A

Project Report

On

Absenteeism of Workers in

Vimal Oil and Foods Ltd.

Submitted to: Submitted By :

Prof. Nishtha asrani Harsh kothari (1013)

Trilok banker (1002)

Rujul mashruwala (1019)

Kirtan chauhan (1004)

Urvesh parmar (1024)

Hardik gandhi

GLSICT (MBA)

Gujarat Technical University

Ahmedabad, Gujarat

1

Acknowledgement

Absenteeism of workers play a crucial role in organization as it refers to the workers absence

from his regular task, when he is scheduled to work. They are even the most important asset for

any organization.

We would like to express our gratitude towards the incharge Prof. Nishtha asrani who has been

best in giving us the opportunity to learn through this project by her gentle support and fullest

co-operation in everyway.

We would like to thank Vimal Oil and Foods Ltd. as we have used its data, Mr Jitendrabhai

Patel (HR manager of a company), and all of them who have directly or indirectly helped us in

project.

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Prefece

Today whole world is of globalization. Even India is developing faster. We need extra

knowledge, talent and skills to make our position in this competitive world.

In present condition we should have some practical knowledge of Human Resource

management or any other management in business administration programme. We study

various subjects which make us aware about the theories of human behaviour and the theories

related to selection of human resource in an organization and for correlating these theories

practically industry or company visits are must as they apply these theories for selecting the

Human resources in their own organization.

It is said that company’s Human Resources are the invaluable assets and this is the only reason

why they are not reflected in balance sheet of an organization even after being considered as an

asset.

3

Index

Sr.No. Topic Page No.

A. Company Profile 5

1. Introduction 6

2. Types of Absenteeism 6

3. Causes of Absenteeism 8

4. Categories of Absenteeism 9

5. Measures to minimize Absenteeism 10

6. Statement of Problem 11

7. Objectives of the study 12

8. Research & Analysis 12

9. Data Analysis 16

10. Summary of Findings 18

11. Suggestions / Recommendations 21

12. Conclusion 22

13. Biblography 23

4

Company Profile

Vimal Oil and Foods Ltd.

In the year 1992, Vimal Oil & Foods Limited had been started for manufacturing Refined Edible Oil & De-oiled Cake. In North Gujarat Rapeseeds are available in Bulk & consumption of Edible Oil is more in Gujarat. Looking at the large demand of refined oils, we introduced under "Vimal Brand" Cottonseed & Rapeseed oil.

The Company had come out with Public Issue in March, 1994 one of the objects of the issue was to part finance the project for setting up a 200 TPD Solvent Extraction and 50 TPD Edible Refined Oil Plant. The Company has at present a 150 TPD Refinery, 200 TPD Solvent Extraction Plant & 200 TPD seed crushing facility, at our Oil processing complex.

Products / Services :Manufacturers Of Refined Edible Oil & De-oiled Cake.

PRODUCTS:

Edible Oils:- Dairy Products :-

-Refined Cottonseed Oil -Milk, Ghee

-Refined Rapeseed Oil - Milk Powders

-Kachchi Ghani Mustard Oil (Pungant) - Butter , Cheese

-Rapeseed De - Oiled Cake. - Ice-Creams

OTHER PRODUCTS :

Electricals :- Paints & Resins: -

-Power Capacitors -Decorative Paints

-Distribution Transformers -Industrial Paints

-Boosters -Alkyd Resins

-PVC Winding Wires & Cables Micro Minerals:-

-Three Core Flat Cables -Micro Minerals Talc, Barytes

-LT Power Control Cables -Dolomites, China Clay

5

-PVC wires for Household wiring.(Domestic).

1. INTRODUCTION

Some Definitions of Absenteeism:

“Absenteeism” is a practice or a habit of being an “absence” and an “absentee” is one who

habitually stays away.

“Absenteeism’ is the failure of a worker to report for work when he is scheduled to work.”

Meaning:

Employees’ presence at the work place during the schedule time is highly essential for the

smooth running of the production process in particular and the organization in general. Despite the

significance of presence, employees sometime fail to report to the work place during the scheduled

time, which is known as “Absenteeism”.

According to PICOARS AND MAYERS: Unexpected absence disturbs the efficiency of the

group as the jobs are inter connected, if one single man remains absent without prior notice the

whole operation process is distributed. This Absenteeism results in production losses because, due

to Absenteeism, workers cost increases and thus efficiency of operations is affected.

Features of Absenteeism:

Research Studies undertaken by different authors reveal the following features of

Absenteeism.

The rate of Absenteeism is the lowest on pay day; it increases considerably on the days

following the payment of wages and bonus.

Absenteeism is generally high among the workers below 25 years of age and those

above 40

years of age.

The rate of Absenteeism varies from department to department within an organization.

Absenteeism in traditional industries is seasonal in character.

2. Types of Absenteeism

Absenteeism is of four types viz….

a). Authorized Absenteeism.

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b). Unauthorized Absenteeism.

c). Willful Absenteeism.

d). Absenteeism caused by circumstances beyond one’s control.

a). Authorized Absenteeism

If an employee absents himself from work by taking permission from superior and applying for

leave, such Absenteeism is called authorized Absenteeism.

b). Unauthorized Absenteeism

If any employee absents himself from work without informing or taking permission and without

applying for leave, such absenteeism is called Unauthorized Absenteeism.

c). Willful Absenteeism

If any employee absents himself from duty willfully, such Absenteeism is called Willful

Absenteeism.

d). Absenteeism caused by circumstances beyond one’s control

If any employee absent himself from duty owing to the circumstances beyond his control like

involvement in accidents (or) sudden sickness, such absenteeism is called Absenteeism caused by

circumstances beyond one’s control.

Calculations of Absenteeism rate:

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

Absenteeism rate = No of Mondays lost x 100

No of Mondays scheduled to work

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

month & year.

The frequency rate reflects the incidence of absence and is usually expressed as the no of

separate absence in a given period, irrespective of absence. The frequency rate represents the

average no of absence per worker in a given period.

Frequency rate = The no of times in which the leave was availed X 100

Total no of Monday’s schedules to work

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Severity rate:

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

Severity rate = Total no of days absent during a period X 100

Total no of times absent during that period

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

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

duration’s each time resulting in high Absenteeism even in absolute terms.

3. Causes of Absenteeism

The following are the general causes of the Absenteeism ‘

1. Maladjustment with the working conditions:

If the working conditions of the company are poor, the workers cannot adjust themselves with the

company’s working conditions. Then they prefer to stay away from the company.

2. Social and religious ceremonies:

Social & religious functions divert the workers attention from the work.

3. Unsatisfactory housing

Conditions at the working place.

4. Industrial housing

The industrial fugue compels workers to remain outside the work place.

5. Unhealthy working conditions

The poor and intolerable working conditions in the factories irritate the working excess heat, noise,

either too much or too low lighting, poor ventilation, dust, smoke cause poor health of the workers.

This factory causes the workers to be absent.

6. Poor welfare facilities

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Though a no of legislation 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 the exploitative attitude of the employs. The welfare facilities includes poor sanitation, washing,

bathing first aid appliances, ambulance, restrooms drinking water, canteen, shelter, creches etc.. The

dissatisfied worker with these facilities prefers to be away from the workplace.

7. 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 every month.

8. Indebtness

The low level wages and unplanned expenditure of the workers force then 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 the place in order to avoid the money

lenders. This leads to absenteeism.

9. Maladjustment with job demands

The fast enhancing technology demand higher level skills from the workers fail to meet these

demands due to their lower level education and/or absenteeism of training.

10. Unsound personnel policies

The improper and unrealistic personnel policies result in employee dissatisfaction. The dissatisfied

employee in tune prefers to be away from the work.

11. Inadequate leave facilities

The inadequate leave facilities provided by the employer forces him to depend on ESI leave which

allows the workers to be away from the work for 56 days in a year on half pay.

12. Low level of wages

Wages in some organizations are very poor and they are quite inadequate to meet the basic needs of the employees. Therefore, employers go for other employment during their busy seasons and earn more money. Further, some employees take uppart time jobs. Thus the employees resort to moonlighting and absent themselvesfrom the work.

4. Categories of Absenteeism

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Chronic absenteeism is classified to five categories viz….

(i). Entrepreneurs

(ii). Status seekers

(iii). Epicureans

(iv). Family-oriented and

(v). The sick and the old.

(i) Entrepreneurs

These classes of absenteeism consider that their jobs are very small for their total interest and

personal goals. They engage themselves in other social and economic activities to fulfill their

goals. (ii) The Status seekers

These types of Absentees enjoy or perceive a higher ascribed social status and are keen on

maintaining it.

(iii)The Epicureans

The classes of absentees do not like to take up the jobs which demand initiative responsibilities,

discipline and discomfort they wish to have money, power, and status but are unwilling to work for

their achievement.

(iv) Family-oriented

These types of absentees are often identified with the family activities.

(v) The sick and old

These categories of absentees are mostly unhealthy, with a weak constitution or old people.

5. Measures to minimize Absenteeism

Absenteeism affects the organization from multiple angles. It severely affects the production

process and the business process. The effect of unauthorized absenteeism is more compared other

types of absenteeism. However, it would be difficult to completely avoid absenteeism. The

management can minimize absenteeism. The following measures are useful in controlling or

minimizing absenteeism.

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Selecting the employees by testing them thoroughly regarding their aspirations value

systems,

responsibility and sensitiveness.

Adopting a humanistic approach in dealing with the personal problems of employees.

Following or proactive approach in identifying and redressing employee grievances.

Providing hygienic working conditions.

Providing welfare measures and fringe benefits, balancing the need for the employee

and the

ability of the organization.

Providing high wages and allowances based on the organizational financial positions.

Impressing the communication network particularly the upward communication.

Providing leave facility based on the needs of the employees and organizational

requirement.

Providing safety & health measures.

Providing cordial human relations & Industrial relations.

Educating the workers.

Counseling the workers about their carrier, income & expenditure habits & culture.

Free flow of information, exchanging of ideas problems etc... B/w subordinate &

superior.

Granting leave and financial assistance liberally in case of sickness of employee & his

family

members.

Offering attendance bonus & inducements.

Providing extensive training, encouragement, special allowance in cash for

technological advancements.

6. Statement of Problem

Study of Absenteeism among Industrial Worker is not only from view point of management

but it is important from the view point of moral of employees. Even though the effect of the good

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morale of employees, may not be calculated in terms of costs, but it should be said that, it is

important than cost.

There is a clear relationship between high absenteeism and employees moral, because it can

easily traced that these department having high rate of absenteeism have low moral.

There is a clear relationship between employee’s attitude & absenteeism. They are related to

each other. So employee’s attitude & morale are the important factors. Labors is Human Factor,

therefore consideration shall also be taken into account in the discussion of problem connected in

the absenteeism has been continuous to be one of the major labors problem in Indian Industries.

As “No work No pay” is usually the general rule, the loss to workers absenteeism is quite

obvious when the workers fail to attend to the regular work, there income is reduced and the

workers become still poorer. Hence, Health and efficiency of the worker is affected by the

irregularity of the workers attendance.

The loss of employees and industry is due to absenteeism is still greater and both efficiency

and discipline suffer the maintenance of additional workers leads to serious implications.

Thus the above discussions show how the problem of absenteeism is very important to the

organization. So, I have selected this problem of study.

7. Objectives of the Study

The Study aims at assessing the absenteeism in workers.

To conduct a detailed study on Absenteeism of Organization.

To identify the various that lead to Absenteeism.

To identify the variables that reduces the rate of Absenteeism.

To find out the rate of Absenteeism in Organization.

To find out causes of Absenteeism & suggest remedies to reduce it.

8. Research & Analysis

The process starts after selection of the topic “A Study of Absenteeism of workers in

Vimal Oil and Foods”. For this study we used a descriptive survey method. The target

12

population of this study included workers, supervisors, executives at the Vimal Oil and Foods

Ltd.

(a) Primary Data Collection

In this stage, we collected data through questionnaires given to the workers at the company’s

head office situated at Sarkhej Highway, Ahmedabad.

(b) Secondary Data Analysis

For background information, we used secondary data from the internet (old news items

relevant to the topic, websites of Vimal Oil and Foods Ltd.) and other related books and

journals. We also asked the management at Vimal Oil and Foods Ltd. for their records and files

to get the required information. The HR manager provides us the last two year data of workers

absenteeism. After carrying out the research we found that our findings were similar to what

we found in the secondary data research.

The questionnaire used for the research was given as below:

Questionnaire

A study of Absenteeism of workers in

Vimal Oils & Foods

1) Name

2) Age in years

a) Below 25 ( ) b) 25 to 35 ( )

c) 35 to 45 ( ) d) Above 45 ( )

3) Department

a) Raw Material ( ) b) Production ( )

c) Packaging ( ) d) Quality ( )

e) Sales ( ) f) Workshop ( )

4) Designation

a) Supervisors ( ) b) Workers ( )

c) Executives ( ) d) Assi. Manager ( )

13

5) Family Members

a) 1 to 2 ( ) b) 3 to 5 ( )

c) 5 to 7 ( ) d) above 7 ( )

6) Martial status

a) Married ( ) b) unmarried ( )

7) Educational Qualification

a) Illiterate ( ) b) Below 10th ( )

c) Technical ( ) d) Graduates ( )

8) Years of experience

a) Below 5 ( ) b) 5 to 10 ( )

c) 15 to 20 ( ) d) 20 to 30 ( )

9) Do you inform you superior about your absence to the duty?

a) Rarely ( ) b) sometimes ( )

c) Always ( ) d) Never ( )

10) Do you absent because of unexpected work?

a) Rarely ( ) b) sometimes ( )

c) Always ( ) d) Never ( )

11) Is health is one of the reason for your absence to the duty?

a) Rarely ( ) b) sometimes ( )

c) Always ( ) d) Never ( )

12) In which shift you are facing the none problems to attend the duty?

a) First ( ) b) Second ( )

c) Third ( )

13) You are satisfied with the safety measures provided by the Mgt.

a) Yes ( ) b) No ( )

14) What are the other problems you face to attend the duty?

a) Sickness ( ) b) personal causes ( )

c) Social causes ( ) d) Economical causes ( )

15) You are absent because of you reaching factory late.

a) Rarely ( ) b) sometimes ( )

c) Always ( ) d) Never ( )

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16) What is the distance B/w your house factory in KM?

a) Below 1 ( ) b) 1 – 5 ( )

c) 5 – 10 ( ) d) Above 10 ( )

17) How do you come to the factory?

a) By bus ( ) b) By cycle ( )

c) By scooter ( ) d) by walk ( )

18) Did you addict to any bad habits like

a) Alcohol ( ) b) smoking ( )

c) Gambling ( ) d) Nothing ( )

19) Do you think absenteeism affects your economic conditions?

a) Yes ( ) b) No ( )

20) Do you have any creditors at workplace?

a) Yes ( ) b) No ( )

21) Do you feel that being at home is a good way of avoiding creditors?

a) Yes ( ) b) No ( )

c) Sometimes ( )

22) Do you feel boredom in doing the assigned duty?

a) Rarely ( ) b) sometimes ( )

c) Always ( ) d) Never ( )

23) Do you have any others sources of income?

a) Agriculture ( ) b) Business ( )

c) Nothing ( )

24) Do you have cordial relationship with your higher authorities?

a) Yes ( ) b) No ( )

c) Marginal ( )

25) Do you quarrel with your supervisors?

a) Yes ( ) b) No ( )

c) Sometimes ( )

26) Do you absent because of bad working conditions?

a) Yes ( ) b) No ( )

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c) Sometimes ( )

27) Do you absent because of heavy workload?

a) Rarely ( ) b) sometimes ( )

c) Always ( ) d) Never ( )

28) Are you waiting for a higher job (or) responsibility?

a) Yes ( ) b) No ( )

28) Do you feel that the training programmes on absenteeism are informative &

Useful?

a) Strongly agree ( ) b) Agree ( )

c) Disagree ( ) d) Strongly ( )

9. Data Analysis

The rate of Absenteeism at the year 2008 i.e. in month wise.

Jan - 3.88%

Feb - 2.27%

March - 1.53%

April - 3.21%

May - 3.70%

June - 4.38%

July - 3.85%

Aug - 4.01%

Sep - 3.35%

Oct - 3.30%

Nov - 4.40%

Dec - 3.22%

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The rate of Absenteeism at the year 2009

Jan - 4.28%

Feb - 2.68%

March - 2.16%

April - 3.78%

May - 3.96%

June - 4.72%

July - 3.89%

Aug - 4.48%

Sep - 4.76%

Oct - 5.58%

Nov - 5.89%

Dec - 5.36%

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%age of Absenteeism-2010

3.88

2.27

1.53

3.21

3.7

4.38

3.85

4.01

3.35 3.3

4.4

3.22

0

1

2

3

4

5

%age 3.88 2.27 1.53 3.21 3.7 4.38 3.85 4.01 3.35 3.3 4.4 3.22

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

10. Summary of Findings

From the study it has found that there are many factors influencing the workers absenteeism,

some of them are as follows.

Absenteeism in shifts is mainly in 3rd shift i.e. (10 pm to 6am) that mean it is high in

night shift. This is because workers in the night shift experience greater discomfort during their

course of work than they do during daytime.

The habit of Alcoholism among workers is significant cause of Absenteeism, which

higher in the first week of each month, when workers receive their wages, rush to liquor shops and

drink to forgot their immediate worries.

From the samples of workers about 60% of the workers are debit other workers in

work place due to which they absent themselves in order to escape the creditors.

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%age of Absenteeism-2009

4.28

2.68

2.16

3.783.96

4.72

3.89

4.484.76

5.58 5.89

5.36

01234567

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

%age

Some many absent because of ill health family member’s health and unexpected work

etc.

Most of the employees facing personal problem it is also reason for absenteeism.

Some of the workers strangely agree that they have cordial relationship with the higher

authorities. And they are very much satisfied with the safety measures undertaken by the company.

Some of them absent because of Boredom in doing assigned job.

While in workers above 55 years old, the absenteeism is least because they are going to retire

in a few months (or) days.

The rate of absenteeism is nearly 8% in nutrine confectionery company ltd. The normal rate in

Indian Industry varies from 7% to 30%. The abnormal level is 40% in other reason.

Most of the workers absent because there are having other sources of income i.e. Agriculture,

Business.

The various training programmes and seminars like

1. “POSITIVE WORK CULTURE” and “IMPROVEMENT OF PRODUCTIVITY”.

2. “QUALITY OF LIFE-QUALITY OF WORK TIME MANAGEMENT”.

These are being conducted by the mgt of Organization regularly in order to improve the

individuality of the workers and to bring up good result in production and to present

absenteeism. Though these training programmes many worker have changed their life style and

improved their attendance.

According to the sample selected these are the findings

25 % of the respondents are under 25 years and 40% are from 25 to 35 years and 19%

are between 35 to 45 years and 16% are above 45years.

24 % of the respondents belongs to raw material department, 23 % of the respondents

belonged to Production department, 19 % of them to sales department, and 14% to packing and

quality and workshop 20 %.

19 % of respondents are supervisors, 40% of respondents are workers 16 % of

respondents are Executives and 25 % are belonged to the other designations.

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20 % of the respondents said that their family size is 2 and 50 % of respondents said

that 3 to5 and 19 % of respondents said that 5 to 7 and 11 % said that they are above 7.

74% of the respondents are married and 26% are unmarried.

76 % of the respondents are Illiterates, 22 % are below 10th standard and 25 % are

technical and 18 % are Graduates or more.

8% of respondents are below 5 years of experience, 34% are b/w 5 to 10 years, 20%

are b/w 15 to 20 years and 38 % are 20 to 30 years.

4% of the respondents are rarely feel responsible, 54% feel some times responsible, 6

% are always feel responsible and 10% are never feel responsible.

38 % of the respondents are verily absent, 20% are sometimes absent and 42% are

never absent.

32% of the respondents are rarely absent because of the health problem, 44 % are

sometimes absent and 24% are never absent.

58% of the respondents said that have more problems in attending 3 rd shift, 20% of the

respondents are facing problems in 2nd shift and 22% are facing in the 1 shift.

80% majority of the respondents said the safety measures are satisfied and 20% are

un-satisfied.

28% of the respondents said that they are absent to their because of sickness problems.

26% are economical problems.

22% of respondents are rarely absent, 66% are sometimes absent and 2% is always and

10% are never absent.

40% of respondents said that the distance b/w their residents and factory is less than 1

km, 20% of the respondents said that 1 to 5 km, and 16% said that 5 to 10 km and 24% said they

are above 10km.

16% of the respondents came to the factory by bus, 38% by cycle and 14% are scooter

and 32% are by walk.

72% of the respondents are agreed that they are adjusted by the economic conditions

and 28% said they are not adjusted.

56% of the respondents said that they have some creditors at work place and 44% said

that they so not have any creditors at work place.

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20% of the respondents are absent to avoid creditors and 56% of respondents it is not

cause and 24 % are sometimes absent due to creditors.

8% of the respondents rarely feel bore on the assigned duty and 10% sometimes feel

bore and 6% always bore and 76 % will never feel boredom.

32% of the respondents are doing agriculture, 22% doing business and 46% do not

have any source of income.

84% respondents have cordial relations with higher authorities, 10% have marginal

relationship and 6 % do not have any relations.

86% do not have quarrel with supervisors, 4.76% of respondents often do it and

9.53%, sometimes they do that.

18% of respondents are strongly agreed that they have bad working conditions 20%

strongly disagreed.

96 % of respondents that heavy work load is not a reason 24% rarely feel that it is a

reason.

72% of respondents are waiting for the higher jobs/responsibility and 28% of them are

satisfied with their existing job.

54% of respondents strongly agreed that training programme on absenteeism has a

good effect, 30 % feel it as agree and 10 % disagree and 6% strongly disagree.

11. Suggestions / Recommendations

Suggestions:

The following are some to the suggestions in order to minimize absenteeism in the company.

Many of the workers agree that they have good relationship with higher authorities.

Some may fear to talk with them, improving the communication network, particularly the upward

communication.

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Since the literacy rate very lower only few members are the graduates and, some of

them are literates, so that by counseling the workers about their career, income & expenditure, habit

and culture. The company so what can reduce the absenteeism rate.

By providing high wages and allowance based on organizational financial positions.

Selecting the workers by testing them thoroughly regarding their aspirations, value

system, and sense of responsibility.

Most of the workers have bad habit like drinking alcohol, so personal department have

tell the effects of these habits.

Selecting the workers who do not have any other source of income (i.e.) agriculture

business.

The management should conduct regular seminars, group’s discussions, social

gathering orientations programmes on the problems of absenteeism.

The personnel department (HRD) of the factory must conduct the interviews of the

absenteeism cases and give proper counseling to the workers.

The employees who are attending to 3rd shifts have to be provided more benefits than

the workers. In order to make them enthusiastic to attend the workers.

12. Conclusion

Majority of the employees are absenting due to Ill health, ailment.

Majority of the employees has said they are paid worth of their work.

Some of the employees are absenting because they are old, sick.

Most of the workers come from rural areas in that some of the workers have bad

habits.

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Most of the workers are having creditors a few persons are having creditors in work

place also, some creditors in workplace also, some creditors are coming to the factory gate fore

collecting the money from them to avoiding creditors some are absenting.

Though there are limitations the personal department is taking special care to frame

certain policies and procedures that would reduce absenteeism and increase the labor turn over.

Majority of workers is facing problems in 3rd shift the company had to take necessary

steps to reduce the problems.

13. BIBLIOGRAPHY

Author: Gargy Dessler and Biju Varkkery

Book Name: Human Resource Management.

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Edition: 11th Edition

Name of Publisher: Himalaya Publishing House.

Magazine: HRM REVIEW

WEBSITESwww.google.com

www.humnresources.about.com

www.humancapitalonline.com

www.vimaloil.com

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