Employee Absenteeism Report VIRAJ Exports

A Project Report On Absenteeism of Employee In VIRAJ Exports Pvt Ltd. Noida Submitted for the partial fulfillment of the requirement for the award of MASTER OF BUSINESS ADMINISTRATION (MBA) Submitted To: Submitted By: Om Prakash Vishkrwa KANCHAN KUSHWAHA Roll No. : 0901170062 MBA – IIIrdSem. United Institute of Management UPSIDC Inadustrial Area, Naini, Allahabad DECLARATION I Kanchan Kushwaha do hereby declare that this project work entitled “ABSENTEEISM” is an outcome of my study and is submitted in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION at UNITED INSTITUTE OF MANAGEMENT NAINI, ALLAHABAD. I have tried my best to follow the guidelines given by the institute for preparing the project report. Kanchan Kushwaha United Institute of Management Naini, Allahabad PREFACE There is a famous saying “The theory without practical is lame practical without theory is blind.” Absenteeism is a serious workplace problem and an expensive occurrence for both employers and employees see mingle unpredictable in nature. Human resource is an important part of any business and managing them is an important task. Summer training is an integral part of the MBA and student of Management has to undergo training session in a business organization for 6 weeks to gain some practical knowledge in their specialization and to gain some working experience. Our institution has come forward with the opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospective managers. To the emphasis on practical aspect of management education the faculty of United Institute of Management, Naini, Allahabad has with a modern system of practical training of repute and following management technique to the student as integral part of MBA. In accordance with the above obligation under going project in “VIRAJ Exports Pvt Ltd. Noida”. The title of my project is “Absenteeism of Employee” Certainly this analysis explores my abilities and strength to its fullest extent for the achievement of organization as well as my personal goal. (Kanchan Kushwaha) ACKNOWLEDGEMENT “Acknowledgement is an art, one can write glib stanzas without meaning a word, and on the other hand one can make a simple expression of gratitude” Industrial training is an integral part of any MBA program and for that purposes I had joined a private company name VIRAJ Exports Pvt. Ltd. Noida. I take the opportunity to express my gratitude to all of them who in some or other way helped me to accomplish this challenging project in Viraj Export Pvt. Ltd. Nodia. No amount of written Expression is sufficient to show my deepest sense of gratitude to them. I would like to express my sense of gratitude to our principal sir Mr. T.B Singh. I would also like to thank Mr, Rakesh kumar srivastava, head of the department, UIM for supporting me during this project and providing me an opportunity to learn outside the class room. I am extremely thankful and pay my gratitude to Mr. Pranav Kumar Singh(Head – Training & Placement Cell) United Institute of Management Naini, Allahabad for his valuable guidance and support on completion of this project in its presently. I am greatly obliged to Dr. P. Kumar(Associate Director of “Viraj exports Pvt. Ltd., Noida”) who accommodated me for training in this esteemed organization. I am very thankful to Mr. Kailash Singh( HR Manager, Viraj Exports Pvt. Ltd.) for their everlasting support and guidance on the ground of which I have acquired a new field of knowledge. A special appreciative “Thank you” in accorded to all staff of “Viraj Exports Pvt. Ltd., Noida for their positive support. I also acknowledge with a deep sense of reverence, my gratitude towards my parents and member of my family, who has always supported me morally as well as economically. Kanchan Kushwaha CONTENTS ,[object Object]

Acknowledgement_______________________________________________________ Title About Company ,[object Object]

Department in viraj exports pvt. Ltd.

Recruitment and incentive policy

Human resource department activities

Organizational structureIntroduction ,[object Object]

Peculiar Features of Absenteeism

Effect of Absenteeism on Industrial Progress

The economic impact of absenteeism and quits

Absenteeism – Types & Their Control

Guidelines & Measures for Control of Absenteeism

Dealing with Absenteeism and labour Turnover- a different approach

The BRADFORD FACTOR & AbsenteeismObjectives of the project Research Methodology ,[object Object]

Date collection and statistical tool

Assumptions in evaluation of the Absenteeism data

Limitations of the Study Analysis & Interpretation Conclusion & Suggestion Questionnaire Bibliography COMPANY PROFILE COMPANY PROFIL BASIC INFORMATION:- Company Name :Viraj Exports Pvt. Ltd. Address:C-41, Sector 57, Noida Phone No.:+91-120 2587891/92/93 Website: www.virajexports.com City:Noida State:Uttar Pradesh Business Type:Manufacture Product/Service (we sell):Ladies Garments, Children Garments Product/Service (we buy):Organic Cotton Fabrics Brand:Muah No of Employee/Worker:Above 1000 OWNERSHIP & CAPITAL Year established:1985 Registered Capital:US$501 Thousand – US$ 1 Million Ownership type:Corporation /Limited Liability Company Legal Representative/Business Owner:SHIV BHARGAVA FACTORY INFORMATION Management : ISO 9001:2000 Others Contract Manufacturing:Design Service Offered. COMPANY PROFILE Operating since 1984, Viraj Exports is a garment manufacturing and exporting firm. The manufacturing plant of the company is equipped with-in house facilities for embroidery, fabrication, finishing and packing of goods. The huge infrastructure has enabled us to deliver on time and hence won over prestigious customers for us, with whom the company has strengthened its relationship over the years by its excellent services. Sales Turnover:Not to be disclosed Year Estd:1985 Product:Blouse, Top, Shirt, Casual, Wear,Top Jacket, Shirt, Dress, Vest , Tank. Main Business Area:Garment Manufacturer Other Area of Business:Manufacturer of Garment SELLING LEADSVest :We would like to present ourselves as one of producer and exporter of Vests. Dress We are leading and reputed manufacturer and exporter of Dresses. Skirt We wish to introduce ourselves as one of the renowned producer and export of SkirtsJacket We are renowned manufacturer and exporter of Jackets. Tank Top We like to introduce ourselves as manufacturer and exporter of Tank Tops. Casual Wear We are glad to take this opportunity to introduce ourselves as a producer and Exporter of Casual Wears. Suit We are well known producer and exporter of Suits. Shirt We wish to present ourselves as manufacturer and exporter of Shirts. Tops We are professional producer and exporter of Tops. Blouse We take the pleasure in introducing ourselves as one of the leading manufacturer and exporter of Blouses. DEPARTMENT IN VIRAJ EXPORTS PVT. LTD. There are 4 main Departments in the Company: PRODUCTION DEPARTMENT: Stitching, Cutting, Washing, and Pressing. Packaging etc. SALES GROUP: Business Group. ADMINISTRATION GROUP: Security, Internal Audit, Personnel Department, Accounts, and Planning & Control Merchandiser Department. STORES: Cotton & Fabric Cotton OTHER INFORMATIONS DEPARTMENTS 1) H.R Department, 2) Finance Department, 3) Production Department, 4) R & D Department, 5) Merchandiser Department . RECRUITMENT AND INCENTIVE POLICY Recruitment in the company is done by department heads of respective department and final recruitment done by Honorable Associate Director Dr P. Kumar. In sales, incentive based on performance- with overall achievement of target, volume wise and unit wise. HUMAN RESOURCE DEPARTMENT ACTIVITIES The Functions of the Human Resource Department are: 1. EMPLOYMENT ,[object Object]

Separation2. WAGE AND SALARY ADMINISTRATION ,[object Object]

Supplemental compensation3. INDUSTRIAL RELATIONS ,[object Object]

Employee discipline4. ORGANISATION PLANNING AND CONTROL ,[object Object]

Counseling5. EMPLOYEE SERVICES ,[object Object]

ORGANISATIONAL STRUCTURE (HIERARCHY)Chief of Executive Officer (C.E.O.) Associate Director HR Production Finance Marketing Merchandiser Store Fabric Store R&D Cutting Stitching Finishing Designer Supervisor Supervisor Supervisor Supervisor Supervisor Supervisor Worker Worker Worker Worker Worker Worker INTRODUCTION REASONS TO CHOOSE THE PROJECT When I joined the training at VIRAJ EXPORTS PVT. LTD., NOIDA I was allotted the project of “ABSENTEEISM OF EMPLOYEES”. Initially it appeared to me quite a simple project, but as I started working on it only then I understood its real significance. It is often easier for the organizations to make arrangement to cover staffs, which are going to be off for long periods. However, employees taking odd days off here and there are more problematic, can have an immediate impact. If remain unchecked, this type of absence can send out the wrong signals to colleagues who, in some jobs, are likely to have to cover for those absent. If employers fail to take action, a ‘buggies turn’ mentality may emerge. Frequent absence may have serious repercussions where staff are employed in customer-facing roles or employed on production lines. The impact of absence may be most directly felt and the need to arrange cover at short notice may be paramount . ABSENTEEISM CONCEPT OF ABSENTEEISM It refers to workers absence from their regular task when he is normally schedule to work. The according to Webster’s dictionary “Absenteeism is the practice or habit of being an absentee and an absentee is one who habitually stays away from work.” According to Labour Bureau of Shimla : - Absenteeism is the total man shifts lost because of absence as percentage of total number of man shifts scheduled to work. In other words, it signifies the absence of an employee from work when he is scheduled to be at work. Any employee may stay away from work if he has taken leave to which he is entitled or on ground of sickness or some accident or without any previous sanction of leave. Thus absence may be authorized or unauthorized, willful or caused by circumstances beyond one’s control. Maybe even worse than absenteeism, it is obvious that people such as malingerers and those unwilling to play their part in the workplace can also have a decidedly negative impact. Such team members need individual attention from frontline supervisors and management. Indeed, as prevention is better than cure, where such a problem occurs, it is always important to review recruitment procedures to identify how such individuals came to be employed in the first place. For any business owner or manager, to cure excessive absenteeism, it is essential to find and then eliminate the causes of discontent among team members. If they find their supervisor or job unpleasant - really unpleasant - they look for legitimate excuses to stay home and find them with things such as upset stomachs or splitting headaches. Any effective absentee control program has to locate the causes of discontent and modify those causes or eliminate them entirely. In other words, if we deal with the real reasons team members stay home it can become unnecessary for them to stay away. Any investigation into absenteeism needs to look at the real reasons for it. Sometimes team members call in sick when they really do not want to go to work. They would not call you up and say, “I’m not coming in today because my supervisor abuses me.” Or, “I’m not coming in today because my chair is uncomfortable.” Or, “I’m not coming in today because the bathrooms are so filthy; it makes me sick to walk into them.” There are a few essential questions to consider at the outset if you want to make a measurable improvement to your absenteeism figures. Why is your present absenteeism policy ineffective? Where and when is excessive absenteeism occurring? In many cases, undertrained supervisors could be a contributing factor. What are the real causes for absences? It is commonly expected that low pay, poor benefits and high workloads will be the major causes. However, in numerous employee surveys absenteeism generally has been identified as a symptom of low job satisfaction, sub-standard working conditions and consistent negative and unfair treatment received by first-line supervisors. How much formal training have your supervisors received on absenteeism containment and reduction? If your answer is none or very little, maybe you have found the solution. As with every other element within your organization, you cannot ask a person to do a job he or she has never been trained to do. Many human resources specialists have found that repetitive, boring jobs coupled with uncaring supervisors and/or physically unpleasant workplaces are likely to lead workers to make up excuses for not coming to work. If your team members perceive that your company is indifferent to their needs, they are less likely to be motivated, or even to clock on at all. One way to determine the causes of absenteeism is to question your supervisors about excessive absenteeism, including what causes it and how to reduce it. Of course, if your supervisors have made no efforts to get to know the team members in their respective departments, they may not be able to provide reasons. However, just the act of questioning may get the ball rolling and signal to your supervisors that their involvement is important. Once a manager finds the real reasons for absenteeism there is another important step. Through open communication, you need to change the team member’s way of reacting and responding to discontent. Other problems will no doubt arise in the future. If the way of responding has not been reviewed, then the same cycle is likely to start all over again. So often absenteeism problems can be sheeted back to the supervisor level and to unsatisfactory working conditions. Without improvement in these areas, you can expect your high rate of absenteeism to continue. Absenteeism refers to unauthorized absence of the worker from his job. Absenteeism can be defined as failure of employees to report for work when they are scheduled to work. Employees who are away from work on recognized holidays, vacations, approved leaves of absence, or leaves of absence allowed for under the collective agreement provisions would not be included. In India, the problem of absenteeism is greater than other countries. When the employee takes time off, on a scheduled working day with permission, it is authorized absence. When he remains absent without permission or informing, it is willful absence without leave. In these days, when the needs of the country require greater emphasis upon increase of productivity and the economic and rational utilization of time and materials at our disposal, it is necessary to minimize absenteeism to the maximum possible extent. Recent surveys indicate the following trends in absenteeism: 1. The higher the rate of pay and the greater the length of service of the employee, the fewer the absences. 2. As an organization grows, there is a tendency towards higher rates of absenteeism. 3. Women are absent more frequently than men. 4. Single employees are absent more frequently than married employees. 5. Younger employees are absent more frequently than older employees but the latter are absent for longer periods of time. 6. Unionized organizations have higher absenteeism rates than non-union organizations. EFFECT OF ABSENTEEISM Labour absenteeism is a harmful to both the employee and the worker as follow: ,[object Object]

Overall production in the factory goes down.

Causal workers may have to be employed to meet production schedules such worker is not trained properly.

Difficulty is faced in executing the order in time.

Overtime allowance will increases considerably because of higher absenteeism.

When a number of workers absent themselves, there is extra pressure of work on their colleagues who are present.

Workers lose wages for the unauthorized absence from work.

Habitual absentees may be removed from service causing them great hardship.

MEASUREMENT OF ABSENTEEISMFor calculating the rate of absenteeism we require the number of people scheduled to work and number of people actually present. Absenteeism can be find out of absence rate method. For Example: a) Average number of employees in work force: 100 b) Number of available workdays during period : 20 c) Total number of available workdays (a x b): 2,000 d) Total number of lost days due to absences during the period: 93 e) Absenteeism percent (d [divided by] c) x 100: 4.65% Since absenteeism is a major barometer of employee morale, absenteeism above 5 percent has to be considered as very serious (across most industries 3 percent is considered standard). CAUSES: Important factors leading to absenteeism can be summarized as follows: 1. Long hours of work. 2. Bad working conditions. 3. Boredom. 4. Lack of co-operation and understanding between management and workers. 5. Sickness. 6. Accidents. 7. Occupational disease. 8. Problem of transport facilities. 9. Low wages. 10. Lack of proper medical aid and health programmes. 11. Lack of canteen services, rest rooms, etc. 12. Bad housing conditions. 13. Evil of drinking. 14. Lack of marketing facilities. 15. Social or religious festivals. 16. Harvest seasons. 17. Marriages. 18. Education of children. 19. Domestic problems and consequent worries, etc. Among these causes, in the existing Indian conditions, wage level in industries, has a direct bearing on absenteeism. Sickness on account of bad housing conditions contributes highest to industrial absenteeism. Social and religious causes can be accounted as the second important contributing factor for absenteeism. Absenteeism in industry varies from place to place, depending on the festival, marriage, harvest season and other factors. EFFECTS: Absenteeism is one of the root causes of labour unrest. It affects the worker s earnings as well as the company in the following manner: 1. Decrease in Productivity: ,[object Object]

Employees may be required to train and orient new or replacement workers.

Staff morale and employee service may suffer.2. Financial Costs: ,[object Object]

Cost of self-insured income protection plans must be borne plus the wage costs of replacement employees.

Premium costs may rise for insured plans.3. Administrative Costs: ,[object Object]

Staff time is required to maintain and control absenteeism.The definition of absenteeism, its causes, its affects on productivity, and its costs in terms of finances and administrative effectiveness are quite clear. What is not as clear is how to take affirmative action to control absenteeism in such a way as not to create mistrust, costly administration and systems avoidance. Traditional methods of absenteeism control based only on disciplinary procedures have proven to be ineffective. It is almost impossible to create a fair disciplinary procedure because even well run disciplinary systems, which treat similar actions in consistently similar ways, are usually seen as unfair. The reason for this is discipline alone usually does not identify or address the root causes of absenteeism. Every employee who takes time off in defiance of company regulations has reasons, right or wrong, which justify to themselves the legitimacy of their actions. Unless a management attendance program identifies and addresses the causes of employee absenteeism it will be ineffective and unfair. Traditional disciplinary programs alone can, at best, give the illusion of control. It is no secret that there are ways to beat even the best systems. The fear of discipline often only increases the desire to avoid management systems. If absenteeism is to be controlled, the physical and emotional needs of employees must be addressed. Incentives can be introduced to discourage absenteeism. Attendance bonus is awarded in certain establishments, merit increases and promotions are linked to minimum attendance. Good leave record of the employee is an important factor in considering him for more responsible positions. These incentives, no doubt, will be effective inducements for regular attendance and work which, in turn, will ensure efficient service. Habitual absenteeism must be treated as misconduct and it must be stated that habitual absentees are liable for disciplinary action. PECULIAR FEATURES OF ABSENTEEISM On the basis of studies undertaken certain observations may be made: a) The rate of absenteeism is lowest on payday; it increases considerably on the days following the payment of wages and bonus. The level of absenteeism is comparatively high immediately after payday. When worker either feel like having a good time or in some other cases return home to their villages family and after a holiday, has also been found to be higher than that on normal days. b) Absenteeism is generally high workers below 25 years of age and those above 40. “The younger employees are not regular and punctual”. Presumably because of the employment of a large no. of new comers among the younger age groups, while the older people are not able to withstand the strenuous nature of the work. c) The percentage of absenteeism is higher in the night shift than in the day shift. This is so because workers in the night shift experience great discomfort and uneasiness in the course of their work than they do during day time. d) Absenteeism in India is seasonal in character. It is the highest during March-April-May, when land has to be prepared for monsoon, sowing and also in harvest season (Sept-Oct) when the rate goes as high as 40%. CAUSES OF ABSENTEEISM The Royal Commission Labour observed that high absenteeism among Indian labour is due to rural orientation and their frequent urge for rural exodus. According to Acharaya “In modern industrial establishment the incidence of industrial fatigue, mal nutrition and bad working conditions aggravate that feeling for change among industrial worker and some time impel them to visit their village home frequently for rest and relaxation.” The general cause of absenteeism may be summarized as below:- 1) MALADJUSTMENT WITH FACTORY In factory the worker finds caught within factory walls, he is bewildered by heavy traffic, by strangers speaking different and subjected to strict discipline and is ordered by complete strangers to do things which he cannot understand. As a result he is under constant strain, which cause him serious distress and impairs his efficiency. All these factors tend to persuade him to maintain his contacts with village . 2) SOCIAL AND RELIGIOUS CEREMONIES Social and religious ceremonies divert workers from workers to social activities. In large number of cases incidence of absenteeism due to religious ceremonies is more than due to any other reason. 3) HOUSING CONDITIONS Workers also experience housing difficulties. Around 95% of housing occupied by industrial workers in India is unsatisfactory for healthful habitations. This leads to loss the interest in work. 4) INDUSTRIAL FATIGUE Low wages compel a worker to seek some part time job to earn some side income. This often result inconstant fatigue, which compels to remain absent for next day. 5) UNHEALTY WORKING CONDITION Irritating and intolerable working conditions exist in a factory. Heat, moisture, noise, vibration, bad lighting, dust fumes and overcrowding all these affect the workers health causing him to remain absent from work a long time. 6) ABSENCE OF ADEQUATE WELFARE ACTIVITIES High rate absenteeism is also due to lack of adequate welfare facilities Welfare activities include clean drinking water, canteen, room shelter, rest rooms, washing and bathing facilities, first aid appliances etc. 7) ALCOHOLISM Some of the habitual drunkards spend whole of their salary during first week of each month for drinking purpose. Therefore 2 or 3 weeks after getting their salary absent themselves from their work. 8) INDEBTNESS All those workers who undergo financial hardships usually borrow money lenders at interest rate which are very high, which often cumulates to more than 11 – 12 times their actual salaries. To avoid the moneylenders they usually absent themselves from work because they are unable to return the money in stipulated time. 9) IMPROPER & UNREALISTIC PERSONNEL POLICIES Due to favoritism and nepotism which are in the industry the workers generally become frustrated. This also results in low efficiency, low productivity, unfavorable relationship between employee and supervisor, which in turn leads to long period of absenteeism. 10) IN ADEQUATE LEAVE FACILITIES Negligence on part of the employee to provide leave facility compel the worker to fall back on ESI leave. They are entitled to 50 days leave on half on pay. Instead of going without pay the worker avail themselves of ESI facility EFFECTS OF ABSENTEEISM ON INDUSTRIAL PROGRESS It is quite evident from the above figures that absenteeism is a common feature of industrial labour in India. It hinders industrial growth and its effect in two fold. 1) LOSS TO WORKER Firstly due to the habit of being absenting frequently worker’s income is reduced to a large extent. It is because there is a general principle of “no work – no pay”. Thus the time lost in terms of absenteeism is a loss of income to workers 2) LOSS TO EMPLOYERS On other hand, the employer has to suffer a greater loss due to absentees. It disturbs the efficiency and discipline of industries consequently, industrial production is reduced. In order to meet the emergency and strikes, an additional labour force is also maintain by the industries. On certain occasions, those workers are employed who present themselves at factory gates. During strikes they are adjusted in place of absent workers. Their adjustment brings serious complications because such workers do not generally prove themselves up to work. Higher absenteeism is an evil both for workers and the employers and ultimately it adversely affects the production of industries. THE ECONOMIC IMPACT OF ABSENTEEISM AND QUITS Gauging precisely the cost impact of absenteeism and turnover is difficult. From its collective experience, the study team identified the following effects of high levels of absenteeism and turnover: — Increased manpower complement to meet staffing needs. — Loss of revenues from not meeting project schedules. — Administrative cost to recruit process and train new employees. — Lost efficiency in work crews with new or inexperienced members. — Underutilization of capital investments (tools, equipment). — Interruption of work flow and task accomplishment. — Misallocation of skills and talents of employees. — Increased demand for administrative time and resources for planning and rescheduling. — Increased overtime and employee fatigue. — Lower morale. The cost impact of many of these items will vary, depending on circumstances and management's ability to recognize the problems and to deal with them effectively. The wasted man-hours from certain direct effects, however, can be more readily estimated. In making a conservative estimate of the cost improvement incentive, only these direct, more easily quantifiable effects were considered. The main direct impacts of absenteeism on productivity are: 1. Time spent by crew members (others) waiting for replacements. 2. Time spent moving replacements to and from other work locations. 3. Lost time by supervisory personnel in reassignment of work activities and locating replacements. The study team estimated that, on average, these direct effects result in a total of 12 man-hours of paid time wasted, for each worker absent. Thus, each 1% increase in daily absenteeism produces a 1 1/2% increase in labor costs, as illustrated by the following computation for a hypothetical 100- man job: Added cost Non-productive man-hours Due to 1% = = Absenteeism Productive man-hours if no absences1 man absent (1% x 100 men) x 12 man-hours = 0.015 100 men x 8 hours 800= 1 1/2 % . . . Or a 15% increase in direct labor cost for 10% absenteeism. Therefore, a reduction in average absenteeism from 10% to 5% would decrease labor costs by 7 1/2 %. For turnover, the principal cost effects are: 1. All of the absentee-costs plus: 2. Payroll and clerical (administrative) costs associated with terminating and hiring. 3. Workers non-productive time (portions of the first and last day). 4. Disruption of other workers on the job site. The study team estimated that these effects, on average, result in 24 man-hours of paid time wasted for each resignation ANALYSIS OF CAUSES 1) FAMILY ORIENTED & RESPONSIBILITES It was observed that about 40% case absenteeism is family oriented and more responsibilities of workers. It increases in harvesting season. 2) SOCIAL CEREMONIES In 20 % cases it was found that social and religious functions divert worker from work. 3) HOUSING FACILITY In about 30% cases, the workers remain absent because there is no housing facilities and the workers stay alone and great distance from factory. 4) SICKNESS AND ACCIDENT In 20% case the workers remain absent due to ill health and disease and in 15% cases workers remain absent due to accident. 5) TRANSPORTATION Most of the workers have to travel long distance to reach the work place. Most of the workers are not satisfied with transport facilities. 6) WELFARE FACILITES In 13% cases, the workers are not satisfied with welfare facilities. 7) WORKING CONDITIONS In 21% cases, the workers feel that there is not good working condition, because they work in standing position which causes to remain absence for relaxation. 8) MANAGEMENT SYSTEM Near about 34% people are dissatisfied with management system because they feel that their work is not being recognized and promotions are biased. ABSENTEEISM - TYPES & THEIR CONTROL There are two types of absenteeism, each of which requires a different type of approach. 1. INNOCENT ABSENTEEISM Innocent absenteeism refers to employees who are absent for reasons beyond their control; like sickness and injury. Innocent absenteeism is not culpable which means that it is blameless. In a labour relations context this means that it cannot be remedied or treated by disciplinary measures. 2. CULPABLE ABSENTEEISM Culpable absenteeism refers to employees who are absent without authorization for reasons which are within their control. For instance, an employee who is on sick leave even though he/she is not sick, and it can be proven that the employee was not sick, is guilty of culpable absenteeism. To be culpable is to be blameworthy. In a labour relations context this means that progressive discipline can be applied. For the large majority of employees, absenteeism is legitimate, innocent absenteeism which occurs infrequently. Procedures for disciplinary action apply only to culpable absenteeism. Many organizations take the view that through the process of individual absentee counselling and treatment, the majority of employees will overcome their problems and return to an acceptable level of regular attendance. COUNSELLING INNOCENT ABSENTEEISM Innocent absenteeism is not blameworthy and therefore disciplinary action is not justified. It is obviously unfair to punish someone for conduct which is beyond his/her control. Absenteeism, no matter what the cause, imposes losses on the employer who is also not at fault. The damage suffered by the employer must be weighed against the employee's right to be sick. There is a point at which the employer's right to expect the employee to attend regularly and fulfill the employment contract will outweigh the employee's right to be sick. At such a point the termination of the employee may be justified, as will be discussed. The procedure an employer may take for innocent absenteeism is as follows: 1. Initial counselling(s) 2. Written counselling(s) 3. Reduction(s) of hours and/or job reclassification 4. Discharge Initial Counseling Presuming you have communicated attendance expectations generally and have already identified an employee as a problem, you will have met with him or her as part of your attendance program and you should now continue to monitor the effect of these efforts on his or her attendance. If the absences are intermittent, meet with the employee each time he/she returns to work. If absence is prolonged, keep in touch with the employee regularly and stay updated on the status of his/her condition. (Indicate your willingness to assist.) You may require the employee to provide you with regular medical assessments. This will enable you to judge whether or not there is any likelihood of the employee providing regular attendance in future. Regular medical assessments will also give you an idea of what steps the employee is taking to seek medical or other assistance. Formal meetings in which verbal warnings are given should be given as appropriate and documented. If no improvement occurs written warning may be necessary. Written Counseling If the absences persist, you should meet with the employee formally and provide him/her with a letter of concern. If the absenteeism still continues to persist then the employee should be given a second letter of concern during another formal meeting. This letter would be stronger worded in that it would warn the employee that unless attendance improves, termination may be necessary. Reduction(S) of Hours and or Job Reclassification In between the first and second letters the employee may be given the option to reduce his/her hours to better fit his/her personal circumstances. This option must be voluntarily accepted by the employee and cannot be offered as an ultimatum, as a reduction in hours is a reduction in pay and therefore can be looked upon as discipline. If the nature of the illness or injury is such that the employee is unable to fulfil the requirements of his/her job, but could for example benefit from modified work, counsel the employee to bid on jobs of such type if they become available. (N.B. It is inadvisable to quot;
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a job around an employee's incapacitates particularly in a unionized environment. The onus should be on the employee to apply for an existing position within his/her capabilities.) Discharge Only when all the previously noted needs and conditions have been met and everything has been done to accommodate the employee can termination be considered. An Arbitrator would consider the following in ruling on an innocent absenteeism dismissal case. a) Has the employee done everything possible to regain their health and return to work? b) Has the employer provided every assistance possible? (i.e. counseling,support,time off.) c) Has the employer informed the employee of the unworkable situation resulting from their sickness? d) Has the employer attempted to accommodate the employee by offering a more suitable position (if available) or a reduction of hours? e) Has enough time elapsed to allow for every possible chance of recovery? f) Has the employer treated the employee prejudicially in any way? As is evident, a great deal of time and effort must elapse before dismissal can take place. These points would be used to substantiate or disprove the following two fold test. 1. The absences must be shown to be clearly excessive. 2. It must be proven that the employee will be unable to attend work on a regular basis in the future. CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM As already indicated, culpable absenteeism consists of absences where it can be demonstrated that the employee is not actually ill and is able to improve his/her attendance. Presuming you have communicated attendance expectations generally, have identified the employee as a problem, have met with him/her as part of your attendance program, made your concerns on his specific absenteeism known and have offered counseling as appropriate, with no improvement despite your positive efforts, disciplinary procedures may be appropriate. The procedures for corrective/progressive discipline for culpable absenteeism are generally the same as for other progressive discipline problems. The discipline should not be prejudicial in any way. The general procedure is as follows: [Utilizing counseling memorandum] 1. Verbal Warning(s) 2. Written Warning(s) 3. Suspension(s) 4. Discharge Verbal Warning Formally meet with the employee and explain that income protection is to be used only when an employee is legitimately ill. Advice the employee that his/her attendance record must improve and be maintained at an improved level or further disciplinary action will result. Offer any counselling or guidance as is appropriate. Give further verbal warnings as required. Review the employee's income protection records at regular intervals. Where a marked improvement has been shown, commend the employee. Where there is no improvement a written warning should be issued. Written Warning Interview the employee again. Show him/her the statistics and point out that there has been no noticeable (or sufficient) improvement. Listen to the employee to see if there is a valid reason and offer any assistance you can. If no satisfactory explanation is given, advise the employee that he/she will be given a written warning. Be specific in your discussion with him/her and in the counselling memorandum as to the type of action to be taken and when it will be taken if the record does not improve. As soon as possible after this meeting provide the employee personally with the written warning and place a copy of his/her file. The written warning should identify any noticeable pattern If the amount and/or pattern continue, the next step in progressive discipline may be a second, stronger written warning. Your decision to provide a second written warning as an alternative to proceeding to a higher level of discipline (i.e. suspension) will depend on a number of factors. Such factors are, the severity of the problem, the credibility of the employee's explanations, the employee's general work performance and length of service. Suspension (only after consultation with the appropriate superiors) If the problem of culpable absenteeism persists, following the next interview period and immediately following an absence, the employee should be interviewed and advised that he/she is to be suspended. The length of the suspension will depend again on the severity of the problem, the credibility of the employee's explanation, the employee's general work performance and length of service. Subsequent suspensions are optional depending on the above condition. Dismissal (only after consultation with the appropriate superiors) Dismissals should only be considered when all of the above conditions and procedures have been met. The employee, upon displaying no satisfactory improvement, would be dismissed on the grounds of his/her unwillingness to correct his/her absence record. GUIDELINES & MEASURES FOR CONTROL OF ABSNTEEISM Absenteeism is a disease that appears whenever a company fails to inoculate itself through the use of sound management practices. To cure excessive absenteeism, one has to know the exact causes and then examine the available, workable and proven solutions to apply against those causes. To embark upon a successful absenteeism reduction program, you need to make sure you have some basic information and facts about absenteeism in your company. Consider the following four questions, which should help you further focus your ideas and put a plan into action. Q. Why is your present absenteeism policy ineffective? Absenteeism policies vary in effectiveness. Most ineffective policies I have reviewed have a common denominator: They allow quot;
excusedquot;
absences, whereas those that do work are quot;
no faultquot;
policies. Q. Where and when is excessive absenteeism occurring? Numerous studies have concluded that under trained supervisors is one of the main causes of absenteeism. Therefore, any company experiencing absenteeism of greater than 3 percent should consider supervisors as a potential contributor to the problem. Given that this may be the case, you first should check the percentage of employee absenteeism by supervisor to see if it is concentrated around one or two supervisors. If it is, you've begun to uncover the obvious--undertrained supervisors. If, however, your research reveals that the rate of absenteeism is almost equally distributed throughout your factory, you will need to investigate other possible causes. Q. What are the real causes for absences? People-oriented companies are very sensitive to employee opinions. They often engage in formal mini-studies to solicit anonymous employee opinions on topics of mutual interest. These confidential worker surveys commonly ask for employee opinion regarding higher-than-normal absenteeism. In other words, employees revealed that repetitive, boring jobs coupled with uncaring supervisors and/or physically unpleasant workplaces led them to make up excuses for not coming to work, such as claiming to be sick. One way to determine the causes of absenteeism is to question your supervisors about their employees' excessive absenteeism, including what causes it and how to reduce it. Q. How much formal training have your supervisors received on absenteeism containment and reduction? If you find that your supervisors hesitate to provide meaningful answers to your questions, then you're on the right track toward a solution. Ask yourself, quot;
How much formal training have I given my supervisors in the areas of absenteeism reduction and human resources skills?quot;
If your answer is none or very little, your solution can't be far behind. The fact of the matter is, you cannot ask a person to do a job he or she has never been trained to do. Following are the measures to control absenteeism:- 1) ADOPTION OF A WELL DEFINED RECRUITMENT PROCEDURE The selection of employees on the basis of command, linguistic and family consideration should be avoided. The management should look for aptitude and ability in the prospective employees and should not easily yield or pressure of personal likes and dislikes. Application blanks should invariably be used for a preliminary selection and tools for interviews. The personal officer should play more effective role as coordinator of information, provided that he has acquired job knowledge in the function of selection. Employers should also take into account the fact that selection should be for employee’s development, their reliance. They should as far as possible rely on employment exchange. 2) PROVISION OF HEALTHFUL AND HYGENIC WORKING CONDITION In India, where the climate is warm and most of the work involves manual labour, it is essential that the workers should be provided with proper and healthy working conditions. The facilities of drinking water, canteens, lavatories, rest rooms, lighting and ventilation, need to be improved. Where any one of these facilities is not available, it should be provided and all these help in keeping the employee cheerful and increase productivity and the efficiency of operations throughout the plant. 3) PROVISION OF REASONABLE WAGES AND ALLOWANCE AND JOB SECURITY TO WOTRKERS The wages of an employee determine his as well as his family standard of living. This single factor is important for him than other. The management should, therefore pay reasonable wages and allowances, taking into account the capacity of the industry to pay. 4) MOTIVATORS WELFARE AND SOCIAL MEASURES The management should consider the needs of workers and offer them adequate and cheap housing facilities, free of subsidized food, free medical and transport facilities, free education facilities for their children and other monetary benefits. As for social security is concern, the provision of Provident Fund, SBI facilities, Gratuity and Pension, all those need to be improved. 5) IMPROVED COMMUNICATION AND PROMPT REDRESSAL OF GRIEVANCES Since a majority of the workers are illiterate or not highly educated bulletins and written notices journals and booklets are not easily understood by them. Meetings and concealing are called for written communication becomes meaningful only when workers can readied understood them, too many notices should be avoided only the essential ones should be put on the boards, which should be placed near the entrance inside the canteen and in areas which are frequently visited by the workers so that they are aware of the policies of the company and any sort changes being made. 6) LIBERAL GRANT OF LEAVE The management’s strict attitude in granting leave and holidays even when the need for them is genuine, tempts workers to go on E.S.I. leaves for under this scheme, they can have 56 days leaves in years on half pay. An effective way of dealing with absenteeism is to liberalize leave rules. 7) SAFETY AND ACCIDENT PREVENTION Safety at work can be maintained and accidents can be prevented if the management tries to eliminate such personal factors as negligence, overconfidence, carelessness, vanity, etc and such material factorizes unguarded machinery and explosives, defective equipment and hand tools. Safe methods of operation should be taught. In addition consistent and timely safely instruction, written instructions (manual) in the regional language of the area should be given to the work force. 8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND WORKERS The supervisor should be recognize that industrial work is a group’s task and cannot be properly done unless discipline is enforced and maintained. Cordial relations between the supervisors and these workers are therefore essential for without them, discipline cannot be increased. One of the consequences of unhealthy relations between supervisors and subordinates is absenteeism. 9) DEVELOPMENT OF WORKERS BY TRAINING The system of worker’s education should be so designed as to take into account their educational needs as individuals for their personal evaluation, as operatives for their efficiency and advancement, as citizens for happy integrated life in the community, as members of a trade union for the protection of their interests. The educational programs according to their national commission on Labour should be to make a worker:- a) A responsible, committed and disciplines operative. b) Aware of his rights and obligations. c) Lead a calm, clean and health life, based on a firm ethical foundation. d) A responsible and alter citizen. Dealing with Absenteeism and labour Turnover- a different approach If you can’t eliminate the cause just minimize its effect. Absenteeism and labour turnover have long been major cause of worry among the garment manufacturers. Everyone on board the apparel industry bandwagon has been putting efforts to find a permanent solution for this problem. Unfortunately, there is no magic spell; various steps at different levels have to be taken to bring this problem under control. This article takes a two prong approach to tackle this problem. The first part attempts to highlight issues that can attack on the root cause and reduce the problem and the second part devises a system to minimize its effect on the floor. It does not fundamentally solve the problem but of course it is a way forward. Company Policy It is a well known fact in the Northern India that many companies have a policy to release labour every 6 months and then re-employ them after a month’s break; the question needs to be asked whether this policy helps or harms. In lure of immediate benefits are we ignoring long term losses. This policy should be re-considered if India is to reach the efficiency performance levels necessary to compete with the rest of the world. The effect of this policy on the workers must be considered, why should they have any loyalty to the company if the company has no loyalty to them? How would you like to work in a situation where your job stops every 6 months and you have to find new employment, how would you get any stability into your life? Many companies in the country work without the above policy. I asked the managing director of one of the larger and well respected companies (who employ their people on a continuous basis) what they do in the periods where work is in short supply, his response was that labour turnover solved the problem since they just stopped employing new operators during this period, so although the offer of permanent employment does not solve the labour turnover issue completely, it does reduce it, and in times of short supply of work the labour force can be reduced easily to minimize financial losses without resorting to firing off the entire staff. The role of the Personnel Department There is no doubt personnel departments must assist in a much more pro-active way to solve the problems and I would like to suggest that members of this department become responsible for the absenteeism and labour turnover for sections of the factory, and for the fundamental labour disciplines required to make the company more productive, these disciplines to be handled as follows 1. One personnel person to handle a number of sewing lines and produce figures showing the labour statistical information 2. To be responsible for operators on the sections allocated to them, to see that they start on time, to discipline late comers, and for this they need to be on the factory floor BEFORE starting time. A late start of 15 mins in a factory of 500 operators is equivalent to a loss of 3% productivity! 3. To ensure that managers and supervisors are in place BEFORE starting time 4. To interview all absentees on their return to establish their reasons 5. To establish how the company can reduce the current absentee levels The above was actually done in one of the factories we were involved with and it had the effect of reducing the absenteeism by 50% The effect on Production Managers and Supervisors It is extremely difficult to increase efficiency in an assembly process when an absenteeism level of 10 -16% Is the order of the day. The supervisors job is difficult enough without having to cope with such a daily operator replacement situation, and with the industry still growing the pool of highly skilled labour that waits outside your door in the hope of employment is growing smaller and smaller. The industry has moved away from “Tailors” (people who can make the whole garment) to “Operators” (people who can perform up to 3 operations to a satisfactory performance level) and with buyers demanding lower and lower prices the pressure on companies to improve productivity performance and to lower lead times is ever increasing The effect of high labour turnover and absenteeism is as follows: 1. The supervisor has to show the new operator how to do the job 2. Assuming the line has 50 operators (machinists and others) then an absentee level of 15% means 7- 8 replacements 3. How can we expect the supervisor to cope with training these new people AND obtain a satisfactory level of efficiency and quality? 4. At least 50% of the first day is lost before the new operator is working on the operation they have been employed for 5. The efficiency of the new employee is generally much lower than the person he/she is replacing 6. The quality level is immediately suspect and repairs will occur - the repair rate will increase, which will lower efficiency whilst faulty garments are corrected. 7. A bottleneck is created due to the newness of the operators 8. Operations following the one replaced will slow down due to the lack of supply 9. Overtime has to be worked to correct these effects overtime is paid at double pay rates. 10. Efficiency levels drastically reduce during overtime. Flying Squad What is it? The introduction of a team of multi skilled people who are on the company role, not allocated to any specific section of the factory who can be used to plug the gaps caused by absentees, help to maintain productivity levels. a) It is a team of highly multi skilled operators who are intended to replace daily absenteeism and to help to eliminate bottlenecks and help to train poor performers on the factory floor ,[object Object]

Co-operative and helpful personality

Able to perform more than 6 operations and a satisfactory performance levelb) It is necessary to establish the level of Absenteeism to determine the size of the group c) Flying squad operators will be paid at a higher rate than normal operators d) They will be expected to wear a specifically colored overall / Cap to signify their position How does it work? 1- IE in charge will be responsible to distribute them daily in consultation with Production manager. 2- The operators to be included in the flying squad will be taken from the production floor, is a good idea to advertise the offer and select from those who apply. 3- Operators used in Flying squad will be replaced by good operators in the line who are not doing important jobs; these will be replaced with the best trainees available 4- Flying squad operators will be distributed proportionally to each area of the factory 5- Every morning flying squad operators will be distributed by the Production manager of the relevant department in conjunction with the Workstudy head of that department. 6- There will be a board in front of every section with 10 red lights on it, the supervisor will indicate the number of people he/she require replacements for and switch on the appropriate number of lights. 7- There will be a clipboard adjacent to the lights with the following checklist which will be designed to last for one month. a. Date b. Section Name c. Supervisor d. Replacements required e. Replacements given f. Time given g. Balance h. Remarks i. Supervisor signature j. Checked by 8- Supervisor will make a request for FS operators daily in a duplicate book, this entry to be signed by W/S and a copy detached for the allocation of operators and a second copy retained in the book – this to be done within 20 minute of the starting time 9- Work-study head will allocate required operators to every line from flying squad. This to be done immediately. 10- W/S analyst will check the method employed by the FS operator to ensure maximum efficiency 11- If there are any operators left after allocation they will be at the disposal of the Production manager for allocation. 12- After replacement supervisor will switch off the light. If replacement has not been done lights will be left on to show the number of operators missing from the section. 13- All of the above processes to be completed within 40 minutes of the starting time. 14- After the first hour the Production manager and the W/S head will visit every department to ensure that sufficient corrective action has taken place 15- It is the responsibility of the Production manager / Line in charge to assist with the line balancing of any section who has not received the number of operators required to replace the absentees 16- Flying squad operators will only be allocated to an operation for a period of 3 days, after this time the training school must provide a replacement for the missing operator. 17- Flying squad operators will be included in the section in Pro-Man reports 18- A weekly report must be produced by the W/S department listing the performance of the FS operators, this to be discussed with General Manager and W/S head to ensure that FS personnel are performing to a satisfactory level. 19- If FS personnel do not perform satisfactorily they will not be allowed to continue in the FS and will be transferred back to their original section. We feel that a system such as this requires proper disciplines to make it work in the longer term, there is no point in setting this up without the necessary backing otherwise it will work for a short time and then stop. The effects of such a system will produce excellent results THE BRADFORD FACTOR & ABSENTEEISM The Bradford Factor is a Human Resources tool used by many organizations to measure and identify areas of absenteeism. The theory is that short, frequent and unplanned absences are more disruptive than longer absences. It is based on the fact that it is normally easier to make arrangements to cover for staffs who are going to be off for long periods, and which are more likely to be suffering from a genuine illness. However, employees taking odd unplanned days off here and there actually cause more disruption to the business. If this pattern is repeated regularly, the employee will have a high Bradford Factor score; which may raise questions about how genuine the illness actually is. The formula for the Bradford Factor is: E x E x D = Bradford Factor Score Where E is the number of episodes of absence and D is the total number of days absent in a rolling 52 week period. So, for employees with a total of 10 days absence in one year, the Bradford Factor score can vary enormously, depending on the number of episodes of absence involved. For example: One absence episode of 10 days is 10 points (i.e. 1 x 1 x 10) Five absence episodes of two days each is 250 points (i.e. 5 x 5 x 10) Ten absence episodes of one day each is 1,000 points (i.e. 10 x 10 x 10) How do organizations use the Bradford Factor? There are no set rules for using the Bradford Factor; it is down to each organization to determine the ways in which it uses the score. However, used effectively, the Bradford Factor can reduce absenteeism dramatically, serving as a deterrent and a method for tackling persistent absenteeism. Studies have shown that by educating staff about the Bradford Factor, and then showing them their score on a regular basis, absenteeism can be reduced by over 20%. This is largely down to staff understanding that taking the odd day off here and there will quickly multiply their Bradford Factor score. The Bradford Factor places a value on the absence which an employee can clearly see. Where the absence is not absolutely necessary, this can serve to deter absenteeism. When this is used in conjunction with a points system the Bradford Factor can be effectively utilized to deter unnecessary absenteeism. For example the Bradford Factor can be utilized by creating “triggers” whereby certain actions are taken when an employee’s Bradford score reaches a certain point. For example, the UK Prison Service has used the following triggers: ,[object Object]

201 points – written warning

601 points – dismissalSetting these triggers is entirely dependent on the organization using the Bradford Factor. It is usually advisable to use the Bradford Factor as one of a number of absence policies. However, setting these triggers and making staff aware of them, in addition to taking action, resulted in the Prison Service reducing absenteeism by 18%. By implementing mandatory procedures for tackling absenteeism across an organization led by the Bradford Factor, an organization can remove the potential for differences across teams and management and remove the difficulties and reluctance that line managers often face when having to discipline a close staff member. The Bradford Factor can provide organizations with a two pronged method for tackling absence: proactively deterring absence in the first place and utilizing a set procedure to identify and tackle persistent absenteeism. Implementing the Bradford Factor Calculating the Bradford Factor for one member of staff over a given period is not a difficult proposition. However, calculating the Bradford Factor over a rolling 52 week period, across multiple teams and locations and considering different types of absence is a very difficult task. As a result of the exponential nature of the formula {E x E x D}, even the slightest mistakes in calculation can result in a wide variance of an employee’s Bradford Factor score. For example: For an employee who has had 10 days off in a year in total, on two separate occasions: 2 X 2 X 10 = 40 {which does not trigger a warning – fewer than 50} However, if their absence is either not recorded correctly, or is calculated wrong by just one day: 3 X 3 X 10= 90 {which does trigger a warning – over 50} You can see that their score is more than double, despite the small mistake. Getting the formula the wrong way round can have even more significant results: 10 X 10 X 2 = 200 {which would trigger disciplinary proceedings – over 200} If an organization wants to tackle absenteeism effectively, using the Bradford Factor, including using an employee’s Bradford Factor score in potential disciplinary proceedings, then the process for calculating the Bradford Factor has to be full proof, consistent and equal. To achieve this, an organization will need to ensure: Absence reporting and monitoring is consistent, equal and accurate both over time and across the whole organization. The calculation of an employee’s Bradford Factor score is based on these accurate, equal and updated absence records. Management and staff have access to updated Bradford Factor scores. Without these processes in place the calculation of the Bradford Factor is extremely difficult and time consuming. In addition to this; unequal processes for reporting and calculating the Bradford Factor could be discriminatory; everyone’s Bradford Factor score should be subject to the same, indisputable criteria. OBJECTIVES OF THE PROJECT OBJECTIVES OF THE PROJECT The objectives of the project are: To understand and analyze: 1. To know the main causes of absenteeism Viraj Exports Pvt. Ltd.? 2. To the effects of the unauthorized absenteeism by the employees in the company? 3. To know the current disciplinary actions taken by the HR dept. for reducing absenteeism? 4. To know the attitude of employees towards these disciplinary actions? 5. To know what factors to be considered in order to reduce absenteeism? Thus, the above objectives have been observed and analyzed in a detailed manner in this project report. I have made an attempt to go into root causes of the subject by using the various techniques of Research Methodology. RESEARCH METHODOLOGY RESEARCH METHODOLOGY A project is like a journey and it is always better to have at least the faintest of ideas of the probable direction of our destination. Initially we have to decide upon the general area of interest or the aspect of the subject to inquire into. This decision is rather broad and not very precise. It is crude indication of the purpose of the study and is of little help for further planning and organization of the study. The research reveals that one of the major problems is absenteeism in our industry. Absenteeism hinders planning, production, efficiency and functioning of the organization. In fact high rates of absenteeism affect an organization state of health and also supervisory and managerial effectiveness. Research Methodology is defined as a more systematic activity directed towards discovery and the development of an organized body of knowledge. An efficient research contributes to the evaluation of a proper decision, which ultimately affects the path the organization will choose. The data collected is of paramount importance and hence the research process has to be effective and an efficient one. Research Methodology involves adopting various techniques which are best suited for the research and study of the problem, for investigation and analysis of the problem. It starts with data collection from various sources i.e., primary and secondary sources, data analysis and interpretation and finally the findings or conclusion from the analysis. In this project, Primary data was collected by Questionnaire Survey. The workmen selected for the interview purpose were from the hourly rated workmen segment, which affect the production directly, in case they remain absent. A random selection of samples from the workmen segment was done in the company. There are 289 hourly rated workmen, from which 25 groups of 11 members each were formed. From these groups, one workman was selected randomly as sample to avoid any bias. Thus, 50 workmen were selected for survey through the questionnaires prepared. This helped to be fair to all by not keeping in view the past record of absenteeism of individuals. The secondary data was collected from: ,[object Object]

Leave records of employees.After the collection of data, the response of the 50 individuals were arranged in a chronological pattern and then evaluated. Many inferences could be drawn from both the primary as well as secondary data available which are put forth in the analysis section. It is often beneficial to undertake an intensive study of a few well selected instances of the phenomenon of interest. The method demands for great sensitivity and receptivity on our part. As new information pours in, the study is reformulated and redirected. Hence, to be on the safer side, it would always be wise to work keeping a particular method in mind. 1) OBJECTIVES OF RESEARCH i. To identify the rate of absenteeism of “worker”. ii. To identify the causes of absenteeism. iii. To suggest any measures to reduce the rate of absenteeism 2) SAMPLE SELECTION AND SIZE The population for the study comprised of absentees for current year, the total sample 50 workers. 3) DATE COLLECTION AND STATISTICAL TOOL The sources of data for the purpose of study were both primary and secondary. Primary data was collected through questionnaire which was mainly close-ended questionnaire and discussion with workers whereas secondary data was collected from records maintained by personal department and time office. Percentage method is used for the analysis of data and bar graphs are used to present that data ASSUMPTIONS IN EVALUATION OF THE ABSENTEEISM DATA 1. As per the objectives of the project, the analysis is to be done to find out the causes of absenteeism and also to know the disciplinary action taken against them. The following data was referred to draw the inferences: ,[object Object]

Leave record of the employees.2. From the monthly and yearly data, the monthly trends of absenteeism can be observed by division of leaves in the following 2 categories: ,[object Object]

Unpaid leave: Authorized Leave (AL), Certified Sickness Leave (CS), and Unauthorized Absence (UA).3. The leave record is maintained from the month of January to December. The monthly salary is calculated from 20th of the starting month to the 21st of the next month with reference to the leave record. 4. The settlement agreement mentions the consumption of leave by an individual worker per annum as: ,[object Object]

Sick Leave 10 p.a.LIMITATION OF THE STUDY There are some limitations for research which are as follows:- a) As it was not possible to visit each department the true picture of working condition could not be judged. b) The workers were busy with their work therefore they could not give enough time for the interview. c) The personal biases of the respondents might have entered into their response. d) Some of the respondents give no answer to the questions which may affect the analysis. e) Respondents were reluctant to disclose complete and correct information Because of a small period of time only small sample had to be considered which doesn’t actually reflect and accurate and intact picture ANALYSIS & INTERPRETATION Q.1 For how many years you are working with Viraj Exports Pvt. Ltd.? ,[object Object]

c) 2 to 4 Year d) >5 YearOptionabcdTotalResponse513151750%10263034100 INTERPRETATION – It can be seen that 34% of the workers at Viraj Exports Pvt. Ltd. are working within more than 5 Years, 26% worker are working within 1 to2 yrs, 30% worker are working within 2 to 4 yrs, whereas 10% are working within 1 yrs. Q.2 How often you remain absent in a month? a) Nil b) Once c) Twiced) >Twice OptionAbcdTotalResponse26107550%56201410100 INTERPRETATION - It can be seen that 56% of the workers do not remain absent. Q.3 According to you what are the main reasons for employees absent? a) Health Problemb) Stress c) Work Dissatisfactiond) Working environment OptionabcdTotalResponse25115950%50221018100 INTERPRETATION - According to 50% workers, Health problem is the reason for being absent. 22% think that stress can also be the reason for absent being. Q.4 Your views regarding present Absenteeism Policy of Viraj Exports Pvt. Ltd.? a) Excellentb) Good c) Faird) Don’t Know OptionabcdTotalResponse121811950%24362218100 INTERPRETATION - It can be seen that 36% workers rate the present absenteeism policy as good whereas 24% rate it as excellent. Q.5 Are you clear about your work / job responsibilities? a) Well Clear b) Good c) Fairly Clear d) Don’t Know OptionabcdTotalResponse21168550%42321610100 INTERPRETATION - It can be seen that 42% of the workers at Viraj Exports Pvt. Ltd. are clear regarding their work responsibilities. Q.6 Are you satisfied with your work? ,[object Object]

c) Faird) Not SatisfiedOptionabcdTotalResponse191511550%38302210100 INTERPRETATION - 38% of the workers are fully satisfied with their work whereas 30% workers think their work as good. Q.7 Your Views regarding working environment of Viraj Exports Pvt. Ltd.? ,[object Object]

c) Faird) PoorOptionabcdTotalResponse141812650%28362412100 INTERPRETATION - 36% workers feel that the working environment at Viraj Exports Pvt. Ltd. is good & 28% feel it as excellent. Q.8 How are your relations with your superiors/Co-worker? ,[object Object]

c) Faird) PoorOptionabcdTotalResponse10259650%20501812100 INTERPRETATION - 50% workers have good relations with the superiors whereas 20% have excellent relations with the superiors. Q.9 Yours superiors behavior towards your problem? ,[object Object]

c) Faird) PoorOptionabcdTotalResponse201311650%40262212100 INTERPRETATION - 40% workers think that their superior’s behavior toward their problems is excellent & 26% workers consider it as good. Q. 10 Yours views regarding facilities provided Viraj Exports Pvt. Ltd.? ,[object Object]

c) Faird) PoorOptionabcdTotalResponse52515550%10503010100 INTERPRETATION – 50% workers consider that facilities provided to them are good whereas 10% consider them as excellent. Q.11 Is your salary structure adequate? a) Yes b) No OptionabTotalResponse262450%5248100 INTERPRETATION – 52% of the workmen are satisfied with their salary structure while 48% of them are not happy about the present salary structure as it is not adequate for them. Q.12 How is your family condition and family atmosphere? a) Satisfactory b) Average c) Unsatisfactory OptionabcTotalResponse20121850%402436100 INTERPRETATION – It can be observed that 40% of the workmen s family condition is satisfactory while 24% of them are unsatisfied. Q.13 Disciplinary actions taken by management on absenteeism have reduced absenteeism in our company. a) Not at all b) To some Extent c) To great highlyd) Extent True OptionabcdTotalResponse08241850%0164836100 INTERPRETATION –It can be observed from the above chart that 48% of workmen accept that disciplinary actions taken by management have reduced absenteeism to a very great extent. The company has very strict rules policy. However those who have breached the rules are given warnings, show cause notices or suspension. Q 14. How many paid leaves are availed by you per annum? a) 1 to 2 daysb) 3 to 5 days c) 6 to 10 days d) More than 10 days OptionabcdTotalResponse24261850%4165236100 INTERPRETATION – It can be seen that 52% of workmen take around 6 -10 days of paid leaveswhile 36% of the workmen avail more than 10 days paid leave per annum Q.15 How many unpaid leaves are availed by you per annum? a) 1 to 2 daysb) 3-5 days c) 6 to10 daysd) More than 10 days OptionabcdTotalResponse81226450%1624528100 INTERPRETATION –It can be observed that 52% of the workmen take 6-10 days of unpaid leave while 24% of workmen avail 3-5 days leave per annum. Q.16 Are you aware of the leave rules of the company? a) Not at all c) To some Extent b) To great stronglyd) Extent Aware OptionabcdTotalResponse410142250%8202844100 INTERPRETATION –From the above chart, it is observed that 44% of the workmen are strongly aware of the leave rules while 8% of the workmen are not at all aware of the leave rules. Q. 17 Reason for taking employment: a) To spend time. b) Forced by family Members. c) To take care of my family. d) Liking of the work. OptionabcdTotalResponse08222050%0164440100 INTERPRETATION – From the above chart, it is clear that 44% of the workmen come to the company to support their family while 40% of workmen have a liking towards their work. Q.18 The cause of my absenteeism is taking smoking. a) Not True b) Partially True c) Almost Trued) Highly True OptionabcdTotalResponse26240050%524800100 INTERPRETATION – It is observed that 48% of workmen are addicted to smoking but it has no relevance to their remaining absent at the company. Q.19 The cause of my absenteeism is taking alcohol. a) Not True b) Partially True c) Almost Trued) Highly True OptionabcdTotalResponse221610250%4432204100 INTERPRETATION – From the above chart, it can be seen that 32% of the workmen are addicted to alcohol. Q.20 Is this involvement in business a cause of your absenteeism? a) Sometimes b) Mostly c) Not at all OptionabcTotalResponse20121850%402436100 INTERPRETATION – From the above chart, it is clear that involvement in some business is not related to the absenteeism in the company. 40% of the workmen feel that sometimes this involvement affects. Conclusion & Suggestion CONCLUSION Finding and analysis reveals the following conclusion 1) Almost 30 % of the workers at viraj exports Pvt. Ltd. are working for 4 to 5 years whereas 34% are working for more than 5 yrs. 2) Almost 56% of the workers do not remain absent. 3) According to 50% workers, health problem is the reason for being absent. 22% think that stress can also be the reason. 4) Almost 36% workers rate the present absenteeism policy as good whereas 24% rate it as excellent. 5) Almost 42% of the workers at Viraj Exports Pvt. Ltd. are clear regarding their work responsibilities. 6) 38% of the workers are fully satisfied with their work whereas 30% workers think their work as good. 7) 36 % of the workers have good view regarding working environment with Viraj Exports Pvt. Ltd whereas 30% workers have excellent view regarding working environment. 8) 50 % workers have good relations with the superiors whereas 20% have excellent relations with the superiors. 9) 40% workers think that their superior’s behavior towards their problems is excellent & 26% workers consider it as good. 10) 50% worker thinks that good facilities provided by Viraj Exports Pvt. Ltd. Whereas 30% consider it’s as fair 11) 52% of the workmen are satisfied with their salary structure while 48% of them are not happy about the present salary structure as it is not adequate for them. 12) It can be observed that 40% of the workmen s family condition is satisfactory while 24% of them are unsatisfied. 13) It can be observed from the above chart that 48% of workmen accept that disciplinary actions taken by management have reduced absenteeism to a very great extent. The company has very strict rules policy. However those who have breached the rules are given warnings, show cause notices or suspension. 14) It can be seen that 52% of workmen take around 6 -10 days of paid leaves while 36% of the workmen avail more than 10 days paid leave per annum 15) It can be observed that 52% of the workmen take 6-10 days of unpaid leave while 24% of workmen avail 3-5 days leave per annum. 16) From the above chart, it is observed that 44% of the workmen are strongly aware of the leave rules while 8% of the workmen are not at all aware of the leave rules. 17) It is clear that 44% of the workmen come to the company to support their family while 40% of workmen have a liking towards their work. 18) It is observed that 48% of workmen are addicted to smoking but it has no relevance to their remaining absent at the company. 19) It can be seen that 32% of the workmen are addicted to alcohol. 20) It is clear that involvement in some business is not related to the absenteeism in the company. 40% of the workmen feel that sometimes this involvement affects. Thus, it can be observed that absenteeism can be controlled and reduced to a great extent if the workers are committed and are supported by all levels of management. An effective attendance record-keeping system, consultation and open communication by the management can create a healthy productive work environment in the company. This would reduce grievances and give greater employee satisfaction. Only when the positive approach is unsuccessful does the company need to use the remedial approach to deal with habitual abusers or with excessive absentee cases. In all cases the company's actions must be fair and reasonable and consistently applied. While tackling workplace absenteeism by direct action may alleviate the problem in the short- term, addressing the cause of the problem will provide long term benefits. Based on the findings reflecting the workers' views, reasons for absenteeism and turnover fall into two broad categories: 1. Controllable — Relationship with the boss — Unsafe working conditions — Excessive rework — Poor craft supervision — Poor overall management — Poor planning — Excessive surveillance by owner — Inadequate tools and equipment 2. Uncontrollable — Travel distance from the residence to the job — Overtime availability on another job — Personal and family illness ,[object Object]

A relatively small portion of the work force is causing most of the absenteeism and turnover. Eighty-six percent of the workers surveyed reported quitting fewer than three jobs in the last two years. Similarly, 67% of the work force reported missing work fewer than five days per year3. This reinforces a conclusion that prompt management action with respect to chronic offenders can be very effective.

The size of the work force does not appear to be a significant factor since about half of the workers stated preferences for jobs with less than 500 workers while the other half preferred jobs with a work force of 500 - 1000. (The survey was conducted at worksites ranging from 125 to 3,000 workers.) Some independent observations indicate that work forces smaller than 100 tend to be more stable.

Distance from a worker's home to the jobsite seemed to have an effect on turnover at arrange of 50 to 100 miles.

Excessive absenteeism is an indicator of future turnover problems.

Older and more experienced workers exhibited lower turnover, but higher absenteeism. This leads to interesting deductions— that jobs that do not challenge or provide satisfaction for a highly skilled, experienced craftsman will produce absenteeism, and that younger, less experienced workers seem to change jobs rather than cope with unpleasant situations.

No significant differences in reasons for absenteeism and turnover were cited by union and open-shop workers. Union workers reported lower turnover and higher absenteeism rates, but the differences were too small to justify any conclusions.SUGGESTIONS AND RECOMMENDATIONS Absenteeism is a serious problem for management because it involves heavy additional expenses. The management should take the following measures to reduce the rate of absenteeism:- 1) Provide Incentives- An incentive provides an employee with a boost to their motivation and avoid unnecessary absenteeism. Incentives like two hours of bonus pay for every month of perfect attendance can improve a lot. 2) Employee Assistance Program- If you confront an employee about his or her frequent absenteeism and you find out that it is due to personal problems refer them to EAP. 3) Sickness Reporting – Tell employees that they must phone in as early as possible to advise why they are unable to make it to work and when they expect to return. 4) Return to Work Interview- When an employee returns to work then ensure that they have a ‘return to work interview’. 5) Bradford factor can also be used to identify and cure excessive absenteeism. In the end to conclude this report I would like to specify that the project allotted to me on ABSENTEEISM was of immense help to me in understanding the working environment of an organization, thereby providing a firsthand practical experience. A variety of steps have been found to be effective in decreasing absenteeism and turnover on construction jobs. Those which are most appropriate will vary with the circumstances of each job— its size, duration, remoteness, type of work, labor demand in the locale, labor practices in the area, etc. Serious consideration of the following actions is recommended with recognition that some may already be in effect and others may not fit a given job situation: 6) Non Monetary Awards: A notice board could be put up at the shop floor displaying the name of the workmen and his department who is being conferred this award. This award could be like: Worker of the month award based on Efficiency. A quarterly attendance award. Disciplinary awards can be given to workers against whom there are no reports of misconduct. 7) Conduct Workshops: Identify the chronic absentees and conduct a workshop focusing on their areas of interest in work and their job satisfaction definitions. This response can be discussed with the subordinates openly and they can be placed in their respective departments of work so that their talents and capabilities can be utilized efficiently. 8) Training to Supervisors: They must be given training on their behavioral aspects with the workers and they must be given a human oriented approach so that they prove to be good friends of the workers and the working environment becomes pleasant. 9) Job Rotation: Workers must be given different jobs at different shifts so that his job does not become monotonous, repetitive and boring. Flexi-time can also be allowed within certain limitations. 10) Verification of Medical certificate: It is generally observed that workers take unauthorized leave and then provide a medical certificate. The leave then becomes authorized. Thus, the medical certificates must be verified by the management for their authenticity. 11) Counseling: The Union representatives could visit the houses of the absentee worker and counsel them about the ill effects of their being absent. E.g. their financial losses, their importance in the production of the company, their family conditions, etc. 12) Company as a second home: The management could display the worker s names on the notice boards at the shop floor, wishing them on their birthdays or encouraging them in company s activities like sports, etc. this creates a sense of belonging among the workers towards the company. 13) Wage Link: Wages could be directly linked to attendance and their performance at work. 14) Disciplinary Action: If all the above measures fail to improve attendance of a worker then strict disciplinary action is the only option against him. 15) Attendance Management Programme: The purpose of this programme is to develop willingness on the part of all the workers to attend work regularly and to assist them in motivating their co-workers to attend work regularly. This can be done through: Addressing the physical and emotional needs of the workers. Communicating the attendance goals of the organization so employees can understand and identify with them. Dealing with cases of excessive absenteeism effectively and fairly so deterrence can occur. For Action by Contractors ,[object Object]

Keep attendance records for all employees. Monitor to identify trouble spots. Establish a clear policy of firing chronic absentees, and communicate this to all employees when they are hired.

Maintain good communications with workers. Sense worker moods, understand their concerns, provide feedback from management, and prompt action where appropriate; to show that worker concerns are heard. Bulletin boards, newsletters, tool-box meetings, and suggestion boxes are all helpful, but face-to-face communication on the job by top contractor supervision is indispensable.

Use the latest behavioral-science techniques for organizational effectiveness, including:— Train supervisors in motivation and interpersonal skills. — Create small work groups with as much autonomy as possible. — Communicate goals for the organization and for each work unit (including attendance goals). ,[object Object]

Be creative in developing incentives for employees to stay with the job and have good attendance. Emphasize attendance rather than absenteeism. Bumper stickers, job posters, and helmet decals can be used to stimulate interest. Awards to each individual after periods of perfect attendance by an entire crew can develop peer pressure to improve attendance. Bonuses to workers who remain until job completion may be helpful in reducing turnover during the critical final stages. For Action by Owners: ,[object Object]

Encourage and support innovative efforts by contractors in communicating with and motivating the workforce.

Assure that contractors have well-planned and well-executed safety programs.

Mutually with contractors, identify and alleviate irritants ("dissatisfies") within the control of owners that may contribute to absenteeism and turnover among contractor employees. Examples: parking lots in disrepair or unreasonably located, undue limitations on smoking, unnecessary limitations on contractor's starting and quitting times, inadequate areas for eating lunch, and insufficient facilities for checking in and out.For Action by Unions: ,[object Object]

Modify referral procedures to discourage absenteeism and turnover. Example: For a pre-determined period (say, 30 days) prohibits referral to another job of any worker who has quit a job without good cause or who was fired for excessive absenteeism. The survey suggests that most workers would support such action so long as it is administered fairly and equitably.In this project while identifying the reasons of absenteeism of the workers of Viraj Exports Pvt’ Ltd. Noida got an opportunity to interact with workers to observe their behavior and attitude. In the end I would once again like to thank the people of Viraj Exports Pvt. Ltd. Noida who helped me in accomplishing this project and boosting my morale by appreciating and recognizing my efforts. At last I would like to say the whole experience was very good and I would like to work with this organization again. QUESTIONNAIRE QUESTIONNAIRE PERSONAL INFORMATION NAME………………………………………………………………………….. AGE……………………………….. SEX………………………………. JOB STATUS……………………………………………………....................... (Please tick any one option with honestly) ,[object Object]

2 to 4 Year 4. >5 Year

How often you remain absent in a month?1. Nil 2. Once 3. Twice4. >Twice ,[object Object],1. Health Problem2. Stress 3. Work Dissatisfaction4. Working environment ,[object Object],1. Excellent2. Good 3. Fair4. Don’t Know ,[object Object],1. Well Clear 2. Good 3. Fairly Clear 4. Don’t Know ,[object Object]

Your views regarding the working environment of viraj exports Pvt. Ltd.?

How are your relations with your superiors / co-workers?1. Excellent2. Good 3. Fair4. Poor ,[object Object],1. Excellent2. Good 3. Fair4. Poor ,[object Object]

3. Fair4. Poor 11. Is your salary structure adequate? 1-Yes2- No 12. How is your family condition and family atmosphere? 1. Satisfactory Average 2. Average 3. Unsatisfactory 13. Disciplinary actions taken by management on absenteeism have reduced absenteeism in our company. 1. Not at all 2.To some Extent 3. To great highly4. Extent True 14. How many paid leaves are availed by you per annum? 1. 1 to 2 days2. 3 to 5 days 3. 6 to 10 days 4. More than 10 days 15. How many unpaid leaves are availed by you per annum? 1. 1 to 2 days2. 3-5 days 3. 6 to10 days4. More than 10 days 16. Are you aware of the leave rules of the company? 1. Not at all 2.To some Extent 3. To great strongly4.Extent Aware 17. Reason for taking employment: 1. To spend time. 2. Forced by family Members. 3. To take care of my family. 4. Liking of the work. 18. The cause of my absenteeism is taking smoking. a) Not True b) Partially True c) Almost Trued) Highly True 19. The cause of my absenteeism is taking alcohol. a) Not True b) Partially True c) Almost Trued) Highly True 20. Is this involvement in business a cause of your absenteeism? a) Sometimes b) Mostly c) Not at all Any Suggestion & Comments ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ BIBLOGRAPHY BOOKS PREFERED Book’s Name : Author’s Name ,[object Object]

Employee Absenteeism Report VIRAJ Exports

Employee Absenteeism Report VIRAJ Exports

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