For large multibranch institutions such as banks, knowing the unit labour costs of services is essential for effective planning and control. This requires accurate information on the amount of time spent by employees carrying out various tasks. The literature on work measurement identifies two main approaches for establishing unit labour costs: work standards and work sampling. Although work standards indicate how much time employees should spend on various tasks under ideal conditions, statistical sampling methods employed in work sampling determine how much time is actually spent on these tasks in their natural settings. Work sampling can be extremely expensive, since exceedingly large sample sizes are required to accurately determine the costs of junctions requiring small proportions of personnel time. Thus, we propose a hybrid methodology that combines survey sampling with the work standards approach.

Canadian Journal of Administrative Sciences
Sprott School of Business

Farrell, P, Kusy, M. (Martin), Tomberlin, T.J, & Thomas, R. (Robert). (1997). A Hybrid Methodology for Measuring Unit Costs in Multibranch Institutions. Canadian Journal of Administrative Sciences, 14(2), 188–194.