Final Project of Anil

“A STUDY ON ABSENTEEISM”

DECLARATION

I undersigned, hereby declare that the project entitled “ABSENTEEISM” submitted by me to

the “H&R JOHNSON (A Division of prism cement Ltd), Dewas” for the consideration for

the Award of Mater Degree of the Business Administration(M.B.A.) represent my own work

for the guidance and of suggestion received. Which have been suitably, acknowledged.

ANIL NAGAR

Synergy Institute of Technology and Management, Dewas 1


PREFACE

The well planned, properly executed and evaluated industrial training helps a lot in including

good work culture. It provides a linkage between the student and industry in order to develop

the awareness of industrial approach to problem solving based on a broad understanding of

process and mode of operation of an organization.

During this period, the student gets first hand experience on working in the actual

environment. Most of the theoretical knowledge that we have gained during the course of our

studies is put to test here. Apart from this the students get the opportunity to learn the latest

technology, which immensely help them in their career. This also benefits the organization as

many students doing their projects perform very well and are henceforth offered job in the

same organization.

This training has provided me an opportunity to have practical experience, which has

increased my sphere of knowledge to a great extent. Now I am better equipped to handle the

real thing than anyone else who has not undergone any such training yet. During my stay here

I learned how an actual project progresses, what sort of problems actually occurs during the

development of such projects, how to produce quality product and so on. And being in the

H&R JOHNSON INDIA (A division of prism cement Ltd), Dewas. I have got the best

exposure.



ACKNOWLEDGEMENT

The study of various aspects of Absenteeism problem in H&R JOHNSON INDIA (A

Division of prism cement Ltd), Dewas would not have been possible without the sincere and

whole hearted cooperation I received from the respondents of my project and various other

people, amongst them few names are worthy to special acknowledgment.

I would like to thank Prof. Ruchika Shrivastava, faculty of Synergy Institute of Technology

& Management, Dewas for the instructions which she provided prior to the commencement

of summer training.

I would like to thank Mr. R. A. Mishra General Manager providing me the opportunity to

train with H&R JOHNSON (A Division of prism cement Ltd), Dewas and giving me such a

challenging and interesting experience.

I would also like to thank Mr. Ashok singh who guided me throughout the project and also

helped me in shaping the project.

I wish to mention my great thanks to the staff of the IR Department of H&R JOHNSON (A

Division of prism cement Ltd), Dewas for their valuable cooperation and assistance, which

they extended to me from time to time while preparing the above project.

Place:

Date: (Anil Nagar)



ABSENTEEISM

INDEX Introduction Aims and objective Research Methodology General analysis Conclusion Recommendation Limitation Bibliography



CHAPTER 1

COMPANY PROFILE

1. A. BACKGROUND AND DETAILS OF THE COMPANY

H. & R. Johnson (India) Limited (HRJ) is India's No. 1 tile company established in the year

1958 offering a wide range of wall and floor tile products across various segments v.i.z. Wall,

Floor, Vitrified, Exterior and Industrial.

The company also has diversified interests in sanitary ware and bathroom accessories. With a

vast portfolio comprising of 5 well-known brands in India (Johnson, Marbonite, Porselano,



Endura & Milano) HRJ provides the most innovative products of international standards that

is coupled with the best of pre and after sales service.

HRJ have the most modern manufacturing plants located across six strategic locations across

India. Our plants are located in Dewas (MP), Pen (Maharashtra), Kunigal (Karnataka),

Karaikal (Tamilnadu), Vijayawada (Andhra Pradesh) and Rajkot (Gujarat). HRJ units employ

the best of technology from world leaders in tile manufacturing machinery. HRJ plants are

ISO compliant with both 9001 as well as 14001 certifications. Besides this, HRJ units in

Dewas, Kunigal and Karaikal are OHSAS 18001 certified for excellence in safety standards.

H. & R. Johnson (India) Ltd. Believes that sustainability growth comes only with a powerful

product to create that products it is necessary to have synergy between the people and

process, HRJ had established such a synergetic environment, where empowerment arises

through the principles of trust, transparency and team spirit.

The company (HRJ) as its key focus has been makes their products available across the

length and breadth of the country, the company (HRJ) tried to cater to all types of customers

needs and requirements. This has been achieved by expanding the capacities of plants so that

supply does not fall short of customers demands, as a result of which the company as able

capture the market leader position in India.

As of part of aggressive expansion plan of the company (HRJ), company is looking keenly on

the rural markets in India including Class B and C towns, as their existing distribution

network is strong enough to cater to any customer requirements company is expecting the

30% growth of their distribution network in these rural market areas. The company is

expecting at least 25% turnover from the rural area operations.

i. PERFORMANCE AND GROWTH OF THE COMPANY:-

H & R Johnson’s (HRJ) unique growth profile, high brand pull and proven track record are

symbol of company strong performance. They are on a constant quest to make superior

products through extensive research. The results is evident through the annual sales records,

the company are recorded 1,000 ( one thousand cores) sales in India, during the year 2007-08.



ii. AREA OF OPERATIONS OF HRJ:-

The companies’ distribution network is the largest in the country comprising of 1200 dealers

and 15,000 sub- dealers, spread across the length and breadth of the India. In addition to this,

they also have 22 branches and ware house that gives them a tremendous reach in market

place.

In case of worldwide presence or operation of H&R. Johnson India (HRJ) association with

Johnson Ceramic International ensures that consumers can find the companies tiles across the

world. The company’s products are sold in all continents of the world, so that the Johnson

name is globally associated with high quality design- led products.

iii. NATURE OF BUSINESS:-

H & R Johnson (India) Limited is the undisputed market leader in the tile industry since last

50 years across various product categories. The company is engaged in production of Tiles,

sanitary ware, taps and kitchens. The company offers wide range of products which are of

different colors and design to meet the needs of customers throughout the India. Today, the

company enjoys the recognition of being the only company to offer end-to-end solutions of

Tiles, Sanitary ware, Taps, and Kitchens.

H & R Johnson (India) Pvt. Ltd. (HRJ) is a member of many reputed industry organizations

like Indian Council of Ceramic Tiles and Sanitary Ware (ICCTAS), Indian ceramic Society,

Indian Merchants Chambers (IMC), Bombay Chamber of Commerce and Industry (BCCI),

confederation of Commerce and Industry (FICCI), Employers Federation of India (EFI) and

Construction Industry Development Council (CIDC) and Chemical Allied Products Export

Promotion Council (CAPEXIL).

1 B. HISTORY OF THE COMPANY AND ITS DETAILS

H. &.R. Johnson (India) Ltd. (HRJ) is the Indian No. 1 tiles company established in the year

1958, HRJ is the market leader in the tiles industries for last 50 years, it as currently 22 %

market share in India even after stiff competition from both organized and unorganized

sector.



HRJ is a private company. It has been incorporated according to the companies’ act of 1956

and it as his registered office at Bombay for its Indian operations.

OWNERSHIP PATTERN:-

H. & R. Johnson (India) Ltd. (HRJ) is private owned company.

Share Holding Pattern HRJ:-

a. Rajan Raheja, India ( owner of Exide Batteries, Prism Cements, Outlook News and

Mizine) India - 60% of shares in the company.

b. Herbert son & Robertson, UK – 40%

JOINT VENTURE & COLLABORATIONS

The company had made his joint venture and collaborations with many organized and

unorganized sector for production activity in order to meet the demands of their customers in

time.

The important joint venture and collaborations done by the company to carry out production

is as under:-

50:50 Joint Venture with sentinel ceramics private ltd (SPCL) in the year 2004.

50:50 Joint Venture with Gujarat based company namely Antique Granite Pvt. Ltd.

(AGL) in the year 2007

Tie up with many unorganized players for 09 (nine) million Sq. Tiles production in

the year 2007.

Human Resource Policy

H & R Johnson (India) recognizes that its people are the source of its strength and competitiveness.

The company is committed to equal employment opportunities for attracting the best available talent and cosmopolitan work force and resolves to provide an environment free of any ethics discrimination or sexual harassment.



The company will encourage employees to takes on higher responsibilities and provide opportunities for their growth and will positively differentiate employees on the basis of performance, leadership potential and alignment with core values.

The company will pursue management practices to enrich the quality of life of its employees.

The company will develop the potential of its employees through training, provide opportunities to display their creative talent and encourage them to maximize productivity.

1. C. OBJECTIVE OF COMPANEY

“Improving lifestyle of our customer by providing innovative product & Services ” .

This objective indicate that it is more concern about the consumer Preference and lifestyle which is improved by the company, its slogan also give this message “ NOT JUST TILES……LIFESTYLE ”. In pen plant provide the R&D facility to create a new product/innovative product and provide good quality also with the help of this.

“To achieve our growth and profit objectives through cost effective Design, manufacture and marketing of high quality tile and complementary products in the home furnishing, building and construction markets in Europe, Asia, selected overseas markets and domestic market. Within our preferred product market our aim is continuously to improve the quality of our product and services through a program which encourage people to reach individual excellence.”

H. & R. Johnson (India) Limited

Not Just Tiles, Lifestyles



Vision

Improving lifestyles of our customersby providing innovative products and service

Mission

“Continuous improvement is Our Mission”

CHAPTER 2Synergy Institute of Technology and Management, Dewas 10


H&R JOHNSON DEWAS PLANT

2 A. Introduction of Dewas Plant

H&R Johnson India Ltd. Dewas Not just tiles, lifestyle Dewas Plant was established in the 1981 by Mr. Kenny Pedder. It is extended over 50 acres of land. Mr. Kenny pedder has totally invested 25 core of rupees tile in the year 1981 and floor tile year 1988.

Dewas plant has introduced on 10Oct 1981 for commercial production. At the Inception of the plan in 1981 , the company started the production of wall tile and in 1988 it started floor tiles.

Total 25 Crore were invested till 1988 in the lan by H & R Johnson. Both tradition & Modern Technology adopted in Dewas plant for wall tiles it is manual hold technology is being utilized and floor tiles semiautomatic plan is established.

Due to all above efforts H & R Johnson is awarded by ISO 9001 (quality control), ISO 14001, (for environment), ISO 1800 (for Health & Safety)



2.B. Financial policy

Maximum Utilization of Financial res Our and mainly emphasis on cost reduction and profit maximization with the maximum attraction towards quality policy Environmental policy and Occupational Health & Safety policy.

Performance & Position:

Company performance is improving year by on the basis of financial figure compare with previous one.

2010 – 2011 (In ‘000)

Sources of fund(Including Shareholders fund Loan Fund and Deferred tax liability) 6,207,045 5,504385Shareholder’s Fund 1.7%Loan Fund 27.36%Differed tax liability (4.6%)

Application of Fund(Including all Assets) 6207045Fixed Asset (6.64%)Investments 99.9%Current Asset, Loans & Advances 4.8%

Income 7.5%Expenses 5.1%Profit before tax 254% (321447- 90780)

Profit after tax 211 %( 243382 - 78126)Earning per share 180.45Dividend Rate 01%

Market Size: 830 Million Square Meters HRJ Share: 99.68 Million Square Meters HRJ among the top 5 tile companies in the world by 2012

2.C. Organizational Structure

STRUCTURES:-

Organization Structure is one of the important aspect of the company, it represents the size of

the organization and diversity.



Organization structure of the company explains who the people and their work are organized

in the company, it also talks about policies and procedures which govern the organization, it

also explains who the organization operate within its internal environment.

The Organization structure also talks about the Hierarchical levels, flow of authority and

responsibility, decision making activity and procedure etc.

Board Of Directors

The Board of Directors of H & R Johnson (India) Ltd are as follows:-

Rajan Raheja Chairman

Akshay Raheja Director

Viren Raheja Director

Peter mukarjea Director

Vijay Agarwal M.D

Dewas plant

Mr. sunil k.sethi Senior vice president

(Operation)

Mr. V. Subba rao Mr. V.G. Nagraj(Maintenance Manager) (Sr. Manager production)



Mr. Pankaj Vyas Mr. Singh Mr. Verma Mr. Vivek Mr. Dubey (Asst. Mgr. electrical) (Asst. Mgr. HR) (dy. Mgr. acc.) (Asst. Mgr. dispatch) (Asst. M gr. purchase )

2.D. ISO (International Organization for standardization) At



Iso 9001: (for Quality policy and Objective)

Iso 14001: (for Environmental Policy)

Iso 18001: (for occupational & Health & Safety Policy)

ISO 9001 : For Quality policy and Objective

We shall continuously strive to provide Quality Products and Service to eet the

customer’s expectations.

Continual improvement, commitment, Accountability and team work shall be Our

guiding principles.


Quality Objective

Quality policy


1. Continual Improvement of product and services to meet and exceed customer satisfaction.

2. Reduce operational Efficiency

3. Through active involvement of all employees.

4. Maintain high standard of House Keeping and safety.

Date is Issue (Vijay Agarwal)

August 1, 2002 Managing Director

ISO 14001 : For Environmental Policy

We at M/s H & R Johnson (India) Ltd. Dewas.

Manufacturing wall floor Glazed & Unglazed Tile will strive of sustainable development and

are committed to:

Compliance to environmental legislations and regulations as application to Our

operations.

Prevention of pollution and protection of environment by

Conservation of natural resources through their efficient use:

Adoption of sound management practices and system.


ENVIRONMENTAL POLICY


Waste management and reuse/Recycle of wastes

Continual improvement in Our environmental performance by periodically setting add

reviewing objective and targets.

This policy has been communicated to all our employees and will be made available to

public on request.

Date of Issue Sunil Sethi

Dec. 04,2000 Dy. General Manager(op.)

ISO 18001 : For occupational & Health & Safety Policy

We at M/s H & R Johnson (India) Ltd, Dewas.

Manufacturing wall and floor Glazed legal and other requirement as applicable to Our

operations.

Our prime responsibility will be: -

1. Minimization of Accidents.

2. Minimization of SPM resources.


OCCUPATIONAL HEALTH & SAFETY


Providing adequate resources.

Employing safe, Technologies and operating procedures.

Ensuring proper Training & Competence of all employees.

Continual improvement in Our occupational health and safety performance by setting and

reviewing objective and target part of Our business.

We shall communicate this policy to Our employees , suppliers and contractors and will be

made available to interested parties.

Date if Issue (Sunil Sethi)

Dec. 31.2001 General Manager (op.)

2.E. DETAILS OF THE DEPARTMENTS

Head of the Department: - Mr. R. A. Mishra

Personal functions are broadly classified as follows: -

a. Industrial relationship: -

This dept. looks after the inner relationship among the management official. Technician and workers.

b. Human Resource and Development

c. Administration and various factors like agreement b/w management and union.


1. PERSONNEL & ADMINISTRATION


# Time office

The time office is one of the most modern method of keeping the record of arrival and department time of the employees. A fully automatic punch card machines is used to register everyone’s attendance.

# Timing for shift

Management staff : - General Shift(9.00 a.m. to 5.30 p.m.)Sr. Team Leader : - General Shift.

Employee duties distributed in three shifts.

#1st Shift : - 7:00 a.m. to 3:30 p.m.#2nd Shift : - 3:30 p.m. to 12:00 p.m.#3rd Shift : - 12:00 p.m. to 7:00 a.m.

Head of the department : - Mr. Dinesh Gupta

Accounts department is one the most important department of any plant Actually it includes: -

a. Identificationb. Classification c. Recording of transaction

Head of the department: - Mr. Subha Rao


3. MAINTANANCE DEPARTMENT

2. FINANCE


In H & R Johnson maintenance have a separate department. The responsibility of the maintenance is to prevent break down and smooth running in lost production.

Head of the department: - Mr. Anil Mahajan

In H & R Johnson (I) Dewas, it is another important department controlled by assistant manager Mr. Anil Mahajan.

Head of the department : - Mr. Deepak Naik

This department is equipped with at least machines to monitor the properties of material at different stages of their production.

Head of department : - Mr. Ajay Dubey

There is a commercial department for store and purchase in H & R Johnson.

Head of the department : - Mr. Tangraj

All the material which are used for the company are Easily Available on the store Department.


4. IT DEPARTMENT

5. LABORATORY

6. PURCHASE

7. STORE

8. LOGISTIC DEPARTMENT


Head of the department : - Mr. Balkrishna Murekar In H & R Johnson there is a separate department for logistics where goods are only exchanged but import and export also take place.

Head of the department : - Mr. Babu B. Bhargav

Marketing department of this plant is located in Indore, about 35km. away from Dewas the marketing is based on both wall and floor tiles and special tiles for industrial application which is exported too.

2.F. PERFORMANCE GROWTH


9. MARKETING


Our unique growth profile, high brand pull and proven track record are symbolic of our strong performance. We are on a constant quest to make superior products through extensive research. The result is evident in the annual revenue of Rs. 1,500 crore in 2010-2011. Our sales volume during the year crossed 43 million square meters.

A robust production, infrastructure, distribution, sales network and the ability to predict, prepares us for future growth.

HRJ (India) has the largest distribution network in the industry, with 30 branch offices and 29 depots spread across India. Company’s trade network comprises of over 1,000 dealers and 10,000 sub-dealers. The institutional sales division specializes in servicing the large project requirements of large builders, developers and contractors.

At present we’re targeting 30% growth of this network to the rural market in India including class B and C towns. The rural operation is expected to contribute 25% of the total turnover.

Our subsidiary, H&R JOHNSON (India) TBK limited, focuses on modern retail channel. The ‘HOUSE OF JOHNSON’ showroom showcase the complete range of products for the upper and upper-mid segment of market, while ‘Tile Bazaar’ is targeted towards to the lower-mid segment.

2.G. PRODUCT PROFILE

Tiling can be one of the most exciting and vibrant improvements you can make to

your home. The company offers various options which are limitless as our

imagination, the company as fully computerized design studio and professional who

understand the various aspects of design like color, light and space which can help us

to improve over life style.

H.&.R. Johnson (I) Ltd. Is only Tile Company in India which has more than 3000

running designs. The range is being increased at the rate over 5 new designs every

month, and all these designs with matching wall and floor tile combinations that

inspire a vast array of styles and ideas. In addition Johnson International UK design

bank of over 50000 designs, which help us to choose and adapt right designs.

H. &.R.Johnson mainly have 5 (five) Tiles Brands which meets the needs of all types

of customers and market, it also offers sanitary and kitchen ware items to its

customers.



The popular five brands of HRJ tiles are:-

i) Johnson, ii) Marbonite, iii) Endura, iv) Porselano, v) Milano

2.H. SWOT ANALYSIS

STRENGTHS

Quality :- The plants of company have

high quality Tiles

WEAKNESS

Problematic Industrial Relations.



Brand Name :- The company enjoys

high brand equity.

Market Share:- The Company is

market leader in India by having 22%

total Market in Organized sector

Profit:- The company is Continuously

making profit

Awards:- The company has achieved

many international Award which

increased the good will of the company

High Production Capacity

Lack of skilled worker s and

professionals in the company

Under utilization of sources

Trade Union fear

Outdated Machinery and equipments in

the plant.

OPPORTUNITIES

Increase in export and sales because of

overseas demand

Huge Rural Market

Benefits of Economies of Scale

THREATS

Substitutes such as marbles and

granites getting popularity

Increase in competition

Falling market share

Entrance of new foreign companies



CHAPTER 3

ABSENTEEISM

ABSENTEEISM

3.A.MEANING:

Absenteeism has been variously defined by different authorities. Employee’s presence

at work place during the scheduled time is highly essential for the smooth running of the

production process in particular and the organization in general. Despite the significance of



their presence, employees sometimes fail to report at the work place during the schedule time,

which is known as ‘Absenteeism’. Absenteeism is also defined as “the failure of a worker to

report for work when he is scheduled to work.” According to Webster’s Dictionary,

“absenteeism is the practice or habit of being an ‘absentee’ is one who habitually stays

away.” According to the Labor Bureau, Shimla, “Absenteeism is the total man shifts lost

because of absences as a percentage of the total number of man shifts lost because of

absences as a percentage of the 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,

it is unauthorized, unexplained, avoidable, and willful absence from work. For calculating the

rate of absenteeism, two facts are taken into consideration – the number of persons scheduled

to work and the number actually present. An employee is to be considered scheduled to work

when the employee is aware of it, and when the employer has no reason to expect, well in

advance, that the employee will not be available for work at the specialized time. Any

employee may stay away from work if he has taken leave to which he is entitled, or on the

ground of sickness or on the ground of sickness or the 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.



3.B. TYPES OF ABSENTEEISM:

Absenteeism is of four types viz:

(i) Authorized Absenteeism ,

(ii) Unauthorized Absenteeism ,

(iii) Willful Absenteeism , and

(iv) Absenteeism Caused by Circumstances beyond One’s Control.

(i) AUTHORISED ABSENTEEISM: If an employee absents himself from work by taking permission from his superior and applying for leave, such absenteeism is called Authorized Absenteeism.

(ii) UNAUTHORISED ABSENTEEISM: If an employee absents himself from work without informing or taking permission and without applying for leave , such absenteeism is called Unauthorized Absenteeism.

(iii) WILLFUL ABSENTEEISM: If and absents himself from duty willfully is called Willful Absenteeism.

(iv) ABSENTEEISM CAUSED BY CIRCUMSTANCES BEYOND ONE’S

CONTROL: If an employee absents himself from duty owing to the

circumstances beyond his control like involvement in accidents or sudden

sickness, such absenteeism is called Absenteeism Caused By Circumstances

Beyond One’s Control.



3.C. CATEGORIES OF ABSENTEEISM:

Dr. K.N.Vaid classifies chronic absentees into five categories:

(i) Entrepreneurs: The entrepreneurs are those absentees who consider their

jobs to be very small for their total interests. The area simultaneously engaged

in several economic and social activities. The motive force behind all such

activities is the desire for more money, status, power, and the satisfaction

arising out of achievement and social recognition. Dissatisfied with the status

quo, and gifted with an energetic spirit and originally of thought, they are ever

ready to assume risk, undertake the task of management and coordination of

processes that are necessary for the improvement of the existing conditions.

(ii) Status-Seekers: The Status- seeking absentees are those who enjoy or

perceive a higher ascribed social status and are keen on maintaining it. The

shop (lower) floor status achieved by them is much lower than the one they

enjoy outside. The discrepancy between the ascribed and the achieved status is

the primary cause of deviant work behavior. Attitudinally, they draw

satisfaction from their identification from need oriented social groups. Their

goal is to remain or to become or appear as men of status. They make up for

the loss of status arising from working in a mill by intensifying activities

which help them to regain it. Work, Job and money no doubt important for

them: but they are significant only to the extent to which they help them to

achieve their goal.

(iii) Family Oriented: The family oriented become chronic absentees because of

their over-identification with family affairs. The lack of balance between

family involvement and job responsibility is the principle cause of their

deviant work behavior. Chronic illness of one or other family member,

litigation, delinquency, working wife, etc., impel them to be absent from work.

(iv) Sick and Old: The sick and old time remains absent from work by reason of

ill health, weak constitution, chronic disease or old age.



3.D. MAGNITUDE OF ABSENTEEISM

It has bee observed that the phenomenon of absenteeism does not exit only in Indian

industry; it is universal fact. The difference is only in terms of magnitude. The rate of

absenteeism varies from 7% to nearly 30%. In some occupations, it has risen to the abnormal

level of 40% in some seasons. The extent of absenteeism may differ from industry to

industry, place to place and occupation to occupation. It may also differ according to the

make –up of the work force. Absenteeism may be extensive in a particular department of an

industry or a concern.

There have been many systematic studies of absenteeism in Western industrialized

countries. For example, it has been observed that absenteeism among the younger workmen

is extensive on Mondays after the week end, particularly among unmarried men who, after a

late night on Sunday perhaps with their girl friends, find it difficult to get up and come on

time and concentrate on work; and it is the lowest on the pay day.

In the USA, it has been observed that curiously enough, the extent of absenteeism is greater

among youngsters than among the older employees, greater among women than men. Young

men are generally found to be absent due to variety of reasons, including restlessness and a

sense of irresponsibility. In some cases absenteeism of particular workers is due to the

reasons connected to the jobs; a worker, for example, may be absent because he does not like

his job for some reason, or because he has unsatisfactory relations with the supervisor or with

other employees. Absenteeism may also be due to sickness, real or feigned.

Their has been a phenomenal rise in absenteeism in some industries like cotton textile

industries, engineering industry, woolen industry, gold mining, plantations industry and coal

mines. If the figures of the unauthorized absenteeism are added to the liberal provisions in

awards and settlements for privilege leave, casual leave, sick leave and maternity leave (in

case of women), it would be found that the non- working days in the year in the industries in

India is very large.

Absenteeism in Indian industry is not a new phenomenon. The Royal Commission on

Labor reported that “ high absenteeism prevails among industrial labor mainly due to their

rural orientation.” Since then, a number of individual researchers have investigated the

problem, and have pointed out that absenteeism in our industries varies from 7% to 15%. The



incidence is high in plantations and in mines; and it is higher in Northern India than in

Southern India.

3.E. PECULIAR FEATURES OF ABSENTEEISM:

On the basis of micro studies undertaken in different parts of the country, certain observations may be made.

1. The rate of Absenteeism is the lowest on pay day; it increases considerably on the days following the payment of wages and bonus.“The level of absenteeism in comparatively high immediately after pay day, when workers either feel like having a good time or in some other cases return home to their village to make purchases for the family and to meet them”. The incidence of absenteeism, both before and after a holiday, has also been found to be higher than that on normal days.

2. Absenteeism is generally high among 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 number of newcomers among the younger age groups; while the older people are not able to withstand and strenuous nature if work.

3. The rate of absenteeism varies from department to department within a unit. For example, in the mixing and blow room, and in the bundling and bailing jobs in which only a few workers are employed and physical conditions are better than in other departments , the rate of absenteeism in comparatively low. As the size of a group increases, the rate of absenteeism goes up. This difference in the rate of absenteeism is believed to be due to the peculiar style and practices of management, the composition of the labor force and the culture of the organization.

4. The percentage of absenteeism is generally higher in the night shifts than in the day shifts. This is so because workers in the night shift experience greater discomfort and uneasiness in the course of their work than they do during day-time

5. The percentage of absenteeism is much higher in coal and mica mining industries than in organized industries. This high percentage of absenteeism is due to the engagement of laborer’s in the fields, marriages and festivals, which together are estimated to account for about 75 percent of the cases of withdrawals, drunkenness, relaxation or sickness.

6. 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 the harvest season (September-October), when the rate goes as high as 40 percent.



3.F. CALCULATION OF ABSENTEEISM RATE:

Absenteeism can be calculated with the help of the following formula.

ABSENTEEISM RATE = ______Number of Man days lost x 100______ Number of Man days scheduled to work

Absenteeism rate can be calculated for different employees and for different time periods like month and year.

The frequently rate reflects the incidence of absence and is usually expressed as the number of separate absence in a given period, irrespective of length of absences. The frequency rate represents the average number of absences. The frequency rate represents the average number of absences per worker in a given period.

3.G. FORMULAE OF FREQUENCY RATE:

The frequency of absent can be calculated with the help of the following formula.

Formulae of Frequency Rate =

Total no. of times in which the leave was availed x 100 Total no of man days scheduled to work

3.H. SEVERITY RATE:

Severity rate is the average length of time lost per absence and is calculated by using the

following formula.

Severity Rate = Total no. of days absent during a period x 100 Total no of times absent during that period



A high severity rate indicates that the employee is absent for longer duration each time. High

frequency and severity rates indicate that the employee is absent more frequently and for

longer duration each time resulting in high absenteeism even in absolute terms.

3.I. REASONS FOR ABSENTEEISM:

Sitar’s publication refers to the following causes:

1. Unsuitable working conditions.

2. Unfavorable mental attitude arising out boredom, discontent with wages,

resentment against supervisors.

3. Lack of provision for general welfare.

4. Inadequate medical facilities for minor injuries.

5. Increased distance between management and workers.

Sinha analyses twenty variables in relation to absenteeism under three heads:

1) In-Plant causes

2) Personal causes and

3) Community or social causes

In a study undertaken on behalf of the National Productivity Council, Dr. Bhutani arrived

at these causes:

5% to 7% on account of genuine personal sickness.

5% to 7% on account of genuine family sickness.

1% to 2% on account of bonafide relaxation needs because of

overtime work.

5% due to bonafide emergencies.

5% due to social exigencies.

15% to 20% on account of long –term holidays.

5% on account of distance from factories.

5% to 10% on a account of earning higher wages in side jobs.

Fifteen percent to 20 percent on account of drunkenness.

Five percent to 10 percent on account of maneuvering for overtime: and

Five percent to 7 percent on account of disharmony with foreman,

etc.



Within this broad classification, there can be some deeper causes for the rate of absenteeism.

THE GENERAL CAUSES OF ABSENTEEISM MAY NOW BE DISCUSSED.

1. Maladjustment with Factory Conditions: As a worker continues to live in the city,

urban life becomes distasteful to him because of the in sanitary conditions prevailing

there. He finds himself caught within great factory walls; he is bewildered by heavy

traffic, by jostling, by strangers speaking different languages; he is confused by

different religious and tastes; and he is weary of the misery of slums and of toiling for

long hours. He is subject to strict discipline and is ordered by complete strangers to do

the things which he cannot understand. As a result, he is under constant strain, which

causes him serious distress and impairs his efficiency. All these factors tend to

persuade him to maintain his contacts with his village.

2. Social and Religious Ceremonies: Social and religious functions divert workers

from work to social activities. In a large number of cases, the proportion of

absenteeism due to sickness, accident or maternity is not as high as it is due to other

causes, including social and religious causes. For example, the absenteeism in textile

industry due to sickness, accident or maternity amounted to an average of 4.9 percent;

due to social or religious and other causes, it was 5.1 percent. The Report of the study

group on Iron and steel Industry points out:” Some religious consideration account for

absenteeism to a certain extent. For example, during the Dashera, about 20 percent of

the employees of the Durgapur steel Plant take earned leave or remain on

unauthorized absence . In the Rourkela and Bhilai steel plants, the majority of the

workers avail marriages are held .Also, those working on coke ovens, in the steel

melting shop, and the blast furnace take leave mostly during the summer to escape the

rig ours of heat. In all the plants, absenteeism is high during local festivals,

irrespective of whether the workers are from rural areas or not.”

3. Unsatisfactory Housing Conditions: The workers who come to towns usually find

that they are not wanted and they swell the number of unemployed and casual



workers. They also experience housing difficulties. Not less than 95 percent of the

houses occupied by industrial workers in India are unsatisfactory for healthful

habitation. A room of about 10’*10’ accommodates a large family and occasionally

two families; often, ten to fifteen persons sleep in one room. The housing of migrants

combines the worst characteristics of both rural and urban slums. Not only are the

sites most unsanitary but the material used for erecting huts are also very filthy.

Forsaken places like the slopes along the railway lines, banks open space earmarked

for dumping the town refuse are chosen by them. Health conditions are naturally bad,

leading to high morbidity and consequent ill-health. They, therefore, make frequent

visits to their village homes to get relief from such unsanitary and unhealthy

surroundings.

4. Industrial Fatigue: Low wages compel a worker to seek some part-time job to earn

some side income. But this often results in constant fatigue, which compels him to

remain absent for the next day; and fatigue affects him seriously, his absence may

continue for quite some time. Beldamus and Behrens observe :”Owing to cumulative

fatigue , the number of absentees in a factory should be expected to increase through

Monday to Friday if reality the opposite happens , factors other than fatigue or

working conditions may be involved, notably morale.”

5. Alcoholism: The habit of alcoholism among workers is a significant cause of

absenteeism, which in the first week of each month, when workers receive their

wages. They rush to Liquor shops and drink to forget their immediate worries. Once

indulged in drink, the habit continues. Hangover the next day leads to absenteeism.

6. Low Level of wages: Wages in some organizations are very poor and they are quite

inadequate to meet the basic needs of the employees. Therefore, employees go for

other employment during their busy seasons and earn more money. Further, some

employees take up part-time jobs. Thus, the employees resort to moonlighting and

absent themselves from work.



3.J. MEASURES FOR CONTROL OF ABSENTEEISM:

Absenteeism is a serious problem for a management because it involves heavy

additional expenses. Reserves and unstudied are kept in readiness to take the place of the

absentees, failing which the overhead cost of idle equipment has to face. Industrial employees

do not usually ask for leave of absence in advance of even give notice during their absence as

to how long they would be away. The management is generally uncertain about the

probable duration of an employee’s absence and cannot take appropriate measures to fill the

gap.”

As regards measures to be adopted to remedy the situation. The labor Investigation

Committee 1946, was of the opinion that” proper conditions of work in the factory, adequate

wages, protection from accidents and sickness and facilities for obtaining leave for rest and

recreation constitute the most effective means reducing absenteeism”.

The Encyclopedia of social sciences suggests the following measures to reduce the

rate of absenteeism:

1. The personnel management should encourage notification, especially in

cases of sickness when the duration of absences in likely to be long.

2. In case of personal and family circumstances, e.g.; illness of children in

the case of married women employees which make absences

unavoidable, leave should be granted liberally.

3. To reduce unavoidable absence due to sickness and industrial accidents ,

programs of industrial hygiene and safety should be strengthened.

4. Regularity in attendance can be encouraged to some extent by the offer of a bonus and other pecuniary inducements.

It should be noted so that single measure can be effective in controlling absenteeism; but a skillful combination of various measures would definitely lead to the desired results



CHAPTERT-4

OBJECTIVESOF THIS PROJECT



AIMS AND OBJECTIVES

This project has been undertaken with the following aims and objectives:

To carry out an in depth study of the causes and remedies of absenteeism.

To undertake a comparative study of the major causes of absenteeism.

To analyze the employer’s role to reduce absenteeism.

To obtain worker’s suggestions to reduce the rate of absenteeism.

To expand the sphere of knowledge and understanding, particularly in the context of

absenteeism



CHAPTER-5

RESEARCHMETHODOLOGY



5.A. RESEARCH METHODOLOGY

Research is essentially a logical and an organized enquiry seeking facts through objective verifiable methods in order to discover the relationship among them and to refer from the broad principles or laws. It is really a method of critical thinking.

Research may be defined as a systematic and objective analysis and recording of controlled observations that may lead to the development of generalization of principles or theories resulting in prediction and possibly ultimate control of events.

Methodology is often used in a narrow sense to refer to methods, technology or tools employed for the collection data as well as its processing. This is also used sometimes to designate data collected to arrive at the conclusion. In fact it describes that what should have been done? It provides answers to some of the major questions while research like what must be done, how it will be done ,what data will be needed, what data gathering devices will be employed, how sources of data will be analyzed to arrive at the conclusion.

For systematic research scientific approach is necessary. It is therefore essential to follow systematic methodology to arrive at proper conclusion.



The following information is necessary to complete the research methodology:

(1) Research Type: Exploratory/AnalyticalThis type of research is based on exploring or delving in deep to find certain facts and principles and to analyses the available information to reach on some conclusions and observations on the subject considered for the study.

(2) Universe : All the workers of the industryThe universe consists of all those people who can be come a part of the study to reach on some conclusions.

(3) Sample Size: 75 WorkersThe sample size is the number of persons actually considered for the study out of the total universe.

(4) Sampling Technique: Random and Convenience SamplingThe random sampling refers to a technique in which the people to be considered are taken at random i.e.; there is no pre-defined criteria to select the sample.

Convenience sampling means that the major criteria to decide on a sample are convenience. i.e.; people who are easily available or are to ready to participate and co-operate in the research process.

(5) Data Collection: Primary and Secondary data sourcesPrimary data refers to the information that is to meet the specific requirements of the investigation at hand. Data collected by the researcher is known as primary data. The data was collected by means of questionnaire, observation and also through personal interviews of the workers.

Secondary data means that data which is already been collected and analyses by someone else. Secondary data may either be published data or unpublished data. Generally secondary data is in the form of publications. These data can be interpreted as:-

Various publications Technical and trade journals Web sites Books



5.B. GENERAL ANALYSIS

To find out the causes and remedies of absenteeism, workers from ten different departments are considered for the study. These departments are viscose , workshop, after treatment, central maintenance (CMT), Auxiliary, Spinning, Effluent Treatment plant (ETP), fire services, energy center ( EC) and CS2.

The designations of the workers include Operator, khalasi, Fitter, Driver, workers, helpers,

spinner and supervisor.

To collect the primary data I conduct the questionnaire and this questionnaire contain the

following analysis of question.

ANALYSIS OF QUESTION NO . 1

Educational qualification of the worker.

ANALYSIS OF QUESTION NO. 2

The analysis of the duration of work or work experience shows that around 14%of workers have been working for less than 5 years. Majority of the workers, i.e. ; about 52% have an experience of 6-15 years.23 % lie between the range of 18-25 years and only 11% have a long experience of 26-35 years. Not even a single worker has been working for 35 years or more.



14

52

23

11 0

Less than 5years

6-15 years

18-25 years

26-35 years

35 years and above

Duration of workANALYSIS OF QUESTION NO. 3

The analysis regarding the number of days for which a worker is absent in a month revels that 31% are absent for 1-2 days, 27% for 3-4 days, 10% are absent for 5 days or more.

31

27

32

0

1-2 Days

3-4 Days

5 Days & More

None

Frequency of Absenteeism


In the study, the reasons that lead absenteeism among workers are dived into the following broad categories:



41%

14%

6% 5% 6%8%

11%9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Family

Perso

nal

Socia

l

Financia

l

Politic

alDept

Lega

l

Other

Causes of Absenteeism


A small percentage of the workers i.e. 8% are fully dissatisfied by the compensation and benefits provided to them. Most of the workers around 45% are not satisfied by the wages and other benefits and a similar percentage of workers, 38% are satisfied by the pay levels of the organization. 9% workers are fully satisfied by the compensation and benefits provided to them.

9%

38%8%

45%

Full satisf ied

Satisf ied

Full dissatisf ied

Dissatisf ied

Satisfaction level (Compensation and Benefits)




30% of the worker accept that they are used to some or the other kinds of bad habits like smoking, drinking liquor etc. In contrast to this 70% of the workers do not have any bad habits.

30%

70%

Yes

No

Bad Habits


The analysis makes it clear that 36% workers are absent because of an excess of work load and 64% workers do not consider this as a cause to be absent from their work.

36%

64%

Yes

No

Excess of Workload




40% of workers are of the view that their employers help them to reduce their absenteeism from the work. On the other hand 60% of the workers feel that their employers do nit play any role to reduce any absenteeism from the work.

40%

60%

Yes

No

Employer’s cooperation to reduce Absenteeism


One major cause of absenteeism may be when the workers feel that the orders given by their supervisor are not appropriate. The analysis of this question gives a clear picture that 52% of the workers feel that this happens at times, 19% say that this happens most of the time, 3% workers are of the view that this happens every time with them and the remaining 26% say that they never feel that the orders given to them are not appropriate. Among those workers who do not consider the orders of their supervisors appropriate consult their upper/ lower officer to face such situations, discharge, argue, adjust or try to explain to them.



52%

19%

3%

26%

0%

10%

20%

30%

40%

50%

60%

Sometimes Mostly Everytime Never

Orders


70% of the workers are worried about their job security because of absenteeism, where as 30% workers do not bother about the job security.

70%

30%

Yes

No

Job Security



CHAPTER-6

CONCLUSION&

RECOMMENDATIONS&

LIMITATIONS

6.A. CONCLUSION

1) Most of the workers (52%) have a good experience of 6-15 years. The workers are quite

satisfied with the policies, rules and regulations and working conditions of the



organization .The workers are experienced and efficient in their work and they do not want to

terminate from their jobs. That means the turnover rate is low in the organization.

2) The absenteeism rate is low in the organization and the most of the workers are very

sincere and regular at their workers are very sincere at their work. Majority of the workers

have a monthly attendance of 90-100%.

3) The single major reason behind absenteeism is due to family problems (41%) like old aged

parents of workers, sickness of family members of other family issues. The next important

factor is personal problems which the workers do not want to be disclosed. Workers are

satisfied with the social, financial, political, departmental, legal and other factors of the

organization and the absenteeism is quite low because of such issues.

4) Regarding the compensation and benefits structure, the workers are not satisfied or are

very little satisfied with it. This is not justified because the organization’s pay structure is

good as it provides much more benefits the minimum prescribed by the law.

5) 30% of the workers accept that they have some bad habits like smoking, drinking liquor,

etc. The organization should conduct ‘awareness and improvement programmer’s and make

them realize about the hazardous effects of such habits .This will also help to improve the

‘quality of life’ of the workers.

6) Most of the workers do not consider an excess of workload as a reason for being absent

from work.

7) Most of the workers are of the view that their employers do not help them out to reduce

absenteeism from work. This shows a lack of understanding between the management and

workers. This may in extreme cases lead to widening the gap between the employers and

workers.

8) Around 52% of the workers feel that the orders given by the supervisors are sometimes

not appropriate. The management should at times check for the supervisor’s orders and the

workers should also consult their upper officer in such cases .The workers should also

discuss, argue on such issues and try to explain their problems to managers. The workers



should not adjust or compromise in such situations if they are to hinder the path of progress

of the organization.

9) The workers are worried about their job security due to their being absent from work. The

organization can even terminate a worker in case of excessive absenteeism from the work

6.B. RECOMMENDATIONS

1. Appropriate measures should be taken to hold the workers so solve their family

problems, which constitute the major reason for absenteeism in the organization.

2. Adequate health care facilities and benefits and health care centers for the old aged

parents of the workers and sick family members.

3. Formation of a cell by the organization to discuss and exchange views on the issues

related to absenteeism of workers.

4. The workers should not be transferred from one department to another frequently by

senior executives because it is difficult to learn new work at new place.

5. Proper assistance and co-operation from management to cope-up with difficulties.

6. Equal distribution of work. The work should be assigned based on the educational

qualification and seniority of the worker. No bias of any type should take place.

6.C. LIMITATIONS

1. The study considers the workers of ten departments only due to time constraints. It was

possible to consider other department also for the study.

2. The study conducted on the basis of the views of seventy five workers only. More number

of workers could have been involved for the research.

3. The results are specific to the company in which the project is undertaken. These findings

can vary according to the industry.



6.D.BIBLIOGRAPHY

WEBSITES: http://www.hrjohnsonindia.com/http://www.johnson-tiles.com http://www.wikipedia.com

BOOKS: Human Resource Management Prasad L.M. 5th editionSaiyadin S Mirza and Monappa ArunGaonkar V.S and Memoria B.C


http://www.wikipedia.com/

Documents

Final Project of Anil