1. 1.1 INTRODUCTION
The importance of Human Resource is been recognized all over the world.
Human Resource is regarded as the nerve system of the organization. How much is the
nervous system to the human body, that much important is the labour force to the
organization.
The title of the project is “A Study on Employee absenteeism” at Milma Dairy,
Thevally, Kollam. The main object of the study is to find out the main reasons of absenteeism
in Milma Dairy, Kollam and the factors that reduce absenteeism.
Sometimes labour absenteeism and turnover become a major problem for the
management. Absenteeism has been variously defined by different authorities. Absenteeism
is a practice or habit of being an „absentee‟ and the „absenter‟ is one who habitually stays
away‟‟. Absence may be authorized or unauthorized, wilful or caused by circumstances
beyond one‟s control. Absenteeism is a universal phenomenon and it is not peculiar to Indian
industries. But the rate of absenteeism has been relatively higher in India.
Any company cannot move without personnel. These personnel have to be managed
effectively so that they don‟t lose interest on their jobs and can result in loss for both the
employee and employer. As an effect of dissatisfaction, the employee tends to be absent,
which affects the operations of the organization.
In Milma Dairy, the company faces a problem of severe absenteeism among the
employees. This affects the day-to-day operations and in turn failure in meeting deadlines.
The company is in the need of a study to understand the factors that contribute to this
absenteeism. The response and the attitude of the respondents are checked through
individual interview with the questionnaire.

2. 1.2 STATEMENT OF THE PROBLEM
My topic is “A study on The Factors Affecting Employee absenteeism in Milma
Dairy, Kollam”. This topic is selected to understand the rate of absenteeism in Kollam
Milma dairy and the effect of absenteeism. The level of absenteeism is very high among
the employees in and it is increasing day by day. The factors of absenteeism may be
improper welfare measures, unsatisfied working conditions, safety measurements..etc.
1.3 OBJECTIVES OF THE STUDY
To find out the major causes of absenteeism
To know the problems of employee absenteeism
To study whether the working condition will affect absenteeism
To find out the factors that reduces employee absenteeism
To find out the preventive measure of employee absenteeism
To know the frequency of absenteeism in the organization
1.4 PERIOD OF THE STUDY
The study was conducted for a period of 45 days starting from 20th October 2011 to
5th December 2011.
1.5 SCOPE OF THE STUDY
The study is limited to Milma dairy, Kollam only. The study is conducted
from 20th October, 2011 to 5th December, 2011. The respondents are the employees of
Milma dairy, Kollam. This Study attempt to find out reasons for employee absenteeism. It
examine that this problem have any relation with job satisfaction and to find out the
motivational factors to reduce absenteeism. The main scope of this study is to identify the
problems and factors for the employee absenteeism. For the prosperity and goodwill of the
organization, avoidance of labour absenteeism is very essential.

3. 1.6 METHODOLOGY
The study is made by personally visiting the company at Milma dairy, Kollam. The
data‟s are collected through various methods. The methods mainly adopted are:
Primary sources
Secondary sources
Primary Sources
Direct observation.
Informal interview with Managers and workers.
Discussion with various Staff members of the company.
Secondary Sources
Journals and Magazines
Periodicals
Brochures
Website
1.7 LIMITATIONS OF THE STUDY
1) Due to inadequate time, it is not possible to analyze all aspects relevant to the
study.
2) The sample includes only a percentage of the total number of workers working in
the company.
3) The survey was limited only a small geographical area of Milma dairy at Kollam
district.
4) Most of the respondents seemed to be very busy with their jobs and they are not
interested in answering the questionnaire.
5) The study was limited only during the day hours. So interactions with the
employees in the night shift were not possible.

4. 1.8 CHAPTERISATION
Chapter-1 INTRODUCTION
Includes the introduction to the study, statement of the problem, objectives of the study,
period of the study, methodology, scope of the study and limitations of the study.
Chapter-2 INDUSTRY PROFILE
Includes industrial profile of milk industry
Chapter-3 COMPANY PROFILE
Includes Company profile- Milma dairy, Kollam
Chapter-4 THEORETICAL FRAMEWORK
This chapter deals with the theoretical framework on employee absenteeism
Chapter-5 ANALYSIS AND INTERPRETATION
This chapter deals with the analysis and interpretation of the collected data‟s from the
company.
Chapter-6 FINDINGS, CONCLUSION AND SUGGESTIONS
This chapter deals with Findings, conclusion and Suggestion.

5. INDUSTRY PROFILE
MILK INDUSTRY
Milk and milk based industries play a very important role in the world.
Internationalization remains a key focus for almost all of the world‟s leading dairy farms. All
the world‟s largest dairy farms operate in more than one country and some of them are truly
international with the activities in every part of the world. The availability and distribution of
milk and milk products, in the modern world is blend of the centuries old knowledge of
traditional milk products with the application of modern science and technology. Dairy is a
place where handling of milk and milk products done.
2.1 WORLD SCENARIO
History of International Dairy Federation
The International Dairy Federation, with its head quarters Brussels, was
established in 1903 and consists of 32 member countries throughout the world. UNICEF has
been the motivating force for establishing a dairy industry in many under developed
countries. One of these in India, where large processing plants have been set up to process
locally produced milk or to reconstitute milk from donated or purchased Milk Fat and
powder. Domestic milk production has increased in India and a part of the pasteurized milk is
provided free to children in the larger cities through UNICEF.
The first co-operative artificial breeding association was organized in
Denmark in 1936, There are now many such association which helped the dairy industries.
After 1950, dairy industries faced a wide range of development throughout the world.

6. 2.2 INDIAN SCENARIO
Origin of the Industry
Indian Dairy sector has come a long way during the past independence era of
acute milk shortage and depended on foreign aid in the form of milk powder to meet the
growing milk demanded. India‟s milk production in 1950-1951 was as low as million tonnes.
The dairy sector in the India has shown remarkable development in the past decade and India
has shown now become one of the largest producers of milk and value added milk products in
the world. Today the country has emerged as the second largest milk producer in the world
currently there are over 275 dairy plants and 83 milk product factories in co-operative, public
and private sector.
The world famous „Anand Milk Union Ltd‟ popularly known as „Amul‟ was
established in 1946 and the National Dairy Development Board (NDDB) was set up in 1965.
Kerala Co-operative Milk Marketing Federation (KCMMF) popularly known as „Milma‟ was
established in April 1980. Dairy Co-operatives accounts major share of processed liquid milk
marketed in the country. Milk is processed and marketed by 170 Milk producers Co-
operatives Unions, which federated into 15 state Co-operative Milk Marketing Federations.
By the end of the third phase of Operation Flood Program about 72700 Dairy Co-operative
Societies with 93 million farmer members where organization
The country has at present about one lakh organized primary village dairy
co-operative with an aggregate membership of 1.1 crore producers. The co-operative milk
procurement crossed 20 million kg/day in 2004-05. Over the years, brands created by co-
operatives have become synonymous with quality and value. Brands like Amul (G.C.M.M.F),
Vijaya (Andhra Pradesh), Verka (Punjab), Saras (Rajasthan), Nandhini (Karnataka), Milma
(Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence.
In Kerala there are 3243 dairy Co-operatives including 2404 Anand
Pattern Societies functioning under KCMMF. Milma represents more than 7.63 lakh dairy
farmers who have organized 2404 Anand Pattern Co-operative Societies. It also represents 10
dairies, handling 9.96 lakh liters of milk/day chilling plants, 2 cattle plants, a milk powder
plant, an established training center and 5000 distribution outlets.

7. 2.3 GROWTH AND DEVELOPMENT OF THE INDUSTRY
After the five year plan there saw a considerable growth in the field of
dairy industry. Providing proper infrastructure facilities can increase the live stock
population. There developments accelerated the growth of the dairy industry. The tremendous
potential of the dairy industry was given a major fill up with Finance Minister and the Prime
Minister Dr. Manmohan Singh‟s move to delicence the Milk Industry in 1992 .The delicence
enabled a massive flow of private investment. Organized handling of milk in there sectors
would also lead to proper procurement measured which would in turn be beneficial to the
farmers and one of those market forces are allows to operate the consumer would also benefit
in terms of quality and price.
2.4 ANAND PATTERN (APCOS)
Anand is a village of farmers in Kaira district of Gujarat. It is a village of
farmers and such a large quantity of milk is produced in this village. But the sale of the milk
is a big problem so the farmers formed co-operative societies for the purpose of distribution
of milk. With the Kaira milk producer‟s co-operative union, this produced just 25 liters of
milk a day.
The primary co-operative societies are formed by the union in line with
Anand Pattern with a view to strengthen dairy co-operative society at village level both
financially and institutionally. Co-operative development programs were started from the
financial assistance by NDDB. During 1960‟s (Anand/Kaira dist, Gujarat) 1000 of milk
producers united together on co-operation lines, an integrated approach to production,
procurement, processing and marketing of milk.
The Anand model progressively eliminated middleman, bringing the
producers in direct contact with consumers. In spite of the opposition by middlemen Dr.
Varghese Kurian has been able to make major break through in dairy. This resulted in the
formation of AMUL (Anand Milk Union Ltd). Over the years thus evolved itself into a model
based on self rile by farmers ensuring maximum return to them. This model came to be
known as “Anand Pattern”.

8. The Anand Pattern is a three tier structure consists of:
1. Village level primary co-operative societies called APCOS
2. District/Regional Co-operative Milk Producers Union.
3. State Level Milk Marketing Federation.
2.5 NATIONAL DAIRY DEVELOPMENT BOARD AND ITS ROLE
The efficiency of „Anand Pattern‟ led to the launching of dairy
program called Operation Flood in 1970 under NDDB. Credit for the most of the work
done in the field of milk supply by co-operatives that goes to NDDB. The board was set
up by the Government to replicate the Anand experiment in the rest of the country.
The board with the help of Government of India got of commodity
assistance valuing Rs.120 crores, under world food program, 1970. This fund was used to
develop operation flood program. Under this scheme financial assistance was provided to
various state government and other agencies for implementing dairy development
scheme.
The operation flood phase I was introduced in1970-81. This was
followed by phase II from 1981-87 followed by phase III from 1988 onwards.
OPERATION FLOOD
The dairy program called Operation Flood was launched in 1970 under the aegis of
NDDB. NDDB functional as the technical consultant and the rest while Indian Dairy Co-
operation as the funding agency the ideology followed by the operation flood was the
remuneration linking of rural milk producing centered with the demand centers so as to
build up a viable dairy industry.

9. There are virtually 13 major players in India, namely:
1. Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF).
2. Bihar State Co-operative Milk Producers Federation Ltd (COMPFED).
3. Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF).
4. Haryana Dairy Development Co-operative Federation Ltd (HDDCF).
5. Himachal Pradesh State Co-operative Milk Producers Federation Ltd
(HPSCMPF).
6. Karnataka Co-operative Milk Producers Federation Ltd (KCMMF).
7. Kerala Co-operative Milk Marketing Federation Ltd (KCMMF).
8. Madhya Pradesh State Co-operative Dairy Federation Ltd (MPCDF).
9. Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh).
10. Orissa State Co-operative Milk Producers Federation Ltd (OMFED).
11. Pradeshik Co-operative Dairy Federation Ltd (UP)(PCDF)
12. Punjab State Co-operative Milk Producers Federation Ltd (MILKFED)
13. Rajasthan Co-operative Dairy Federation Ltd (RCDF).
2.6 STATE SCENARIO
OPERATION FLOOD IN KERALA
The Operation Flood in Kerala was included in the second phase of
Operation Flood (1981-87) the 8th Southern district from Trivandrum to Trissur were
included in the area of the project which has a total outlay of Rs.99 crores.
The uncovered northern area from Palakad to Kasargod was thus brought
under the co-operative umbrella with the inspection of North Kerala Dairy Project.

10. KERALA CO-OPERATIVE MILK MARKETING FEDERATION
LIMITED (KCMMF)
The Kerala Co-operative Milk Marketing Federation (KCMMF)
popularly called „Milma‟ was established in April 1980 as part of Operation Flood 2nd
program, with head office at Thiruvananthapuram. It was started under the Indo Swiss
project. The project was launched in 1963 on the basis of a bilateral agreement executed
between the Swiss confederation and the Government of India. The project was made
great strides in the improvement of life stock Farming in the state. One of them is the
development of Swiss brown a cross bread suited form the state conditions. The project is
now managed by the Kerala Live Stock Board. Its main motive was to implement the
operation flood program started by NDDB in Kerala.
KCMMF has played a major role in the development of dairying in
the state. It has a strong presence in the market. With an ever increasing demand for all the
products manufactured by KCMMF, it is necessary that efforts are taken to fill in the gaps
arising out of inadequate supply.
The KCMMF is a three tier system with the primary Milk Co-
operative societies at the village level, regional milk producers union at the middle level and
an apex body at the State level. At present there are three regional co-operative milk
producers union operating.
They are:
1. Trivandrum Regional Co-operative Milk Producers Union Limited (TRCMPU).
2. Ernakulam Regional Co-operative Milk Producers union Limited (ERCMPU)
3. Malabar Regional Co-operative Milk Marketing Producers Union Limited
(MRCMPU)

11. TRCMPU (TRIVANDRUM REGIONAL CO-OPERATIVE MILK
PRODUCERS UNION LTD)
TRCMPU was established in the year 1985 as part of the
implementation of operation flood program in Kerala. The area of operation of union covers
the district Trivandrum, Kollam, Alapuzha, Pathanamthitta. All union are posed to on the
responsibility of achieving future growth in terms of procurement and marketing of liquid
milk and products and providing benefits to the consumers and producers. TRCMPU has an
elected board of members since inspection, the board meets every month to review the
working of the union and make policy decision, keeping the business interest in mind. The
union has head office situated at KHEERA BHAVAN, Pattam, and Trivandrum.
TRCMPU
Trivandrum
Kollam
Pathanamthitta
Alappuzha
Societies (APCOS)
Farmers
Chart 2.1 Structure of TRCMPU

12. Kerala Co-operative Milk Marketing Federation (KCMMF)
Trivandrum Regional Co- Ernakulam Regional Co- Malabar Regional Co-
operative Milk Producers operative Milk Producers Union operative Milk Producers
Union Limited (TRCMPU Limited (ERCMPU Union Limited (MRCMPU)
Trivandrum Ernakulam Palakkad
Kollam Kottayam Kozhikkode
Pathanamthitta Trichur Kannur
Allapuzha Idukki Wayanad
Malapuram
Kasargode
Societies (APCOS)
Farmers
Chart 2.2. Structure of KCMMF

13. FUNCTIONAL AREAS OF KCMMF
KCMMF HEAD OFFICE
Provides Staff Management functions to support its units & Regional Milk
Unions. KCMMF Head Office has well established Marketing, Purchase, Quality Control,
Finance, Project, Systems and HRD
MARKETING
Brand Management
Lean Flush Management
Bulk trading of surplus products
Institutional supply contracts
Co-ordinate promotional activities
Packaging & Product Development
Procurement & Consumer Pricing
PURCHASE
Centralized purchase of Dairy consumables
Purchase of Raw Materials for Cattle Feed Plants
Purchase functions of KCMMF Head Office
QUALITY CONTROL
Render technical & legal assistance to primary dairy Co-operatives and Regional Milk
Unions
Liaison and maintain quality of milk and milk products as per the standards
Liaison with statutory authorities for bringing in suitable amendments in statutes
Attend to consumer complaints on quality problems

14. FINANCE
Financial management of KCMMF and its units
Liaison with financial institutions for availing loan for creation of infrastructure.
Liaison with Government for availing Government financial assistance
Long term repayment and scheduling of loans
Capital Management Scheme for primary Co-operative Societies
Recommend remuneration of APCOS employees
PROJECTS
Planning and execution of projects for creating infra structure for regional Milk
Unions and KCMMF.
Providing consultancy for execution of projects.
Liaisoning with statutory authorities like Factories and Boilers, Electrical
Inspectorate, Dept.of Explosives etc for obtaining approval and implementation of
projects
Liaisoning with Government for land allocation, water, power and other amenities.
Estate management and assistance in maintenance of plant & machinery of KCMMF
units.
COMPUTER
Maintenance of systems at KCMMF, units and regional Milk Unions.
Development of software‟s to support various functions.
Purchase of Hardware & Software
Support Management Information System
Networking
Conducts Training programs of computer skills.
Maintenance of account System
HUMAN RESOURCE DEVELOPMENT
Milma family has 2098 skilled, efficient and qualified personnel and has an
excellent labour relationship.
Take active role in farming personnel policies and service rules.
Finalize long term wage settlement, bonus etc