employee absenteeism

PROJECT REPORT

ON

A STUDY ON

EMPLOYEE ABSENTEEISM

AT

PRO-ACE INFOTECH

(Submitted for the partial fulfilment of requirement for the degree of Bachelor of Business Administration)

LOGO

S.D. COLLEGE

(2014-2015)

Submitted To: Submitted By:

Ms. Pardeep Kaur Ms. Simrat KaurBBA/6TH SEM (Head, Dept of Management)

DECLARATION

I, hereby declare that the research project report titled “A study on Employee Absenteeism”

is my own original research work and this report has not been submitted to any University/

Institute for the award of any professional degree or diploma.

Pardeep kaur BBA,6th sem

Roll no.23507

ACKNOWLGEMENT

“Acknowlgement is an art; one can write glib stanza without meaning a word on the other hand one can make a single expression of gratitude”.

It gives me a great pleasure to submit this project to Punjabi University Patiala. I take this opportunity with great pleasure to present before this project on “THE STUDY ON EMPLOYEE ABSENTEEISM” which is result of co-operation, hard work & good wishes of many people. The most pleasant part of any project is to express the gratitude towards all those who have contributed to the success of my project.

I would like to thanks Mrs. Vartika Sharma who has been my mentor for this project. It was only through her excellence assistance & good suggestions that I have been able to complete this project.

I am deeply grateful to Prof. Miss. Simrat Kaur (Head of department) S.D. college , Barnala for their everlasting support or guidance on the ground of which I have acquired a new field of knowledge the course structure created for curriculum has benefited with inclusion of recent development in an organisational & management aspects.

I am thankful to all the members of Pro-Ace Infotech who have given me valuable information in the part of my project. Above all, I would like to thank all contacted persons of firm who took out their valuable times to answer my queries & give me full information related to my project.

I extent my sincere gratitude towards my parents who have always encouraged me & give suggestion as how to work on project .they always stand by me in solving all my enquiries. Their support has always motivated me.

CERTIFICATE

Certified that Pardeep Kaur, a BBA student, Department of HR as a specialization, S.D.

COLLEGE ,Barnala was placed in this organization : PRO-ACE INFOTECH for Course

training for a period of six months during January-May, 2015, in partial fulfillment of the

requirement of a BBA degree of the university. She has been assigned the project

entitled: “To Study Employee Absenteeism at PRO-ACE INFOTECH”

In our opinion her work has been satisfactory.

Signature

Name and Designation of Training Coordinator

PREFACE

In today’s era of cut-throat competition Bachelor of Business Administration (B.B.A) is sure to have an edge over their counter parts.BBA education brings its students in direct contact with the real corporate world through Industrial training. The BBA programme provides its students with an in depth study of various managerial activities conducted in various departments like production, marketing, finance, human resource, export-import, credit department etc, gives the student a conceptual idea of what they are expected to manage, how to manage & how to obtain the maximum output through minimum inputs & how to minimize the wastage of resources. I have undergone my comprehensive training at Pro-Ace InfoTech it is one of the leading IT educational company in the country. I feel great pleasure to present this report work after my training at Pro-Ace InfoTech that produced to be golden opportunity for me by enriching my knowledge, by comparing my theatrical knowledge with the managerial skills & applications.

INDEX

CHAPTER-1 ABOUT COMPANY........................................................................1

1.1 COMPANY PROFILE...................................................................................... 2

1.2 RESEARCH & DEVELOPMENT.................................................................... 4

1.3 OTHER INFORMATION...................................................................................6

CHAPTER -2: INTRODUCTION OF HRM

2.1 MEANING OF HRM...................................................................... 8

2.2 DEFINITION OF HRM

2.3 OBJECTIVES OF HRM

2.4 NATURE OF HRM

2.5 NEED OF HRM

2.6 IMPORTANCE OF HRM

2.7 ENVIRONMENT FACTORS OF

HRM...............................................................................................................

CHAPTER- 3: INTRODUCTION............................................................................11

3.1 REASONS TO CHOOSE THE PROJECT........................................................12

3.2 ABSENTEEISM.CONCEPT.............................................................................13

3.3 MEASUREMENT OF ABSENTEEISM......................................................... 16

3.4 PECULIAR FEATURES OF ABSENTEEISM............................................... 17

3.5 CAUSES OF ABSENTEEISM....................................................................... 18

3.6 EFFECTS OF ABSENTEEISM ON INDUSTRIAL PROGRESS.................. 20

3.7 ANALYSIS OF CAUSES................................................................................ 21

3.8 ABSENTEEISM - TYPES & THEIR CONTROL .......................................... 22

3.9 GUIDELINES & MEASURES FOR CONTROL OF ABSNTEEISM........... 28

3.10 THE BRADFORD FACTOR & ABSENTEEISM ........................................ 33

CHAPTER-4:- RESEARCH METHODLOGY

4.1 RESEARCH METHODLOGY

4.2 REVIEW LITERATURE

CHAPTER-5: ANALYSIS &INTERPRETATION................................................37

CHAPTER-6 CONCLUSION, SUGGESTIONS & LIMITATIONS ......................43

BIBLIOGRAPHY ....................................................................................................47

ANNEXURE ............................................................................................................48

CHAPTER

COMPANY &

INDUSTRY

PROFILE

COMPANY PROFILE

ABOUT PRO-ACE INFOTECH

PRO-ACE INFOTECH is a 5 year young organization who is actively involved in the IT field,

Embedded Systems and has been providing its clients with exceptional quality in Web

Designing, Web Developing and SEO services. Our clients range from small, medium to large

scale Business houses & individuals.

PRO-ACE is an organization which is established in the field of Web Development (PHP

& .NET), JAVA (Core as well as Advance), Iphone & Android Applications, Embedded systems

(AVR,PIC & ARM), and Networking (MCSE,CCNA & RHSE). We have a team of enthusiastic

IT professionals and they are experts in their respective field. We focus on delivering smooth

Business solution with technological usage to meet the strategic objective of our client.

TECHNOLOGY EXPERTISE

Java Technologies

J2EE, EJB, JSP, J2ME, Servlet, SOAP, Web Services, XML, STRUTS, Spring, Hibernate,

Tapestry

Microsoft Technologies

.NET Framework, ASP.NET, VB.NET, C#.NET, Web Services, SQL Services, Dot NET Nuke

(DNN)

Databases

Oracle 10g, Microsoft SQL Server, Db2, MySQL

PHP Technologies

PHP, JavaScript, Joomla, CakePHP, Drupal, Magneto, Ruby on Rails, MySQL

Data Warehousing / Business Intelligence

Business objects, Cognos, Informatica, Data Stage, Decision Support System (DSS)

Operating System

Window 7, Window 8, XP, Red Hat Linux, Solaris

Mobile Technologies

MS Window Mobile, J2ME, Windows CE, Symbian, iPhone, Google Android

Finance Management

Marketing Management

Human Resource Management

DEVELOPMENT DIVISION

PRO-ACE INFOTECH is a 5 years young organization with an ISO Certificate which has been

working in the field of IT, Embedded System Engineering and has been providing its clients with

exceptional quality in web designing, Web Development and SEO services. We also provide the

offshore companies of Australia, US and UK. It is an association which is functioning in the

PRO –ACE INFOTECH AT A GLANCE

field of Android Application Development, Embedded Systems, Web Design, Web

Development (PHP & .NET), SEO, and JAVA.

LEARNING DIVISION

Learning Division of PRO-ACE INFOTECH is a renowned Engineer Training Division, well

known for providing technical and professional skill training to individuals, organizations and

educational institutions in advance fields such as .NET, PHP, J2EE, EMBEDDED SYSTEMS,

AutoCAD, PRO-E, CATIA, SOLID WORKS, REVIT, ANSYS. Currently these are the largest

job- providing sectors. We provide high end training with comprehensive programs that integrate

all aspects required to excel at the corporate level. With a combination of vast industry

experience, cutting-edge infrastructure, evolving technology tools and a thorough corporate

culture, we function to transform an individual into a success story.

SE DIVISION (VERTEX SOFT SOLUTIONS)

SE Division of the company is running under the name Vertex Soft Solutions. Vertex Soft

Solutions is a unit of PRO-ACE INFOTECH, committed to provide grooming ground to the

budding professionals to grab key positions in the esteemed organizations. Our solutions are

aligned with the client’s requirements keeping in focus the demands of the organizations. Our

team is highly qualified; specialists facilitate the learning and development of new and existing

skills in order to enhance the growth potential of students with respect to English Language and

Soft Skills Training. We partner with you to create and realize your visions and add

tangible value to the students.

Most employees these days want to hire retain and remote people who are dependable,

resourceful, ethical, and self-directed, have effective communication, are willing to work and

learn and have a positive attitude. The Indian market is also becoming global, so the attributes of

soft skills become imperative to be imbibed by the youth to show their real potential at intra and

international levels.

Vertex Soft Solutions has designed Skill Enhancement Program for addressing these needs of

the students who are pursuing technical and professional courses. We have divided the Skill

Enhancement Program under three main heads according to the requirement of the clients.

PRO-ACE mission is to bridge the gap between dreams and reality. The amin motive is to enable

the students to achieve what they have been aspiring since they understood their ambitions.

To impart internationally Certified and advanced High-End IT training to Engineers,

Professionals, College students in the field of Software, Hardware, Networking & Database

Administration.

OUR TRAINING STRENGTHS:

Extensive Industry expertise

Latest and evolving program offerings

Practical work based training modules

On the job corporate environment

Overall Development

OUR CORE COMPANY

At PRO-ACE INFOTECH, our core competence and industry experience has allowed us to

expand our service domain to offer a wide array services across multiple verticals. We believe in

working closely with the industry and the same is reflected in our tie-ups with some of the most

prestigious industries, institutions and experts from across the world for offering practical &

professional hands on trainings in IT, Electronics & Communication and Management Sector. In

a market that is saturated by IT training providers, PRO-ACE INFOTECH brings fresh verve,

energy, innovation and a commitment to quality education that is unparalleled. Our objective to

venture into training and education stems from our years of industry experience coupled with

extensive research and analysis of various trends which are and were affecting IT training quality

in the country.

Our research & survey has emphasized & dictated the need to create specialists in the

fields like Information Technology Electronics & Management. This is what has led to the

development of first ever skill set specialization based program which enables a student to follow

his/her domain of interest. This will not only help students perform better but they will strive for

perfection.

OTHER INFORMATION

Type : Privately Held

Company Size : 15-25 Employees

Website : http://www.proaceinfotech.org

Industry Type :

IT Development and Professional

Training Company

Year of Inception : 2010

Opposite ICICI Bank,

Leela Bhawan Market,

Corporate Office Patiala-147001,

Punjab

5

SALIENT FEATURES @ PRO-ACE INFOTECH

PRO-ACE INFOTECH has been the prime institution in the field of Training & Education in

Patiala. With over 1000 students undergoing training every year in field of IT, Electronics and

Management fields, we have proven our worth. Only quality can withstand the test of time in

today’s highly demanding market and with professionals hired to provide training to the student,

we aim to give the real industry environment to the student so that they get ready for it.

INDUSTRIAL TRAINING IN PATIALA

Industrial Training is very important in Career shaping of Students in Engineering and

Management Stream (Either in B.Tech, Diploma, MCA, MBA and BBA). PRO-ACE

INFOTECH is providing both six weeks and six months Industrial Training. Placement

companies mostly look for the latest technologies used in market. Industrial training is best place

to master skills as needed by companies. Depending on student’s personal interest or according

to his/her strength. Students from various Engineering and Management colleges and universities

undergo Training with us. During this period students have to decide field & technology that

would help them find right path for their career and get them great job & placement.

6

TRAINING MODULES @ PRO-ACE INFOTECH

6 WEEK/ 6 MONTHS INDUSTRIAL TRAINING IS AVAILABLE IN

SOFTWARE DEVOLPMENT : C#, JAVA, ASP.NET, PHP, ANDROID

NETWORK ADMINSTRATION: CISCO, CCNA, LINUX

ELECTRONICS & EMBEDDED SYSTEM : 8051, PIC, AVR, ARM OR CAD

MANAGEMENT : HUMAN RESOURCE, FINANCE, MARKETING

TRAINING LEVELS

LEVEL 1 CONCEPTUAL TRAINING

LEVEL 2 ADVANCED TRAINING

LEVEL 3 PROJECT WORK

LEVEL 4 REPORT WRITING

COURSES AVAILABLE IN MANAGEMENT

HUMAN RESOURCE MANAGEMENT

Human resource management (HRM or simply HR) is the management process of an

organization’s workforce or human resources. It is responsible for the attraction, selection,

training, assessment, and rewarding of employees, while also overseeing organizational

leadership and culture and ensuring compliance with employment and labour laws. In

circumstances where employees desire and are legally authorized to hold a collective bargaining

agreement, HR will also serve as the company's primary liaison with the employees'

representatives (usually a trades union).

HR is a product of the human relations movement of the early 20th century, when researchers began

documenting ways of creating business value through the strategic management of the workforce.The

function was initially dominated by transactional work, such as payroll and benefits administration,

workforce. The function was initially dominated by transactional work, such

as payroll and benefits administration, due to globalization, company consolidation,

technological advancement, and further research, HR now focuses on strategic initiatives

like mergers and acquisitions, talent management, succession planning, industrial and labor

relations, diversity and inclusion.

FINANCIAL MANAGEMENT

Financial Management means the efficient and effective management of money (funds) in such a

manner as to accomplish the objectives of the organization. It is the specialized functions directly

associated with the top management. The significance of this function is not only seen in the 'Line'

but also in the capacity of 'Staff' in overall administration of a company. It has been defined

differently by different experts in the field.

It includes how to raise the capital, how to allocate it i.e. capital budgeting. Not only about long term

budgeting but also how to allocate the short term resources like current assets. It also deals with the

dividend policies of the share holders.

8

FINANCIAL MANAGEMENT TOOLS:

• Planning (strategic plans, cash flow forecast, etc.)

• Organizing (org charts, job descriptions, etc)

• Controlling (budgets, procedures manual, etc)

• Monitoring (evaluation reports, financial reports, etc)

MARKETING MANAGEMENT

Marketing is the process of communicating the value of a product or service to customers, for

the purpose of selling that product or service.

From a societal point of view, marketing is the link between a society’s material requirements

and its economic patterns of response. Marketing satisfies these needs and wants through

exchange processes and building long term relationships. Marketing can be looked at as an

9

organizational function and a set of processes for creating, delivering and communicating value

to customers, and managing customer relationships in ways that also benefit the organization and

its shareholders. Marketing is the science of choosing target markets through market analysis

and market segmentation, as well as understanding consumer buying behavior and providing

superior customer value.

There are six competing concepts under which organizations can choose to operate their

business: the production concept, the product concept, the selling concept, the marketing

concept, the societal marketing concept and the holistic marketing concept. The four components

of holistic marketing are relationship marketing, internal marketing, integrated marketing, and

socially responsive marketing. The set of engagements necessary for successful marketing

management includes capturing marketing insights, connecting with customers, building strong

10

brands, shaping the market offerings, delivering and communicating value, creating long-term

growth, and developing marketing strategies and plans.

MARKETING TRAINING GOALS

• Understand the four components of marketing: Product, Price, Distribution and

Promotion

• Evaluate how well the product or service meets the needs of customers

• Determine the best price for the product or service

• Select the best way to distribute the product

• Create new ways to promote the business

• Identify ways to expand the business

• Solve the specific marketing problems that arise

COURSES AVAILABLE IN COMPUTER SCIENCE

PRO-ACE INFOTECH provides six weeks and six months Industrial training to the students of

B. Tech, MCA, BE, and Diploma in the areas of Software Development, Networking, Embedded

Systems and Mobile App Development (Android). The training program is highly job oriented

and is based on professional training courses offered by PRO-ACE INFOTECH, the professional

industrial training leader of the country since 2010.

More than 2,000 students have already been benefited by the professional training provided by

PRO-ACE INFOTECH, Patiala during the last three years as the company has tie ups with a

large number of reputed colleges and universities of Punjab. After completing their training from

PRO- ACE INFOTECH, the students have been placed in prestigious IT, Software and Hardware

development companies of India and many other counties.

11

NETWORKING

PRO-ACE INFOTECH provides the course of CCNA in networking. Networking is the practice

of linking two or more computing devices together for the purpose of sharing data. Networks are

built with a mix of computer hardware and computer software.

CCNA

CCNA (Cisco Certified Network Associate) is the Cisco Academy Computer Networking

Course with a curriculum designed to prepare computer networking students to pass the CCNA

exam, or the ICND 1 and 2 certification exams. Here is an overview of CCNA and where it fits

among the Cisco career certifications.

12

SOFTWARE

Software is a general term for the various kinds of programs used to operate computers and

related devices. We provide two courses in software such as PHP and JAVA (core and advance)

.NET and ANDROID.

PHP TRAINING

PHP stands for PHP: Hypertext Preprocessor, with that PHP standing for Personal Homepage.

PHP is an open-source language, used primarily for dynamic web content and server-side

applications.

PHP: Hypertext Preprocessor is a widely used, general-purpose scripting language that was

originally designed for web development to produce dynamic web pages. For this purpose, PHP

code is embedded into the HTML source document and interpreted by a web server with a PHP

processor module, which generates the web page document. As a general-purpose programming

language, PHP code is processed by an interpreter application in command-line mode

performing desired operating system operations and producing program output on its standard

output channel. It may also function as a graphical application. PHP is available as a processor

for most modern web servers and as standalone interpreter on most operating systems and

computing platforms.

JAVA TRAINING

When it comes to comparison of various languages, Java proves to be most effective language

due to its versatility, efficiency, platform portability, and security. Due to this more than 6.5

million software developers have learned this platform.

Java can be used to develop Web Applications, Desktop Applications, Mobile Applications. Java

is used develop programs for various embedded systems and even Gaming consoles. Also

android developers have selected Java as standard for developing Android Applications.

Java is used in every major industry segment and has a presence in a wide range of devices,

computers, and networks. Java platform is available in laptops to datacenters, game consoles to

scientific supercomputers, cell phones to the Internet.

ASP.NET

ASP .NET is a set of Web development tools provided by Microsoft . PRO-ACE INFOTECH

Provides Industrial training in ASP .Net. Web Applications are becoming most popular now-a-

days . Now we can edit photos online, Manage records in database, Create Docs without

installing Word processors etc. ASP.NET is a web framework that help us to create such

applications. The main advantage of framework is that it can use features of operating system .

PRO-ACE INFOTECH is providing Industrial training in .Net technologies since 2010, it has

trained more than 2,000 B.Tech. (CSE and IT professionals) in .Net framework.

14

ANDROID

Few years back we had to write mobile application that hardly work on 6 – 7 devices mostly and

now there are more than 250 android devices from various manufacturers. With 4 million

android device activation each day this platform has already become the biggest implemented

mobile operating system platform. Success of applications like Angry Birds, Paper Toss, Fruit

Ninja and other Apps has drawn attention of many software development companies towards

mobile development and particularly Android.

We are first in region to launch Android training in Patiala. In this course you will learn to create

application, Implement basic UI, 2D graphics,

Databases, Sensors, 3D and multi-touch etc. You will also learn to create game loops which is

one of most skill demanding applications

15

EMBEDDED SYSTEM

An Embedded system can be defined as a control system or computer system designed to

perform a specific task. Common examples of embedded systems include MP3 players,

navigation systems on aircraft and intruder alarm systems. An embedded system can also be

defined as a single purpose computer. Pro-Ace provide the course in embedded system such as

8051, PIC, ARV, ARM, and REBOTICS.

Pro-Ace InfoTech takes care of IT support, Embedded systems, Research & Development &

Implementation services; Pro-Ace InfoTech is a company that takes care of Software

development & web service solutions.

Our expertise covers several microcontroller architectures and their development tool chains. In

addition we focus on topics such as time-to-market, quality improvement, complete PCB

Designing and embedded applications using Atmel mcs51, Atmel AVR, Microchip PIC

controller, NXP ARM. Our training and consulting services include prototyping and customized

software and hardware developments.

16

Training, consulting or prototyping services include applications on technologies from Atmel,

microchip, NXP, Maxim etc

AUTOMATION

Automation is used to control systems to control processes, reducing the human intervention.

Automation is having technology to do things for you so that you don’t have to.

If you talking about Automation. It is all around us. E.g. When you are at traffic lights, there

isn’t a traffic light operator that decides when to change the light from red to green or green to

yellow .Everything is done automatically. The street lights come on automatically. There are no

lamplighters turning each light on anymore. We can apply the same idea to our own life. Most of

us can’t create complex control systems, but we can do our best with what is available.

17

Automation is controlled by Programmable Logic Controller (PLC) and Overseen by

Supervisory Control and Data Acquisition (SCADA). This helps you to control the circuit

Instantaneously without changing any hardware.

VLSI

Digital IC Designing with HDL

Introduction to ASIC design.

Introduction to Hardware description Languages :VHDL, VERILOG

Architectural features of FPGA and CPLD.

Introduction to Xilinx’s XC2C64A CPLD chip & Altera’s 5M570ZF256C5N CPLD Chip.

Working with Xilinx’s ISE 8.1 & Altera’s Quarteus II 12.1 HDL design Platform.

Study of Combinational and Sequential Digital system design.

SKILL ENHANCEMENT PROGRAM

Technical and job-related skills are a must, but they are not sufficient when it comes to

progressing up the ladder. Research in many fields such as Sales and Marketing, Software

development, Engineering and law, has shown that to be successful in the workplace, knowledge

alone is not enough. Soft skills are needed to deal with the external world and to work in a

collaborative manner with one’s colleagues. Good soft skills ensure that the companies are able

to capitalize on the wealth of technical knowledge, experience and efficiency to rule markets. To

Cater this need PRO-ACE InfoTech has designed an extensive Personality and Image Building

Program. In which we prepare people for the Interviews and other Behavioural skills required

for the Industry and outer world.

18

Brief description of the Skill Enhancement Program

LEVEL 1 LEVEL 2

“ASPIRING HIGH” “NURTURING DREAMS”

Initial Learning Module Advanced Learning Module

On On

Skill Enhancement Program Skill Enhancement Program

ASPIRING HIGH

Be better equipped to set the sails ‘right’ in the direction of the opportune wind! We all

aspire high to reach our goals which we have set in for ourselves. We all have dreams and

want to achieve our goals. So, what are you waiting for set your seat belts tight and set in

on a journey with us where all your dreams will come true. Let’s collectively work to

bridge the gap between your aspirations and reality. We at PRO-ACE, render our services

to develop corporate solutions that ‘work’ towards strengthening the brand value and

identity.

NURTURING DREAMS

The world is turning into a global village and competition is increasing manifolds. There

are many pre-requisites which have to be analysed and given due consideration to become

successful and reach the goals. We, at Pro – Ace offer a solution to all the problems which

the students encounter. Pro – Ace has explored all the major issues which become a

hindrance in the student’s career. We have designed our program “NUTURING

DREAMS” which covers all the essential aspects which are required for cracking the

placement process of any company.

19

OBJECTIVES OF THE PROGRAM

Help students understand the benefits of Personality enhancement and Image Building.

To improve the communication of the students and guide them to organize and express

their ideas effectively.

To comprehend the Pronunciation and understand the standard English

To confidently speak in front of all and remove the fear of judgment

To acquaint the students with business and professional writing

To build the aptitude skills of students

Enhance logical reasoning

COURSE OUTCOMES

Students will be able to handle situations confidently

They will not feel hesitant while using the International language i.e. English

It will boost the morale of the students

Students will become good communicators, self motivated and ambitious

See things in different perspectives

Have a clear vision and overcome obstacles

METHODOLOGY

Open Discussions Individually and in groups

Group activities

Games and relevant activities

Power point presentations

Perceptional tasks

TRAINING PROTOCOL

PRO-ACE INFOTECH offers the perfect mix of academic excellence, top reputation for

research, a supportive environment for learning and skill exposure. Beyond academic

Excellencies, the vibrancy of PRO-ACE INFOTECH lies in great practical exposure of

20

the corporate world. We are entrusted with the responsibility to provide grooming ground for

budding professionals to grab key positions in the esteemed organizations. We provide

exclusive training program called “Skill Enhancement Program” which covers six main areas

in which students require focus and grooming.

CHAPTER-2INTRODUCTION

OF

HUMAN RESOURCE

MANAGEMENT

2.1 INTRODUCION

Human resource is a paramount importance for the success of any organisation. It is a source of strength and aid. Human resource management is concerned with the human beings in an organisation. Human resource is the total knowledge, abilities, skills, talents and aptitudes of an organisation’s workforce. The values, ethics, beliefs of the individuals working in an organisation also form a part of human resource. Human resource is a resource like any other natural resource. It means that management can get and use the skill, knowledge, ability, etc. through the development of skills, tapping and utilising them again and again. Human resource management is that process of management which develops and manages the elements of an enterprise. It is not only the management of skills but also the attitudes and aspirations of people. When individuals come to a work place, they come with not only technical skills, knowledge, experience etc., but also with their personal feelings, perceptions, desires, motives, attitude, values etc. So, we can say human resource management means management of various aspects of human resources. An important element of human resource management is ‘humane approach’ while managing the people. This approach focuses on human resource development. It emphasises the human aspect o individual workers and their aspirations and needs. Human resource is a product of the human relations movement of the early 20th century. Human resource is also concerned with industrials, that is, the balancing of organisational practices with regulations arising from collective bargaining and governmental laws. Human resource is primarily concerned with how people are managed within organizations are typically responsible for a number of activities, including employee recruitment, training and development, performance appraisal and rewarding (e.g., managing pay and benefit systems).

2.2DEFINITION

OF


According to Invancevich & Glueek, “Human resource management is concerned

with the most effective views of people to achieve organisational and individual goals”.

According to W. L. French, “The HRM refers to the philosophy, policy, procedure and practice related to the management of people within the organisation”.

According to Gary Dessler, “Human resource management refers to the policies & practices one needs to carry out the people or human resource aspects of management position including recruiting, scanning, training, rewarding and appraising”.

According to Buchanan & Huczynski, “Human resource management is a managerial prospective which argues the need to establish an integrated series of personnel policies to support organisational strategy”.

According to Milkovich, “Human resource management is a series of integrated decisions that form the employment relationship their quality contributes to the ability of the organisations and the employees to achieve their objectives”.

2.3OBJECTIVES

OF


The primary objective of human resource management is to ensure a satisfactory accomplishment of the objectives of an organisation and of its employees. The objectives of the human resource management are as follows:

(1)Societal Objectives: The basic objective of human resource management towards the society should be to ensure that their organisation manages human resource in an ethical and socially responsible manner through ensuring compliance with legal and ethical standards. This objective includes: To manage human resources in an ethical and socially responsible manner. To ensure compliance with legal and ethical standards.

(2) Organisational Objectives: It includes the following:

Human resource department should focus on achieving the goals of the organisation first. If it does not meet this purpose, the Human resource department cannot exist in long run.

Human resource department should recognise its role in bringing about organisational effectiveness.

(3) Functional Objectives: It includes the following:

Human resource management should aim at providing the organisation with well trained and well motivated employees.

The department’s level of service must be tailored to fit the organisation it serves.

Societal Objectives

Organisational Objectives

Functional Objectives Personnel Objectives

Objective of Human Resource

Management

To maintain the human resource management department’s contribution at a level appropriate to the organisation’s needs.

(4) Personnel objectives: Personnel objectives of employees must be met if employees are to be maintained, retained and motivated. The objectives are as follows: Human resource management should increase employees’ job satisfaction to the

fullest extent. Human resource management should assist the employees in achieving their

personal goals. The human resource management should also communicate HR policies to all

employees. It will help the HRM in tapping the ideas, opinions, feelings, and the views of the employees.

2.4 NATURE

OF


The nature of human resource management has been highlighted in the following features:

(1) Continuous Process: Human resource management is a continuous process. It is not a shot function; rather it is a never ending exercise. Personnel management requires a constant alertness and awareness of human relations.

Continuous Process

Science as well as Art

Interdisciplina-ry

Basic to all Functional

Areas

(2)Science as well as Art: Human resource management is a science as it contains an organised body of knowledge consisting of principles and techniques. It is also an art. Handling people is one of the most creative arts. It involves the applications of theoretical knowledge to the problems of human resources. So, we can say it is a science as well as art.

(3) Interdisciplinary: Human resource management has become a highly specialised job. Moreover, it is not an isolated subject, it is interdisciplinary. It involves application of knowledge drawn from several disciplines like sociology, anthropology, economics etc.

(4) Basic to all Functional Areas: Human resource management is basic to all functional areas of the management such as production management, financial management, marketing management etc. Every manager working in any department has to perform the personnel functions. The function of human resource or personnel manager is advisory in nature. HRM does not confine itself to the selection of right type of persons for right jobs, it helps to build team spirit where employees satisfy their aspirations by developing themselves and contribute to the accomplishment of organisational goals. T. V. Rao suggests the following essential elements of human resource management: Employees enjoy their work.

Employees have a sense of accomplishment in and through their work.

Employees have a high sense of belonging to their organisation and their workplace.

Employees feel that they are respected as individuals and their contributions are valued.

Employees have a feeling to enhance their competence and perform more challenging and satisfying tasks.

Human resource management helps to develop humanised work environment, organisational climate and culture. Human resource management is basically employer oriented. But it does not mean that employees have not any benefit. Its only means that employees feel satisfied after meeting their needs and aspirations.

2.5 NEED

FOR


Human Resource Management helps in creating a better understanding between employees and management. It helps workers in accomplishing individual and organisational goals. It includes the following:

(1) Better Industrial Relations: There is widespread unrest, strained worker-management relations, lack of confidence, rising expectations of workers, emergence of militancy in trade unions etc. These factors have created a gap among workers and management. Both sides are talking exploitation by either side.

(2) Increased Pressure on Employees: The technological changes have necessitated the use of sophisticated machines. The installation, monitoring of machines, maintenance and controlling of operations need trained and skilful people. Human resource development has become essential for every organisation. Research and fresh initiatives in industry require new policy of human resource management.

(3)Coping with Changing Environment: The business environment is rapidly changing. Technological improvements have revolutionised production procedures. Automation has been introduced in office operations. There is a need to cope with new and changing situation. The operational efficiency of employees must improve to face the new situation. There is a need for new approach to manpower.

(4)Develop Organisational Commitment: There is a humanisation of work environment in industrialised countries like Japan, U. S. A., Germany etc. and other countries. Globalisation of economy has exposed Indian industries to international

Better Industrial Relations

Increased Pressure on Employees

Coping with Changing

Environment

Develop Organisation-al Commitment

competition. An improvement in efficiency and quality of work can come only when workers develop organisational commitment.

2.6 IMPORTANCE

OF


Human resource management is important to the organisation in a number of ways, as follows:

(1) Importance for the organisation: Human resource management is very important for the organisation. Good human resource practices help in attracting and retaining the best people in the organisation. In order to make use of latest technology the appointment of right type of persons is essential. The right people can be fitted into new jobs properly only if the management performs its HR functions properly. Human resource planning alerts the organisation to the types of people it will need in the short, medium and long run.

(2) Importance for the Employees: The human aspect of the organisations has become very important over the years. Human resource management stresses on the motivation of employees by providing them various financial and non-financial incentives. Right organisational climate is also stressed upon so that the employees can contribute their maximum to the achievement of the organisational objectives. Effective management of human resources promotes team work and team spirit

Importance for the

Employees

Importance for the society

Importance for the

Organisation

among employees. It offers excellent growth opportunities to people who have the potential to rise. It also encourages people to work with diligence and commitment.

(3) Importance for the society: Society as a whole is the main beneficiary of good human resource practices. Good HR efforts lead to productivity gains to the society, since it enables the managers to reduce costs, save scarce resources, enhance profits and offer better pay, benefits and working conditions to employees.

2.6 ENVIRONMENTAL FACTORS

OF


Environment is a very important variable in the human resource management. The environment of a business refers to the aggregate of conditions, events, and influences that surround and affect it. In today’s environment, there are a number of factors affecting the employment equations and relationships that affect on the work of the HR manager to achieve their goals. There are two types of factors that affected the human resource environment:

2.6.1EXTERNAL ENVIRONMENT

The external environment of consists of those factors affect an organisation’s HR resources from outside the organisation. The major external factors are explained with the help of the following figure:

Economic Factors

Social And Cultural Factors

UnionsPolitical-legal Factors

Technological Factors

(1) Economic Factors: Economic factors include all those economic forces which affect the HR function. Highly relevant economic factors are as following:

Suppliers: Suppliers are those who provide human resources to the organisation. It includes universities, colleges, training institutes, consultancy firms etc.

Customers: Customers are considered the kings. They want high quality products at reasonable prices.

Competitors: Competition plays an important role in every industry. If several companies make job offers to one individual, the organisation with more attractive terms and conditions will win. The number of competitors increases the importance of staffing function and compensation practices also increases.

Globalisation: Due to globalisation, The HR managers are required to play challenging roles and create competitive advantage for their concern. Today the business environment has become highly volatile in nature. Global firms have to continually reorganise their operations and refocus their energies around their crucial areas of competence.

(2) Political-legal Factors: The political-legal environment covers the impact of political institutions on the HR department. All Activities of HRM are in one way or the other affected by these factors. The HRM cannot manage the personnel unilaterally because it has to abide by the rules and regulations imposed by the Government from time to time. HR managers have to be aware about the legislations enacted by the governments at the centre and the states. The important legislations affecting HRM in India are: Factories Act, 1948

Trade Unions Act, 1926

The Payment of wages Act, 1936

The Minimum Wages Act, 1948

The Maternity Benefit Act,1961

The Payment of Bonus Act, 1965

Workmen’s Compensation Act, 1923

(3) Social and Cultural Factors: Now-a-days the society at large has become more demanding. Firms cannot operate in isolation; they are stuck with the society. Social impacts have to be evaluated before taking any action programme. It includes employees, friends, relatives and neighbours.

(4)Technological Factors: In the present competitive world, technological developments can dramatically influence an organisation’s environment. It creates new competitive advantages that are more powerful than the existing ones. It affects the HR functions in the following factors: New technologies, generally, compel people to learn a new set of skills altogether

or upgrade their existing skills and knowledge. New technologies advancements also lead to downsizing of workers.

(5)Unions: Trade unions constitute one of the major power blocks in many countries. With the formation and recognition of unions, the issues relating to employee interests

are no longer determined by the unilateral actions of the management. These have to be discussed with union representatives.

2.6.2 INTERNAL ENVIRONMENT

OF


Internal environment comprises of the factors which affect an organisation’s human resources from inside the organisations boundaries. Prominent internal factors are as follows:

(1)HR Systems: The survival, development and performance of an organisation depend heavily upon the quality of its personnel. In the view of importance of HR, organisations today are creating HRD departments, introducing participative management and quality circles, providing free flow of upward communication and enhancing the status of the employees. These changes are not the end of the HR function.

(2)Mission: Mission is very purpose and justification for the existence of a firm. An organisation’s mission statement tells-what it is, why it exists and the unique contribution it can make. At various levels, people must carry out assigned tasks keeping the overall mission of the firm in the mind. The HRM functions are also affected by the mission of the organisation.

(3)Policies: Policies are the guide maps in the organisation. Policies tell people what they may or may not do. These direct the manner in which the objectives of the organisation are to be achieved. Some of the important policies are as follows: To provide safe working conditions for employees.

HR Systems

Mission

PoliciesOrganisa-

tional Culture

Organisa-tional

Structur-e

To encourage the employees to achieve as much of their potential as possible.

To provide promotional avenues to employees.

To provide such compensation to employees that encourages high level of performance.

(4)Organisational Structure: Organisational culture is the sum total of shared values, beliefs and habits within an organisation. It depicts the personality of the organisation. The HR Managers have to adjust positively to the culture of the organisation. HR managers have to choose the paths that best reflect the culture of the firm and the attitudes of the people.

(5)Organisational Structure: Basically, There are two types of organisational structures- tall and flat. Tall or Pyramid type of organisational structures are suitable to companies that are labour oriented. Here the authority is vested at the top and the pyramid shows the hierarchy of positions. Flat organisations are suitable to technology oriented companies. Flat organisational structures indicate decentralisation of authority. In modern organisations, the job of HR managers is a very challenging and significant one.

CHAPTER-4RESEARCH

METHODOLOGY

4.1 RESEARCH METHODOLOGY The research reveals that one of the major problems is absenteeism in our industry.

Absenteeism hinders planning, production, efficiency and functioning of the

Organisation. In fact high rates of absenteeism affect an organisation state of health

And also supervisory and managerial effectiveness.

4.1.1. 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

4.1.2. Sample Selection and Size The population for the study comprised of absentees for current year, the total

Sample 50 workers.

4.1.3. Data Collection and Statistical Tools 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.

4.2 REVIEW LITERATURE(1) Ernest B. Akyeampong has written a research paper Trends and seasonality in

Absenteeism. In this paper the author focus on that at which time period the

Employees are more absent.

The high incidence in winter is likely related to the prevalence of

Communicable diseases at that time, especially colds and influenza. The low incidence

During the summer may be partly because many employees take their vacation during

these months. Because of survey design, those who fall ill during vacation will likely

report „vacation‟ rather than „sickness or disability‟ as the main reason for being away

from work.

Compared with the annual average, part-week absences are roughly 30% more

Prevalent in the winter months and almost 20% less so during the summer months.

Seasonality is much less evident in full-week absences.

(2) Mariajosé Romero and Young-Sun Lee has written a research paper A National

Portrait of Chronic Absenteeism in the Early Grades. In this paper he focused on

the following points:

(i) How widespread is the Problem of Early Absenteeism?

(ii) Does Family Incomes Impact Early Absenteeism?

(iii) What is the Impact of Early Absenteeism on Academic Achievement?

(3) Morten Nordberg and Knut Røed has written a research paper Absenteeism,

Health Insurance and Business Cycles. In this he wants to evaluate how the

economic environment affects worker absenteeism and he also isolates the causal

effects of business cycle developments on work-resumption prospects for ongoing

absence spells, by conditioning on the state of the business cycle at the moment of

entry into sickness absence.

The author finds that:

(i) That business cycle improvements yield lower work-resumption rates for

persons who are absent and higher relapse rates for persons who have already

resumed work.

(ii) That absence sometimes represents a health investment, in the sense that

longer absence now‟ reduces the subsequent relapse propensity.

(iii) That the work-resumption rate increases when sickness benefits are exhausted,

But those work-resumptions at this point tend to be short-lived.

CHAPTER-3INTRODUCTION

OFEMPLOYEE

ABSENTEEISM

3.1 REASONS TO CHOOSE THE PROJECT In my PGDM I had studied a subject Industrial Relation. In this subject I studied

about Absenteeism. After studying this topic I want to gain some practical

knowledge on this and try to find out the causes of Absenteeism. 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

this become 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, buggins 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.

3.2 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 defined as 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 authorised or unauthorised,

wilful 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 t hem 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, may be 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.

3.3 MEASUREMENT OF ABSENTEEISM For 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).

3.4 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

unless 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%.

3.5 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

home for change among industrial worker and some time impel them to visit their village

frequently for rest and relaxation”.

The general cause of absenteeism may be summarised 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 the ir 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 is 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 favouritism and nepotism which are in the industry the workers generally

become frustrated. This also results in low efficiency, low productivity,

unfavourable relationship between employee and supervisor, which in turn leads to

long period of absenteeism

10) INADEQUATE 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 them of ESI facility.

3.6 EFFECTS OF ABSENTEEISM ON INDUSTRIAL PROGRESSIt is quite evident that absenteeism is a common feature of industrial labour in India.

It hinders industrial growth and its effect in two fold.

1) LOSS TO WORKERS 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.

3.7 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 recognised and promotions are biased.

3.8 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.

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

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

1. Initial Counselling 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.

2. Written Counselling 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.

3. 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 "build" 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.)

4. 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?

b) Has the employer informed the employee of the unworkable situation

resulting from their sickness?

c) Has the employer attempted to accommodate the employee by offering a more

suitable position (if available) or a reduction of hours?

d) Has enough time elapsed to allow for every possible chance of recovery?

e) 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.

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.

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 counselling 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:

1. Initial Warning(s)

2. Written Warning(s)

3. Suspension(s)

4. Discharge

1. 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.

2. 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 continues, 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 o f the

problem, the credibility of the employee's explanations, the employee's general work

performance and length of service.

3. 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

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.

4. Dismissal (only after consultation with the appropriate superiors) Dismissals should only be considered when all of the above conditions and

procedures have been met.

3.9 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 "excused" absences, whereas

those that do work are "no fault" 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 absente eism 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 cause .

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 opinio ns 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, "How much

formal training have I given my supervisors in the areas of absenteeism reduction

and human resources skills?" 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 aptit ude 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 subsidised 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. leave for under this scheme, they

Can have 56 days leaves in years on half pay. An effective way of dealing with

Absenteeism is to liberalise 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 recognise that industrial work is a groups 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.

3.10 THE BRADFORD FACTOR &

ABSENTEEISM 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 them 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:

51 points – verbal warning.

201 points – written warning

401 points – final warning

601 points – dismissal

Setting 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.

CHAPTER-4 ANALYSIS

& INTERPRETATION

Q. For how many years you are working with Pro-Ace Infotech?

Interpretation – It can be seen that 56% of the workers at Pro-Ace Infotech are working for more than 10 years whereas 36% are working for more than 5 years.

Q. How often you remain absent in a month?

Interpretation- It can be seen that 96% of the workers do not remain absent.

0%

10%

20%

30%

40%

50%

60%

0-2 Years 2-5 Years 5-10 Years >10 Years

worker

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

nil once twice >twice

no of absents in a

month

Q. According to you what are the main reasons for employees absent?

Interpretation- According to 96% workers, personal problem is the reason for being

absent. 4% think that stress can also be the reason.

Q. Your views regarding present Absenteeism Policy of ProAce Infotech?

Interpretation- It can be seen that 76% workers rate the present absenteeism policy

as good whereas 22% rate it as excellent.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

stress personal prob

reason for being

absent

0%

10%

20%

30%

40%

50%

60%

70%

80%

excellent good fair poor

views regarding

absenteeism policy

Q. Are you clear about your work / job responsibilities?

Interpretation- It can be seen that 94% of the workers at ProAce Infotech

are clear regarding their work responsibilities.

Q. Are you satisfied with your work?

Interpretation- 82% of the workers are fully satisfied with their work whereas 16%

workers think their work as good.

0%

20%

40%

60%

80%

100%

well

clear

good fairly

clear

don't

know

clarity regarding work

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

well

satisfied

good fair not

satisfied

satisfaction regarding

work

Q. Views regarding working environment of ProAce Infotech ?

Interpretation- 82% workers feel that the working environment at ProAce Infotech is good

& 14% feel it as excellent

Q. Your relations with your superiors?

Interpretation- 76% workers have good relations with the superiors whereas 22%

have excellent relations with the superiors.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%


views regarding working

env.

0%

10%

20%

30%

40%

50%

60%

70%

80%


relations with superiors

Q. Yours superiors behaviour towards your problem?

Interpretation- 42% workers think that their superior‟s behaviour toward their

problems is excellent & 56% workers consider it as good.

Q. Yours views regarding facilities provided ProAce Infotech ?

Interpretation– 86% workers consider that facilities provided to them are good

whereas 10% consider them as excellent.

0%

10%

20%

30%

40%

50%

60%


superiors behaviour

towards your problems

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%


facilities provided at

Company

CHAPTER-5

CONCLUSION, SUGGESTIONS

& LIMITATIONS

5.1 CONCLUSION Finding and analysis reveals the following conclusion:

1) Almost 56% of the workers at ProAce Infotech are working for

more than 10 years whereas 36% are working for more than 5 yrs.

2) Almost 96% of the workers do not remain absent.

3) According to 96% workers, personal problem is the reason for being absent.

4% think that stress can also be the reason.

4) Almost 76% workers rate the present absenteeism policy as good whereas

22% rate it as excellent.

5) Almost 94% of the workers at ProAce Infotech are clear

regarding their work responsibilities.

6) 82% of the workers are fully satisfied with their work whereas 16% workers

think their work as good.

7) 76 % workers have good relations with the superiors whereas 22% have

excellent relations with the superiors.

8) 42% workers think that their superior‟s behaviour towards their problems is

excellent & 56% workers consider it as good.

5.2 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.

In this project while identifying the reasons of absenteeism of the workers of PRO-ACE

INFOTECH, Patiala I got an opportunity to interact with workers to observe their

behaviour and attitude.

In the end I would once again like to thank the people of PRO-ACE INFOTECH who

helped me in accomplishing this project and boosting my morale by appreciating and

recognizing my efforts.

5.3 LIMITATIONS 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.

BIBLIOGRAPHY

1. Books a. Industrial Relation-2007, Arun Monappa.

b. Industrial Relation, Trade Union and Labour Legislation-2009, P.R.N Sinha.

c. Industrial Relation and Labour Laws-2009, S.C Srivastava.

d. Dynamics of Industrial Relation-2008, C.B Mamoria.

e. Industrial Relation-2006, C.S VenkataRaman.

2. Web Sites

a. [email protected]

b. www.hrglossories.com

c. www.hr-guide.com

QUESTIONNAIRE Personal Information

Name (Optional).....................................................................

Age............................... Sex...................................

1). For how many years you are working with PRO-ACE INFOTECH?

(a) 0-1 yr (b) 1-2 yr

(c) 2-5 yr (d) < 5 yr

2). How often you remain absent in a month?

(a) Nil (b) Once

(c)Twice (d) < Twice

3). According to you what is the main reason for employees absent?

http://[email protected]

(a) Health problem / domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

(e) Others (Please Specify).....................................................

4). Your views regarding the present Absenteeism Policy of PRO-ACE INFOTECH?

(a) Excellent (b) Good

(c) Fair (d) don’t know

5). Are you clear about your work / job responsibilities?

(a) Well clear (b) Good

(c) Fairly clear (d) don’t know

6).Are you satisfied with your work?

(a) Well satisfied (b) Good

(c) Fair (d) not satisfied

7) .Your views regarding the working environment of PRO-ACE INFOTECH & work place?


(c) Fair (d) Poor

8). How are your relations with your superiors / co-workers?


(c) Fair (d) Poor

9).Your superior’s behaviour towards your problems?


(c) Fair (d) Poor

10). Your views regarding the facilities provided to you by PRO-ACE INFOTECH?


(c) Fair (d) Poor

employee absenteeism

Documents

research project report

study employee absenteeism

pardeep kaur bba

bba degree

bba student

proace infotechin

course training

members of proace infotech