A STUDY ON ABSENTEEISM
Introduction of the Study Absenteeism is a universal problem and the extent of the absenteeism may differ from industry place to place and occupation to occupation. One of the most serious problems with which our industries are confronted is that of absenteeism. Absenteeism codes the potentiality, credibility and productivity of any company or organization. Absenteeism will create a distance between the employees on the management.
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A STUDY ON ABSENTEEISM
Objectives of the Study Primary Objective: To examine the personal causes that give rise to absenteeism. To bring out the factors which affect the working atmosphere of the employees that drives them to absenteeism.
Secondary Objective: To evaluate the internal and external reasons affecting the absenteeism in the organization. To find out the possible ways to reduce the rate of absenteeism.
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A STUDY ON ABSENTEEISM
Scope of the Study • To study and analyze the reason for absenteeism in all the Seven production modules in Rane (Madras) Limited at Chennai. • To understand the relationship between employee’s attitude and moral. • To find the absenteeism ratio and suggesting the management. i.
To retain absenteeism ratio, if it is low or minimal.
ii.
To reduce the absenteeism level, if it is more.
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A STUDY ON ABSENTEEISM
Limitations of the Study 1. The study is limited to only workers in various departments at Rane (Madras) Limited. 2. Time is an important limitation in this project work. 3. The lack of co-operation from some of the respondents. 4. Some of the respondents are not interested in giving much information due to their bias/busy work schedule.
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A STUDY ON ABSENTEEISM
RANE (MADRAS) LTD MISSION, VISION & VALUE STATEMENTS VISION To sustain market leadership and Retain tier – I Supplier status through Customer responsiveness, agility, innovation & Technology. MISSION & VALUE Provide superior products and services to our customers and maintain market leadership. Evolve as an institution that serves the best interests of all stakeholders. Pursue excellence through total quality management. Ensure the highest standards of ethics and integrity in all our actions.
OUR MOTTO : Customer Delight through Total Quality
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A STUDY ON ABSENTEEISM
RANE HISTORY • Founded as Rane Private Limited in 1929, started as a trading house, trading in automobiles and parts. Represented General Motors, Renault, American Motors etc. • Founded by Mr. T.R.Ganapathy Iyer, Rane started as a Trading House for automobiles and parts. The history of Rane is, growing from this reputed Trading House into a major manufacturer of vital components for the Automotive Industry. • As first diversification from trading, in 1959 Engine Valves Limited was established for manufacturing IC engine valves. • In 1960 Rane (Madras) limited commenced manufacture of Steering Linkages (Tie rod ends). • Rane Brake Linings Limited was established in 1964 for manufacturing friction materials. • In 1965 Rane Madras Limited discontinued with its trading activities. • In 1975 Rane (Madras) Limited started manufacturing of Steering Gears.
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A STUDY ON ABSENTEEISM
• Rane Power Steering Limited was established in 1987 for manufacturing Power Steering Systems (since 1997 – Rane TRW Steering Systems Limited). • Acquired Engine Components Limited in 1989 to manufacture tappets & camshafts and chilled iron castings. o Two new JV companies formed in 1995 o TRW Rane Occupant Restraints Limited o Rane Nastech Limited • In 1997, Rane TRW Steering Systems Limited was set up to manufacture Power Steering Systems. • In the same year Engine Valves Ltd. Signed technology agreement with TRW for Engine Valves. • In 1998 manufacturing of Engine Valves, guides, camshafts & tappets were brought under one company viz. Rane Engine Valves Limited.
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A STUDY ON ABSENTEEISM
ABOUT THE COMPANY Rane has been an integral part of the Indian Automotive Industry since 1929. Seeking world-class technology, and adapting it perfectly to Indian conditions, RANE has been a key support system in the growth of the automotive industry. Today, the Rane group, under the leadership of Mr. L. Ganesh, Chairman, has in its fold manpower strength of 4500 people, and a sales turnover in excess of Rs.600 crores. The company enjoys total confidence of all the automotive manufacturers and users in India. This reputation has been built up, as a result of anticipating needs, and manufacturing products of international quality and reliability. The group has access to world-class technology through strong alliances - TRW Inc., USA, Nastech Ltd, Japan, TMD, UK, Unisia JKC, Japan etc. Rane in the area of “Quality & Technology� has to its credit four companies.
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A STUDY ON ABSENTEEISM
Certified to ISO9000, three companies certified to QS9000. It offers global Products through Joint Ventures and has launched TQM as a major initiative. Rane’s major customers in India are – Ashok Leyland, Hyundai, Fiat, Maruti Udyog Ltd., Hindustan Motors, M&M, Hero Honda, TELCO, Eicher, TAFE, TVS Suzuki, Escorts, Indian Railways etc. To talk about Rane’s international presence, its products reach over a hundred customers across the globe in 19 countries: Australia, Dubai, Italy, Japan, Singapore, USA, and UK, South Korea. Rane's prestigious customers include - AGCO Limited - Deutz AG - Hino Motors - Nissan Diesel, Japan - TRW Today at RANE, adopting new disciplines and new paradigms is a continuous process and this is translated into an ongoing process of modernization and upgradation, both of technical skills and product. A zeal for perfection is a part of the vision and values of the RANE Group. This is shared by every RANE employee.
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A STUDY ON ABSENTEEISM
RANE GROUP COMPANIES Rane Madras Limited (RML) • Incorporated in the year 1936, the company manufactures Steering Gear assemblies, Steering linkages, suspension joints and control arms. RML has three Units located at Chennai, Mysore and Pondicherry, with total manpower strength of 1212 employees. It is an ISO9000 certified company. Rane Engine Valves Limited (REVL) • REVL started manufacturing IC Engine valves in 1959 in collaboration with Farnborough Engg.,Co. UK,
.Today it has 4 units - located at
Alandur (Chennai), Medchal (AP), Ponneri, Aziz Nagar (Hyderabad) with a total manpower strength of 1462 employees. REVL is the leading manufacturer of valve train components in India and is one of the earliest exporters of auto components. Its other products are non-valve train components – viz. valve guides, tappets and camshafts, Crankshafts for Air conditioners & clutch Boosters. • All its plants are QS9000 certified.
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A STUDY ON ABSENTEEISM
Rane Brake Linings Limited (RBL) • Incorporated in the year 1964. Honoured with DEMING prize, Rane Brake Linings is today a leader in Friction Materials in India. The Company has three Units situated in Chennai, Hyderabad & Pondicherry with an employee strength of 828.The company manufactures Friction materials Brake Lining, Clutch facings, Disc Pads & Railway Brake Blocks which has applications in HCV, LCV, Cars, Tractors, Trains, Earthmovers and Two Wheelers. The group has access to world class Technology through strong alliances – Nisshinbo Ind., Japan & TMD, U.K. • RBL is an ISO9000 certified company. Rane TRW Steering Systems Limited ( RTSSL ) • Incorporated in the year 1987, RTSSL with a total manpower strength of 637 employees has one unit situated in Viralimalai (Trichy) producing Power Steering Gears, and two in Guduvancherry producing Power steering gears for passenger vehicles and Hydraulic vane pumps. • The Products have Applications in Heavy Commercial Vehicles (HCV), medium / Light Commercial Vehicles, Multi Utility Vehicles (MUL), and Passenger Cars.
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A STUDY ON ABSENTEEISM
TRW Rane Occupant Restraints Limited (TROR)
• Incorporated in the year 1995, this is a 50:50 Joint Venture between TRW Inc., and Rane ( Madras ) Ltd. with a total strength of 63 employees. • TRW Rane produces Safety Seat Belt Systems. The company is a Lead Supplier of Safety Seat Belt Systems to all OEMs. • TROR is a QS9000 certified company. Rane Nastech Limited (RNL) • Incorporated in the year 1995, RNL is a 50:50 joint venture of Rane group and NSK
Ltd., Japan.NSK is one of the world leaders in Energy
Absorbing Steering Columns & Precision Bearings.
• Located at Vallanchery Village (Guduvancherry) and with a total strength of 98 people, RNL produces - Energy Absorbing Steering columns, solid steering columns, intermediate shafts and coupling assemblies. • NSL has proved its engineering capability by successfully developing columns for Honda City, Ford Ikon, Toyota Qualis, Maruti Zen & Omni. NSL is a QS 9000 certified company.
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A STUDY ON ABSENTEEISM
ASSOCIATE COMPANIES Karmobile Limited • Started in 1936 as an Electrical Distribution Company and subsequently in the year 1973 started manufacturing engine valves for locomotive engines and defense applications. • Having two plants, plant I located at Peenya (Bangalore), and Plant II located at Hirehalli (Tumkur) with a manpower strength of 530 employees. JMA Rane Marketing Limited • Is a Joint Venture with JMA for distribution of auto components.
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A STUDY ON ABSENTEEISM
SI.
COMPANY
UNIT/LOCATION
PRODUCT LINE
N O 1.
Kar Mobile Limited
Plant I – Peenya, Bangalore
Engine Valves Engine Valves (100% EOU)
Plant II 2.
3.
Rane
Brake Linings limited (RBL)
Rane Engine Valves Limited (REVL)
Plant II- Pregnapur, Hyderabad
Disc Pads, Clutch Facings, Brake Linings, Railway Brake Blocks Brake Linings, Clutch Facings, Railway Brake Blocks
Plant III – Pondicherry
Railway Brake Blocks , Chord Wound Clutch Facings, NonAsbestos Brake Linings
Plant I- Alandur, Chennai
Engine Valves
Plant I – Ambattur, Chennai
Plant II – Medchal, Hyderabad
4.
Rane Madras Limited (RML)
- do-
Plant III – Ponnery, Chennai
Valve Guides, Valve Tappets
Plant IV – Aziz Nagar, Hyderabad
Engine Valves, Cam shafts, Crank Shafts
Plant
Steering Gear Assembly, Steering Linkage, Suspension Joint
I – Chennai
Velachery,
Plant II – Mysore
- do-
Plant III – Pondicherry
- do-
5.
Rane Nastech Limited ( RNL)
Vallancherry, Chennai
Energy Absorbing & Solid Steering Columns
6.
Rane TRW Steering Systems Limited
Plant I- Viralimalai, Trichy
Power Steering Gear
Plant II – Pump Division, Guduvancherry, Chennai Plant III – Power Rack & Pinion Division, Guduvanchery, Chennai 7.
TRW Rane Occupant Restraints Limited (TROR)
Singaperumal Koil, Chennai
Pumps for power steering gear Power Steering Gear for Passenger Vehicles
Seat Belts
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A STUDY ON ABSENTEEISM
Delhi Regional Sales Office Manufacturing Unit
Rane (Madras) Limited Bombay Pune Bangalore
Mysore Chennai
Pondichery
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A STUDY ON ABSENTEEISM
RANE (MADRAS) LIMITED – LOCATIONS CHENNAI – UNIT I (ALSO RML CORPORATE OFFICE) COMMENCED ON
: 1960
SEGMENT
: M & HCV, LCV, UV
MANPOWER
: 708
MYSORE – UNIT II COMMENCED ON
: 1985
SEGMENT
: Tractor
MANPOWER
: 498
PONDICHERRY – UNIT III COMMENCED ON
: 1996
SEGMENT
: PASSENGER CAR
MANPOWER
: 218
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A STUDY ON ABSENTEEISM
ABOUT RANE (MADRAS) LIMITED
Rane (Madras) Limited is part of the Rane group. Incorporated in the year 1936, the company today is a market leader in India in Steering Gears and Linkages. The company enjoys the reputation of being a leading and most preferred supplier for all domestic Original Equipment Manufacturers (OEMs). RML’s well-organized manufacturing facilities are spread over three units. Unit I in Chennai spread over an area of 6.45 acres of land caters to all the
segmaints of auto industry.
Unit II located at Mysore with an area of 22 acres of land caters to the tractor segment.
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A STUDY ON ABSENTEEISM
To cater to the Car segment, Unit III was set up with an area of 18.39 acres, at Pondicherry, with exclusive manufacturing facilities to manufacture manual Rack & Pinion Steering gears and Ball joints. To obtain technology from the world’s best sources to manufacture products designed with world class features, the company has gone for technical collaborations with Quintal Hazel Limited, UK, Ehrenreich & Co., Germany, Burman & Sons Ltd., UK, NSK, Japan, TRW – SSL, UK, TRW, USA. This access to state-of-the-art technologies, through collaborations with world leaders in the field, has ensured that the company always remains contemporary. Innovative new product development program is made practical by a wellequipped R&D. Our quality slogan “Customer delight through Total Quality” coveys our message towards customers, and their needs. RML has manpower of 1212 employees. The Company draws on their capabilities and talents, and invests in the development of their skills. These skilled personnel spearhead RML’s thrust into the future.
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A STUDY ON ABSENTEEISM
MAJOR MILESTONES OF RANE (MADRAS) LIMITED 1929
Founded as Rane Private Limited, took up trading in Automobiles & parts .Represented General Motors, Renault, America Motors etc.
1960
Commenced manufacture of TIEROD ENDS (Steering Linkage).
1965
Shedding of its trading activities.
1975
RML started manufacturing of Steering Gears.
1981
RML’s second manufacturing Unit set up at Mysore to cater to the demands of tractor segment.
1984
Signed an agreement for technical Collaboration with TRW, Germany signed.
1995
Third unit (Rack & Pinion Steering Gear division) set up at Pondichery to cater to the needs of passenger car segment.
1995
TRW Rane Occupant Restraints Limited incorporated as a joint venture between Rane (Madras) Ltd. and TRW Inc.
1995 2007
Rane Nastech was incorporated. Rane (Madras) Limited wins Deming Prize.
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A STUDY ON ABSENTEEISM
UNIQUENESS OF THE COMPANY Only manufacturer of Steering Gears and Linkages Market leader in both product groups • Steering & Suspension linkages • Steering Gears
RML manufacturers all ranges of Manual Steering gears • Re-circulating Ball • Rack & Pinion
RML manufactures all ranges of linkages • With grease nipple • Greaser less • Serviceable
Only company to supply the entire range of Auto Industry – • M&HCV, LCV, UV, Tractors & Passenger cars.
Certified to ISO 9001 & now gearing towards ISO/TS16949
RML meets in excess of 50% of the demand generated in India alone
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A STUDY ON ABSENTEEISM
EXPORTS RANE (Madras) is presently meeting the Original Equipment Manufacture (OEM) requirements of a leading tractor manufacturer in the UK. The company is also a regular source of supply of Original Equipment Spares to tractor manufacturers in the U.K and U.S.A. Products from Rane (Madras) also cater to the requirements of the replacement market in Sri Lanka, Indonesia and Middle East.
RESEARCH & DEVELOPMENT
In order to bring in continuous improvement in the products manufactured in RML, to develop features that reflect latest technological features, to cater to customer delight and to excel in competition in terms of quality, features and price, RML has established its R&D department that functions with
sophisticated,
state-of-the-art
and
technologically
superior
infrastructure facilities. In other words RANE focuses on customer service, even before the product reaches the hands of the customer.
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A STUDY ON ABSENTEEISM
QUALITY POLICY Rane (Madras) Limited is committed to fulfill customer needs through adequate Quality System & Procedures.
QUALITY SYSTEMS ISO 9001 certified since 1995 Pondichery plant - QS9000 certification obtained in March 2001 Chennai targeted for ISO/TS16949 by 2004.Mysore has been Certified TS16949 in 2003. Entire Company is gearing towards achieving Deming award.
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A STUDY ON ABSENTEEISM
RML GOALS • To retain our market and technology leadership positions in steering systems and linkages • To reduce the impact of unstable OE domestic market on our business • To improve our contribution margins and achieve better cost efficiencies • To reduce our breakeven sales and increase volumes
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A STUDY ON ABSENTEEISM
ORG. HIERARCHY / LEVELS
Chairman / Vice Chairman
Top Management
Director President Vice President General Manager Deputy General Manager
Senior Management
Manager Deputy Manager Assistant manager Senior Executive Executive
Middle Management
Junior Management
Senior Technical Assistant (Staff) Junior Technical Assistant (Staff) Operators (Workmen)
Unionize d
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A STUDY ON ABSENTEEISM
PRODUCTS MANUFACTURED
Manual Steering Gear Range
Manual Recirculating ball & nut type Steering Gear
Manual Rack & Pinion Steering Gear
Steering Gear Parts
Box
Rocker Shaft
Worm
Nut
Drop arm
Application: M&HCV, LCV, UV, Tractor and Passenger cars
UV – Utility Vehicle
LCV – Light Commercial Vehicle
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A STUDY ON ABSENTEEISM
Steering & Suspension Linkage products (SSLP) Inner & Outer ball joints Tie-rod assembly Drag link /Center link assembly Suspension - Axle ball joint - Control arms
a1 Steering Linkage Parts Ball pin Socket Tube
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A STUDY ON ABSENTEEISM
Application: M&HCV, LCV, UV, Tractor, and Passengers Cars
Control arms: Upper control arms Lower control arms Application: Passenger Cars
UV – Utility Vehicle
LCV – Light Commercial VehicleM&HCV – Medium & Heavy Commercial
Vehicle
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A STUDY ON ABSENTEEISM
RANE CUSTOMERS (All Four Wheeler Manufacturers in India) • Ford India Ltd.( Ikon, Escorts ) • Fiat India Ltd.( Uno, Palio, Sienna ) • Maruthi Udyog Ltd.( 800cc, Zen, Versa ) • Telco Ltd.(Indica) • Ashok Leyland Ltd.( Iveco, Bison, Stallion) • Eicher Motors Ltd. ( Canter) • Mahindra & Mahindra Ltd.(Tractors) • New Hollond Tractors Ltd.(Tractors) • Escorts Ltd. (Tractors) • TAFE (Tractors) • Punjab Tractors Ltd.(Tractors) • Vehicle Factory, Dept. of Defence ( Shaktiman, Nissan)
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A STUDY ON ABSENTEEISM
TECHNICAL ASSOCIATIONS
COMPANIES Quintal Hazel Limited , UK
YEAR OF ASSOCIATION 1960-1970
PRODUCTS Steering Joints & Linkages
Ehrenreich & CIE, Germany Burman & Sons Ltd., UK TRW – SSL, UK NSK – JAPAN TRW, USA
1962-1972
Steering Joints
1973-1985 From 1995 From 1997 From 1998
Steering Gears Manual Rack & Pinion RCB Manual Gears Worm & Roller
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A STUDY ON ABSENTEEISM
RML Attendance System: Purpose:
The object of established general employment conditions is to
ensure basic rules / norms & discipline are maintained uniformly across the Country. 1. The total number of working days is 5 days a week. 2. The normal weekly holiday for all employees under regular shift work is on Sunday. The Saturday is treated as additional holiday. 3. Compensatory Leave: If a person doesn’t come for 1day in a week, he can be allowed to work on Saturday / Sunday. Applicable only for workers. Hours of Work: The normal Working hour shall be 9 hours a day excluding half-an-hour break \ recess time. Shift Time:
The shift timings are as follows-
A – Shift (Day)
-
7.30 am – 5.00 pm
B – Shift (Afternoon)
-
5.00 pm – 2.30 pm
Staggered Shift (Night) -
11.30 pm – 7.30 am
General Shift
7.30 am – 5.00 pm
-
Lunch Time:
Lunch timings for the above shifts are as follows:
Morning Shift:
Lunch: 12.00 – 13.00
Second Shift:
Dinner: 21.00 – 22.00
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A STUDY ON ABSENTEEISM
Attendance Recording System: • Card Punching: To ensure that every employees has punched his card 3 times in a shift, one at the start of the shift at 7.30 am (Shift-A) or at 5.00 pm (For Shift-B). Second punching after Lunch/Dinner, and then at the closing hour of the shift. • Card punching after lunch break is not applicable for Non-Unionized employees. Attendance Downloading & Report generation: • When the employee punch his card, the data recorded in the punching clock is transferred to the file in the computer through downloading & posting. • After downloading the attendance data of the previous day is posted as a separate file. • The data is checked trice a day o 1st check – 8.30 am (check the attendance of the Night shift) o 2nd check – after 9.30am (check for late coming in the Morning Shift) o 3rd check – 5.00 pm.
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A STUDY ON ABSENTEEISM
• The strength (actual) of each shift is generated and submitted to HEAD – HR. • A muster or attendance register for each employee is open in the system every month with all the particulars like Employment No., Name, Month and Holidays pertaining to that employee.
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A STUDY ON ABSENTEEISM
Leave Limits: Casual Leave: An employee is eligible for 10 days casual leave per calendar year. No employee is allowed to avail Leave of more than three (3) days continuously at a time. Privilege Leave: An employee is eligible for 30 days privilege leave in calendar year. National and Festival Holiday: Four National and Seven Festivals holidays are award each year. If Aavani Avittam falls on a weekly holiday, another festival holiday is selected. Maternity Leave: All female employees are entitled to Maternity leave. All female employees going on maternity leave are entitled for 84 days leave and benefits are available to them as per the Maternity Benefit Act. Leave on Loss of Pay: If an employee remains absent on LLP grounds from Monday to Friday, the succeeding weekly holiday Viz., Saturday and Sunday shall also be treated as leave on Loss of Pay. An employee who is on loss of pay for 24 days and above in a calendar year shall not be eligible for an increment. However loss of pay arising out sickness and accidents for continuous 10 days and above shall not be taken
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A STUDY ON ABSENTEEISM
into account for arriving the 24 days.
Review of Literature Meaning: Absenteeism has been variously defined authorities from time to time. Thus the term absenteeism refers to the workers absence from his regular task when he/she is scheduled to work. Any employee may stay away from work if he/she has taken leave to which he/she is entitled (or) some accident with out previous sanction leave. Definitions by Experts: Absenteeism is the total man shifts lost because as percentage of the total number of man shifts scheduled to work. – Labor Bureau Simla. Absenteeism is the practice (or) habit of being as “Absence” and absentee is won who habitually stay away. – Webster Dictionary.
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A STUDY ON ABSENTEEISM
Types of Absenteeism: • Authorized Absenteeism. If an employee absents himself/ herself from work by taking permission from his/her superior and applying for leave, such absenteeism is called as Authorized Absenteeism. • Un-Authorized Absenteeism If an employee absents himself/ herself from work without informing or taking permission and without applying for leave, such absenteeism is called as Un-Authorized Absenteeism. • Willful Absenteeism If an employee absents himself/ herself from duty willfully, such absenteeism is called as Willful Absenteeism. • Caused by Circumstances beyond One’s control. If an employee absents himself/ herself from duty going to the circumstances being his/ her control like involvement in accidents or sudden sickness, such absenteeism is called as absenteeism caused by circumstances beyond one’s control.
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A STUDY ON ABSENTEEISM
Features of Absenteeism: Research studies undertaken by different authors reveals the following features of absenteeism. • The rate of absenteeism is the lowest in pay day it increases considerably on the following payments of wages and bonus. • Absenteeism is generally high among the workers between 45 to 58 years of age. • The rate of absenteeism varies from department to department within organization. Generally it is high in assembling section. • Absenteeism in tradition industries is seasonal characters. Effects of Absenteeism: • Increasing rate of absenteeism adds considerable crash to the cost of industry. Besides the loss of capital, absenteeism also adversely affects the process and the business profit. The effects of unauthorized absenteeism are more than other types of absenteeism.
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A STUDY ON ABSENTEEISM
Causes of Absenteeism: • Sickness: Sickness is one of the main reasons for the employee’s absenteeism in the company. • Unhealthy Working Conditions: Excess heat, noise, low lighting, poor ventilation, dust, smoke, etc., causes the absenteeism of workers. • Social and Religious Ceremonies: Social and Religious functions divert the workers to remain outside the worksite. • Alcoholism: Workers mostly prefer to spend money and the consumption of liquor and enjoyment after getting the wages. Therefore the rate of absenteeism is more during the first week of every month. • Unsound Personal Policies: The improper and unrealistic personal policies result in employee’s dissatisfaction. The dissatisfied employee intern prefers to be away from the work.
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A STUDY ON ABSENTEEISM
• Inadequate Leave Facilities: Negligence on the part of the employer to provide adequate leave facilities compels the workers to fall back on E.S.I. scheme, they are entitled to 56 days leave in a year on half pay instead of going without pay, the workers available themselves of third E.S.I. facility. Supervisors with oriented rather than man oriented approach are also a factors, which compels workers to absent themselves on an E.S.I certificate rather then avail of leave on benefited groups. • Personal Factors: Such as martial, health, education, hobbies and extra curricular activities. When age and experience of the worker with longer experience had a better reward of presence less experienced worker to be make absent. • Home Conditions: Such as distance from residences, mode of conveyance, family size, problems and responsibilities. • Job Satisfaction: There is relationship between job satisfaction and absenteeism. i.e., job satisfaction is negatively calculated with absenteeism.
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A STUDY ON ABSENTEEISM
Measures for Control of Absenteeism: • Absenteeism is a serious problem for a management because it involves heavy additional expenses. Reserves and understudies are kept in readiness to take the place of the absentee, failing which the overhead cost of idly equipment has be faced. Industrial employees do not usually ask for leave of absence in advance as to how long they would be way. • The Encyclopedia of social science suggests the following measures to reduce the absenteeism. Rate of Absenteeism: • The personnel management should encourage notification, especially in cause of sickness. When the duration of absences is likely to be long. • In cause of personal and family circumstances. Eg., Illness of children. Leave should be granted. • To reduce unavoidable absence due to sickness an industrial accidents, programmers of industrial hygiene and safety should be strengthened. • Regularity in attendance can be encouraged to some extend and other pecuniary Inducements. • Absenteeism is probably natural human reaction to the routine of modern factory Life.
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A STUDY ON ABSENTEEISM
Research Methodology The systematic gathering recording and analyzing of the data about problems, formulating hypothesis and suggested collecting, organizing and evaluating data, making deductions and reaching conclusion and carefully testing the conclusions to determine whether they fit the formulating hypothesis. Aim of the study: Having assigned the task of conducting a survey for the esteemed and prestigious “Rane (Madras) Ltd” the aim of the research is “Study of the reason that way for the increased rate of Absenteeism among workers in Rane (Madras) Ltd.” Research Design: The process starts after selection of the topic research design denotes the planning of the resource study by which the research followed the below methods and techniques. The type of research design framed for the study is “Descriptive Research”. Sample Size: The survey is conducted with 110 employees of Rane (Madras) Ltd. This is determined by the considering the time factors and restrictions in the company. 40
A STUDY ON ABSENTEEISM
Sampling Techniques: The sampling technique is taken for the study is “Convenience Sampling”. Data Collection Method: After identifying and defining the research problem and determining specific information required is solve the problem, the task is to look for the type and source of data which may yield the desired results. Two types of data are being collected but the primary data form a major part of the study. The Two Types of Data Collection: • Primary data & • Secondary data Primary Data: These are the date that are freshly collected form the employees so as to find the increased rate of irregular attendance questionnaires are being, prepared and circulated among the employees so as to collect accurate data and results. Secondary Data: The process of secondary data collection and analysis is called research. It includes those data, which are collected for that earlier research work. Thus efficacious use of secondary data can save both money and time of the research. Company was the main source for secondary data, which provided the material for the research study. 41
A STUDY ON ABSENTEEISM
Collection of data through Questionnaires: This method of data collection is quite popular, particularly in case of big enquires. It is being adopted by private individuals, research workers, private and public organizations and even by governments. In this method a questionnaires is consists of a number of questions printed or typed in a definite order on a form or set of forms. The method of collection data by mailing the questionnaires to respondents is most extensively employed in various economic and business surveys. Respondents, who are not easily approachable, can also be reached conveniently. Large samples can be made use of and thus the results can be made more dependable and reliable. Statistical Tools Used: The statistical tools which will be used to analysis the data are: • Chi-square analysis • Sample percentage method Chi-square analysis: If the research is interested in determining whether the number of observations in or responses that fall into various categories differ from chance. If the data is normally scaled, a chi-square test is applied. The formula for computing chi-square is Chi-square = ∑ (Oi-Ei)²/Ei Where Oi = Observed frequency Ei = Expected frequency 42
A STUDY ON ABSENTEEISM
The calculated value of chi-square is compared to the table value of chisquare for the given degree of freedom at specified level of significant. If the calculated value of chi-square is less than the table value the difference between theories and observation is considered to be significant that is it could not have raised due to fluctuations of simple sampling on the other hand. ďƒ˜ Sample percentage method: This method is used in making comparison between two or more series of data. Percentages are used to describe relationship percentages can also be used to compare the relative terms.
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A STUDY ON ABSENTEEISM
Table No – 1
Workers Gender
Factors
No. of Respondents
% of Respondents
Male
110
100
Female
0
0
Total
110
100
From the above table, 100% of employees belong to male workers.
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A STUDY ON ABSENTEEISM
Chart No – 1
Workers Gender 120
% of Respondances
100
100%
80 60 40 20
0%
0 Male
Female Genders
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Table No - 2
Age of workers:
Age
No. of Respondents
% of Respondents
18 – 25 Yrs
10
9
25 – 35 Yrs
20
19
35 – 45 Yrs
20
19
45 & Above Yrs
60
55
Total
110
100
From the above table, 55% of employees are in 45 years and above, 19% of employees are in between 25 to 45 years of age.
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A STUDY ON ABSENTEEISM
Chart No - 2
Age of workers 60
55%
% of Respondances
50 40 30 20 10
18%
18%
25 - 35
35 - 45
9%
0 18 - 25
45 & Above
Age
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A STUDY ON ABSENTEEISM
Table No - 3
Qualification of Employees:
Qualifications
No. of Respondents
% of Respondents
S.S.L.C
45
41
I.T.I
35
32
Diploma
25
23
Engineering
5
4
Total
110
100
From the above table, 41% of employees have SSLC qualification, 32% of employees have I.T.I qualification, 23% of employees have Diploma & 4% of employees have Engineering qualification.
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A STUDY ON ABSENTEEISM
Chart No - 3
Qualification of Employees 45 40 35 30 % of 25 Respondents 20 15 10 5 0
41% 32% 23%
4%
S.S.L.C
I.T.I
Diploma
Engineering
Qualification
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A STUDY ON ABSENTEEISM
Table No – 4
Work Experience:
Experience
No. of Respondents
% of Respondents
0 – 5 Yrs
3
3
5 – 10 Yrs
10
9
10 – 15 Yrs
14
13
15 – 20 yrs
19
17
20 & Above
64
58
Total
110
100
From the above table, 58% of employees have 20 years and above work experience.
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Chart No – 4
Work Experience 58%
60 50 % of
Respondents
40 30 20 10
3%
9%
13%
17%
0 0 - 5 Yrs
5 - 10 Yrs
10 - 15 Yrs
15 - 20 Yrs
20 & Above Yrs
Year of Experiences
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A STUDY ON ABSENTEEISM
Table No – 5 Distance from the Residence:
Distances
No. of Respondents
% of Respondents
0 – 5 Kms
15
14
5 – 10 Kms
35
32
10 – 15 Kms
35
32
15 – 20 Kms
20
18
20 & Above Kms
5
5
Total
110
100
From the above table, 64% of employees are traveling between 5 – 15 kms daily from their residence to the office.
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A STUDY ON ABSENTEEISM
Chart No - 5
Distance from the Residence 32% 35 30 25 % of 20 Respondentes 15 10 5 0
32% 18%
14% 5%
0-5 Kms
5 - 10 10 - 15 15 - 20 20 & Kms Kms Kms Above Kms Distance in Kilometer
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A STUDY ON ABSENTEEISM
Table No - 6 Mode of Transport:
Factors
No. of Respondents
% of Respondents
By Train & Walk
10
9
By Govt. Bus
55
50
By Own Vehicle
35
32
By Walk
10
9
Total
110
5
From the above table, 50% of employees are coming to office by Government Bus, 32% of employees are coming to office by their own vehicle.
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A STUDY ON ABSENTEEISM
Chart No – 6
Mode of Transport
9%
9% By Train & Walk By Govt. Bus
32%
By Own Vehicle 50%
By Walk
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Table No - 7 Difficult to reach factory on time:
Factors
No. of Respondents
% of Respondents
Strongly Agree
0
0
Agree
35
32
Disagree
40
36
Strongly Disagree
15
14
Neither agree nor Disagree Total
18 20 110
100
From the above table, 36% of employees Disagrees to reach the factory on time.
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A STUDY ON ABSENTEEISM
Chart No – 7
Difficult to reach factory on time
% of Respondentes
32%
36%
40 30
14%
18%
0%
20
S1
10 0
Strongly Agree
Agree
Disagree
Strongly Neither agree Disagree nor Disagree
Difficult to reach
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Table No - 8 Job Satisfaction:
Factors
No. of Respondents
% of Respondents
Strongly Agree
45
41
Agree
55
50
Disagree
10
9
Strongly Disagree
0
0
Neither agree nor Disagree Total
0 0 110 100
From the above table, 50% of employees Agrees about their job satisfaction & 41% of employees Strongly Agrees.
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Chart No - 8
Job Satisfaction 60
% of Respondentes
50
50 41
40 30 20
9
10
0
0 Strongly Agree
Agree
Disagree
0
Strongly Disagree Neither agree nor Disagree
Factors
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Table No - 9 Salary Satisfaction:
Factors
No. of Respondents
% of Respondents
Strongly Agree
10
41
Agree
70
50
Disagree
20
9
Strongly Disagree
0
0
Neither agree nor Disagree Total
0 10 110
100
From the above table, 50% of employees Agree that they are satisfied with the salary, 41% of employees Strongly Agrees that they are satisfied with the salary.
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Chart No - 9
Salary Satifaction 70 60 50 % of 40 Respondentes 30 20 10 0
64%
9%
18% 0%
9%
Strongly Agree Disagree Strongly Neither Agree Disagree agree nor Disagree Factors
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A STUDY ON ABSENTEEISM
Table No - 10
Team workers are regular to work:
Factors
No. of Respondents
% of Respondents
Strongly Agree
10
9
Agree
95
86
Disagree
0
0
Strongly Disagree
0
0
Neither agree nor Disagree Total
5 5 110
100
From the above table, 86% of employees Agrees that they team workers are regular to work.
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Chart No – 10
Team workers are regular to work 5% 9% 0%
86%
Strongly Agree
Agree
Disagree
Strongly Disagree
Neither agree nor Disagree
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Table No – 11 Good co-operation with colleagues:
Factors
No. of Respondents
% of Respondents
Strongly Agree
20
18
Agree
90
82
Disagree
0
0
Strongly Disagree
0
0
Neither agree nor Disagree Total
0 0 110
100
From the above table, 82% of employees Agrees that they are having a Good cooperation with their colleagues.
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Chart No - 11
Good co-operation with colleagues 90 80 70 60 50 % of Respondentes 40 30 20 10 0
82%
18% 0% Strongly Agree
Agree
0%
0%
Disagree Strongly Neither Disagree agree nor Disagree Factors
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A STUDY ON ABSENTEEISM
Table No – 12 Cordial relationship with higher authorities:
Factors
No. of Respondents
% of Respondents
5
5
100
90
Disagree
5
5
Strongly Disagree
0
0
Strongly Agree Agree
Neither agree nor Disagree Total
0 0 110
100
From the above table, 90% of employees Agrees that they are having cordial relationship with their higher authorities.
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Chart No - 12
Cordial relationship with higher authorities 91%
100 80 60 % of Respondentes 40 20 0
5% Strongly Agree
5% Agree
0%
0%
Disagree Strongly Neither Disagree agree nor Disagree Factors
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A STUDY ON ABSENTEEISM
Table No – 13 Ranking the factors of Absenteeism:
Factors
No. of Respondents
% of Respondents
Work Stress
10
9
Family Stress
30
27
Personal Problem
45
41
Unexpected Work
25
23
Inadequacy leave facility Total
0 0 110
100
From the above table, 41% of employees are taking leave due to their Personal problem, 27% are due to Family Stress, 23% are due to Unexpected works & 9% of employees are taking leave due to Work stress.
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Chart No – 13
Ranking the factors of Absenteeism
23%
0% 9%
27%
41%
Work Stress
Family Stress
Unexpected Work
Inadequacy leave facility
Personal Problem
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Table No – 14
Type of Leave Taking frequently:
Types of Leave
No. of Respondents
% of Respondents
Casual Leave
100
91
Privilege Leave
10
9
110
100
Total
From the above table, 91% of employees prefer to use their Casual leaves.
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Chart No – 14
Type of Leave Taking frequently
9%
91%
Casual Leave Privilege Leave
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Table No – 15 Receiving the Leave Grievances
Factors
No. of Respondents
% of Respondents
Yes
95
86
No
15
14
110
100
Total
From the above table, 86% of employees are receiving the Leave grievances from the company.
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Chart No – 15
Receiving the Leave Grievances
86%
100 80 60 % of Respondentes 40
14%
20 0
Yes
No Factors
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Table No – 16
Compensating the leave taken days
compensating the days No. of Respondents
% of Respondents
Yes
100
91
No
10
9
110
100
Total
From the above table, 91% of employees are compensating their leave taken days by working on any weekends.
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Chart No – 16
Compensating the leave taken days 91% 100 80 60 % of Respondentes 40
9%
20 0
Yes
No Factors
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Table No – 17
Other source of Income:
Other Income
No. of Respondents
% of Respondents
Yes
10
9
No
100
91
Total
110
100
From the above table, 9% of employees have other sources of income.
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Chart No – 17
Other sources of Income
Yes 9%
No 91%
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Table No – 18 I feel boredom in doing the assigned duty:
Factors
No. of Respondents
% of Respondents
Strongly Agree
0
0
Agree
40
36
Disagree
50
45
Strongly Disagree
5
5
Neither agree nor Disagree
15
14
110
100
Total
From the above table, 45% of employees Strongly Disagrees the work boredom.
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Chart No - 18
I feel boredom in doing the assigned duty 45%
50
36%
40 30 % of Respondentes 20 10 0
14% 5%
0%
Strongly Agree Disagree Strongly Neither Agree Disagree agree nor Disagree Factors
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Table No – 19 Satisfied with the company policy:
company policy
No. of Respondents
% of Respondents
Strongly Agree
15
14
Agree
90
82
Disagree
5
5
Strongly Disagree
0
0
Neither agree nor Disagree
0
0
110
100
Total
From the above table, 82% of employees Agrees with their company policies.
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Chart No – 19
Satisfied with the company policy 90 80 70 60 % of 50 Respondentes 40 30 20 10 0
82%
14%
5%
0%
0%
Strongly Agree Disagree Strongly Neither Agree Disagree agree nor Disagree Factors
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Table No - 20 I feel safety in my work place:
Factors
No. of Respondents
% of Respondents
Strongly Agree
10
10
Agree
95
86
Disagree
5
4
Strongly Disagree
0
0
Neither agree nor Disagree
0
0
110
100
Total
From the above table, 86% of employees Agrees that they feel safety in their work place.
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Chart No – 20
I feel safety in my work place 100
86%
% of Respondentes
80 60 40 20
10%
4%
0%
0%
Disagree
Strongly Disagree
Neither agree nor Disagree
0 Strongly Agree
Agree
Fractors
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Table No – 21 The shift that I feel convenient for me:
Other Income
No. of Respondents
% of Respondents
I – Shift
90
82
II – Shift
15
14
III – Shift
5
5
110
100
Total
From the above table, 82% of employees feel comfortable to work in I – Shift.
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Chart No – 21
The shift that I feel convenient for me
14%
5%
81%
I - Shift
II - Shift
III - Shift
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Table No – 22
Minimum no. of leave taken days for one year:
Leave taken days
No. of Respondents
% of Respondents
0 - 2 Days
0
0
2 - 4 Days
20
18
4 - 6 Days
30
27
6 - 8 Days
60
55
110
100
Total
From the above table, 55% of employees are taking minimum no. of leaves, number of leave is 6 – 8 days for a year.
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Chart No – 22
Minimum no of days leave taken for one year 60
55%
% of Respondentes
50 40 27%
30 18%
20 10 0
0% 0 - 2 Days
2 - 4 Days
4 -6 Days
6 - 8 Days
Days
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Table No – 23
Maximum no. of leave taken days for one year:
Leave taken days
No. of Respondents
% of Respondents
10 Days
70
64
15 Days
15
14
20 Days
20
18
25 Days
5
5
110
100
Total
From the above table, 64% of employees are taking maximum number of leaves, leave is 10 days for a year.
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Chart No – 23
Maximum no. of days leave taken For one year 70
64%
60 50 % of 40 Respondentes 30
14%
20
13%
10 0
10 Days
15 Days
20 Days
5%
25 Days
Days
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Table No – 24
Getting Leave Approvals:
Leave Approvals
No. of Respondents
% of Respondents
Prior Permission
95
86
After Permission
15
14
Without Permission
0
0
110
100
Total
From the above table, 86% of employees are getting Prior approvals for their leaves.
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Chart No – 24
Leave Approvals 14% 0%
86%
Prior Permission
After Permission
Without Permission
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Table No – 25
Suggestions from employees:
Suggestions
No. of Respondents
% of Respondents
Bus Facilities
30
27
Leave Grievance increases
15
14
Every thing is Ok
65
59
Total
110
100
From the above table, 59% of employees are accepting that Every thing is Ok, 27% of employees expecting Bus Facilities & 14% of employees wants to increase Leave Grievances.
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Chart No – 25
Suggestions from employees
27%
59% 14%
Bus Facilities Leave Grievance increases Every thing is Ok
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CHI SQUARE TEST Relationship between Leave Grievances & Compensating Days. Ho- There is no significant difference between Leave Grievances & Compensating Days. H1 - There will be significant difference between Leave Grievances & Compensating Days. Observed Frequency:
Factors Yes No Total
Assuming Sample Size is 110
Receiving Compensating leave leave taken grievances days 95 100 15 10 110 110
Total 195 25 220
Expected Frequency Variables Leave Compensatio n
Yes 98
No 13
98
13
CHI SQUARE TABLE O 95 15 100 10 Total
E 98 13 98 13
O-E -3 2 2 -3
(O-E)2 9 4 4 9
(O-E)2/E 0.0918 0.3076 0.0408 0.6923 1.1325 94
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Proceed further as per CHI Square formula. Calculation for Degree of Freedom = (C-1) (R-1) = (2-1) (2-1) =1 From Table 5% level of Significance at Degree of Freedom 1=3.84 Calculated Value = 1.1325; Table Value = 3.84 The Calculated value is less than Table Value then Null Hypothesis (H0) is accepted. Hence, there is no significant difference between Leave Grievances & Compensating Days.
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Findings
1. 55% of employees are in 45 years and above, 19% of employees are in between 25 to 45 years of age. 2. 58% of employees have 20 years and above work experience. 3. 41% of employees have SSLC qualification, 32% of employees have I.T.I qualification, 23% of employees have Diploma & 4% of employees have Engineering qualification. 4. 58% of employees have 20 years and above work experience. 5. 64% of employees are traveling between 5 – 15 kms daily from their residence to the office. 6. 50% of employees are coming to office by Government Bus, 32% of employees are coming to office by their own vehicle. 7. 36% of employees Disagrees to reach the factory on time. 8. 50% of employees Agrees about their job satisfaction & 41% of employees Strongly Agrees.
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9. 50% of employees Agree that they are satisfied with the salary, 41% of employees Strongly Agrees that they are satisfied with the salary. 10. 86% of employees Agrees that they team workers are regular to work. 11.82% of employees Agrees that they are having a Good co-operation with their colleagues. 12. 90% of employees Agrees that they are having cordial relationship with their higher authorities. 13. 41% of employees are taking leave due to their Personal problem, 27% are due to Family Stress, 23% are due to Unexpected works & 9% of employees are taking leave due to Work stress. 14. 91% of employees prefer to use their Casual leaves. 15. 86% of employees are receiving the Leave grievances from the company. 16. 91% of employees are compensating their leave taken days by working on any weekends. 17. 9% of employees have other sources of income.
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18. 82% of employees Agrees with their company policies. 19. 86% of employees Agrees that they feel safety in their work place. 20. 82% of employees feel comfortable to work in I – Shift. 21. 86% of employees are getting Prior approvals for their leaves. 22. 59% of employees are accepting that Every thing is Ok, 27% of employees expecting Bus Facilities & 14% of employees wants to increase Leave Grievances.
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Suggestions Absenteeism is in control as per the survey in the organization, so the following feasible suggestions are proposed to the management of the organization to sustain with the current rate of absenteeism. 1. To allow employees to compensate their leaves by working on any weekends as the employees prefer too. 2. The management should continue encouraging the employees, who are not taking any leaves 3. To continue the good relationship between the employees and their higher authorities. 4. To conduct stress management trainings as applicable to employees. 5. To make them to feel good working atmosphere within the organization.
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Conclusion Thus, the project studies on Absenteeism in Rane (Madras) Limited gives me a good exposure to learn about the employees attitude related to leaves. The company is recording un-authorized absenteeism as nil and authorized absenteeism in between 2-3 % in their organization, so the management provided this project for us to understand the pulse of the employees and to know how they are feeling about the management related to leave policies. It’s a pleasure to know that the management satisfying all their employees by providing good leave policies to their employees. At the end of the study, we proposed the suggestion to the management to maintain the absenteeism rate by collecting the feedbacks from their employees.
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