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SVIM e-journal of Applied Management is a double-blind peer-reviewed, openaccess journal published by Shri Vaishnav Institute of Management, Indore. The
journal carries research papers and analytical articles pertaining to the following
areas: strategic management, financial management, human resource
management, entrepreneurship, services, corporate governance, marketing, ebusiness, information technology management, production & operations
management, decision analysis, management research methods and managerial
economics, etc.
The journal provides an academic platform for professionals and researchers to
contribute and share their research work with the larger academic fraternity. SVIM
e-journal of Applied Management carries original and full-length research papers /
articles that reflect the latest research and developments in both theoretical and
practical domain of business and management. The journal is published in online
version with free access and downloading facility. We have received a good
number of papers for this inaugural issue which were reviewed by an expert
committee and only 10 papers were recommended for publishing.
We congratulate all the authors for meticulously writing the papers that have gone
into this inaugural issue of the journal. We thankfully acknowledge the cooperation, guidance and suggestions received from the expert review committee,
publications committee and other colleagues who have helped directly or
indirectly in bringing out this first volume in time. We also take this opportunity
to thank the Educational Board and Management of SVIM, especially Shri
Purushottamdasji Pasari, Chairman, Shri Kailashchandraji Agar, Secretary, and
the Director Prof. (Dr.) J.S. Panwar for having encouraged and supported us at
every stage.
We are also thankful to Shri V.S. Murthy, Administrative Officer- SVIM and
other technical staffs for their able support.
Contents
Tata Corus Deal: How successful it is Till 2013?
Page No
6-12
13-19
20-38
39-49
50-63
64-78
79-93
94-107
108-123
124-135
Abstract
Absenteeism is one of the most serious concerns of a company. Manufacturing
company as well as service sector company is facing the problem of growing
absenteeism. It is a serious problem in a manufacturing or labour intensive
company as compared to a service sector company. This paper discusses the
absenteeism of the employees of Hare Ram cotton Mill of Pandhurna, district
Chhindwara. The major factors derived on the basis of suggestions by the
employees that affect absenteeism are- Welfare Facilities, Salary, Leave Policies,
Supervisors behavior, Present working conditions and Transportation facility.
Key Words: absenteeism, perception, employee welfare, leave policies, supervisors
behaviour
Introduction:
Absenteeism is the failure of employees to report for work when they are
scheduled to work. Employees who are away from work on recognized holidays,
vacations, approved leaves of absence, or approved leaves of absence would not be
included. Absenteeism is becoming a serious practice in labor oriented industries
especially in those large industries where laborers are working in mass. It is a matter
of prime concern for the supervisors and managers. They have to find the ways to
overcome absenteeism.
Absenteeism is a serious workplace problem and an expensive occurrence for
both employers and employees seemingly unpredictable in nature. A satisfactory
level of attendance by employees at work is necessary to allow the achievement of
objectives and targets by a department. Employee Absenteeism is the absence of an
employee from work. It is a major problem faced by almost all employers of today.
Employees are absent from work and thus the work suffers. Absenteeism of
employees from work leads to back logs, piling of work and thus work delay.
1
Professor & Head, MBA, Shri Vaishnav Institute of Technology & Science, Indore.
Page 50
of
their
high
standards
and
tendency
towards
Trends in Absenteeism
Surveys indicate the following generalities in absenteeism:
The higher the rate of pay and the greater the length of service of the employee, the
fewer the absences
Page 51
Older employees are absent for longer periods of time than younger
employees
Causes of Absenteeism
The causes of absenteeism are many and include:
low morale
inadequate nutrition
transportation problems
stress
excessive workload
employee discontent
Review of Literature:
Hone, (1968) emphasized on lack of commitment and felt that absenteeism is
related to new values and norms which are developing among the work force as a
result of technological developments. Work and leisure are now cherished by the
worker, and these he wants to enjoy along with monetary benefits he gets for his
services. Economic consideration, therefore, decides whether one would like to be
absent from work.
Page 52
Muchinsky, (1997) conducted study in the same field on the basis of literature
review on employee absenteeism and concluded employees withdrawal behavior
apart from turnover. Studies examining the psychometric properties of absence
measures are reviewed, along with the relationship between absenteeism and
personal, attitudinal and organizational variables chronic absentees into four
categories such as; entrepreneurs, status seekers, family oriented and sick and old.
Martocchio & Jimeno (2003) stated that We propose a model of the
personality types that have a higher likelihood of using absenteeism to their benefit
(i.e.to recharge and change negative affect) and therefore have the absence be
functional (i.e., positive affect and higher productivity upon returning to the job) rather
than dysfunctional (i.e., negative affect and person is still unproductive or has less
productivity than before the absence event). We conclude by emphasizing the
theoretical contributions that this model makes and by suggesting ways in which the
model could be tested.
Ruchi Sinha(2010) in her study reveals that there only 4% employees remain
away from their work and that too due to personal reasons. There is very high level
of job satisfaction among the employees.
Nisam (2010) stated that stress among employees, health problems,
loneliness at workplace, non-cooperation of colleagues causes
absenteeism at
workplace.
K.A.Hari Kumar (2012) stated that the rate of absenteeism in Madura Coats is
very high.
Jacobson (1989) has investigated a direct relationship between monetary
incentives and work floor attendance.
Wolter H.J. Hassink & Pierre Koning (2009) find statistically significant
differences in absence patterns across groups of workers with different eligibility
statuses depending on their attendance records and whether they had previously
won. One finding is that absenteeism rose among workers who, having won already,
were ineligible for further participation. Nevertheless, and although the reduction in
firm-wide absence associated with the lottery drifted from 2.4 percentage points to
1.1 percentage points after seven months, the authors conclude that the lottery was
of net benefit to the firm.
SVIM e-Journal of Applied Management
Page 53
Rationale:
Cotton industry, like other public sector, has become one of the highly
competitive sectors in India. There are various domestic and international factors
that affect the textile/cotton industry in India. HR is the most vital resource of an
organization. It is the central figure in the profit and growth of an organization. If the
rate of absenteeism is high in the cotton industry which is labor oriented one, the
loss in terms of productivity, working hours, profit, growth etc. can be understood
easily. Absenteeism must be managed in such industries in such a manner that
employees can give their best output to maintain the organizations productivity and
profit. Thus, the researchers got inspired to work on the above said topic to know the
causes of absenteeism and to propose measures to overcome them.
Objectives:
1. To study variation in the perception of absenteeism of male and female
employees.
2. To study variation in the perception of absenteeism of lower level employees
and middle level employees.
3. To study variation in the perception of absenteeism of uneducated and
educated employees.
4. To study variation in the perception of absenteeism of less experienced and
more experienced employees.
5. To study variation in the perception of absenteeism of young and aged
employees.
6. To study variation in the perception of absenteeism of low income and high
income employees.
7. To study variation in the perception of absenteeism of unmarried and married
employees.
Hypotheses:
1. There is no significant difference in the perception of absenteeism of male and
female employees.
Page 54
Short time period: The time period for carrying out the research was short as
a result of which many facts have been left unexplored.
Page 55
Lack of resources: Lack of time and other resources as it was not possible to
conduct survey at large level.
Lack of resources: Lack of time and other resources as it was not possible to
conduct survey at large level.
Research Methodology:
Sample
Data is collected from 100 employees of Hare Ram Cotton Mill of Pandhurna,
district Chhindwara
Sampling Type
The simple random sampling method is used to collect data.
Study
The study is exploratory in nature.
Tools
Primary data is collected from the respondents by using a self-developed
questionnaire. Likert scale has been used with the responses strongly agree, agree,
cannot say, disagree and strongly disagree. SPSS 11.0 version is used to analyze
the primary data
Books, internet web sites, journals etc are used as a source of secondary
data.
Data Analysis:
T-test is used to test hypothesis at 5 % level of significance. Data
collected from the respondents has been analysed using different demographic
details of respondents such as gender, age, experience, marital status, education,
monthly income, level.
SVIM e-Journal of Applied Management
Page 56
Group Statisti cs
Observ ations
GENDER
male
f emale
Mean
2.9898
2.9644
60
40
St d. Dev iation
.26719
.32316
St d. Error
Mean
.03449
.05110
Table 1.0
Independent Samples Test
Levene's Test f or
Equality of Variances
F
Observations
Equal variances
assumed
Equal variances
not assumed
Sig.
.003
.956
df
Sig. (2-tailed)
Mean
Diff erence
Std. Error
Diff erence
95% Confidence
Interv al of the
Diff erence
Lower
Upper
.428
98
.670
.0254
.05935
-.09239
.14317
.412
72.671
.682
.0254
.06165
-.09749
.14827
Table 1.0 exhibits that as the p value (at 5% level of significance) came out to
be 0.670 and this value is greater than level of 0.05 Hence the null hypothesis
that there is no significant difference in the perception of absenteeism by male
employees and female employees can be accepted.
Group Statistics
Observ ations
POST
low lev el
middle lev el
Mean
2.9795
2.9870
97
3
Std. Error
Mean
.02949
.18287
Table 2.0
Independent Samples Test
Levene's Test f or
Equality of Variances
F
Observations
Equal variances
assumed
Equal variances
not assumed
Sig.
.041
.840
df
Sig. (2-tailed)
Mean
Diff erence
Std. Error
Diff erence
95% Confidence
Interv al of the
Diff erence
Lower
Upper
-.044
98
.965
-.0076
.17060
-.34614
.33097
-.041
2.105
.971
-.0076
.18523
-.76753
.75236
Page 57
Table 2.0 exhibits that as the p value (at 5% level of significance) is 0.965
and this value is greater than level of 0.05. Hence the null hypothesis that
there is no significant difference in the perception of absenteeism by lower level
employees and higher level employees can be accepted.
Group Statisti cs
Observ ations
Education
uneducated
educated
Mean
3.0685
2.9277
37
62
St d. Dev iation
.27006
.29229
St d. Error
Mean
.04440
.03712
Table 3.0
Independent Samples Test
Lev ene's Test f or
Equality of Variances
F
Observ ations
Equal v ariances
assumed
Equal v ariances
not assumed
Sig.
.074
.787
df
Sig. (2-tailed)
Mean
Diff erence
Std. Error
Diff erence
95% Confidence
Interv al of the
Diff erence
Lower
Upper
2.385
97
.019
.1408
.05905
.02361
.25800
2.433
80.661
.017
.1408
.05787
.02565
.25596
Table 3.0 exhibits that as the p value (at 5% level of significance) is 0.019 and
this value is less than level of 0.05. Hence the null hypothesis that there is no
significant difference in perception of absenteeism by uneducated employees and
educated employees cannot be accepted. The comparison of mean values of
uneducated employees and educated employees indicates that uneducated
employees perceive higher absenteeism in the industry than that of their
counterparts.
Group Statistics
Observ ations
Experience
less experienced
more experienced
N
36
64
Mean
2.8889
3.0307
Std. Error
Mean
.03323
.03998
Page 58
Table 4.0
Independent Samples Test
Levene's Test f or
Equality of Variances
F
Observations
Equal variances
assumed
Equal variances
not assumed
Sig.
2.878
.093
df
Sig. (2-tailed)
Mean
Diff erence
Std. Error
Diff erence
95% Confidence
Interv al of the
Diff erence
Lower
Upper
-2.408
98
.018
-.1419
.05891
-.25877
-.02495
-2.729
96.882
.008
-.1419
.05199
-.24505
-.03867
Table 4.0 exhibits that as the p value (at 5% level of significance) is 0.018 and
the value is less than level of 0.05. Hence the null hypothesis that there is no
significant difference in perception of absenteeism by employees with more
experience with the organization and those with less experience with the
organisation can not be accepted. The comparison of mean values of less
experienced employees and more experienced employees indicates that more
experienced employees perceive higher absenteeism in the industry than that of
their counterparts.
Group Statistics
Observ ations
AGE
y oung
adult
Mean
2.9720
2.9862
46
54
St d. Dev iation
.27101
.30685
St d. Error
Mean
.03996
.04176
Table 5.0
Independent Samples Test
Levene's Test f or
Equality of Variances
F
Observations Equal variances
assumed
Equal variances
not assumed
Sig.
.477
.491
df
Sig. (2-tailed)
Mean
Diff erence
Std. Error
Diff erence
95% Confidence
Interv al of the
Diff erence
Lower
Upper
-.243
98
.809
-.0142
.05838
-.13002
.10167
-.245
97.860
.807
-.0142
.05780
-.12887
.10052
Page 59
Table 5.0 exhibits that as the p value (at 5% level of significance) is 0.809 and
this value is greater than level of 0.05. Hence the null hypothesis that there is no
significant difference in the perception of absenteeism by the young employees and
aged employees can be accepted.
Group Statistics
SALARY
low paid
N
95
mean
2.9826
.29161
Std. Error
Mean
.02992
high paid
2.9244
.26985
.12068
Std. Deviation
Observations
Table 6.0
Independent Samples Test
Levene's Test f or
Equality of Variances
F
Observations Equal variances
assumed
Equal variances
not assumed
Sig.
.050
.823
df
Sig. (2-tailed)
Mean
Std. Error
Diff erence Diff erence
95% Confidence
Interv al of the
Diff erence
Lower
Upper
.436
98
.664
.0581
.13341
-.20660
.32288
.468
4.506
.662
.0581
.12433
-.27230
.38858
Table 6 exhibits that as the p value (at 5% level of significance) is 0.664 and this
value is greater than level of 0.05. Hence the null hypothesis that there is no
significant difference in the perception of by lower income employees and higher
income employees can be accepted. The comparison of mean values of lower
income employees and higher income employees indicates that lower income
employees perceive that there is higher absenteeism in the industry than that of their
counterparts.
Group Statistics
Observ ations
Marital Status
married
unmarried
N
61
39
Mean
2.9954
2.9550
Std. Error
Mean
.03022
.05761
Page 60
Table 7.0
Independent Samples Test
Levene's Test f or
Equality of Variances
F
Observations
Equal variances
assumed
Equal variances
not assumed
2.837
Sig.
.095
df
Sig. (2-tailed)
Mean
Diff erence
Std. Error
Diff erence
95% Confidence
Interv al of the
Diff erence
Lower
Upper
.679
98
.499
.0404
.05953
-.07773
.15854
.621
58.967
.537
.0404
.06506
-.08977
.17059
Table 7.0 exhibits that as the p value (at 5% level of significance) came out to
be 0.499 and this value is greater than level of 0.05. Hence the null hypothesis
that there is no significant difference in the perception of absenteeism by married
employees and unmarried employees can be accepted. Married employees perceive
higher absenteeism in the industry than that of their counterparts.
Page 61
Suggestions:
The respondents were asked to give suggestions to reduce absenteeism. On
the basis of their response, following major suggestions can be helpful in reducing
absenteeism in the cotton mill.
Page 62
References:
Martocchio & Jimeno (2003) Employee absenteeism as an affective event.
Nisam (2010), Ways to Reduce Employee Absenteeism with special reference to
UNITED ELECTRICAL INDUSTRIES LTD. KOLLAM pp53-54.
Hone, A., (1968) High absenteeism and high commitment, economic and Political
Weekly, 3(21), pp 31-32.
Jacobson, Stephen. 1989. The Effects of Pay Incentive son Teacher Absenteeism.
Journal of Human Resources, Vol. 24, No. 2, pp. 28086.
JAI Press (Greenwich, Conn.) 13(2) pp 227 - 241.
K.A Hari kumar (2012) A Study on Absenteeism among the employees of Madura
Coats Pvt. Ltd., Madurai, p. 69
Muchinsky, P. M., (1977) Source for employee absenteeism Vocational Behavior,
10(1), pp 221-230.
Ruchi sinha(2010) Absenteeism of Employees at Indchemie Health Specialities
Pvt. Ltd. Mumbai, Academy of Management Studies, Dehradun.
Wolter H.J. Hassink And Pierre Koning (2009), DO FINANCIAL BONUSES
REDUCE EMPLOYEEABSENTEEISM? EVIDENCE FROM A LOTTERY,
Industrial and Labor Relations Review, Vol. 62, No. 3 (April 2009), Cornell
University.pp. 327-342.
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