research report-1

128
A RESEARCH PROJECT REPORT ENTITLED “ABSENTEEISM IN PUNJAB NATIONAL BANK Submitted in Pursuant to the Fulfilment of the Requirements for Award of the Degree of MASTER OF BUSINESS ADMINISTRATION Of UPTU, LUCKNOW Project Supervisor: Submitted By: Namita Gupta Areeba Nisar Lecturer Roll No. 0812070009 Dept. of Business Administration IV Semester 1

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Page 1: research report-1

A RESEARCH PROJECT REPORT

ENTITLED

ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo

Submitted in Pursuant to the Fulfilment of the Requirements for Award

of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Of

UPTU LUCKNOW

Project Supervisor Submitted By

Namita Gupta Areeba Nisar

Lecturer Roll No 0812070009

Dept of Business Administration IV Semester

DEPARTMENT OF BUSINESS ADMINISTRATION

INSTITUTE OF TECHNOLOGY amp MANAGEMENT

GIDA GORAKHPUR

2009-2010

1

PREFACE

There is a famous saying ldquoThe theory without practical is lame and practical

without theory is blindrdquo

Absenteeism is a serious workplace problem and an expensive occurrence for

both employers and employees seemingly unpredictable in nature The term

absenteeism refers to the failure to attend to work It is one of the major problems faced

by companies across the globe today Unscheduled absenteeism badly hurts the progress

of an organization resulting in loss of productivity increased costs in hiring additional

staff and low morale among the workers It is high time that employers address this

problem on a priority basis

Employees can be absent for a variety of reasons including sickness lethargic attitude

family emergencies too much workload and stress monotonous work or a general

dissatisfaction with the job A sales professional cites some other reasons like workplace

politics long commute strained relationship with the immediate supervisor and lack of

belongingness towards the organization as reasons for being absent from work Whatever

be the reason absenteeism is not at all a healthy practice and steps should be taken to

manage it effectively

2

Innocent absenteeism refers to being absent for those reasons that are beyond the control

of the employees like accidents or illnesses Under such circumstances the employees

should not be blamed for not turning up at work Culpable absenteeism on the other hand

is when employees absent themselves at a time when they are fully capable to attend

office This type of no shows should always be discouraged for it can become a burden to

the organization in the long run

Absenteeism is a vital issue that requires immediate attention by both employers and

employees Employees should enjoy the work they are doing and employers on their part

should help them in whatever way they can to make their experience a pleasant one After

all satisfied and happy employees look forward to report to work regularly and absent

themselves only for genuine reasons

Thus this research project explores my abilities and strength to its fullest extent

for the achievement of my personal goal

3

ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to various persons who

have shared their valuable time and made this research project possible through

their direct and indirect cooperation

My heartful thanks to Mr Wasi Ahmad Khan General Manager-1 of Punjab National

Bank Gorakhpur for giving information to carry on the project

I would like to acknowledge with great pleasure my deep sense of

gratitude to my supervisor Namita Gupta Lecturer Institute of Technology amp

Management GIDA Gorakhpur for her supervision and valuable guidance I am also

grateful to Prof SN Chaturvedi Head Dept of Business Administration Institute of

Technology amp Management GIDA Gorakhpur for his constant encouragement and

guidance

I am highly thankful to my parents for motivation and support throughout the period of

my study in the institute

Date AREEBA NISAR

MBA (IV Sem)

ITM GIDA

4

From - Prof SN Chaturvedi

Head

Dept Business Administration

CERTIFICATE

It is hereby certified that MsAreeba Nisar a student of MBA IV Semester has

completed the Research Project Report titled ldquoABSENTEEISM IN PUNJAB

NATIONAL BANKrdquo in pursuant to requirements for the award of the degree of

MBA of UPTU Lucknow To the best of my knowledge and belief it is her

original work

Date (Prof SN Chaturvedi)

5

CERTIFICATE

This is to certify that MsAreeba Nisar has completed the Research Project Report titled

ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the

requirements for the award of the degree of Master of Business Administration under my

guidance To the best of my knowledge and belief it is her original work

Date Project Supervisor

Namita Gupta

Lecturer

Dept of Business Administration

6

DECLARATION

I hereby declare that this project report is based on the research work done by me This is

my original work and no part thereof has been submitted anywhere else for any other

academic purpose

Date

(AREEBA NISAR)

7

TABLE OF CONTENTS

CONTENTS PAGE NO

1 Preface i

2 Acknowledgement ii

3 Certificate by HOD iii

4 Certificate by Faculty iv

5 Declaration by Student v

CHAPTER-1 1-6

11 Introduction

12 Objectives of the Study

13 Research Methodology

14 Limitations of the Study

CHAPTER-2 COMPANY-PROFILE 7-17

8

21 Introduction of the Company

22 History of the company

23 Organizational Structure of the Company

24 Review of performance

25 Awards and Achievements

CHAPTER-3 18-52

31 Concept of Credit Appraisal

32 Stages of Credit Appraisal

33 Process of Credit Appraisal

34 Credit Policy

35 Credit Delivery

36 Statutary Restrictions on loans and advances

37 Selective Credit Control

38 Credit Risk Management

39 Credit Risk Rating

310 Data Analysis amp Interpretation

9

CHAPTER-4 53-58

41 Findings

42 Conclusion

43 Suggestions amp Recommendations

6 Bibliography x-xi

7 Annexure xii-xv

- Questionnaire

10

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 2: research report-1

PREFACE

There is a famous saying ldquoThe theory without practical is lame and practical

without theory is blindrdquo

Absenteeism is a serious workplace problem and an expensive occurrence for

both employers and employees seemingly unpredictable in nature The term

absenteeism refers to the failure to attend to work It is one of the major problems faced

by companies across the globe today Unscheduled absenteeism badly hurts the progress

of an organization resulting in loss of productivity increased costs in hiring additional

staff and low morale among the workers It is high time that employers address this

problem on a priority basis

Employees can be absent for a variety of reasons including sickness lethargic attitude

family emergencies too much workload and stress monotonous work or a general

dissatisfaction with the job A sales professional cites some other reasons like workplace

politics long commute strained relationship with the immediate supervisor and lack of

belongingness towards the organization as reasons for being absent from work Whatever

be the reason absenteeism is not at all a healthy practice and steps should be taken to

manage it effectively

2

Innocent absenteeism refers to being absent for those reasons that are beyond the control

of the employees like accidents or illnesses Under such circumstances the employees

should not be blamed for not turning up at work Culpable absenteeism on the other hand

is when employees absent themselves at a time when they are fully capable to attend

office This type of no shows should always be discouraged for it can become a burden to

the organization in the long run

Absenteeism is a vital issue that requires immediate attention by both employers and

employees Employees should enjoy the work they are doing and employers on their part

should help them in whatever way they can to make their experience a pleasant one After

all satisfied and happy employees look forward to report to work regularly and absent

themselves only for genuine reasons

Thus this research project explores my abilities and strength to its fullest extent

for the achievement of my personal goal

3

ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to various persons who

have shared their valuable time and made this research project possible through

their direct and indirect cooperation

My heartful thanks to Mr Wasi Ahmad Khan General Manager-1 of Punjab National

Bank Gorakhpur for giving information to carry on the project

I would like to acknowledge with great pleasure my deep sense of

gratitude to my supervisor Namita Gupta Lecturer Institute of Technology amp

Management GIDA Gorakhpur for her supervision and valuable guidance I am also

grateful to Prof SN Chaturvedi Head Dept of Business Administration Institute of

Technology amp Management GIDA Gorakhpur for his constant encouragement and

guidance

I am highly thankful to my parents for motivation and support throughout the period of

my study in the institute

Date AREEBA NISAR

MBA (IV Sem)

ITM GIDA

4

From - Prof SN Chaturvedi

Head

Dept Business Administration

CERTIFICATE

It is hereby certified that MsAreeba Nisar a student of MBA IV Semester has

completed the Research Project Report titled ldquoABSENTEEISM IN PUNJAB

NATIONAL BANKrdquo in pursuant to requirements for the award of the degree of

MBA of UPTU Lucknow To the best of my knowledge and belief it is her

original work

Date (Prof SN Chaturvedi)

5

CERTIFICATE

This is to certify that MsAreeba Nisar has completed the Research Project Report titled

ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the

requirements for the award of the degree of Master of Business Administration under my

guidance To the best of my knowledge and belief it is her original work

Date Project Supervisor

Namita Gupta

Lecturer

Dept of Business Administration

6

DECLARATION

I hereby declare that this project report is based on the research work done by me This is

my original work and no part thereof has been submitted anywhere else for any other

academic purpose

Date

(AREEBA NISAR)

7

TABLE OF CONTENTS

CONTENTS PAGE NO

1 Preface i

2 Acknowledgement ii

3 Certificate by HOD iii

4 Certificate by Faculty iv

5 Declaration by Student v

CHAPTER-1 1-6

11 Introduction

12 Objectives of the Study

13 Research Methodology

14 Limitations of the Study

CHAPTER-2 COMPANY-PROFILE 7-17

8

21 Introduction of the Company

22 History of the company

23 Organizational Structure of the Company

24 Review of performance

25 Awards and Achievements

CHAPTER-3 18-52

31 Concept of Credit Appraisal

32 Stages of Credit Appraisal

33 Process of Credit Appraisal

34 Credit Policy

35 Credit Delivery

36 Statutary Restrictions on loans and advances

37 Selective Credit Control

38 Credit Risk Management

39 Credit Risk Rating

310 Data Analysis amp Interpretation

9

CHAPTER-4 53-58

41 Findings

42 Conclusion

43 Suggestions amp Recommendations

6 Bibliography x-xi

7 Annexure xii-xv

- Questionnaire

10

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 3: research report-1

Innocent absenteeism refers to being absent for those reasons that are beyond the control

of the employees like accidents or illnesses Under such circumstances the employees

should not be blamed for not turning up at work Culpable absenteeism on the other hand

is when employees absent themselves at a time when they are fully capable to attend

office This type of no shows should always be discouraged for it can become a burden to

the organization in the long run

Absenteeism is a vital issue that requires immediate attention by both employers and

employees Employees should enjoy the work they are doing and employers on their part

should help them in whatever way they can to make their experience a pleasant one After

all satisfied and happy employees look forward to report to work regularly and absent

themselves only for genuine reasons

Thus this research project explores my abilities and strength to its fullest extent

for the achievement of my personal goal

3

ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to various persons who

have shared their valuable time and made this research project possible through

their direct and indirect cooperation

My heartful thanks to Mr Wasi Ahmad Khan General Manager-1 of Punjab National

Bank Gorakhpur for giving information to carry on the project

I would like to acknowledge with great pleasure my deep sense of

gratitude to my supervisor Namita Gupta Lecturer Institute of Technology amp

Management GIDA Gorakhpur for her supervision and valuable guidance I am also

grateful to Prof SN Chaturvedi Head Dept of Business Administration Institute of

Technology amp Management GIDA Gorakhpur for his constant encouragement and

guidance

I am highly thankful to my parents for motivation and support throughout the period of

my study in the institute

Date AREEBA NISAR

MBA (IV Sem)

ITM GIDA

4

From - Prof SN Chaturvedi

Head

Dept Business Administration

CERTIFICATE

It is hereby certified that MsAreeba Nisar a student of MBA IV Semester has

completed the Research Project Report titled ldquoABSENTEEISM IN PUNJAB

NATIONAL BANKrdquo in pursuant to requirements for the award of the degree of

MBA of UPTU Lucknow To the best of my knowledge and belief it is her

original work

Date (Prof SN Chaturvedi)

5

CERTIFICATE

This is to certify that MsAreeba Nisar has completed the Research Project Report titled

ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the

requirements for the award of the degree of Master of Business Administration under my

guidance To the best of my knowledge and belief it is her original work

Date Project Supervisor

Namita Gupta

Lecturer

Dept of Business Administration

6

DECLARATION

I hereby declare that this project report is based on the research work done by me This is

my original work and no part thereof has been submitted anywhere else for any other

academic purpose

Date

(AREEBA NISAR)

7

TABLE OF CONTENTS

CONTENTS PAGE NO

1 Preface i

2 Acknowledgement ii

3 Certificate by HOD iii

4 Certificate by Faculty iv

5 Declaration by Student v

CHAPTER-1 1-6

11 Introduction

12 Objectives of the Study

13 Research Methodology

14 Limitations of the Study

CHAPTER-2 COMPANY-PROFILE 7-17

8

21 Introduction of the Company

22 History of the company

23 Organizational Structure of the Company

24 Review of performance

25 Awards and Achievements

CHAPTER-3 18-52

31 Concept of Credit Appraisal

32 Stages of Credit Appraisal

33 Process of Credit Appraisal

34 Credit Policy

35 Credit Delivery

36 Statutary Restrictions on loans and advances

37 Selective Credit Control

38 Credit Risk Management

39 Credit Risk Rating

310 Data Analysis amp Interpretation

9

CHAPTER-4 53-58

41 Findings

42 Conclusion

43 Suggestions amp Recommendations

6 Bibliography x-xi

7 Annexure xii-xv

- Questionnaire

10

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 4: research report-1

ACKNOWLEDGEMENT

I would like to express my appreciation and gratitude to various persons who

have shared their valuable time and made this research project possible through

their direct and indirect cooperation

My heartful thanks to Mr Wasi Ahmad Khan General Manager-1 of Punjab National

Bank Gorakhpur for giving information to carry on the project

I would like to acknowledge with great pleasure my deep sense of

gratitude to my supervisor Namita Gupta Lecturer Institute of Technology amp

Management GIDA Gorakhpur for her supervision and valuable guidance I am also

grateful to Prof SN Chaturvedi Head Dept of Business Administration Institute of

Technology amp Management GIDA Gorakhpur for his constant encouragement and

guidance

I am highly thankful to my parents for motivation and support throughout the period of

my study in the institute

Date AREEBA NISAR

MBA (IV Sem)

ITM GIDA

4

From - Prof SN Chaturvedi

Head

Dept Business Administration

CERTIFICATE

It is hereby certified that MsAreeba Nisar a student of MBA IV Semester has

completed the Research Project Report titled ldquoABSENTEEISM IN PUNJAB

NATIONAL BANKrdquo in pursuant to requirements for the award of the degree of

MBA of UPTU Lucknow To the best of my knowledge and belief it is her

original work

Date (Prof SN Chaturvedi)

5

CERTIFICATE

This is to certify that MsAreeba Nisar has completed the Research Project Report titled

ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the

requirements for the award of the degree of Master of Business Administration under my

guidance To the best of my knowledge and belief it is her original work

Date Project Supervisor

Namita Gupta

Lecturer

Dept of Business Administration

6

DECLARATION

I hereby declare that this project report is based on the research work done by me This is

my original work and no part thereof has been submitted anywhere else for any other

academic purpose

Date

(AREEBA NISAR)

7

TABLE OF CONTENTS

CONTENTS PAGE NO

1 Preface i

2 Acknowledgement ii

3 Certificate by HOD iii

4 Certificate by Faculty iv

5 Declaration by Student v

CHAPTER-1 1-6

11 Introduction

12 Objectives of the Study

13 Research Methodology

14 Limitations of the Study

CHAPTER-2 COMPANY-PROFILE 7-17

8

21 Introduction of the Company

22 History of the company

23 Organizational Structure of the Company

24 Review of performance

25 Awards and Achievements

CHAPTER-3 18-52

31 Concept of Credit Appraisal

32 Stages of Credit Appraisal

33 Process of Credit Appraisal

34 Credit Policy

35 Credit Delivery

36 Statutary Restrictions on loans and advances

37 Selective Credit Control

38 Credit Risk Management

39 Credit Risk Rating

310 Data Analysis amp Interpretation

9

CHAPTER-4 53-58

41 Findings

42 Conclusion

43 Suggestions amp Recommendations

6 Bibliography x-xi

7 Annexure xii-xv

- Questionnaire

10

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 5: research report-1

From - Prof SN Chaturvedi

Head

Dept Business Administration

CERTIFICATE

It is hereby certified that MsAreeba Nisar a student of MBA IV Semester has

completed the Research Project Report titled ldquoABSENTEEISM IN PUNJAB

NATIONAL BANKrdquo in pursuant to requirements for the award of the degree of

MBA of UPTU Lucknow To the best of my knowledge and belief it is her

original work

Date (Prof SN Chaturvedi)

5

CERTIFICATE

This is to certify that MsAreeba Nisar has completed the Research Project Report titled

ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the

requirements for the award of the degree of Master of Business Administration under my

guidance To the best of my knowledge and belief it is her original work

Date Project Supervisor

Namita Gupta

Lecturer

Dept of Business Administration

6

DECLARATION

I hereby declare that this project report is based on the research work done by me This is

my original work and no part thereof has been submitted anywhere else for any other

academic purpose

Date

(AREEBA NISAR)

7

TABLE OF CONTENTS

CONTENTS PAGE NO

1 Preface i

2 Acknowledgement ii

3 Certificate by HOD iii

4 Certificate by Faculty iv

5 Declaration by Student v

CHAPTER-1 1-6

11 Introduction

12 Objectives of the Study

13 Research Methodology

14 Limitations of the Study

CHAPTER-2 COMPANY-PROFILE 7-17

8

21 Introduction of the Company

22 History of the company

23 Organizational Structure of the Company

24 Review of performance

25 Awards and Achievements

CHAPTER-3 18-52

31 Concept of Credit Appraisal

32 Stages of Credit Appraisal

33 Process of Credit Appraisal

34 Credit Policy

35 Credit Delivery

36 Statutary Restrictions on loans and advances

37 Selective Credit Control

38 Credit Risk Management

39 Credit Risk Rating

310 Data Analysis amp Interpretation

9

CHAPTER-4 53-58

41 Findings

42 Conclusion

43 Suggestions amp Recommendations

6 Bibliography x-xi

7 Annexure xii-xv

- Questionnaire

10

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 6: research report-1

CERTIFICATE

This is to certify that MsAreeba Nisar has completed the Research Project Report titled

ldquoABSENTEEISM IN PUNJAB NATIONAL BANKrdquo in the partial fulfilment of the

requirements for the award of the degree of Master of Business Administration under my

guidance To the best of my knowledge and belief it is her original work

Date Project Supervisor

Namita Gupta

Lecturer

Dept of Business Administration

6

DECLARATION

I hereby declare that this project report is based on the research work done by me This is

my original work and no part thereof has been submitted anywhere else for any other

academic purpose

Date

(AREEBA NISAR)

7

TABLE OF CONTENTS

CONTENTS PAGE NO

1 Preface i

2 Acknowledgement ii

3 Certificate by HOD iii

4 Certificate by Faculty iv

5 Declaration by Student v

CHAPTER-1 1-6

11 Introduction

12 Objectives of the Study

13 Research Methodology

14 Limitations of the Study

CHAPTER-2 COMPANY-PROFILE 7-17

8

21 Introduction of the Company

22 History of the company

23 Organizational Structure of the Company

24 Review of performance

25 Awards and Achievements

CHAPTER-3 18-52

31 Concept of Credit Appraisal

32 Stages of Credit Appraisal

33 Process of Credit Appraisal

34 Credit Policy

35 Credit Delivery

36 Statutary Restrictions on loans and advances

37 Selective Credit Control

38 Credit Risk Management

39 Credit Risk Rating

310 Data Analysis amp Interpretation

9

CHAPTER-4 53-58

41 Findings

42 Conclusion

43 Suggestions amp Recommendations

6 Bibliography x-xi

7 Annexure xii-xv

- Questionnaire

10

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 7: research report-1

DECLARATION

I hereby declare that this project report is based on the research work done by me This is

my original work and no part thereof has been submitted anywhere else for any other

academic purpose

Date

(AREEBA NISAR)

7

TABLE OF CONTENTS

CONTENTS PAGE NO

1 Preface i

2 Acknowledgement ii

3 Certificate by HOD iii

4 Certificate by Faculty iv

5 Declaration by Student v

CHAPTER-1 1-6

11 Introduction

12 Objectives of the Study

13 Research Methodology

14 Limitations of the Study

CHAPTER-2 COMPANY-PROFILE 7-17

8

21 Introduction of the Company

22 History of the company

23 Organizational Structure of the Company

24 Review of performance

25 Awards and Achievements

CHAPTER-3 18-52

31 Concept of Credit Appraisal

32 Stages of Credit Appraisal

33 Process of Credit Appraisal

34 Credit Policy

35 Credit Delivery

36 Statutary Restrictions on loans and advances

37 Selective Credit Control

38 Credit Risk Management

39 Credit Risk Rating

310 Data Analysis amp Interpretation

9

CHAPTER-4 53-58

41 Findings

42 Conclusion

43 Suggestions amp Recommendations

6 Bibliography x-xi

7 Annexure xii-xv

- Questionnaire

10

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 8: research report-1

TABLE OF CONTENTS

CONTENTS PAGE NO

1 Preface i

2 Acknowledgement ii

3 Certificate by HOD iii

4 Certificate by Faculty iv

5 Declaration by Student v

CHAPTER-1 1-6

11 Introduction

12 Objectives of the Study

13 Research Methodology

14 Limitations of the Study

CHAPTER-2 COMPANY-PROFILE 7-17

8

21 Introduction of the Company

22 History of the company

23 Organizational Structure of the Company

24 Review of performance

25 Awards and Achievements

CHAPTER-3 18-52

31 Concept of Credit Appraisal

32 Stages of Credit Appraisal

33 Process of Credit Appraisal

34 Credit Policy

35 Credit Delivery

36 Statutary Restrictions on loans and advances

37 Selective Credit Control

38 Credit Risk Management

39 Credit Risk Rating

310 Data Analysis amp Interpretation

9

CHAPTER-4 53-58

41 Findings

42 Conclusion

43 Suggestions amp Recommendations

6 Bibliography x-xi

7 Annexure xii-xv

- Questionnaire

10

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 9: research report-1

21 Introduction of the Company

22 History of the company

23 Organizational Structure of the Company

24 Review of performance

25 Awards and Achievements

CHAPTER-3 18-52

31 Concept of Credit Appraisal

32 Stages of Credit Appraisal

33 Process of Credit Appraisal

34 Credit Policy

35 Credit Delivery

36 Statutary Restrictions on loans and advances

37 Selective Credit Control

38 Credit Risk Management

39 Credit Risk Rating

310 Data Analysis amp Interpretation

9

CHAPTER-4 53-58

41 Findings

42 Conclusion

43 Suggestions amp Recommendations

6 Bibliography x-xi

7 Annexure xii-xv

- Questionnaire

10

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 10: research report-1

CHAPTER-4 53-58

41 Findings

42 Conclusion

43 Suggestions amp Recommendations

6 Bibliography x-xi

7 Annexure xii-xv

- Questionnaire

10

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 11: research report-1

11 INTRODUCTION

12 OBJECTIVES OF THE STUDY

13 RESEARCH METHODOLOGY

14 LIMITATIONS OF STUDY

11

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 12: research report-1

11 INTRODUCTION

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

Labour observed that ldquohigh absenteeism prevails among industrial labour mainly due to

rural orientationrdquo

Absenteeism is one of the common factor which affects the growth of the organization

When the absenteeism control programmes are introduced to the absentees continues to

reduce the corporate profit severely

If the person employed is absent for few days then the management has to take severe

action regarding this problem So management has to go for recruitment of suitable

employees

Substitute workers and such workers are to be well trained because of this management

are to insure expenditure on it Evaluation of absenteeism rate is a yardstick with which

we can measure the employeersquos job interest and their commitment to work Apart from

this employeersquos attitude about job can be known since it affects productivity to a large

extent

12

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 13: research report-1

12 OBJECTIVES OF STUDY

The overall objectives of this project report are ndash

To find out level of absenteeism among employees in the organization

To identify the rate of absenteeism of employees

To identify the various causes of absenteeism

To suggest remedial measures to control absenteeism rate

13

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 14: research report-1

13 RESEARCH METHODOLOGY

Research in a common parlance refers to search for knowledge It is a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge

Research methodology is a way to systematically solve the research problem It may be

understood as a science of studying how research is done scientifically

Research Design

A research design is the arrangement of condition for collection of data and analysis of

data in a manner that aims to combine relevance to the research purposes with economy

in procedure In this study descriptive research design has been used

Sample Selection amp Size

The population of absentees comprises of current year The sample size of the study is 50

ie sample of 50 employees were used as a baseline of conducting research programme

Data Collection amp Statistical Tool

The sources of data for the purpose of study were both primary and secondary Primary

was collected through questionnaire Questionnaire (enclosed in Annexure) mainly

contain closed-ended questions Great care was taken in preparation of questionnaire so

14

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 15: research report-1

that reliable data can be obtained Secondary data was collected from the records of the

department of the organization

Percentage method is used for analysis of data and bar graph is used to represent that

data

15

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 16: research report-1

14 LIMITATIONS OF THE STUDY

There are some limitations of the study which are as follows-

Respondent were reluctant were suspicious in responding to the questions

Accuracy is another problem as data from sample may not reveal the fact

The respondentrsquos opinion can be biased

There may be error due to the bias of the respondents

They donrsquot tell truth because of job insecurity

16

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 17: research report-1

17

21 PROFILE OF THE COMPANY

22 HISTORY OF THE COMPANY

23ORGANIZATIONAL STRUCTURE

24REVIEW OF PERFORMANCE

25 AWARDS AND ACHIEVEMENTS

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 18: research report-1

PUNJAB NATIONAL BANK

21 INTRODUCTION

Punjab National Bank (PNB) was registered on May 19 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore The Bank is the second largest

government-owned commercial bank in India with about 4904 branches across 764

cities It serves over 37 million customers The bank has been ranked 248th biggest bank

in the world by Bankers Almanac London The banks total assets for financial year 2007

were about US$60 billion PNB has a banking subsidiary in the UK as well as branches

in Hong Kong Dubai and Kabul and representative offices in Almaty Dubai Oslo and

Shanghai

PROFILE OF PNB

With over 56 million satisfied customers and 5002 offices PNB has continued to retain

its leadership position amongst the nationalized banks The bank enjoys strong

fundamentals large franchise value and good brand image Besides being ranked as one

of Indias top service brands PNB has remained fully committed to its guiding principles

of sound and prudent banking Apart from offering banking products the bank has also

entered the credit card amp debit card business bullion business life and non-life insurance

18

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 19: research report-1

business Gold coins amp asset management business etc

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital PNB has achieved significant growth in business

which at the end of March 2010 amounted to Rs 435931 crore Today with assets of

more than Rs 296633 crore PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including

5 overseas branches )During the FY 2009-10 with 4085 share of CASA deposits the

bank achieved a net profit of Rs 3905 crore Bank has a strong capital base with capital

adequacy ratio of 1416 as on Marrsquo10 as per Basel II with Tier I and Tier II capital ratio

at 915 and 501 respectively As on Marchrsquo10 the Bank has the Gross and Net NPA

ratio of 171 and 053 respectively During the FY 2009-10 itsrsquo ratio of Priority

Sector Credit to Adjusted Net Bank Credit at 405 amp Agriculture Credit to Adjusted

Net Bank Credit at 197 was also higher than the stipulated requirement of 40

amp18

The Bank has maintained its stake holderrsquos interest by posting an improved NIM of

357 in Marrsquo10 (352 Marrsquo09) and a Return on Assets of 144 (139 Marrsquo09) The

Earning per Share improved to Rs 12398 (Rs 9803 Marrsquo09) while the Book value per

share improved to Rs 51477 (Rs 41674 Marrsquo09)

Punjab National Bank continues to maintain its frontline position in the Indian banking

industry In particular the bank has retained its NUMBER ONE position among the

nationalized banks in terms of number of branches Deposit Advances total Business

Assets Operating and Net profit in the year 2009-10 The impressive operational and

financial performance has been brought about by Bankrsquos focus on customer based

19

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 20: research report-1

business with thrust on CASA deposits Retail SME amp Agri Advances and with more

inclusive approach to banking better asset liability management improved margin

management thrust on recovery and increased efficiency in core operations of the Bank

The performance highlights of the bank in terms of business and profit are shown below

Rs in Crore

Parameters Mar08 Mar09 Mar10 CAGR()Operating Profit 4006 5744 7326 2229Net Profit 2049 3091 3905 2398Deposit 166457 209760 249330 1442Advance 119502 154703 186601 1601Total Business 285959 364463 435931 1509

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its lsquoIT strategyrsquo follows the lsquoBusiness strategyrsquo so as to arrive at

ldquoBest Fitrdquo The bank has made rapid strides in this direction All branches of the Bank are

under Core Banking Solution (CBS) since Decrsquo08 thus covering 100 of its business

and providing lsquoAnytime Anywherersquo banking facility to all customers including customers

of more than 3000 rural amp semi urban branches The bank has also been offering Internet

banking services to the customers of CBS branches like booking of tickets payment of

bills of utilities purchase of airline tickets etc Towards developing a cost effective

alternative channels of delivery the bank with more than 350 ATMs has the largest ATM

network amongst Nationalized Banks

With the help of advanced technology the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned With its policy of inclusive

growth in the Indo-Gangetic belt the Bankrsquos mission is ldquoBanking for Unbankedrdquo The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business CorrespondentsBusiness Facilitators (BCBF) so as

20

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 21: research report-1

to reach out to the last mile customer The Bank has started several innovative initiatives

for marginal groups like rickshaw pullers vegetable vendors dairy farmers construction

workers etc Under Branchless Banking model the Bank is implementing 40 projects in

16 States The Bank launched an ambitious lsquoProject Namaskarrsquo under which 1 lakh touch

points will be established in unbanked villages by 2013 to extend the Bankrsquos outreach

Under this 30 Kiosks have been opened covering 119 Villages reaching 132 Lakh

beneficiaries

Backed by strong domestic performance the bank is planning to realize its global

aspirations Bank continues its selective foray in international markets with presence in 9

countries with branches at Kabul and Dubai Hong Kong amp representative offices at

Almaty Dubai Shanghai and Oslo a wholly owned subsidiary in UK a joint venture

with Everest Bank Ltd Nepal and a JV banking subsidiary ldquoDRUK PNB Bank Ltdrdquo in

Bhutan Bank is pursuing upgradation of its representative offices in China amp Norway

and is in the process of setting up a representative office in Sydney Australia and taking

controlling stake in JSC Dana Bank in Kazakhastan

Bank has been a recipient of many awards and accolades during the year-

bull Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance

2009 by Standing Conference of Public Enterprises

bull As per Financial Express-Ernest amp young (FE-EY) Indiarsquos Best Banks Survey PNB is

identified as the best bank among the nationalized banks in terms of overall ranking

bull As per HT-MaRS Survey on Customer Satisfaction PNB stood NUMBER ONE in

Delhi and Chennai in terms of customer satisfaction

bull As per the Forbes Annual list of 2000 global giants PNB tops the list of nationalized

21

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 22: research report-1

banks with a global ranking of 695 substantial improvement over last yearrsquos placement at

946th position

bull The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of

2010

bull Skoch Challenge Award 2010 for ldquoLivelihood Linkagerdquo of the milk producers in

Bulandshahr District Uttar Pradesh

bull IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

22

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 23: research report-1

22 HISTORY

1895 PNB commenced its operations in Lahore PNB has the distinction of

being the first Indian bank to have been started solely with Indian capital that

has survived to the present (The first entirely Indian bank the Oudh

Commercial Bank was established in 1881 in Faizabad but failed in 1958)

PNBs founders included several leaders of the Swadeshi movement such as

Dyal Singh Majithia and Lala HarKishen Lal Lala Lalchand Shri Kali

Prosanna Roy Shri EC Jessawala Shri Prabhu Dayal Bakshi Jaishi Ram

and Lala Dholan Dass Lala Lajpat Rai was actively associated with the

management of the Bank in its early years

1904 PNB established branches in Karachi and Peshawar

1940 PNB absorbed Bhagwan Dass Bank a scheduled bank located in Delhi

circle

1947 Partition of India and Pakistan at Independence PNB lost its premises

in Lahore but continued to operate in Pakistan

1951 PNB acquired the 39 branches of Bharat Bank (est 1942) Bharat Bank

became Bharat Nidhi Ltd

1961 PNB acquired Universal Bank of India

23

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 24: research report-1

1963 The Government of Burma nationalized PNBs branch in Rangoon

(Yangon)

September 1965 After the Indo-Pak war the government of Pakistan seized

all the offices in Pakistan of Indian banks including PNBs head office which

may have moved to Karachi PNB also had one or more branches in East

Pakistan (Bangladesh)

1960s PNB amalgamated Indo Commercial Bank (est 1933) in a rescue

1969 The Government of India (GOI) nationalized PNB and 13 other major

commercial banks on July 19 1969

1976 or 1978 PNB opened a branch in London

1986 The Reserve Bank of India required PNB to transfer its London branch

to State Bank of India after the branch was involved in a fraud scandal

1986 PNB acquired Hindustan Commercial Bank (est 1943) in a rescue The

acquisition added Hindustans 142 branches to PNBs network

1993 PNB acquired New Bank of India which the GOI had nationalized in

1980

1998 PNB set up a representative office in Almaty Kazakhstan

2003 PNB took over Nedungadi Bank the oldest private sector bank in

Kerala At the time of the merger with PNB Nedungadi Banks shares had

zero value with the result that its shareholders received no payment for their

shares PNB also opened a representative office in London

24

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 25: research report-1

2004 PNB established a branch in Kabul Afghanistan PNB also opened a

representative office in Shanghai PNB established an alliance with Everest

Bank in Nepal that permits migrants to transfer funds easily between India and

Everest Banks 12 branches in Nepal

2005 PNB opened a representative office in Dubai

2007 PNB established PNBIL - Punjab National Bank (International) - in the

UK with two offices one in London and one in South Hall Since then it has

opened a third branch in Leicester and is planning a fourth in Birmingham

2008 PNB opened a branch in Hong Kong

2009 PNB opened a representative office in Oslo Norway and a second

branch in Hong Kong this in Kowloon

2010 PNB received permission to upgrade its representative office in the

Dubai International Financial Centre to a branch

VISION

ldquoTo be a Leading Global Bank with Pan India footprints and become a

household brand in the Indo-Genetics Plains providing entire range of financial products

and services under one roofrdquo

MISSION

Banking for the unbanked

25

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 26: research report-1

A need was felt to have a vision to stretch the bankrsquos potential with well defined

strategiesAccordinglythe honorable board of directors in the meeting held in Shimla

in May 2008proposed the concept of vision 2013 and set goals which were to be

achieved in the next 5 years to position the Bank as the ldquoNumber One Bankrdquo in the

country

PNB VISION 2013

QUANTITATIVE DIMENSIONS-

a Deposits to increase from Rs166457 Crore in March 2008 to

Rs582000 Crore in March 2013at an average growth of 32

b Advances to increase from Rs119502 Crore in March 2008 to

Rs418000 Crore in March 2013at an average growth of 28

c Total business to increase from Rs285959 Crore in March

2008 to Rs1000000 Crore in March 2013at an average

growth of 28

d Operating profit to increase from Rs4006 Crore in March

2008 to Rs15000 Crore in March 2013 with a CAGR of 302

e Net profit to increase from Rs2049 Crore in March 2008 to

Rs7500 Crore in March 2013at an average growth of 30

26

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 27: research report-1

f The Return on Assets RoA to increase from 115 in March

2008 to 130 in March 2013 This ratio is comparable to the

RoA of the peer banks and is also better than all bankrsquos ratio

of 1 as on March 08

g The Return on Equity RoA to increase from 19 in March

2008 to 21 in March 2013

h 15 Crore in March 2013

i To have a rural coverage of 100000 villages in the Indo-

Gangetic Plains by March 2013

QUALITATIVE DIMENSIONS

1 A leader and front runner amongst nationalized banks

a In Financial inclusion

b In all domestic operations

c In adopting best risk management practices

d In adopting global best practices in Corporate Governance amp

Corporate Social Responsibility

e In HR policies to raise skills morale and productivity

27

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 28: research report-1

2 To be Global Bank

a Among the top 3 Indian banks with global presence in Middle East

South East Asia China UK Australia Canada etc

b Bring best global practices to effectively compete with global players

in India

3 Become a universal bank

Provider of complete range of financial services

4 To be the most profitable Bank amongst nationalized banks

by focusing on

a Fee based incomeoff-balance sheet exposures

b Mid Cap segment Retail lending SME Advances amp Agriculture

c Reduction in Gross NPAs

d Expenditure Control

e Low cost deposits

f Ensuring higher spreads (return on advances minus cost of

depositsfunds)

5 Capitalize on IT initiatives

a Provide more value added services

28

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 29: research report-1

b Expand reach of ATMs

c Bank Office Centralization of all CBS branches

d Provide IT advisory services to other banks

6 Explore options of in-organic growth

a Merger of PrivatePublic Sector Banks

7 Enlargement of customer base and retention of existing

customers

8 Ensure smooth transition to adopting Basel II norms ahead

of schedule

9 Develop robust Management Information System for better

decision making and policy prescription

10 Further entrench brand image of the bank

29

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 30: research report-1

23 ORGANISATIONAL STRUCTURE

Bank has its Corporate Office at New Delhi and supervises 58 Circle Offices under which

the branches function The delegation of powers is decentralized upto the branch level to

facilitate quick decision making Its organizational structure is shown below

Circle Offices (58)

Branches (4267)

Highlights of the performance for the quarter ended

June 2010

Profit

bull Operating Profit for the first quarter of current financial year (Q1 FY11) stood at

Rs209817 crore as against Rs156934 crore in Q1 FY10 recording a YOY growth of

337

1048766 Core Operating Profit excluding trading profit rose by 633 to Rs197706

crore in Q1 FY11 from Rs121086 crore in Q1 FY10

Head Office

30

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 31: research report-1

bull Net Profit of the Bank for the Q1 FY11 amounted to Rs106829 crore as compared to

Rs83205 crore in the corresponding quarter of previous year registering a YOY

growth of 284

1048766 Net Profit excluding treasury operations witnessed a jump of 127 to reach

Rs96081 crore in Q1 FY11 from Rs42318 crore in Q1 FY10

Business

bull Total Business of the Bank rose to Rs452205 crore as compared to Rs376939

crore in June 2009 showing a y‐o‐y growth of 20

bull Deposits of the Bank at the end of June 2010 amounted to Rs255335 crore as

compared to Rs218960 crore in June 2009 exhibiting a growth of 166 on y‐o‐y

basis

bull CASA improved from Rs83948 crore in Junersquo09 to Rs104385 crore in Junersquo10

recording a growth of 243

o CASA share improved to 409 in Q1 of FY 2010‐11 from 383 a year ago

bull Advances of the Bank at Rs 1 96870 crore as on 30062010 grew by 246 (YoY) as

against Rs157979 crore as on 30062009

bull Credit Deposit Ratio improved to 771 as at Junersquo10 from 721 in Junersquo09

Income and Expenses

bull Total income increased by 111 to Rs686338 crore led by YoY growth of 164

in interest income

31

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 32: research report-1

o Net Interest Income rose by spectacular 454 on YoY basis to reach

Rs261857 crore in Q1 FY11

o Core Non Interest Income (excluding trading profit) witnessed a YoY growth of

109 to touch Rs67415 crore

bull Total expenses (excluding provisions) at Rs476521 crore at the end of June 2010

have registered a growth of 34 only from a year ago

1048766 While growth in Interest expenses was contained at a miniscule 08

Non‐Interest expenses growth was restricted to mere 102 during the first

quarter of 2010‐11 despite recent wage revision and provisions made for pension

fund

Important Ratios

bull Gross NPA to Gross Advances ratio stood at 182 as at Junersquo10

bull Net NPA to Net Advances ratio stood at 066 as at Junersquo10

bull Provision Coverage Ratio is at 7761 compared to RBIrsquos stipulation of 70

bull Net Interest Margin (NIM) has improved to 394 for the quarter ended 30062010

from 324 in corresponding quarter of last year

bull Return on Assets improved to 138 in the quarter ended June 2010 as against

131 last year

bull Low increase in interest amp operating expenses and a satisfactory interest income

growth led to substantial reduction in Cost to Income Ratio to 3988 for the

32

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 33: research report-1

quarter ended June 2010 as against 4459 last year

bull Earnings per Share rose to Rs13553 (annualized) for the quarter ended 30062010

as against Rs10555 last year

1048766 Book Value per Share was higher at Rs54866 as at June 2010 from Rs 44311 as

on June 2009

bull As per Basel II the CRAR is 1377 as at end of Junersquo10 (Tier‐I Capital 870

Tier‐II

Capital 507)

bull Return on Equity improved to 2470 in the quarter ended June 2010 as against

2382 last year

Priority Sector

bull PS advances grew by more than 25 to reach Rs64452 crore

o Outstanding Agricultural advances grew by around 27 to cross Rs30000

crore

o Issued 77839 Kisan Credit Cards (KCCs) during Quarter ended June 10 taking

cumulative number of KCCs issued to 3342 lakh since inception

Small amp Medium Enterprise

bull Credit to MSME sector reached Rs37018 crore including retail trade advances of

Rs3905 crore at the end of June 2010 recording a YoY growth of 29

bull Besides 7 SME Hubs 523 MSME specializedfocus branches have been

operationalised to provide single window services to SME borrowers

33

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 34: research report-1

bull Bank tops in extending collateralguarantee free lending to MSMEs under CGTMSE

amongst the member lending institutions of CGTMSE

bull Bank has adopted two Mega Artisans Clusters ndash Brass and brassware products at

Moradabad and Wood carving cluster at Saharanpur for intensive lending Collateral

free loans to 9000 artisans have been extended at Moradabad Artisans Cluster and

800 Artisans at Muzaffarnagar During the current quarter Bank adopted 25 MSME

clusters for cluster based lending approach taking total to 41 clusters

Retail Credit

bull Total Retail credit of the Bank marked a y‐o‐y increase of more than 17 to

Rs19410 crore at the end of June 2010

o Good y‐o‐y growth in all key schemes ie Education loan (42) Personal Loan

(39) and Housing loans (16)

Financial Inclusion

bull Opened 5725 lakh ldquoNo FrillrdquoPNB Mitra accounts and issued more than 46000

General Credit Cards

bull Implemented 39 ICT based projects in 16 states

bull Set up exclusive FI Back Offices at Delhi Chandigarh Jaipur Hyderabad Lucknow

Patna Shimla and Raipur

bull Bank has been allocated 4700 villages with population of over 2000 in the country

for providing Banking services PNB propose to cover these by 2012

34

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 35: research report-1

International Forays

bull International presence in 9 countries with branches at Hong Kong Kabul and Dubai amp

representative offices at Almaty Dubai Shanghai and Norway a wholly owned

subsidiary in UK a joint venture in Nepal and a JV banking subsidiary in Bhutan

bull Bank is pursuing upgradation of its representative offices in Norway into a full‐fledged

branch and is in the process of setting up a representative office in Sydney Australia

and taking controlling stake in Kazak Bank apart from opening a subsidiary in Canada

IT Initiatives

bull Bank has installed 3715 ATMs facilitating more than 108 lakh ATMDebit

cardholders

of the Bank transacting at more than 60000 ATMs of various Banks and at over 3

million POS terminals across the country

bull Bank has introduced Online Credit Proposal Tracking System in order to enable

customers online access to view the status of their loan applications

bull Registered Payee Mechanism has been enabled for Funds transfer to other3rd party

accounts in respect of Retail Internet Banking Users for protecting our valued

customers from online frauds amp phishing attacks

bull Bank has launched PNB Platinum Debit Card embedded with the brand equity of

PNB

and endorsed by Master Card for the premium customers Bank is also planning to

35

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 36: research report-1

launch Platinum Credit Cards shortly

bull PNB has over 10 lac customers using Internet Banking and 23 lac customers availing

SMS alert facility

CSR initiatives

bull A board approved CSR policy has been adopted by the Bank to take CSR agenda

forward in synchronization with its mission of ldquoBanking for the Unbankedrdquo Under this

a ldquoGreenrdquo drive has been implemented across the organization to conserve

energyoptimize resource and lower costs

bull Bank has so far brought 68949 farmers out of the clutches of moneylenders by

financing them Rs264 crore under PNB Krishak Saathi (Debt Swap Scheme)

bull Bank has 9 Farmersrsquo Training Centres where around 270 lac persons have been

trained till June 2010 at Bankrsquos cost including more than 51000 women

bull Bank has operationalised 20 PNB Rural Self Employment Training Institutes

(PNBRSETIs) which provide training to Rural BPL youth and women Till June 9255

persons have been trained in these centres of which 5518 are women

bull 42 Medical Health Check Up Camps 44 Tree Plantation Camps and 17 Blood Donation

Camps were arranged during Q1 FY11

bull Launched a pioneering ldquoPNB Saathi Schemerdquo to provide credit facility to milk pourers

in Bulandshahar District Uttar Pradesh with support of Mother Diary

36

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 37: research report-1

AWARDS

Awards amp Achievements of Punjab National Bank in Recent Times

Best IT Team of the Year Award

at the IDRBT Banking Technology awards for the year 2005-06

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking amp Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of

37

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 38: research report-1

Directors

FICCIs Rural Development Award

for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 amp 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002 2003 2004 amp 2005

Banking Technology Awards 2004 Runner up in Best IT Team of the Year Award 2005

Jointly Adjudged by IBA Finacle amp TFCI

Money Outlook Award - 2004Runner up in Best Bank (public Sector) of the year Award -2005

Niryat Bandhu Gold Trophy

for excellence in export perforamnce for 3 consecutive years 2001 2002 amp 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companies

by the leading Financial Daily The Economic Times June 2005

9th amongst Indias Top 50 Most Trusted Service Brands

AC Nielson Survey The Economic Times Dec 2004

3rd Rank amongst Banking Sector in India 323rd Rank in the World

The Bankers Almanac January 2006

368 amongst Top 1000 Global Banks

The Banker London July 2005

Skoch Challenger Award for

Exemplary Use of Technolgy

Winner for becoming a pioneer in

public banks by Skoch consultancy

38

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 39: research report-1

services pvt ltd Gurgaon 2005

FICCIs Rural Development

Award

Award for excellence in rural

development 2005

Amity Global Corporate

Excellence Award

Amity Business School Noida has

conferred the Award to PNB after an

in-depth research to analyse the

strengths and core competencies of the

Global 500 companies and banks

which have already made an indelible

most admired impression on the Indian

economy 2008

amp 2007 amp 2005

Banking Technology Awards

IBA Finacle amp TFCI jointly adjudged

PNB as runner up in Best IT Team of

the year Award 2005

PC Quest Usersrsquo Choice

Award

Best IT Implementation 2007

amp 2005

Symantec Visionary Award Information Security Impact 2005

Money Outlook Award

Money Outlok adjudged PNB as

runner up in Best Bank (Public

Sector) of the year Award 2005

Banking Technology Awards

IBA Finacle amp TFCI runner up Award

for Outstanding Achiever of the Year

(Individual) 2005

Golden Peacock Innovative

ProductService Award 2010 (for BCP implementation)

Golden Peacock Award for

Excellence in Corporate

Winner in the lsquoLarge Joint Entryrsquo2009

amp

39

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 40: research report-1

Governance 2007 amp 2005

Skoch Challenger Award for

Change Management

For upliftment of Weaker sections of

society 2006

IDRBT Banking Technology

AwardsBest IT Team of the Year Award 2006

National Award For

Excellence in lending to Tiny

sector

First Prize by By Ministry of Small

Scale Industries2006

Skoch Challenger Award for

capacity building for FTC

initiative

Skoch Consultancy Services Pvt Ltd

2007

Computer Associates

Excellence AwardExcellence in EMS Roll Out 2007

CIO 100 AwardFor Best IT Implementation by IDG

Media Pvt Ltd2007 2008 amp 2009

National Award for Excellence

in Lending to Micro

Enterprises

For Lending to Micro enterprises 2007

Award for the use of

Technology for Financial

Inclusion

Institute for Development and

Research in Banking Technology

(IDRBT) Hyderabad 2008

Dun amp Bradstreet Award for

ldquoPriority Sector Lending

including Financial Inclusionrdquo

Dun amp Bradstreet 2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in NORTH

ZONE

Khadi amp Village Industry Commission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

40

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 41: research report-1

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme)

2009

National Award for Excellence

in Lending for Institutional

Finance in Propagating KVI

Programmes in

NATIONAL LEVEL

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Interest Subsidy Eligibility Certificate

Scheme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

NORTH ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

National Award for Excellence

in Lending for Institutional

Finance for Propagating KVI

Programmes in

CENTRAL ZONE

Khadi amp Village IndustryCommission

Ministry of Micro Small amp Medium

Enterprises Govt of India

(Prime Minister Employment

Generation Programme) 2009

India Pride Award by dainik

Bhaskar and Daily News

analysis

Excellence in PSU 2009

Indira Gandhi Rajbhasha Promoting Hindi 2009

41

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 42: research report-1

Shield

Emerson Uptime Champion

Awards 2009

ldquoBest InfoSphere Warehouse

Solutionrdquo Award by IBM 2009 (for implementation of Enterprise

Wide Data Warehouse)

CSR Excellence Award by

the Associated Chamber of

Commerce

2010

42

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 43: research report-1

31 CONCEPT OF ABSENTEEISM

32 MEASUREMENT OF ABSENTEEISM RATE

33 TYPES OF CHRONIC ABSENTEES

34 TYPES OF ABSENTEEISM

35 CAUSE OF ABSENTEEISM

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL PROGESS

37 GUIDELINES amp MEASURES FOR CONTROL OF ABSENTEEISM

38 THE BRADFORD FACTOR amp ABSENTEEISM

39 DATA ANALYSIS amp INTERPRETATION

ABSENTEEISM

31 CONCEPT OF ABSENTEEISM

43

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 44: research report-1

It refers to workers absence from their regular task when he is normally schedule to work

According to Websterrsquos Dictionary - ldquoAbsenteeism is a practice or habit of being an

absentee and an absentee is one who habitually stays away from workrdquo

According to Labour Bureau of Shimla ndash ldquoAbsenteeism is the total man shifts lost

because of absence as percentage of total number of man shifts scheduled to workrdquo

In other words it signifies the absence of employee from work when he is

scheduled to work Any employee may stay away from work if he has taken leave to he

entitled or on ground of some sickness or some accident or without any previous sanction

leave Thus absenteeism may be authorized or unauthorized willful or caused by

circumstances beyond onersquos control

May even worse than absenteeism it is obvious people such as malingerers and those

unwilling to pay their part in the work place 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 occur it always important

to review the recruitment procedure to identify how such people are employed in first

place

For any business owner or manager to cure excessive absenteeism it is essential to find

and then eliminate the cause of discontent among team members

Any effective absentee control program has to locate cause of discontent or modify those

causes or eliminate them entirely Any investigation into absenteeism needs to look at

real reason for it

44

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 45: research report-1

Sometime team member call in sick when they really do not want to go to work They

would not call you up and say ldquoIrsquom not coming today because my supervisor abuses

merdquo Or ldquoIrsquom not coming in today because my chair is uncomfortablerdquo

There are few essential questions to consider at the outlet if you want to make a

measurable improvement to your absenteeism figure

It has been observed that the phenomenon of absenteeism does not exist in Indian

industry It may differ according to the make ndash up of the work force Workers need

monetary benefits for his services

32 MEASUREMENT OF ABSENTEEISM RATE

For calculating the rate of absenteeism two facts are required-

i The number of persons scheduled to work

ii The number of actually present

Thus absenteeism can be calculated by following formula-

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) = 2000

d) Total number of lost days due to absences during the period =93

e) Absenteeism rate (dc) x 100 = 465

45

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 46: research report-1

Since absenteeism is a major barometer of employee

morale absenteeism above 5 has to be considered as very serious (across most

industries 3 is considered standard)

Absenteeism Rate at PNB

33 TYPES OF CHRONIC ABSENTEES

These are as follows-

46

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 47: research report-1

1 Entrepreneurs This class of absentees considers that their jobs are very small

for their total interest and personal goals They engage themselves in other social

and economic activities of to fulfill their goals

2 Status Seekers These types of absentee enjoy or perceive a higher ascribed

social status and are keen on maintaining it

3 Epicureans This class of absentees does not like to take up the jobs which

demand initiative responsibility discipline and discomfort They wish to have

money power status but unwilling to work for their achievement

4 Family Oriented This type of absentees is over identified with the family

activities

5 Sick and Old These categories of absentees are mostly unhealthy weak

constitution or old people

34 TYPES OF ABSENTEEISM amp THEIR CONTROL

47

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 48: research report-1

There are two types of absenteeism each of which requires a different type of

approach

1 INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond

their control like sickness and injury Innocent absenteeism is not culpable

which means that it is blameless In a labour relations context this means that it

cannot be remedied or treated by disciplinary measures

2 CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization

for reasons which are within their control For instance an employee who is on

sick leave even though heshe 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

48

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 49: research report-1

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

hisher control Absenteeism no matter what the cause imposes losses on the

employer who is also not at fault The damage suffered by the employer must be

weighed against the employees right to be sick There is a point at which the

employers right to expect the employee to attend regularly and fulfill the

employment contract will outweigh the employees 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 andor 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 heshe returns

to work If absence is prolonged keep in touch with the employee regularly and

49

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 50: research report-1

stay updated on the status of hisher 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

himher 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

50

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 51: research report-1

In between the first and second letters the employee may be given the option to

reduce hisher hours to better fit hisher 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 hisher job but could for example benefit from modified

work counsel the employee to bid on jobs of such type if they become available

(NB It is inadvisable to build a job around an employees incapacitates

particularly in a unionized environment The onus should be on the employee to

apply for an existing position within hisher 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 possible to regain their health and

return to work

b) Has the employer provided every assistance possible (ie counselling

support time off)

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

resulting from their sickness

51

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 52: research report-1

d) Has the employer attempted to accommodate the employee by offering a

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

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

f) Has the employer treated the employee prejudicially in any way

As is evident a great deal of time and effort must elapse before dismissal can

take place

These points would be used to substantiate or disprove the following two fold

test

1 The absences must be shown to be clearly excessive

2 It must be proven that the employee will be unable to attend work on a

regular basis in the future

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated culpable absenteeism consists of absences where it can be

demonstrated that the employee is not actually ill and is able to improve hisher

attendance

Presuming you have communicated attendance expectations generally have

identified the employee as a problem have met with himher as part of your

attendance program made your concerns on his specific absenteeism known and

52

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 53: research report-1

have offered counselling as appropriate with no improvement despite your

positive efforts disciplinary procedures may be appropriate

The procedures for correctiveprogressive discipline for culpable absenteeism are

generally the same as for other progressive discipline problems The discipline

should not be prejudicial in any way The general procedure is as follows

[Utilizing counselling memorandum]

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 hisher

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 employees

income protection records at regular intervals Where a marked improvement has

53

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 54: research report-1

been shown commend the employee Where there is no improvement a written

warning should be issued

2) Written Warning

Interview the employee again Show himher 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 heshe will be given a

written warning Be specific in your discussion with himher 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

hisher file The written warning should identify any noticeable pattern

If the amount andor pattern continue the next step in progressive discipline may

be a second stronger written warning Your decision to provide a second written

warning as an alternative to proceeding to a higher level of discipline (ie

suspension) will depend on a number of factors Such factors are the severity of

the problem the credibility of the employees explanations the employees

general work performance and length of service

54

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 55: research report-1

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 advised that heshe is to be suspended The length of the

suspension will depend again on the severity of the problem the credibility of

the employees explanation the employees 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 The employee upon displaying no satisfactory

improvement would be dismissed on the grounds of hisher unwillingness to

correct hisher absence record

55

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 56: research report-1

35 CAUSES OF ABSENTEEISM

The Royal Commission Labour observed that high absenteeism among Indian labour is

due to rural orientation their frequent urge for rural exodus According to Acharaya ldquoIn

modern industrial establishment the incidence of industrial fatigue mal-nutrition and bad

working conditions aggravate that feeling for change among industrial worker and some

time impel them to visit their village home frequently for rest and relaxationrdquo

There are various reasons of absenteeism Some of them are discussed below-

1 Social and Religious Ceremonies Social and religious functions divert the

workers attention from the work In a large number of the proportion of

absenteeism due to sickness accident is not as a high as it is due to other causes

including social and religious ceremonies

2 Unsatisfactory Housing Condition This another one of the cause of

absenteeism in an organization ie unsatisfactory housing condition at the work

place Health conditions are naturally bad leading to consequent ill- health

3 Industrial Fatigue Industrial fatigue compels the workers to remain outside

the work place

56

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 57: research report-1

4 Unhealthy Working Conditions The poor and intolerable working

conditions in the factories irritate the workers Excess heat noise either too much

or too low lighting poor ventilation dust smoke etc causes poor health of the

workers These factors cause the workers to be absent

5 Poor Welfare Facilities Though a number of legislations concerning

welfare facilities are enacted many organizations fail to provide welfare facilities

This is either due to the poor financial position of the companies or due to

exploitive attitude of the employer The poor welfare facilities include poor

sanitation washing bathing first aid appliances ambulance rest rooms drinking

water canteen shelter cregraveches etc Dissatisfied workers with these facilities to

prefer to be away from the work place

6 Alcoholism Workers mostly prefer to spend money on the consumption of

liquor and enjoyment after getting the wages Therefore the rate of absenteeism is

more during the first week of every month

7 Indebtness The low level wages and unplanned expenditure of the workers

force them to borrow heavily The research studies indicate that workers borrow

more than 10 times of their net pay Consequently workers fail to repay the

money Then they try to escape from the place in order to avoid the money

lenders This leads to absenteeism

57

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 58: research report-1

8 Maladjustment with the Job Demand The fast changing technology

demands higher level of skills from the workers Some worker fails to meet these

demands due to their level of education and or absence of training

9 Unsound Personnel Policies The improper and unrealistic personnel

policies result in employeersquos dissatisfaction Dissatisfied employee in turn prefers

to be away from the wok place

10 Inadequate Leave Facilities The inadequate leave facilities provided by

employer forces him to depend upon ESI leave which allows the workers to be

away from the work for 56 days in a year on half pay

11Low Level of Wages Wages in some organizations are very poor and they

are quite inadequate to meet the basic needs of the employees Therefore

employees go for other employment during their busy seasons and earn more

money Further some employees take up part- time jobs Thus the employment

resorts to moonlighting and absent them from work

58

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 59: research report-1

36 EFFECT OF ABSENTEEISM ON INDUSTRIAL

PROGRESS

It quite evident that absenteeism is a common feature of industrial labour in India It

hinders industrial growth and it effect in two fold-

1 Loss to Employees Firstly due to the habit of absenting frequently workerrsquos

is reduced to a large extent It is because there is a general principle of ldquono work ndash

no payrdquo Thus the time lost in terms of absenteeism is a loss of income to workers

2 Loss to Employers On the 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 maintained 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 workers do not generally prove

themselves up to work Higher absenteeism is an evil both for worker and the

employers and ultimately it adversely affects the functioning of the industries

59

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 60: research report-1

37 GUIDELINES amp MEASURES FOR CONTROL OF

ABSENTEEISM

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 absenteeism

of greater than 3 percent should consider supervisors as a potential contributor to

60

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 61: research report-1

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 youve begun to uncover the obvious

under trained supervisors If however your research reveals that the rate of

absenteeism is almost equally distributed throughout your factory you will need

to investigate other possible causes

Q What are the real causes for absences

People-oriented companies are very sensitive to employee opinions They

often engage in formal mini-studies to solicit anonymous employee opinions on

topics of mutual interest These confidential worker surveys commonly ask for

employee opinion regarding higher-than-normal absenteeism

In other words employees revealed that repetitive boring jobs coupled with

uncaring supervisors andor 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

61

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 62: research report-1

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 youre 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 cant 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 WELL-DEFINED RECRUITMENT POLICY

The selection of employees on the basis of command linguistic and family

consideration should be avoided The management should look for aptitude and

ability in the prospective employees and should not easily yield or pressure of

personal likes and dislikes Application blanks should invariably be used for a

preliminary selection and tools for interviews The personal officer should play

more effective role as coordinator of information provided that he has acquired

job knowledge in the function of selection Employers should also take into

account the fact that selection should be for employeersquos development their

reliance They should as far as possible rely on employment exchange

62

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 63: research report-1

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 amp ALLOWANCES amp

JOB SECUITY TO WORKERS

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

63

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 64: research report-1

The management should consider the needs of workers and offer them adequate

and cheap housing facilities free of subsidized food free medical and transport

facilities free education facilities for their children and other monetary benefits

As for social security is concern the provision of Provident Fund SBI facilities

Gratuity and Pension all those need to be improved

5) IMPROVED COMMUNICATION AND PROMPT

REDRESSAL OF GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and

written notices journals and booklets are not easily understood by them

Meetings and concealing are called for written communication becomes

meaningful only when workers can readied understood them too many notices

should be avoided only the essential ones should be put on the boards which

should be placed near the entrance inside the canteen and in areas which are

frequently visited by the workers so that they are aware of the policies of the

company and any sort changes being made

6) LIBERAL GRANT OF LEAVE

The managementrsquos strict attitude in granting leave and holidays even when the

need for them is genuine tempts workers to go on ESI 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 liberalize leave rules

7) SAFETY AND ACCIDENT PREVENTION

64

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 65: research report-1

Safety at work can be maintained and accidents can be prevented if the

management tries to eliminate such personal factors as negligence

overconfidence carelessness vanity etc and such material factorizes unguarded

machinery and explosives defective equipment and hand tools Safe methods of

operation should be taught In addition consistent and timely safely instruction

written instructions (manual) in the regional language of the area should be given

to the work force

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND

WORKERS

The supervisor should be recognize that industrial work is a 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 workerrsquos 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-

65

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 66: research report-1

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

38 THE BRADFORD FACTOR amp ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to measure

and identify areas of absenteeism The theory is that short frequent and unplanned

absences are more disruptive than longer absences

It is based on the fact that it is normally easier to make arrangements to cover for staffs

who are going to be off for long periods and which are more likely to be suffering from a

genuine illness

However employees taking odd unplanned days off here and there actually cause more

disruption to the business If this pattern is repeated regularly the employee will have a

high Bradford Factor score which may raise questions about how genuine the illness

actually is

The formula for the Bradford Factor is-

66

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 67: research report-1

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 (ie 1 x 1 x 10)

Five absence episodes of two days each is 250 points (ie 5 x 5 x 10)

Ten absence episodes of one day each is 1000 points (ie 10 x 10 x 10)

How do organizations use the Bradford Factor

There are no set rules for using the Bradford Factor it is down to each organization to

determine the ways in which it uses the score

However used effectively the Bradford Factor can reduce absenteeism dramatically

serving as a deterrent and a method for tackling persistent absenteeism

Studies have shown that by educating staff about the Bradford Factor and then showing

them their score on a regular basis absenteeism can be reduced by over 20 This is

largely down to staff understanding that taking the odd day off here and there will

quickly multiply their Bradford Factor score The Bradford Factor places a value on the

absence which an employee can clearly see Where the absence is not absolutely

necessary this can serve to deter absenteeism

67

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 68: research report-1

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 ldquotriggersrdquo whereby certain

actions are taken when an employeersquos Bradford score reaches a certain point For

example the UK Prison Service has used the following triggers

51 points ndash verbal warning

201 points ndash written warning

401 points ndash final warning

601 points ndash 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

68

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 69: research report-1

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 employeersquos 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 ndash 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 ndash over 50

69

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 70: research report-1

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 ndash over 200

If an organization wants to tackle absenteeism effectively using the Bradford Factor

including using an employeersquos 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 employeersquos 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 everyonersquos Bradford Factor

score should be subject to the same indisputable criteria

70

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 71: research report-1

39 DATA ANALYSIS

amp

INTERPRETATION

The method of statistical representation is through bar diagram The primary data

obtained through questionnaire are analyzed and interpreted below-

Q For how many years you are working with Punjab National Bank

0

10

20

30

40

50

60

0-2 Years 2-5 Years 5-15Years gt20 Years

Employees

71

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 72: research report-1

Interpretation It can be seen that 56 of the employees of PNB are working

for more than 20 years whereas 36 are working for more than 5 yrs

Q How often you remain absent in a month

Interpretation It can be seen that 96 of employees do not remain absent

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

72

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 73: research report-1

Interpretation According to 78 employees personal problem is the reason for

being absent While 22 think that stress can also be the reason

Q Your views regarding present Absenteeism Policy of Punjab National Bank

Interpretation It can be seen that 76 employees rates the present absenteeism

policy as good whereas 22 as excellent and 2 rates as fair

Q Are you clear about your work job responsibilities

73

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 74: research report-1

Interpretation 94 employees are well-cleared about their work job

responsibilities 4 employees have good knowledge about it and only 2 are

fairly cleared idea about their work

Q Are you satisfied with your work

Interpretation 82 of the employees are fully satisfied with their work whereas

16 employees think their work as good

Q Views regarding working environment of Punjab National Bank

74

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 75: research report-1

Interpretation 82 employees feel that the working environment at PNB is good

amp 14 feel it as excellent

Q Your relations with your superiors

Interpretation 50 employees have good relations with the superiors whereas

30 have excellent relations with the superiors15 says that they fair relation

with their superior while 5 poor relation with superior

75

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 76: research report-1

Q Yours superiors behaviour towards your problem

Interpretation 32 employees think that their superiorrsquos behaviour toward

their problems is excellent amp 56 employees consider it as good7 thinks that

it is fair while 2 assumes it poor

Q Yours views regarding facilities provided by Punjab National Bank

76

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 77: research report-1

Interpretation 86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

77

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 78: research report-1

41 FINDINGS

42 CONCLUSIONS

43 SUGGESTIONS amp RECOMMENDATIONS

78

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 79: research report-1

41 FINDINGS

From the analysis I got following result-

Almost 56 of the employees at Punjab National Bank are working for

more than 20 years whereas 36 are working for more than 5 yrs

Almost 96 of the employees do not remain absent

According to 78 employees personal problem is the reason for being

absent 22 think that stress can also be the reason

Almost 76 employees rate the present absenteeism policy as good

whereas 22 rate it as excellent

Almost 94 of the employees at Punjab National Bank are clear

regarding their work responsibilities

82 of the employees are fully satisfied with their work whereas 16

workers think their work as good

14 of employees feel that working environment of Punjab National

Bank is excellent while 82 employees consider as good

50 employees have good relations with the superiors whereas 30

have excellent relations with the superiors15 says that they fair

relation with their superior while 5 poor relation with superior

79

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 80: research report-1

32 employees think that their superiorrsquos behaviour toward their

problems is excellent amp 56 workers consider it as good7 thinks

that it is fair while 2 assumes it poor

86 employees consider that facilities provided to them are good

whereas 10 consider them as excellent

80

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 81: research report-1

42 CONCLUSION

Absenteeism is considered an important factor in determining the organizational

effectiveness The objective of the organization is to maximize its profit

If the organization has to achieve its objectives then they should concentrate on

employees The management has to find out causes for absenteeism

Based on the cause certain suggestions are to make to control the further rate of

absenteeism The measures taken by the management should not be offensive and its

should be control in a simple manner

81

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 82: research report-1

43 SUGGESTIONS amp 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 boost the morale of employees and also

motivates them 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 ndash 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

82

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 83: research report-1

4) Return to Work Interview- When an employee returns to work then ensure

that they have a lsquoreturn to work interviewrsquo

5) Bradford factor It can also be used to identify and cure excessive

absenteeism

83

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 84: research report-1

84

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 85: research report-1

BIBLIOGRAPHY

In the completion of this research report I have consulted various books and also

internet

BOOKS

CB Mamoria Personnel Management Himalaya Publishing House Mumbai

NGNair amp Nair Latha Personnel Management Sultan Chand amp Sons

Publishing New Delhi

TN Chabra Human Resource Management Dhanpat Rai amp Co (P) Ltd New

Delhi

WEBSITES

wwwwikipediacom

wwwinformaworldcom

wwwjoemorg

wwwemployer-employeecom

85

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 86: research report-1

86

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 87: research report-1

QUESTIONNAIRE

Personal Information

Name helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Agehelliphelliphelliphelliphelliphelliphelliphelliphelliphellip Sexhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

Job statushelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

1) For how many years you are working with Punjab National Bank

(a) 0-2 yr (b) 2-5yr

(c) 5-10yr (d) gt 20yr

2) How often you remain absent in a month

(a) Nil (b) Once

(c)Twice (d) gt Twice

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

(a) Health problem domestic reasons (b) Stress

(c)Work dissatisfaction (d) Working environment

87

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 88: research report-1

4) Your views regarding the present Absenteeism Policy of Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Donrsquot know

5) Are you clear about your work job responsibilities

(a) Well clear (b) Good

(c) Fairly clear (d) Donrsquot 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 Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

8) How are your relations with your superiors co-workers

(a) Excellent (b) Good

(c) Fair (d) Poor

88

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM
Page 89: research report-1

9) Your superiorrsquos behaviour towards your problems

(a) Excellent (b) Good

(c) Fair (d) Poor

10) Your views regarding the facilities provided to you by Punjab National

Bank

(a) Excellent (b) Good

(c) Fair (d) Poor

Any suggestions Comments

_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

89

  • 1 INNOCENT ABSENTEEISM
  • Innocent absenteeism refers to employees who are absent for reasons beyond their control like sickness and injury Innocent absenteeism is not culpable which means that it is blameless In a labour relations context this means that it cannot be remedied or treated by disciplinary measures
  • 2 CULPABLE ABSENTEEISM
  • COUNSELLING INNOCENT ABSENTEEISM
  • CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM
  • 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
  • If you find that your supervisors hesitate to provide meaningful answers to your questions then youre 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 cant 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
  • 38 THE BRADFORD FACTOR amp ABSENTEEISM