any given f ourweek period and then paid for sick leave only after the first eight hours of absence. The wellpay program produced increased savings to the organization, reduced absenteeism, increased productivity, and improved employee satisfaction. Forbes magazine used the same approach to cut its health care costs. It...
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This note was uploaded on 03/01/2014 for the course MBA mba taught by Professor Smu during the Fall '10 term at Manipal University.
- Fall '10