PROJECT REPORT

ON

STUDY OF ABSENTEEISM REASON AND ANALISYS

Course specialization in

Human Resource Management

Prepared by:

Navin J. Gadge

Guide:

Prof. Shraddha wilfred

2011 2012

NIT Graduate School of Management Survey No. 13/2, Mahurzari,

Katol Road, Nagpur 441 501

CERTIFICATE
This is to certify that the project report titled STUDY OF ABSENTEEISM REASON

AND ANALISYS is a bonafide work of Navin J. Gadge who is student of MBA

(Second Year), NIT Graduate School of Management (Academic Session 2012-13). This

report is being submitted for Summer Internship Project for the course of Post Graduate

Degree of Masters of Business Administration (MBA) of Rastrasant Tukadoji Maharaj

Nagpur University, Nagpur.

Prof. Shraddha Wilfred Project Guide

NIT Graduate School of Management

 DECLARATION

I, Navin J. Gadge hereby declare that the project report titled, STUDY OF
ABSENTEEISM REASON AND ANALISYS which is being submitted by me for the
Summer Internship Project for the Degree of Master of Business Administration of
Rastrasant Tukadoji Maharaj Nagpur University, is a bonafide record of work exclusively
carried out by me. It is the result of my genuine efforts and the same has not been
previously submitted towards requirements of any course or examination of this or any
other university.

The sources of material and information used in this research study has been duly
acknowledged and certified. I hereby further confirm that this project truly represents the
bonafide work undertaken by me and is the outcome of thorough and systematic research.

Name of Student

Navin J. Gadge
 CONTENTS

Profile of INDOWORTH LT. BUTIBORI NAGPUR

Mission & Vision

Absenteeism: An Introduction

Concept of Absenteeism

Types of Absenteeism

Calculation of absenteeism

Causes of absenteeism

Categories of absenteeism

Measure to minimize absenteeism

Research Methodologies

Statement of problem

Objective of the study

Scope of study

Data Analysis: Inference

Findings and Suggestions

Limitation of study
 Conclusion

Bibliography

INTRODUCTION OF COMPANY

INDOWORTH India limited is the Indian wing of multinational Lohiya group. This is the
first venture of the group in India in natural fibers. It implemented its factory for
production of wool worsted yarn in 1993. The group is the second largest spinner of
worsted yarn in the world. INDOWORTH India is mainly export oriented unit. The entire
production of the company is exported to the discerning marketing in Europe, Japan,
Korea, North America, etc. It is stringent control system coupled with the largest
technology has gain for it the prestigious wool mark symbol & ISO 9000 2008
certification. They have run 10 to 160 nm counts successfully.

MISSION & VISION

Mission of the company

To be respected, nationwide full service with a force on growth segment of the

economy.

To built strong relationship with our employees and customers.

To be of service of community in which we work and live in.

Vision of the company

We will be worlds most respected & admire exports services.

We commit our self to manufacture and supply quality product of worsted spun yarn at
the competitive price to the satisfaction of our customers through employees and
participation, involvement of vendors, efficient and effective operation, implementation
and continuous improvement of the quality management system, thus be coming prefer
supplier.

We will achieve our target towards productivity and market by demonstrating the
highest levels of the integrity, delivering consistently superior performance & creating
value for our employees and customers.
 UNIT PROFILE

Head of unit: Mr.L.C.Chakraworty (President)

Mr.P.S.Poonia (A.V.P.Production)

Mr.S.C.Singh (Sr.G.M.Tech.)

Mr.R.K.Dhiman (G.M.P&A)

Product range: Pure wool worsted yarn & poly wool

worsted yarn. (1/10 to 2/140 NM)

Production Capacity: 3 tons/shift. 8 tons/day

(Depends on count).

Total employee: Staff: 120

Operator: 300

Achievements: certified with ISO 9000-2008

Spindle Capacity: 21896 spindles

Standard Count: 48NM

Raw Material: wool, polyesters. Nylon & Lycra.

Main Consumer: united Kingdom, Turkey, DTA, Japan,

Korea, Vietnam, UTL, New Zealand.

Absenteeism An Introduction

2.1 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

- WEBSTERS DICTIONARY

- Absenteeism is the failure of a worker to report for work when he is

scheduled to work.

- LABOUR BUREAU SIMLA

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.

2.2 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.
2.3 Types of Absenteeism

Absenteeism is of four types viz.

1. Authorized Absenteeism.

2. Unauthorized Absenteeism.

3. Willful Absenteeism.

4. Absenteeism caused by circumstances beyond ones control.

1) Authorized Absenteeism

If an employee absents himself from work by taking permission from superior

and applying for leave, such Absenteeism is called authorized Absenteeism.

2) 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.

3) Willful Absenteeism

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

4) Absenteeism caused by circumstances beyond ones 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 ones control.

2.5 Calculations of Absenteeism rate:

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

Absenteeism rate = ( No of Mondays lost / No of Mondays scheduled to work)*100

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

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/ Total no of Mondays
schedules to work)*100

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/ Total no of times absent during
that period)*100

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 durations each time resulting in high Absenteeism even in absolute terms.

2.6 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 companys 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

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, crches 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 up part time
jobs. Thus the employees resort to moonlighting and absent themselves from the work.

Categories of Absenteeism

K.N.VAID classified chronic absenteeism to fine categories viz.

1) Entrepreneurs

2) Status seekers

3) Epicureans

4) Family-oriented and

5) The sick and the old.

1) 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.

2) The status seekers

This type pf Absentees enjoy or perceive a higher ascribed social status and are keen on
maintaining it.

3) 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.

4) Family-oriented

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

5) The sick and old

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

1) Selecting the employees by testing them thoroughly regarding their aspirations value
systems, responsibility and sensitiveness.

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

3) Following or proactive approach in identifying and redressing employee grievances.

4) Providing hygienic working conditions.

5) Providing welfare measures and fringe benefits, balancing the need for the employee
and the ability of the organization.

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

7) Impressing the communication network particularly the upward communication.

8) Providing leave facility based on the needs of the employees and organizational
requirement.

9) Providing safety & health measures.

10) Providing cordial human relations & Industrial relations.

11) Educating the workers.

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

13) Free flow of information, exchanging of ideas problems etc between subordinate &
superior.

14) Granting leave and financial assistance liberally in case of sickness of employee &
his family members.
RESEARCH METHODOLOGY

Theoretical background of the Topic:

Absenteeism has been variously defined by the Authorities from time to time.
Thus the term Absenteeism refers to the workers absence from his regular task, when he
is scheduled to work. Any employees stay away from work if he has taken leave to which
he is entitled or on the grounds of sickness or some accident without any previous
sanction of leave.

Nevertheless usually, involuntary lay off, lack of work, authorized leave or vacation
period of work stoppage are not counted as absence. Strikes, lock outs and late attendance
are treated as absence.

STATEMENT OF PROBLEM

Study of Absenteeism among Industrial Worker is not only from view point of but it is
important from the view point of moral of employees. Even though the effect of the good
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 employees attitude & absenteeism. They are related
to each other. So employees 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.
OBJECTIVES OF THE STUDY

The Study aims at assessing the absenteeism in workers.

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

To find out the rate of Absenteeism in vardhman yarns thread

To know the corrective measures taken by the co. to reduces the rate of
Absenteeism

SCOPE OF THE STUDY

The present study Workers Absenteeism Covered only at vardhman yarn and thread
unit, could be of great use for the organization concerned in the following area:

. The study attempts to analyze the effectiveness and employees individual

opinion about reason for the absenteeism.
. The study emphasizes to reveal the reasons behind the absenteeism in vardhman
unit.
. The study aims to work on the feedback given by the employees and come up
with valuable suggestions for the improvement of the Absenteeism.
SUGGESTIONS/RECOMMENDATIONS/CONCLUSIONS

SUGGESTIONS

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

1. 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.

2. Since the literacy rate very lower only few members are the 12th and,
maximum of them are less literates, so that by counseling the workers about
their career, income & expenditure, habit and culture. The company so what
can reduce the absenteeism rate.

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

positions.

4. Selecting the workers by testing them thoroughly regarding their aspirations,

value system, and sense of responsibility.

5. The management should conduct regular seminars, groups discussions, social

gathering orientations programmers on the problems of absenteeism.

6. The personnel department (HRD) of the factory must conduct the interviews
of the absenteeism cases and give proper counseling to the workers.

7. 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.

Limitation of the study

 The study was limited only to INDOWORTH LTD unit only.
As sampling is taken as an element of the study there might always be sampling
errors.
The sample under consideration may not reflect the whole population.
Survey and study has been carried out in a span of only 6 weeks due to time
constraint.
Since absenteeism is a vast topic to be discussed, the study may not reflect each
and every aspect.

CONCLUSION

1. Majority of the employees are absenting due to ailment and health problems.

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

3. Majority of the employees has said that there is no strict action against
absenteeism.

4. Most of the workers does not intimate their senior regarding their leaves.

5. 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.

6. Majority of workers is facing problems in 1st shift the company had to take
necessary steps to reduce the problems.

7. Majority of workers never got appreciation for their punctuality in the

organization. So, The Management must think upon this aspect.

Bibliography

BOOKS:

HUMAN RESOURCE MANAGEMENT

By C.B. GUPTA
 Published by SULTAN CHAND & SONS, New Delhi.

RESEARCH METHODOLOGY

By C.R. KOTHARI

Published by NEW AGE INTERNATIONAL PUBLICATION

PRESONNEL MANAGEMENT

By C.B. MAMORIA & GANKAR

Published by MALYA PUBLISHING HOUSE