Working Time Fund Basics
What is the calendar fund?
This is the total number of days in a year used as the base for calculating working time.
What is WTF = N × D × H?
This formula calculates total working time fund.
How can a company identify inefficiencies in working time use?
By comparing planned vs actual time and analyzing losses.
Two companies have the same number of employees and working hours.
But one produces twice as much output.What is the main difference between them?
Labor productivity (efficiency)
What is nominal working time?
This type of working time excludes weekends and official holidays.
What is time utilization coefficient?
This indicator shows how efficiently planned working time is used.
What is performance appraisal?
It is a systematic evaluation of employee performance.
A company increases output by 20%, but labor input increases by 30%.
Did productivity improve?
No, productivity decreased
What is effective (actual) working time?
This represents the actual time worked after deducting absences.
What is productivity = output / hours worked?
This formula measures output per hour worked.
What is labor performance analysis?
It is the evaluation of how effectively employees use their skills, time, and resources to achieve organizational goals.
Two departments:
Which department is more sustainable long-term and why?
Department B — stability reduces long-term costs and maintains consistent performance
What is N (number of employees)?
This factor represents the number of employees in working time calculations.
What is downtime and what causes it?
Downtime is time when employees cannot work due to machine failure, lack of materials, or technical issues.
What is labor turnover?
It is the rate at which employees leave and are replaced in an organization.
A company wants to increase productivity.
They:
Why might this reduce productivity instead?
Diminishing efficiency / overload / poor coordination
What is 8 hours?
This is the standard number of working hours per day in most organizations.
What factors influence the use of working time fund?
Employee discipline, health, management quality, technology, and work organization.
What is absenteeism rate?
Absenteeism rate = (Total absent days ÷ Total working days) × 100%
A manager tracks:
But ignores one key metric.
👉 Because of this, decisions are misleading.
👉 What metric is missing?
Output (or productivity)