PROJECT REPORT ON

ABSENTEEISM
CAUSES, EFFECTS & CONTROL
AT KSB PUMPS Ltd.

BY POORNIMA POOJARI

UNDER THE GUIDANCE OF Dr. (Mrs.) VANDANA GOTE

IN PARTIAL FULFILLMENT OF MASTERS DEGREE IN BUSINESS MANAGEMENT, UNIVERSITY OF PUNE, PUNE

YEAR 2004 - 2006

VISHWAKARMA INSTITUTE OF MANAGEMENT S. NO. , KONDHWA (BK), PUNE-48

ACKNOWLEDGEMENTS
I gratefully acknowledge the help and co-operation of the entire Personnel Department of KSB Pumps Ltd. At the outset, I would like to thank Mr. S.N.Makhale, Manager- Personnel, for giving me an opportunity to learn at KSB Pumps.

My guide Mr. A.R. Bhilare, Dy. Manager- Industrial Relations, whose versatile guidance provided me with an insight into the field of Personnel Management and Human Resource Development, particularly deserves my thanks.

A similar vote of thanks goes to Mr. Ranjit Mohite, Mr. Vivek Kunte, Mr.Jade, Mr.Erande, Ms.Nita and Ms.Swati whose expertise in the field proved to be of great value to me during my training. I would like to thank Prof. Vandana Gote for her valuable guidance in making my project successful. I also wish to thank Dr. Sharad Joshi and the VIM staff whose contribution cannot be overemphasized. With all their encouragement and well wishes, my project proved to be fruitful.

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Ms. Poornima. K. Poojari is bonafide student of our institute. She has successfully carried out her Summer Project titled Absenteeism - Causes, Effects & Control at KSB Pumps Ltd, Pune.

This is the original study of Ms. Poornima. K. Poojari, and important sources used by her have been acknowledged in her report. The report is submitted in the partial fulfillment of two-year full time course Master in Business Administration (2004-2006) as per the rules of the Pune University.

Dr. Sharad L. Joshi (Director)

Dr. Mrs. Vandana Gote (Project Guide)

CONTENTS

Chapter Chapter Name No. 1. 2. 3. 4. 5. Introduction of subject History & Profile of company Objectives of the Project Research methodology Data Analysis and interpretation: Assumptions in evaluation of absenteeism data Graphical Representation Inferences from the monthly data Inferences from the yearly data Control through Disciplinary Action 6. 7. 8. 9. Observations & Findings Conclusion Suggestions to reduce absenteeism Annexure Annexure 1 Annexure 2

Page no.

1 6 16 17

19 20 29 30 32 34 54 55

57 62

10.

Bibliography

66

CHAPTER: 1

I ntroduction Of S ct ubje

CHAPTER: 2

History & ProfileOf C pany om

CHAPTER: 3

Obje s Of TheProje ctive ct

CHAPTER: 4

Re arch Me se thodology

CHAPTER: 5

Data Analysis & I nte tation rpre

Graphical Re se pre ntation

10

CHAPTER: 6

Obse rvations & Findings

11

CHAPTER: 7

C onclusion

12

CHAPTER: 8

S stions To Re ugge duce Abse e nte ism

13

14

INTRODUCTION OF THE SUBJECT

Absenteeism refers to unauthorized absence of the worker from his job. Absenteeism can be defined as 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 leaves of absence allowed for under the collective agreement provisions would not be included .

In India, the problem of absenteeism is greater than other countries. When the employee takes time off, on a scheduled working day with permission, it is authorized absence. When he remains absent without permission or informing, it is wilful absence without leave.

In these days, when the needs of the country require greater emphasis upon increase of productivity and the economic and rational utilization of time and materials at our disposal, it is necessary to minimize absenteeism to the maximum possible extent. Recent surveys indicate the following trends in absenteeism: 1. The higher the rate of pay and the greater the length of service of the employee, the fewer the absences. 2. As an organization grows, there is a tendency towards higher rates of absenteeism. 3. Women are absent more frequently than men. 4. Single employees are absent more frequently than married employees. 5. Younger employees are absent more frequently than older employees but the latter are absent for longer periods of time. 6. Unionized organizations have higher absenteeism rates than non-union organizations.

15

The rate of absenteeism can be calculated by considering the number of persons scheduled to work and the number actually present. Thus, the rate of absenteeism can be estimated in the following way: Rate of Absenteeism = No. of Total Manshifts Lost No. of Total Manshifts scheduled to work

X 100

CAUSES:
Important factors leading to absenteeism can be summarized as follows: 1. 2. 3. 4. Long hours of work. Bad working conditions. Boredom. Lack of co-operation and understanding between management and workers. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Sickness. Accidents. Occupational disease. Problem of transport facilities. Low wages. Lack of proper medical aid and health programmes. Lack of canteen services, rest rooms, etc. Bad housing conditions. Evil of drinking. Lack of marketing facilities. Social or religious festivals. Harvest seasons. Marriages. Education of children. Domestic problems and consequent worries, etc.

16

Among these causes, in the existing Indian conditions, wage level in industries, has a direct bearing on absenteeism. Sickness on account of bad housing conditions contributes highest to industrial absenteeism. Social and religious causes can be accounted as the second important contributing factor for absenteeism. Absenteeism in industry varies from place to place, depending on the festival, marriage, harvest season and other factors.

EFFECTS :
Absenteeism is one of the root causes of labour unrest. It affects the worker s earnings as well as the company in the following manner: 1. Decrease in Productivity : Employees may be carrying an extra workload or supporting new or replacement staff. Employees may be required to train and orient new or replacement workers. Staff morale and employee service may suffer. 2. Financial Costs : Payment of overtime may result. Cost of self-insured income protection plans must be borne plus the wage costs of replacement employees. Premium costs may rise for insured plans. 3. Administrative Costs : Staff time is required to secure replacement employees or to reassign the remaining employees. Staff time is required to maintain and control absenteeism. The definition of absenteeism, its causes, its affects on productivity, and its costs in terms of finances and administrative effectiveness are quite clear.

17

What is not as clear is how to take affirmative action to control absenteeism in such a way as not to create mistrust, costly administration and systems avoidance. Traditional methods of absenteeism control based only on disciplinary procedures have proven to be ineffective. It is almost impossible to create a fair disciplinary procedure because even well run disciplinary systems, which treat similar actions in consistently similar ways, are usually seen as unfair. The reason for this is discipline alone usually does not identify or address the root causes of absenteeism. Every employee who takes time off in defiance of company regulations has reasons, right or wrong, which justify to themselves the legitimacy of their actions. Unless a management attendance program identifies and addresses the causes of employee absenteeism it will be ineffective and unfair. Traditional disciplinary programs alone can, at best, give the illusion of control. It is no secret that there are ways to beat even the best systems. The fear of discipline often only increases the desire to avoid management systems. If absenteeism is to be controlled, the physical and emotional needs of employees must be addressed. Incentives can be introduced to discourage absenteeism. Attendance bonus is awarded in certain establishments, merit increases and promotions are linked to minimum attendance. Good leave record of the employee is an important factor in considering him for more responsible positions. These incentives, no doubt, will be effective inducements for regular attendance and work which, in turn, will ensure efficient service. Habitual absenteeism must be treated as a misconduct and it must be stated that habitual absentees are liable for disciplinary action

18

KSB PUMPS LTD.

Established in: 1960

Location : Pimpri, Pune

19

COMPANY PROFILE

1. NAME OF THE COMPANY 2. DATE OF REGISTRATION 3. CERTIFICATE NUMBER 4. LEGAL FORM

: : : :

KSB Pumps Limited. 11th April, 1960 11635 Public Limited Company Irrigation and Process Division (IPD) Mumbai-Pune Road, Pimpri, Pune-411018

5. WORKS AND HEAD OFFICE :

6. MANUFACTURING UNITS

Power Project Division (PPD) Chinchwad, Pune. Foundry Division, Vambori, Ahmednagar. Grade-O-Castings, Ahmednagar. Water Pumps And Valves Division, Nashik. Mil Controls Limited, Trichur.

7. REGISTERED OFFICE

126, Makers Chambers III, Nariman Point, Mumbai 400021.

8. ZONAL OFFICES

East : Kolkata West : Nariman Point North : Noida South : Chennai.

9. BUSINESS

Manufacturers of Pumps, Valves and Iron and Steel Castings.

10. COLLABORATORS

M/s KSB Aktiengesellschaft, Germany.

20

BRIEF HISTORY OF KSB

1871: The Frankenthaler Maschinen-and Armatur-Fabrik Klein, Schanzlin and Becker (Machine and Valve Factory) was established. 1896: KSB sets up a British subsidiary, its first venture outside Germany. 1941: Argentina becomes home to the first of ten current KSB Companies in America. . 1953: The foundation of a Pakistani subsidiary marks a move into the AsianPacific market, where KSB today has 15 group companies. 1960: Manufacturing of first submersible pump in India, at Pimpri, Pune. 1974: The Foundry Division was set up at Vambori. 1978: A new plant at Chinchwad began manufacturing high performance pumps for power plants. 1984: KSB sets up a company in Australia. 1986: The leading French pump manufacture, Paris-based Pompes Guinard S.A., joins the KSB group. 1987: The Coimbatore unit came up to increase pump manufacturing capacity and add industrial valve to their product basket. 1988: KSB acquires a majority interest in U.S. slurry pump manufacturer GIW industries. 1989: Acquisition of Amri S.A., Paris, the world s second largest manufacturer of butterfly valves. 1991: KSB takes over Pumpenwerk Halle and converts it into an environmental engineering center. 1994: The company acquires a majority stake in KSB Shanghai Pumps Co. 1995: Nashik was added to the growing list of KSB manufacturing centers. 1996: KSB becomes 100% share holder in GIW (Georgia Iron Works), one of the world s largest manufacturers of slurry pumps. 1997: Acquisition of MIL Controls Ltd., India-producer of ANSI and control valves.

21

KSB
QUALITY OBJECTIVES:

QUALITY CONTROL

KSB aim to maintain their position as leading Indian and International suppliers of pumps and valves, related systems and services which are deeply rooted in a tradition of successful engineering and high integrity in their business dealings.

The needs of their customers set the standards for the work they do. KSB s objective is to provide trend setting technology and high quality of their products and services together with a demanding quality consciousness, which ensure them of a position of market leadership. For its customers, KSB is liable partner.

KSB s thinking and actions are profit and market oriented. Entrepreneurial initiative at all levels ensures profitable growth, stability and independence, thus securing the future of KSB and its employees.

The KSB work environment is multinational and is characterized by mutual respect and humanity in their dealing with one another. Dedicated employees work together with sense of responsibility and productivity, towards a common goal s help to develop their high level of qualification through individual support and training.

When doing their work, KSB is committed to the goals, needs and laws of the society it lives in. KSB wants to be an open and fair partner to all. While manufacturing and during operation of their products, they try their best to protect their environment and use natural resources as sparingly as possible.

22

KSB

QUALITY POLICY:

Maximum customer satisfaction governs KSB s actions: KSB s customer sets the standards for the quality of their products and services. KSB comprehensively and punctually fulfill his requirements.

Every employee bears the responsibility at his work place towards meeting the customers requirements: The internal customer supplier relationship is important, the very next free

person in internal work sequence is the customer, he receives defect work.

Promoting quality awareness is an important task of the management: The high qualification of KSB employees is ensured through consistent training and comprehensive information. Managerial staff sets an example in realizing Quality concept. Preventing defects supersedes removing defects: Removing defects is not enough; more important is to find the causes of defects and to take preventive action to permanently eradicate them. Improving quality is a continuous obligation: The initiative of each individual towards continuously improving processes methods and work environment is an important contribution to personal success and satisfaction. This ensures KSB s market leadership.

23

PLANNED PROGRESS OF KSB IS AS FOLLOWS:

1960: Submersible motor pump set. 1968: Process Pumps (CPK). 1970: Non-Clog pumps for sewage and solid handling. 1976: Vertical pumps for condensate extraction (WKT) 1978: High pressure Boiler feed pumps (HDB) 1980: Primary coolant pumps for nuclear power station. 1983: Pumps for mine dewatering (VM25). 1984: Submersible pumps for sewage and effluent handling (KRTU) 1985: Canned motor pumps for nuclear applied action (CMP) 1987: Submersible pumps sets 1988: Vertical high pressure modular pumps (MOVI) Vertical high pressure oil pumps (WKVM) Solar pump sets 1989: High pressure multistage pumps (HG) 1990: Barrel casing pumps (CHT) Pressure seal valves 1991: Barrel casing pumps for refinery applications (CHTR) 1992: Stock pumps (APP) 1993: Back pullout pumps (MEGA) 1994: New series of gate type industrial valves High capacity submersible pump sets (PNT) Low capacity submersible pump sets (AMA Drainer) 1995: High capacity moderate head pumps (OMEGA) 1996: Low capacity high pressure multistage pumps (MOVICHROM)

24

TYPES OF PUMPS:
In KSB PUMPS Ltd., many types of pumps are manufactured. Some of them are listed below:

MEGA OMEGA CPK RPK APP WK WL WKT KRTU

: Low Pressure Centrifugal Pump. : Horizontal Split Volute Casing Pump. : Chemical Process Pump. : Refinery Process (heavy duty) Pump. : Stock Process Pump. : High Pressure Centrifugal Pump. : High Pressure Centrifugal Pump. : Vertical Barrel type High Pressure Centrifugal Pump. : Submersible Motor Pump for Sewage and Effluent Handling.

RPHb

: Refinery Process (Heavy Duty) Pump.

25

DEPARTMENTS AT KSB:
There are 4 main Departments in the Company: PRODUCTION DEPARTMENT: Machine Shop, Rotor Stator, Horizontal Assembly, Winding, Testing, Deburring, Tool Room, IED, and Packing.

SALES GROUP: Business Group.

ADMINISTRATION GROUP: Security, Internal Audit, Personnel Department, Accounts, and Planning & Control.

WAREHOUSE & STORES: E/DITS, Excise & Dispatch, Import, Purchase & Stores.

EMPLOYEE STRENGTH AT PUNE:

Irrigation and Process Division (Pimpri) Staff (Supervisors Company Trainees MRE s HRW s Directors)

: 537 : 189 : 3 : 56 : 289

Power Project Division (Chinchwad) Staff (supervisor Directors)

: 814 : 373 : 6 : 66 : 369

Company Trainees MRE s HRW s

26

HUMAN RESOURCE DEPARTMENT ACTIVITIES

The Functions of the Human Resource Department are: 1. EMPLOYMENT Man Power Planning Recruitment and Selection Induction Promotion and Transfer Separation 2. WAGE AND SALARY ADMINISTRATION Employee classification including job evaluation Rate determination Merit rating Supplemental compensation 3. INDUSTRIAL RELATIONS Communication Collective bargaining Employee discipline 4. ORGANISATION PLANNING AND CONTROL Organization planning Employee appraisal Human Resource Development Training Counseling 5. EMPLOYEE SERVICES Medical/Canteen services Recreation Safety, Security, Transport

27

ORGAN IZATION STRUCTURE OF HR D EPARTMEN T:

Mr. M. S. Srinivas General Manager HRD Corporate Mr. A. R. Bhilare IR-IPO Dy. Manager IR Mr. R. S. Mohite IR-IPO Asst. Manager IR Mr. Mohan Iyer Security Mr. Jade Canteen / Time Office Dr. Bidve Dispensary / Ambulance Room Mr. Erande Time Office

Mr. Vivek Kunte HRD T & D

28
IPD PP
Mr. C. M. D silva IR-IPO Dy. Manager IR Mr. Thomas Officer Phelics Joseph IR Welfare Ms. Jayanti Time Office S. Subramaniam T. D. Mairal P&A V. S. Shinde P&A R. D. Khele Security

Mr. S. N. Makhale Manager -Personnel

K. V. Subramaniam P & A CBE

V. Demasundaram Secretary

Mr. A. S. Nanajkar P & A Nasik

V. V. Verma Ex. & Desp

M. G. Badhe Ex & Desp

OBJECTIVES OF THE PROJECT

The objectives of the project are: To understand and analyze: 1. What are the main causes of absenteeism in KSB Pumps? 2. What are the effects of the unauthorized absenteeism by the employees in the company? 3. What are the current disciplinary actions taken by the HR dept. for reducing absenteeism? 4. What is the attitude of employees towards these disciplinary actions? 5. What factors are to be considered in order to reduce absenteeism? 6. What suggestions can be given to the management to improve the regular attendance of the employees in the company?

Thus, the above objectives have been observed and analyzed in a detailed manner in this project report. I have made an attempt to go into root causes of the subject by using the various techniques of Research Methodology.

29

RESEARCH METHODOLOGY
A project is like a journey and it is always better to have atleast the faintest of ideas of the probable direction of our destination. Initially we have to decide upon the general area of interest or the aspect of the subject to inquire into. This decision is rather broad and not very precise. It is crude indication of the purpose of the study and is of little help for further planning and organization of the study.

Research Methodology is defined as a more systematic activity directed towards discovery and the development of an organized body of knowledge. An efficient research contributes to the evaluation of a proper decision, which ultimately affects the path the organization will choose. The data collected is of paramount importance and hence the research process has to be effective and an efficient one.

Research Methodology involves adopting various techniques which are best suited for the research and study of the problem, for investigation and analysis of the problem. It starts with data collection from various sources i.e., primary and secondary sources, data analysis and interpretation and finally the findings or conclusion from the analysis.

In this project, Primary data was collected by Questionnaire Survey. The workmen selected for the interview purpose were from the hourly rated workmen segment, which affect the production directly, in case they remain absent. A random selection of samples from the workmen segment was done in the company. There are 289 hourly rated workmen, from which 25 groups of 11 members each were formed. From these groups, one workman was selected randomly as sample to avoid any bias. Thus, 25 workmen were selected for survey through the questionnaires prepared. This helped to be fair to all by not keeping in view the past record of absenteeism of individuals.

30

The secondary data was collected from: Monthly absenteeism data. Yearly absenteeism report. Leave records of employees.

After the collection of data, the response of the 25 individuals were arranged in a chronological pattern and then evaluated. Many inferences could be drawn from both the primary as well as secondary data available which are put forth in the analysis section.

It is often beneficial to undertake an intensive study of a few well

selected

instances of the phenomenon of interest. The method demands for great sensitivity and receptivity on our part. As new information pours in, the study is reformulated and redirected.

Hence, to be on the safer side, it would always be wise to work keeping a particular method in mind.

31

ASSUMPTIONS IN EVALUATION OF THE ABSENTEEISM DATA

1. As per the objectives of the project, the analysis is to be done to find out the causes of absenteeism and also to know the disciplinary action taken against them. The following data was referred to draw the inferences:

a. Monthly Absenteeism data. b. Yearly Absenteeism report. c. Leave record of the employees.

2. From the monthly and yearly data, the monthly trends of absenteeism can be observed by division of leaves in the following 2 categories:

a. Paid Leave: Privilege Leave (PL), Casual Leave (CL), Sick Leave (SL). b. Unpaid leave: Authorized Leave (AL), Certified Sickness Leave (CS), and Unauthorized Absence (UA).

3. The leave record is maintained from the month of January to December. The monthly salary is calculated from 20th of the starting month to the 21st of the next month with reference to the leave record.

4. The settlement agreement mentions the consumption of leave by an individual worker per annum as:

a. Privilege Leave b. Casual Leave c. Sick Leave

20 p.a. 8 p.a.

10 p.a.

32

MANPOWER STRENGTH DURING YEAR 1994- 2004

295 330

265 591

33
402 424 535

654

348

350 629

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

MANPOWER STRENGTH OF THE COMPANY DURING 1994-2004

700 654 629

600 535

591

500 424 402 350 348

NO. OF EMPLOYEES

34
1995 1996 1997 1998 1999 YEARS 2000 2001

400 330 295 265 STRENGTH

300

200

100

0 2002 2003 2004

1994

PL TREND DURING 1994-2004

6.00

5.00 4.48 4.60

4.82 4.82

4.96 4.97

4.86 4.84

4.48 3.97

4.00

% OF DAYS

35
3.00 1995 1996 1997 1998 1999 YEARS 2000 2001

3.00

PL

2.00

1.00

0.00 2002 2003 2004

1994

CL TREND DURING 1994-2004

2.50 2.23 2.22 2.09 2.14 2.10 2.12 2.15 2.26 2.21

2.00

1.95

% OF DAYS

36
1.59 1995 1996 1997 1998 1999 YEARS 2000 2001

1.50

CL

1.00

0.50

0.00 2002 2003 2004

1994

SL TREND DURING 1994-2004

3.50 3.22 3.03 2.90 2.49 2.44 2.29 2.90 3.06 3.08

3.00

2.50

% OF DAYS

37
1.81 1.66 1994 1995 1996 1997 1998 1999 YEARS 2000

2.00 SL

1.50

1.00

0.50

0.00 2001 2002 2003 2004

AL TREND DURING 1994-2004

0.50 0.47

0.45

0.40

0.35

% OF DAYS

38
0.23 0.22 AL 0.18 0.13 0.03 0.02 0.01 0.02 0.03 0.02 1994 1995 1996 1997 1998 1999 YEARS 2000 2001 2002 2003 2004

0.30

0.25

0.20

0.15

0.10

0.05

0.00

CS TREND DURING 1994-2004

2.50 2.29 2.13 1.98

2.00

% OF DAYS

39
1.59 1.54 CS 1.11 0.78 0.81 0.74 0.62 0.53 1995 1996 1997 1998 1999 YEARS 2000 2001 2002 2003 2004

1.50

1.00

0.50

0.00

1994

UA TREND DURING 1994-2004

25.00

20.00

20.65

% OF DAYS

40
UA 1.83 1.51 1.00 0.65 1997 1998 0.34 1999 YEARS 0.39 2000 0.54 2001 0.61 2002 0.71 2003 0.75 2004 1994 1995 1996

15.00

10.00

5.00

0.00

NO. OF DAYS

22607.0 198606 58286.0 169235 23744.5 161805 19449.0 125104 13146.5 123078 13666.0 101914 10745.5 106350 11682.0 98891 11427.0 90266 10448.5 81090 9441.5

41
100000 150000 178391 200000 250000 50000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 YEARS

TOTAL MDA AND MDL DURING 1994-2004

MDA MDL

INFERENCES FROM THE MONTHLY DATA

1. The PL consumption % is high during the months of April, May and June as the schools in our country have vacations during these months and this period being the marriage season in India, the leave consumption varies from 3.9% to 4.84%.

2. The CL consumption is high during the months of July to October, when most of the schools reopen and the individuals are busy settling those activities. Most of the festivals like Ganesh festival, Durga Pooja, Diwali, etc. are during this period. The leave consumption reduces after October and varies from 1.95% to 2.21%.

3. The reasons for SL leave consumption are same as above. As the proportion of CL is less, on occasional leave, the workmen prefer SL. The period of leave consumption is from July to September and varies from 2.49% to 3.06%.

4. The rate of AL leave consumption is very low. i.e., 0.47% to 0.02%. This leave is mostly consumed by the new comers or by the very rare cases of the existing employees.

5. The Unauthorized Absence is the key factor in indicating the companies rate of absenteeism. This leave is mostly consumed in January, April to June and September to November. The rate of leave consumption varies from 1.51% to 0.75%.

42

INFERENCES FROM THE YEARLY DATA

Calculation: Average Leave = Average Strength x Leave p.a. Available Mandays Average PL = 9.8% Average CL = 2.6% Average SL = 3.2% X 100

1. The PL availed per annum is 30 days. Therefore, on an average the consumption should be approximately 10%. But the trend in the graph shows a consistency of consumption of this particular leave from about 3% to 4.5%. This leave comes under the category of paid leave and has a benefit of encashment and so people have adopted a trend of saving this leave.

2. The CL availed per annum is 8 days. The average CL leave consumption is 2.6% but from graph it is about 1% to 2.5%. This leave can be encashed, if saved.

3. The SL leave trend shows a consistency as the leave is consumed consciously and only for genuine sickness and genuine problems. Hence the average and actual consumption is almost the same.

4. The authorized leave is granted only in case when employee has no balance leave and faces some genuine problem or sickness. Thus, the graph shows a declining trend as it was 046% in 1994 which has come down to 0.02% in 2004. The company keenly keeps a watch on this category of leave.

43

5. The graph of Certified Sickness shows a drastically downward trend. The rate was 2.29% in 1994 which has dropped down to 0.74% in 2004. This has been possible due to the efforts of the HR Department and the Company Doctor.

6. Absenteeism is mainly observed through the rate of Unauthorized Absence. This has been minimized by the company s disciplinary action system, counseling efforts and provision of ready help to the employees. This has also helped in increasing productivity, profits and efficiency.

7. Due to the above measures, the company has been successful in retaining high Mandays.

8. The graph of manpower strength show declining trend as the company had reduced or cut off manpower by implementing CRS and VRS scheme.

44

CONTROL THROUGH DISCIPLINARY ACTION

KSB Pumps Ltd. is a large company and hence the manpower engaged here is in large number. The company is engrossed in continuous production of pipes and valves. Company s main and important asset is the manpower and thus, it s activities are to be keenly monitored as any reduction or other incidents with the asset causes a great loss to the company.

The HR Department deals with various activities among which monitoring absenteeism and taking the appropriate disciplinary action is one of the important and sensible issues in the company. This matter has to be handled very consciously so that correct steps are taken by the management in reducing absenteeism.

The Industrial Relations department takes the disciplinary action in KSB. They have certain rules specified in the Standing Orders, which act as a guideline for the process of disciplinary action.

The attendance system in the Time Office maintains the record of the In time and Out Time which helps to know his personal strata. This

system helps to calculate his monthly salary and keep record of his leave system. It also helps to find out his balance leaves and his total absenteeism during the month. The system helps in identifying the chronic cases, as monthly report is prepared through the available data. Thus, necessary action is taken by the department against the chronic cases among the employees.

KSB has dealt with many cases and have brought about a very uniform discipline in the employees.

45

PROCEDURE OF DISCIPLINARY ACTION:

1. Chronic cases are identified from the daily data. 2. Warning is given to them for at the most 3 times. 3. After giving warning, even if the employee follows the same thing, then show cause notice is issued to him. 4. If same case is further identified, then he is suspended. 5. In super chronic cases, inquiry is held and if findings say so, then he is to be dismissed.

BENEFITS TO THE EMPLOYEES:

1. To do work in better way. 2. To regain their lost identity. 3. To get regular wages.

BENEFITS TO THE MANAGEMENT:

1. To gain higher mandays. 2. To get good profits. 3. To harmonize the industrial relations.

Thus, it can be observed that disciplinary action helps in controlling absenteeism and gaining high production as well as profits.

46

EVALUATION OF THE QUESTIONNAIRE

1. My job in company is very interesting. Not at all To some Extent Average To great Extent Highly Interesting

Options Response %

a 0 0

b 5 20

c 7 28

d 9 36

e 4 16

Total 25 100

e 16%

a 0%

b 20% a b c d

d 36%

c 28%

Findings: From the above chart, it can be seen that 86% of the workmen like their job varying from average to a higher extent. Thus, their job interest levels are high.

47

2. Reason for taking employment: To spend time. Forced by family Members. To take care of my family. Liking of the work. Options Response % a 0 0 b 4 16 c 11 44 d 10 40 Total 25 100

a 0% d 40%

b 16% a b c d c 44%

Findings: From the above chart, it is clear that 44% of the workmen come to the company to support their family while 40% of workmen have a liking towards their work.

48

3. Are you aware of the leave rules of the company? Not at all To some Extent To great Extent c 7 28 Strongly Aware d 11 44 Total 25 100

Options Response %

a 2 8

b 5 20

a 8% b 20% a b c d c 28%

d 44%

Findings: From the above chart, it is observed that 44% of the workmen are strongly aware of the leave rules while 8% of the workmen are not at all aware of the leave rules.

49

4. How many paid leaves are availed by you per annum? 1-2 days 3-5 days 6-10 days More than 10 days

Options Response %

a 1 4

b 2 8

c 13 52

d 9 36

Total 25 100

a b 4% 8% d 36% a b c d c 52%

Findings: It can be seen that 52% of workmen take around 6 -10 days of paid leaves while 36% of the workmen avail more than 10 days paid leave per annum.

50

5. How many unpaid leaves are availed by you per annum? 1-2 days 3-5 days 6-10 days More than 10 days

Options Response %

a 4 16

b 6 24

c 13 52

d 2 8

Total 25 100

d 8%

a 16% a b c d

c 52%

b 24%

Findings: It can be observed that 52% of the workmen take 6-10 days of unpaid leave while 24% of workmen avail 3-5 days leave per annum.

51

6. What is the percentage of your absenteeism in last one year? 0-20% 21-40% 41-60% 61-80% 81-100%

Options Response %

a 8 32

b 11 44

c 4 16

d 1 4

e 1 4

Total 25 100

c 16%

d e 4% 4%

a 32%

a b c d e

b 44%

Findings: From the above chart, it can be seen that 44% of the workmen quoted their absenteeism in the percentage range of 21- 40% in the past one year while 32% of workmen have reported 0 20% absenteeism last year.

52

7. Main reason behind high leave consumption: Personal Family related Work related Social Addiction Indebtness

Options Response %

a 2 8

b 10 40

c 4 16

d 2 8

e 5 20

f 2 8

Total 25 100

f 8% e 20%

a 8% a b c b 40% d e f

d 8% c 16%

Findings: It can be observed that the main reason behind high leave consumption is that 40% of the workmen have family related problems, while 20% of the workmen have addiction problem.

53

8. My colleagues are highly supportive. Not at all To some Extent To great Extent Always

Options Response %

a 0 0

b 5 20

c 9 36

d 11 44

Total 25 100

a 0%

b 20% a b c d c 36%

d 44%

Findings: From the above chart, 44% of the workmen feel that their colleagues are supportive to a great extent. Thus, the working environment in the company is very friendly and comfortable.

54

9. Disciplinary actions taken by management on absenteeism has reduced absenteeism in our company. Not at all To some Extent To great Extent c 12 48 Highly True d 9 36 Total 25 100

Options Response %

a 0 0

b 4 16

a 0% d 36%

b 16% a b c d c 48%

Findings: It can be observed from the above chart that 48% of workmen accept that disciplinary actions taken by management have reduced absenteeism to a very great extent. The company has very strict rules policy. However those who have breached the rules are given warnings, show cause notices or suspension.

55

10. In our company, real, genuine sickness cases claiming sick leave are either: 0-20% 21-40% 41-60% 61-80% 81-100%

Options Response %

a 4 16

b 5 20

c 9 36

d 5 20

e 2 8

Total 25 100

e 8% d 20%

a 16% a b c d e

b 20%

c 36%

Findings: From the above chart, it can be seen that 36% of workmen have opted that 41- 60% of the cases are real, genuine ones who claim sick leave.

56

11. I interact with the company s management staff without hesitating. Not at all To some Extent To great Extent Highly True

Options Response %

a 3 12

b 7 28

c 11 44

d 4 16

Total 25 100

d 16%

a 12% a b c d

b 28% c 44%

Findings: It can be observed from the above chart that 44 % of the workmen are very comfortable in interacting with the management staff. Thus, the management subordinate relations are very clear and good without resistance.

57

12. How is your family condition and family atmosphere? Satisfactory Options Response % Average a 10 40 b 9 36 Unsatisfactory c 6 24 Total 25 100

c 24% a 40% a b c

b 36%

Findings: It can be observed that 40% of the workmen s family condition is satisfactory while 24% of them are unsatisfied.

58

13. Is your salary structure adequate? Yes No

Options Response %

a 13 52

b 12 48

Total 25 100

b 48%

a 52%

a b

Findings: 52% of the workmen are satisfied with their salary structure while 48% of them are not happy about the present salary structure as it is not adequate for them.

59

14. If No, are you and your family members engaged in some business? Yes Options Response % No a 7 58 b 5 42 Total 12 100

b 42% a 58%

a b

Findings: From the 12 workmen, who are not satisfied with the salary structure, 58% of workmen and their family are engaged in some business such as small shops or providing mess facilities at home for the working people.

60

15. Is this involvement in business a cause of your absenteeism? Sometimes Options Response % Mostly a 5 42 b 3 25 Not at all c 4 33 Total 12 100

c 33%

a 42%

a b c

b 25%

Findings: From the above chart, it is clear that involvement in some business is not related to the absenteeism in the company. 42% of the workmen feel that sometimes this involvement affects.

61

16. The cause of my absenteeism is taking alcohol. Not at all To some Extent To great Extent Highly True

Options Response %

a 11 44

b 8 32

c 5 20

d 1 4

Total 25 100

c 20%

d 4% a 44% a b c d

b 32%

Findings: From the above chart, it can be seen that 32% of the workmen are addicted to alcohol.

62

17. The cause of my absenteeism is taking smoking. Not True Partially True Almost True Highly True

Options Response %

a 13 52

b 12 48

c 0 0

d 0 0

Total 25 100

c 0% d 0% b 48% a 52% a b c d

Findings: It is observed that 48% of workmen are addicted to smoking but it has no relevance to their remaining absent at the company.

63

18. The cause of my absenteeism is taking chewing habits. Not at all To some Extent To great Extent c 5 20 Highly True d 0 0 Total 25 100

Options Response %

a 14 56

b 6 24

c 20%

d 0% a b c d

b 24%

a 56%

Findings: It can be seen from the above chart that 20% of workmen are addicted to chewing habits to a great extent, but it does not directly affect their attendance in the company.

64

19. The cause of my absenteeism is taking drugs. Not True Partially True Almost True Highly True

Options Response %

a 15 60

b 10 40

c 0 0
c 0% d 0%

d 0 0

Total 25 100

b 40% a 60%

a b c d

Findings: From the chart, it can be seen that 60% of the workmen are not involved in any type of drug addiction, while 40% of workmen are taking drugs.

65

20. The cause of my absenteeism is regular health problems. Not at all To some Extent To great Extent Highly True

Options Response %

a 2 8

b 11 44

c 9 36

d 3 12

Total 25 100

d 12%

a 8% a b

c 36%

b 44%

c d

Findings: It can be seen that to some extent, 44% of the workmen remain absent due to their irregular health problems.

66

CONCLUSION
Thus, it can be observed that absenteeism can be controlled and reduced to a great extent if the workers are committed and are supported by all levels of management. An effective attendance record-keeping system, consultation and open communication by the management can create a healthy productive work environment in the company. This would reduce grievances and give greater employee satisfaction. Only when the positive approach is unsuccessful does the company need to use the remedial approach to deal with habitual abusers or with excessive absentee cases. In all cases the company's actions must be fair and reasonable and consistently applied. While tackling workplace absenteeism by direct action may alleviate the problem in the short- term, addressing the cause of the problem will provide longterm benefits.

67

SUGGESTIONS TO REDUCE ABSENTEEISM

1. Provide Incentives: Giving workers incentives for reduced

absenteeism is not the same as rewarding or giving workers bonuses for reduced absenteeism. An incentive provides an employee with a boost to their motivation to avoid unnecessary absenteeism. The general rule of thumb is to reward workers more frequently the younger they are and the more difficult the work is to perform.

2. Non

Monetary Awards: A notice board could be put up at the shop

floor displaying the name of the workmen and his department who is being conferred this award. This award could be like: Worker of the month award based on Efficiency. A quarterly attendance award. Disciplinary awards can be given to workers against whom there are no reports of misconduct.

3. Conduct Workshops: Identify the chronic absentees and conduct a workshop focusing on their areas of interest in work and their job satisfaction definitions. This response can be discussed with the subordinates openly and they can be placed in their respective departments of work so that their talents and capabilities can be utilized efficiently.

4. Training to Supervisors: They must be given training on their behavioral aspects with the workers and they must be given a human oriented approach so that they prove to be good friends of the workers and the working environment becomes pleasant.

5. Job Rotation: Workers must be given different jobs at different shifts so that his job does not become monotonous, repetitive and boring. Flexi-time can also be allowed within certain limitations.

68

6. Verification of Medical certificate: It is generally observed that workers take unauthorized leave and then provide a medical certificate. The leave then becomes authorized. Thus, the medical certificates must be verified by the management for their authenticity.

7. Counseling: The Union representatives could visit the houses of the absentee worker and counsel them about the ill effects of their being absent. e.g., their financial losses, their importance in the production of the company, their family conditions, etc.

8. Company as a second home: The management could display the worker s names on the notice boards at the shop floor, wishing them on their birthdays or encouraging them in company s activities like sports, etc. this creates a sense of belonging among the workers towards the company.

9. Wage Link: Wages could be directly linked to attendance and their performance at work.

10. Disciplinary Action: If all the above measures fail to improve attendance of a worker then strict disciplinary action is the only option against him.

11. Attendance

Management

Programme:

The

purpose

of

this

programme is to develop a willingness on the part of all the workers to attend work regularly and to assist them in motivating their co-workers to attend work regularly. This can be done through: Addressing the physical and emotional needs of the workers. Communicating the attendance goals of the organization so employees can understand and identify with them. Dealing with cases of excessive absenteeism effectively and fairly so deterrence can occur.

69

ANNEXURE-I

TABULAR REPRESENTATION OF MONTHLY & YEARLY ABSENTEEISM OF HRW IPW

1994 - 2004

70

% OF DAYS 10.00 15.00 20.00 25.00 0.00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 YEARS
0.23 3.00 1.59 2.29 1.59 4.48 0.22 2.23 1.81 0.18 1.98 1.00 2.26 1.66 0.13 1.54 0.65 2.22 2.44 0.03 1.11 0.34 2.10 2.90 0.02 0.53 0.39 0.01 0.62 0.54 2.09 2.90 0.02 0.78 0.61 2.15 3.03 2.12 3.06 0.03 0.81 0.71 2.21 3.08 0.02 0.74 0.75

3.97 1.95 2.49 0.47 2.29 1.51

2.14 3.22 2.13 1.83

4.82

4.48

4.96

ABSENTEEISM DURING 1994-2004

4.60

4.82

4.97

4.86

4.84

71
5.00
20.65

PL CL SL AL CS UA

NO. OF DAYS

22607.0 198606 58286.0 169235 23744.5 161805 19449.0 125104 13146.5 123078 13666.0 101914 10745.5 106350 11682.0 98891 11427.0 90266 10448.5 81090 9441.5

72
100000 150000 178391 200000 250000 50000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 YEARS

TOTAL MDA AND MDL DURING 1994-2004

MDA MDL

UA TREND DURING 1994-2004

25.00

20.00

20.65

15.00

% OF DAYS

73
1.83 1.51 1.00 0.65 1998 0.34 1999 YEARS 0.39 2000 1994 1995 1996 1997

UA

10.00

5.00

0.54 2001

0.61 2002

0.71 2003

0.75 2004

0.00

CS TREND DURING 1994-2004

2.50 2.29 2.13 1.98

2.00

1.50

1.59

1.54

% OF DAYS

74
1.11 0.53 1994 1995 1996 1997 1998 1999 YEARS 2000

CS

1.00 0.78 0.81 0.74 0.62

0.50

0.00 2001 2002 2003 2004

AL TREND DURING 1994-2004

0.50 0.47

0.45

0.40

0.35

0.30

% OF DAYS

75
0.23 0.22 0.18 0.13 0.03 0.02 0.01 1994 1995 1996 1997 1998 1999 YEARS 2000 2001

0.25

AL

0.20

0.15

0.10

0.05

0.02

0.03

0.02

0.00 2002 2003 2004

SL TREND DURING 1994-2004

3.50 3.22 3.03 2.90 2.90 3.06 3.08

3.00

2.49 2.44 2.29

2.50

2.00 1.81 1.66 SL

76
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

1.50

1.00

0.50

0.00

1994

CL TREND DURING 1994-2004

2.50 2.23 2.22 2.09 2.14 2.10 2.12 1.95 2.15 2.21 2.26

2.00

1.59

1.50

% OF DAYS

77
1995 1996 1997 1998 1999 YEARS 2000 2001

CL

1.00

0.50

0.00 2002 2003 2004

1994

PL TREND DURING 1994-2004

6.00

5.00 4.48 4.60

4.82 4.82 4.86

4.96 4.97

4.84 4.48 3.97

4.00

% OF DAYS

78
3.00 1994 1995 1996 1997 1998 1999 YEARS 2000 2001

3.00

PL

2.00

1.00

0.00 2002 2003 2004

MANPOWER STRENGTH OF THE COMPANY DURING 1994-2004

700 654 629

600 535

591

500 424 402 350 348

400 330 295 265 STRENGTH

NO. OF EMPLOYEES

79
1995 1996 1997 1998 1999 YEARS 2000 2001

300

200

100

0 2002 2003 2004

1994

MANPOWER STRENGTH DURING YEAR 1994- 2004

295 330

265 591

62
402 424 535

654

348

350 629

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

63

QUESTIONNAIRE ON STUDY OF ABSENTEEISM

Name: ________________ Age: ________________ Department & Designation:_____________ No. of years in service :_____________

I.

Job Satisfaction and Income:

1. My job in company is very interesting. Not at all To some Extent Average To great Extent Highly Interesting

2. Reason for taking employment: To spend time. Forced by family Members. To take care of my family. Liking of the work. II. Work atmosphere and relationship:

6. Are you aware of the leave rules of the company? Not at all To some Extent To great Extent Strongly Aware

7. How many paid leaves are availed by you per annum? 1-2 days 3-5 days 6-10 days More than 10 days

8. How many unpaid leaves are availed by you per annum? 1-2 days 3-5 days 6-10 days More than 10 days

6. What is the percentage of your absenteeism in last one year? 0-20% 21-40% 41-60% 61-80% 81-100%

64

21. Main reason behind high leave consumption: Personal Family related Work related Social Addiction Indebtness 22. My colleagues are highly supportive. Not at all To some Extent To great Extent Always

23. Disciplinary actions taken by management on absenteeism has reduced absenteeism in our company. Not at all To some Extent To great Extent Highly True

24. In our company, real, genuine sickness cases claiming sick leave are either: 0-20% 21-40% 41-60% 61-80% 81-100%

25. I interact with the company s management staff without hesitating. Not at all To some Extent To great Extent Highly True

III.

Family, domestic and other problems:

26. How is your family condition and family atmosphere? Satisfactory Average Unsatisfactory

27. Is your salary structure adequate? Yes No

28. If No, are you and your family members engaged in some business? Yes No

65

29. Is this involvement in business a cause of your absenteeism? Sometimes Mostly IV. Habits and Attitude: Not at all

30. The cause of my absenteeism is taking alcohol. Not at all To some Extent To great Extent Highly True

31. The cause of my absenteeism is taking smoking. Not True Partially True Almost True Highly True

32. The cause of my absenteeism is taking chewing habits. Not at all To some Extent To great Extent Highly True

33. The cause of my absenteeism is taking drugs. Not True Partially True Almost True Highly True

34. The cause of my absenteeism is regular health problems. Not at all To some Extent To great Extent Highly True

66

ANNEXURE-II

QUESTIONNAIRE FOR RESEARCH

67

BIBLIOGRAPHY
Books
Industrial Relations and Personnel Management - Prof. Dr. M.V. Pylee and A. Simon George, Pages 75 Human Capital - Magazine March 2005 issue, Volume 8, Pages 32 - 36 76

Manual
Personnel Manual of KSB Pumps Ltd.

Websites
www.ksbindia.co.in www.google.com www.employer-employee.com

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