Proj For Scribd

A
Report on
AN ORGANISATION STUDY AND A STUDY ON
ABSENTEEISM AT KLENE PAKS LTD, BANGALORE.
Submitted to
Mahatma Gandhi University
In partial fulfilment of the requirements for the degree of
Master of Business Administration
Under the guidance of
Mr. K.G. Makesh, Lecturer, SCMS School of Technology
and Management
By
Preethi Mohan FM-554
SCMS School of Technology and Management

Aluva, Cochin, Kerala
SCMS School of Technology and Management,

Aluva, Cochin, Kerala - 683106
CERTIFICATE
This is to certify that the project entitled “Organization study

and a study on absenteeism at Klene Paks Ltd, Bangalore”
has been successfully carried out by Ms. Preethi Mohan in
partial fulfilment of the requirements for the degree of Master
of Business Administration under my guidance during the
academic years 2009-2011.
Mr. K.G. Makesh

Date: (Internal Guide)
SCMS School of Technology and Management,
Aluva, Cochin, Kerala – 683106
CERTIFICATE
This is to certify that the project entitled “Organization study

and a study on absenteeism at Klene Paks Ltd, Bangalore”
has been successfully carried out by Ms. Preethi Mohan in
partial fulfilment of the requirements for the degree of Master
of Business Administration during the academic years 2009-
2011.
Dr. Radha Thevannoor

Date: (Director)
DECLARATION
I, the undersigned, hereby declare that this project report
entitled “Organization study and a study on absenteeism at
Klene Paks Ltd, Bangalore” has been written and submitted
under the guidance of Mr. K.G. Makesh and is my original
work. The empirical findings in the report are based on
information collected by me and not copied from elsewhere.
I understand that detection of any such copying is liable to be

punished in any way the school deems fit.
Date: Preethi Mohan

Place: Cochin
ACKNOWLEDGEMENT
I write this page to sincerely thank all those people who helped me in completing
this project work successfully.
First and foremost, I express my respect and sincere gratitude to my parents, for
supporting me through every step.
I thank God Almighty, for his blessings and care.
I would like to express my deep sense of gratitude to SCMS School of Technology

and Management, for providing the best of opportunities.
I thank Dr. Radha Thevannoor, Director, MBA, SCMS School of Technology and
1Management, for her guidance and support.
I bestow my sincere gratitude to Mr. Makesh , my research guide for the guidance
and encouragement given to me.
I am deeply indebted to Mr Punit Sipani, Klene Paks Ltd, Bangalore, under whose
guidance the project was carried out, for his valuable support, motivation and
assistance which served as the forces that helped me to bring this project to its
present shape.
I remember with thanks all other department heads and managers and the whole
members of the Klene Paks. Ltd, Bangalore, for giving me support during my study
in the company. Their support was inevitable for the completion.
Last but not the least; I thank my friends of SSTM who helped me whenever I
needed
Preethi Mohan
CONTENTS
CHAPTER CHAPTER NAME PAGE NO:

NO:
EXECUTIVE SUMMARY 1
1. INTRODUCTION AND THEORETICAL 2-11

BACKGROUND
1.1 An Introduction to Organization 3
1.2 Organization Structure 5
1.3 Organization Study 6
1.4 Concept of Absenteeism 6
2. INDUSTRY, COMPANY AND PRODUCT 12-19

PROFILE
2.1 Packaging industry: An Overview 12
2.2 Klene Paks Limited: A Profile 15
2.3 HDPE/PP Woven Fabric: A Profile 19
3. ORGANIZATIONAL STRUCTURE AND 20-41

FUNCTIONAL AREAS
3.1 Overview of the Departments 20
4. RESEARCH METHODOLOGY 42-44
4.1 Statement of the problem 42
4.2 Review of Literature 42
4.3 Significance of the study 43
4.4 Scope of the study 44
4.5 Objectives of the study 44
4.6 Methodology 44
4.7 Limitations of the study 44
5. ANALYISIS AND INTERPRETATION 45-60
6. FINDINGS, CONCLUSIONS AND 61-65
SUGGESTIONS
6.1 SWOT analysis 61

6.2 Findings 62
6.3 Suggestions 64
6.4 Conclusion 65
BIBLIOGRAPHY AND APPENDIX 66-67
LIST OF CHARTS
TITLE PAGE NO:
CHART NO:
Chart No:3.1 Company Organizational 20
Structure
Chart No:3.2 Hierarchy Structure of 21

Finance Department

Purchase Department

Machinery purchase and
maintenance department
Chart No:3.5 Block Diagram of routine 25

functions

Marketing Department
Chart No:3.7 Block Diagram of Routine 30

Functions

production department

Despatch department
Chart No:5.1 Job Satisfaction Level 49
Chart No:5.2 Respondents’ View 50
Chart No:5.3 Cause of Absenteeism: Low 51

Salary
Chart No:5.4 Cause of Absenteeism: 52

Family Problems
Chart No:5.5 Cause of Absenteeism: Lack 53

of Transportation
Chart No:5.6 Cause of Absenteeism: Poor 54

Relationship With
Colleagues

Heavy Workload

Pressure From Higher
Authority
LIST OF TABLES
TABLE NO: TITLE PAGE NO:
Table No:5.1 Sex of the respondents 45
Table No:5.2 Age group of respondents 45
Table No:5.3 Marital Status of 46

Respondents
Table No:5.4 Educational 46

Qualification of the
Respondents
Table No:5.5 Work Experience of the 47

Respondents
Table No:5.6 Nature of the employment 47
Table No:5.7 Locality 48
Table No:5.8 Type of Family 48
Table No:5.9 Job Satisfaction Level 49
Table No:5.10 Respondents’ View 50
Table No:5.11 Cause of Absenteeism: 51

Low Salary

Family Problems

Lack of Transportation

Poor Relationship With
Colleagues

Heavy Workload

Pressure From Higher
Authority

Unsatisfactory Canteen
EXECUTIVE SUMMARY
Absenteeism is non-spectacular as a symptom of industrial unrest even

though the total time last through employee absence could be as high as
that last through other forms of industrial problems. Absenteeism,
according to many researchers, “is clearly related to employee morale
and often constitutes an unspoken and usually unconscious protest
against conditions of work life in general”. The problem of absenteeism
in India is widespread. Due to sickness injuries and other unforeseen
reasons, a certain amount of absence will always be unavoidable. Even
though it is difficult to gauge economic effects of absenteeism, absence
from work is a cause of loss production.
Progress and prosperity of Indian company will be largely hinging on the

growth and development of our industrial economy of all the factors of
production Human factors plays a decisive role in achieving their end in
our country. Absenteeism can have many reasons but has only one
result. It destroys the family income and company economy it is suicidal
for the workers in the long run. Labor Absenteeism is the one of the main
problems among employees. As the employees are from rural areas,
continuity of their relations with rural area and due to certain other
reasons the rate of absenteeism is much high among them. They
frequently change their industry, business, profession, this problem
adversely affect not only laborers but also the whole organization. Thus
this topic has been chosen for research study.
This study is helpful in finding out major reasons for absenteeism in
Klene Paks Ltd. This study will help both management and workers to
find out what kind of relationships exist in the organization. The study is
conducted across a cross section of employees of the organization for a
period of 11 days. The study was directed towards finding the reasons for
absenteeism in the organization.
The objective of this study is to find out the various cases of absenteeism
faced by the company, to introduce various measures to reduce
absenteeism and to suggest and recommend improvements in the
existing system. The study is essentially descriptive in nature. The entire
employees in the organization constitute the population. A sample of 50
employees is drawn from the population using judgmental sampling
technique. Primary data was collected by survey method through a
questionnaire that was distributed to the employees and secondary data
was collected from company records, company website, the internet,
books, previous dissertations etc. Analysis of data is done by using
charts, bar-diagrams and tables.
From the study, it was found that the company has a strong customer
base, a strong production, purchase and marketing departments though
the human resources department functions a little weakly. The company
has brand equity and has sufficient godowns and storage facilities. In
addition, it says that a large portion of the employees is satisfied with
their job. The study also reveals that the employees feel that
absenteeism is caused mainly due to family problems, lack of
transportation, poor health and problems alike. The company’s
permanent employees have highest work experience. Absenteeism is
seen more as a habitual problem. It is suggested that the employees
should be given training and awareness on how to tackle the habitual
problem of absenteeism and why it is detrimental to work and the
employee as an individual. In addition, the employees should be provided
with sufficient fringe benefits.
The results of this study have helped the management of Klene Paks Ltd
identify their flaws and shortcomings and make necessary changes to
improve the present scenario.
CHAPTER ONE
INTRODUCTION AND THEORETICAL BACKGROUND
CONCEPT OF ORGANIZATION
When two or more people get together and agree to coordinate their
activities in order to achieve their common goals, an organization has
been born. There is really no doubt about the present meaning of
organization. Its purpose is to create an arrangement of positions and
responsibilities through and by means of which an enterprise can carry
out its work.
An academic textbook definition of organization can be formulated as

follows: “a) The responsibilities by means of which the activities of the
enterprise are dispersed among the (managerial, supervisory, and
specialist) personnel employed in its service; and b) The formal
interrelations established among the personnel by virtue of such
responsibilities.”
It must be emphasized that an organization should not be seen as rigid

as the term “framework” implies. In reality, almost all organization
structures must be occasionally reviewed due to various changes in the
external environment of the organization in question. Moreover, internal
changes also occur oftentimes due to the development of various
informal relationships.
An organization is basically a social arrangement which is in pursuance of

common goals. It controls its own performance and is striving towards a
goal. It has a definite structure, policies and culture.
Features of Organization
The different features of an organization are as follows:
1. Structure: Each organization has a definite structure, which is

different from all other organizations. The employees in an organization
are distinguished by their specific roles in this structure.
2. Staff: All organizations have a number of staff members. This

includes all the management staff, technical staff and supportive staff.
Also if the company is a manufacturing concern, it would have laborers
working for it.
3. Culture/style: Culture of the organization refers to the norms and
values that rule an organization. Culture is unique and can not be copies.
It is based on the historic trends in an organization.
4. System: System refers to the processes and procedure followed in

the company. It relates to the financial systems, hiring, promotions,
information systems etc.
5. Shared values: Shared values define what the organization stands

for. It conveys the central belief of an organization and forms the rest of
the features of the organization.
6. Strategy: Relates to the planning process. It defines how the

organization plans for the future based on its resources and
opportunities.
Importance and Objectives of Organization
The effectiveness and efficiency of organization helps in providing the

continuity and success to the enterprise. There are many factors that
explain the importance and objectives of organization and they are:-
1. Facilitates Administration: An efficient and sound organization

make easy for the management to relate the flow of resource continually
to the overall objectives. A sound organization helps in providing
appropriate platform where management can perform the functions of
planning, direction, coordination, motivation and control.
2. Facilitates Growth and Diversification: A sound organization helps

in the growth and diversification of activities. The growth is facilitated by
clear division of work, proper delegation of authority etc. In short, it helps
in the organizational elaboration. In case of reasonable expansion of
organization, the functional types get replaced by a more flexible
decentralized organization.
3. Permits optimum use of Resources: The optimum use of technical

and human resources gets facilitated in sound and efficient organization.
The organization can have the facilities of latest technological
developments and improvements. It also facilitates optimum use of
human resources through specialization. The people in the organization
get appropriately trained and get promotion opportunities. A sound
organization provides all the desired potential and strength to the
company to meet the future challenges.
4. Stimulate Creativity: The specialization in the organization helps

individuals in getting well defined duties, clear lines of authority and
responsibility. It encourages the creativity of the people. The sound
organizational structure enables managers to concentrate on important
issues where their talent can be exploited to the maximum.
5. Encourages Humanistic Approach: A sound organization helps in

adopting efficient methods of selection, training, remuneration and
promotion for employees. It makes people work in a team and not like
machines or robots. Organization helps in providing factors like job
rotation, job enlargement and enrichment to its employees. A sound
organization provides higher job satisfaction to its employees through
proper delegation and decentralization, favorable working environment
and democratic and participative leadership. It enhances the mode of
communication and interaction among different levels of the
management.
ORGANIZATIONAL STRUCTURE
Every organization made up of more than one person will need some
form of organizational structure. An organizational chart shows the way
in which the chain of command works within the organization.
Different organizations have different structures. For example most

organizations will have a marketing department responsible for market
research and marketing planning. A customer services department will
look after customer requirements. A human resources department will be
responsible for recruitment and selection of new employees, employee
motivation and a range of other people focused activities. In addition
there will be a number of cross-functional areas such as administration
and Information Technology departments that service the functional
areas of the company. These departments will provide back up support
and training.
Organizations are structured in different ways:
1. By function as described above
2. By regional area - a geographical structure e.g. with a marketing
Manager North, marketing manager South etc
3. By product e.g. marketing manager crisps, marketing manager drinks,

etc
4. Into work teams, etc.

Reporting in organizations often takes place down the line. An employee
might be accountable to a supervisor, who is accountable to a junior
manager, who is then accountable to a senior manager - communication
and instructions can then be passed down the line.
ORGANIZATIONAL STUDY
The organizational study has become an increasingly complex field in

which the students of management need to keep abreast of current best
practice, legal requirements and likely trends.
Objectives of the Organization Study
The study aims at familiarizing the working environment of the said

organization. It also looks at how theoretical knowledge is made use of in
real life. An effort is made to identify strengths and weaknesses of the
organization and to study the working arrangements of the organization.
Definitions
Absence: The term absence refers to all “stay away” from work whether
unauthorized and authorized.
Absenteeism: “Absenteeism is the habit of being absent and an

absentee is one who habitually stays away”
“Absenteeism is the failure of workers to report on the job when they

schedule to work”
CONCEPT OF ABSENTEEISM
It refers to workers absence from their regular task when he is normally
schedule to work. “Absenteeism is the practice or habit of being an
absentee and an absentee is one who habitually stays away from
work.”.
Absenteeism is the total man shifts lost because of absence as

percentage of total number of man shifts scheduled to work. In other
words, it signifies the absence of an employee from work when he
is scheduled to be at work. Any employee may stay away from
work if he has taken leave to which he is entitled or on ground
of sickness or some accident or without any previous sanction of
leave.
Thus absence may be authorized or unauthorized, willful or caused

by circumstances beyond one’s control. Maybe even worse than
absenteeism, it is obvious that people such as malingerers and
those unwilling to play their part in the workplace can also have a
decidedly negative impact. Such team members need individual
attention from frontline supervisors and management.
Indeed, as prevention is better than cure, where such a problem

occurs, it is always important to review recruitment procedures to
identify how such individuals came to be employed in the first place. For
any business owner or manager, to cure excessive absenteeism, it
is essential to find and then eliminate the causes of discontent
among team members. Many human resources specialists have found
that repetitive, boring jobs coupled with uncaring supervisors and/or
physically unpleasant workplaces are likely to lead workers to make up
excuses for not coming to work
Features of Absenteeism
Research study undertaken by different authors reveals the following

features of absenteeism.
1. The rate of absenteeism is the lowest on pay day; if increases
considerable on the day following the payment of wages and bonus.
2. Absenteeism is generally high among the worker below 25 years of

age and those 40 years of age.
3. The rate of absenteeism varies from department to department an

organization.
4. Absenteeism in traditional industries is seasonal in character.
Types of Absenteeism
Absenteeism is of four types, they are-
1. Authorized absenteeism
2. Unauthorized absenteeism
3. Willful absenteeism
4. Absenteeism caused by circumstances.
1. Authorized absenteeism
If an employee is applying for leave by taking permission from his

superior and gets absent him from work, such absenteeism is called
authorized absenteeism.
2. Unauthorized absenteeism
If an employee stays away from work without informing or taking

permission or with out applying for leave, such absenteeism is called
unauthorized absenteeism.
3. Willful absenteeism
If an employee stays away from duty at his own will, such absenteeism is
called willful absenteeism.
4. Absenteeism caused by circumstances
If an employee has taken leave which is entitled on the ground of

sickness or some accidents, such absenteeism is called absenteeism
caused by circumstances.
Calculating the rate of absenteeism
Two factors are taken in to consideration.
Schedule to Work
When the employer has work available and the employee is aware of it,
and when the employer has no reason to expect, well in advance, that
the employee will not be available for work at the specified time.
Present
A worker who reports for a part of a shift is to be considered present.
Absenteeism formula
A. Any particular day or time = No. of persons absent ∕
No. of employees in the roll
B. For a period = man-days lost due to absenteeism /
Total no of man days available
Measurement of Absenteeism
For calculating the rate of absenteeism we require the number of
people scheduled to work and number of people actually present.
Absenteeism rate can be found out by using absence rate method.
For Example:
a) Average number of employees in work force: 100
b) Number of available workdays during period: 20
c) Total number of available workdays (a x b): 2,000
d) Total number of lost days due to absences during the period: 93
e) Absenteeism percent (d [divided by] c) x 100: 4.65%
Since absenteeism is a major barometer of employee morale,

absenteeism above 5 percent has to be considered as very serious
(across most industries 3 percent is considered standard).
Effects of Absenteeism on Industrial Progress
It is quite evident from the above figures that absenteeism is a

common feature of industrial labor in India. It hinders industrial growth
and its effect in two fold.
1) Loss to worker
Firstly, due to the habit of being absent frequently, worker’s income is

reduced largely. It is because there is a general principle of “no
work – no pay”. Thus the time lost in terms of absenteeism is a loss of
income to workers
2) Loss to employers
On other hand, the employer has to suffer a greater loss due to

absentees. It disturbs the efficiency and discipline of industries
consequently, industrial production is reduced. In order to meet the
emergency and strikes, an additional labor force is also maintained
by the industries. On certain occasions, those workers are employed who
present themselves at factory gates. During strikes they are adjusted in
place of absent workers. Their adjustment brings serious complications
because such workers do not generally prove themselves up to
work. Higher absenteeism is an evil both for workers and the
employers and ultimately it adversely affects the production of
industries.
Causes of Absenteeism
I. Organizational factors
Organizational climate plays a vital aspect in the behavioral pattern of

the workers. Some of the aspects revealed by research studies on
industrial absence have been the nature of industry, leniency on the part
of management and militancy of trade unionism in certain industries
account for higher rate of absenteeism.
II. Environmental factors
In this, we are examining the extent of influence of the external

environment on workers’ absenteeism. The rate of absenteeism in Indian
industry is estimated as 17.83% in one such study, out of this nearly 50%
accounted against environmental factors such as socio-economic factors
like poverty unhygienic living condition, number of dependents, sickness,
maternity factors and religion- cultural factors.
III. Personal factors
They may be studied under the following sub classification.
[a] Internal factors
1. Marital harmony
2. Family size and responsibility
3. Work orientation, leisure orientation
4. Bad habits
5. Emotional and educational level
6. Educational level
7. Standard of leaving and transport
[b] External factors
1. Level of unemployment
2. Recreational facilities
3. Social, religion, and cultural aspects and housing
IV. Socio economic factors
1. Living conditions of the workers

2. Health of workers
3. Drinking habit of workers
4. Indebtedness of workers
5. Education
6. Social norms and values
7. Side income
CHAPTER TWO
INDUSTRY, COMPANY AND PRODUCT PROFILES
Packaging Industry: An Overview
In the global plastics industry, packaging is one of the main segments.

Worldwide, packaging industry has gained enormous importance
because it creates vast employment opportunities and contributes to
nearly 4% of GDP. The rising demand for agricultural food products and
off-the-shelf items throughout the world has initiated large-scale
production of these commodities.
The market volume of the Indian packaging industry amounts to about

Rs.77,570 crore and has constantly grown by approximately 15 percent
year on year. The pace of growth will accelerate to between 20-25
percent over the next five years. The highest demand for packaging and
the associated equipment come from the food processing industry at 50
percent and from the pharmaceutical industry at 25 percent.
The large growing middle class, liberalization and organized retail sector
are the catalysts to growth in packaging. In addition, food and Pharma
packaging are the key driving segments. There are about 600-700
packaging machinery manufacturers, 95 percent of which are in the
small and medium sector located all over India. Germany and Italy are
the largest suppliers of packaging machinery to India but focus is now
shifting on Taiwan and China.
Indian companies are now placing increasing emphasis on attractive and

hygienic packaging. This promises enormous potential for the future.
Southern states including Andhra Pradesh, Karnataka, Kerala and Tamil
Nadu now lead the country in a number of indices, including packaging.
Dairy product packaging constitutes a large portion of the South India
Packaging industry. Abundant tea production in South India brings
opportunities in paper bag packaging industry.
While major components such as cartons, cans and laminates, which are
Bureau of Indian Standards (BIS) certified, are of global standards, the
glass bottles and outer cartons are areas that need to be upgraded
Plastic woven sacks industry in India was started with just two units
during 1969-1970 at Bangalore and now comprises of more than 1000
units spread over 21 states and union territories having an annual
turnover of Rs8000 crores and providing employment to over 6,00,0000
people. Its contribution to the national exchequer is over Rs600 crores
and its exports are over Rs400 crores.
Packaging Industry in India
The current wave of economic development in India is seen from all over
the world. As infrastructure, manufacturing, agriculture, and services
grow at high rates the packaging industry is also showing great variety
and depth in its growth. India’s packaging industry may achieve an
annual turnover as high as US$ 5 billion in the current financial year with
a growth rate nearly 25 per cent in significant segments. Leading
companies in the Indian packaging industry show a compound annual
growth rate of 30 per cent.
In 2001, the packaging industry worldwide generated an annual

estimated turnover of US$ 417 billion. The major regions that made up
this total include Europe, US$ 129 billion; North America, $116 billion;
and Japan, US$ 81 billion. India’s consumer packaging accounted for just
US$ 2.3 billion in that year, that is about half of one per cent of the
global packaging volume.
Today, packaging is produced more quickly and efficiently. It is generally

lighter in weight, uses less material, is easier to open, dispense from,
reseal, store, and dispose. Packaging has evolved from a relatively small
range of heavy, rigid containers made of wood, glass, and steel, to a
broad array of rigid, semi rigid and flexible packaging options
increasingly made from specialized lightweight materials.
Flexible Packaging
Flexible packaging consists of multi-layer laminated sheets of plastics

(PVC, LDPE, HDPE, BOPP, BOPET), paper, cloth, or metal foils that are
used separately or in combination for various packaging applications.
However, flexible packaging as laminates of plastics that have a unique
set of properties that ensure toughness, moisture resistance, aroma
retention, gloss, grease resistance, heat sealability, printability, low
odour and taste. These find use in packaging food, tea, coffee, spices,
chewing tobacco, bakery, confectionary, oils, and in certain other non-
food applications such as household detergents, health and personal
care, soaps, and shampoos.
Flexible Packaging Demand in India and Worldwide

World demand for converted flexible packaging will grow at more than 4
per cent per year through 2005 to nearly 14 million metric tons, with a
value exceeding US$ 50 billion. The best gains are expected in the
world’s emerging markets, including Eastern Asia, Eastern Europe, Africa,
and Middle East. India holds largely untapped markets with a potential of
double digit market growth. The flexible packaging industry in India is
currently estimated to be US$ 1 billion and records a high growth rate of
approximately 20 per cent.
This HDPE/PP laminated and non laminated fabric/sacks is essential

product for most of the industry for packaging purpose. Fabric is
essential for most of manufacturers to packing and selling purpose of
produced products. Though the Indian plastics processing industries
registered an impressive growth rate in the last decade, yet the
industries have to gear up to meet the challenges of greater
competitiveness in the post WTO scenario. This HDPE/PP laminated and
non-laminated fabric/sacks is essential product for most of the industry
for packaging purpose. Fabric is essential for most of manufacturers to
packing and selling purpose of produced products.
KLENE PAKS LIMITED: A COMPANY PROFILE
KLENE PAKS LTD, a pioneer in packaging industry, was established in the

year 1971. The company is located at Bangalore, with all time tested
manufacturing facilities and proven quality standards. Over thousand
employees are working in this company. KLENE PAKS LTD has two
manufacturing units, one is at Arekere, Bannerghatta road (Old
manufacturing unit) and other one is at Jigani industrial area (New
manufacturing unit). The company has been registered as a private
company.
Background and Inception of the Company
In the year 1971 the company was formed and in the year 1983 it was
taken over by Sipani Group who were pioneers in the world of woven
fabrics. With rich experience and with the best leaders, the company was
modernized in the year 1987 and converted its flat looms to circular
looms with high production capacity, by the year 1991 the company was
debt free and was financially stabilized.
During the years 1991-1999, the company experienced a greater

demand for the products, after in-house production began. Hence it had
to outsource the job to 15 other smaller companies. The increased
demand of 50% a year from the large scale companies changed the
whole strategy of business in the year 1999 to 2002. The company
shifted from being a bag marketing company to a fabric marketing
company where the company targeted small scale entrepreneurs who
converted the bags to fabric and supplied to smaller markets which are
called open markets.
The company caters to the needs of manufacturing industries like

Fertilizers, Chemicals, Super Phosphates, Papers, and Sugar Factories
etc. for their packaging needs.
KLENE PAKS has more than three Decades of experience in providing

packaging solutions. They have been manufacturing HDPE/PP,
Laminated/Unlaminanted, Fabric/Bags/Sheets & LDPE/ LLDPE/ HMHDPE
liners to the leading Units manufacturing Fertilizers, Chemicals, Super
phosphates, Papers and Sugar Factories for their packing purposes.
Nature of business
KLENEPAKS LTD, is one the leading manufacturers of
1. HDPE/PP woven laminated bags

2. HDPE/PP woven non laminated bags/fabric/sheets
3. LDPE/LLDPE/HMHDPE liners etc.
Vision, Mission and Quality Policy
Vision
“Strengthen our customer base through close ties with our existing and
future partners”
1. To be the first choice for packaging needs of customers.

2. To be the preferred employer for staff in fabric industry.
3. To be the number one in quality and on time deliveries.
Mission
“Wide recognition as the bench mark for quality, customer satisfaction

and profitability”
As a responsible, customer focused market leader, we will strive to

understand the packaging needs of the consumers and translate it into
affordable products that deliver value for money.
Quality Policy
1. Delivering quality of product at a competitive price and

to achieve customer satisfaction on time.
2. Adopting a friendly Technology and to nurture a clear
and healthy surroundings.
3. Facilitating absolute decision making through the
adequate use of data.
4. Promoting a team based culture, which encompasses
human value and ethics.
Customers
The main customers are-
1. Birla super bulk terminals

2. Chettinad cement corporation limited
3. Diamond cement
4. Dalmia cement (Bharat Ltd)
5. Jindal Aluminum Co. Ltd
6. Mysore cements
7. Penna cement
8. Cement corporation of India
9. Lanco cements Ltd
10.Madras cement
11.Orissa cement
12.Various flourmills & rice mills
Competitors’ information
KPL is one of the major work holding companies in India. Yet it faces
huge competition from various companies, such as
1. Abhinandan patropacks private limited

2. Shanty petropacks private limited
3. Deepak extrusions limited and
4. United chemicals industry
Infrastructural facilities
All three units are fitted with state of the art machinery. A considerable
portion of profits is invested in new equipment. The infrastructural setup
is designed to meet both short and long production cycles. The present
setup consists of 11 plants and 350 Looms of European standards which
are of latest technology machinery producing quality and precise product
which are facilitated in 2 units consisting of 2,50,000 Sq ft of built up
area. An upcoming 3rd unit in Madhur consists of 11 plants and 450
Looms built up area with 3,00,000 sq ft which will make KPL the largest
producer in the country.
Disciplinary action
The fundamental reason for disciplinary action is to correct the situations

which are unfavorable to the company. These disciplinary actions are
printed in standard orders of the company. A guideline has been
prepared and shared with all the employees. This guideline says what
should and should not be done.
Medical Benefits
All workers are under the ESI (Employees State Insurance) act. Also each
worker holds membership with ARC(Accident Relief Care) and the
premium is paid by the company every year.
Canteen facilities
The management provides the employees with hygienic food t subsidized

rates. It is contracted to outdoor caterers.
Retirement
The retirement age for all employees in the company is 58 years where
the employee would be benefited with provident fund, gratuity etc. The
employees also have an option of VRS (Voluntary Retirement Schemes).
Leave facilities
The employees are granted leave in respect to the company norms and
the employee should provide an advance notice with respect to situation.
Future growth and prospectsKPL has had excellent operation
performance in last 4 years. KPL, also has excellent prospect in the field
of packaging in the years to come through high quality value added
products and value added service to the costumers.
HDPE/PP WOVEN FABRIC: A PROFILE
Product Description
Plastic woven fabrics and sacks are made from High Density Polythene
(HDPE) or Poly Propylene (PP) and used as a major bulk packaging
material.
There are more than eight ISI standards relating to woven sacks and the
weight and specialization of the bags depend on the end use application.
KPL caters to their client requirement as per the client specification in
terms of gms, gram age, size, lamination, without lamination, printed and
plain
HDPE/PP Woven fabric is the basic product, which is offered to the

market with 600 ready varieties, which are classified, by product in terms
of width, colored green, blue, natural, yellow, lemon yellow, blue tone
and red.
The company also offers normal lamination or with paper and BOPP film
slitting glossing, border color, double color fabric. Their newly launched
product is leno fabric. In all the above categories, they offer special
service of converting fabric in to sack by cutting, stitching and printing in
to any form. They also offer stitching yarn to the customers.
CHAPTER THREE
ORGANIZATIONAL STRUCTURE AND FUNCTIONAL

AREAS
OVERVIEW OF THE DEPARTMENTS
Klene Paks Ltd produces the HDPE/PP Laminated/Unlaminated Fabric

and sacks with the co-ordination of following departments,
1) Finance Department
2) Human Resource Department
3) Purchase Department
4) Production Department
5) Marketing Department
6) Despatch Department
In Klene Paks Ltd, concerned Directors are handling and controlling the
activities of all departments. All departments’ managers give the
information about all routine functions to respective Directors but final
approval for any activity is by Managing Director of the company.
Company Organizational Structure
Chart No: 3.1
FINANCE DEPARTMENT
Klene Paks Ltd has two manufacturing units. One is at Arekere,

Bannerghatta road (Old manufacturing unit) and other one is at Jigani
industrial area (New manufacturing unit). Finance department of Klene
Paks Ltd is a centralized department for both the units.
Hierarchy Structure of Finance department
Chart No: 3.2
Objectives
The finance department aims mainly at protecting the financial interest

of the company. Proper utilization of funds is of prime importance too.
The department strives towards monitoring the budget and budgetary
control as well.
Functions
The finance department has a variety of functions. One of its major

functions are to monitor the debtors and creditors of the company. Also
great emphasis is laid on enhancement of business projects and
upgradation of day-to-day transactions. The department also performs
critical functions like day-to-day reconciliation of transactions and
evaluation of financial performance on a regular basis. The routine
functions of accounting and auditing are also carried out in a systematic
manner.
Depreciation Policy of the Firm
Klene Paks Ltd follows the written down value method, and depreciation
for the year 2008-2009 is as follows,
1) Building-10 percent per annum
2) Plant and machinery-13.91 percent per annum
3) Furniture-18.1 percent per annum
4) Office equipments-13.91 percent per annum
5) Electrical installations-13.91 percent per annum

6) Generators-13.91 percent per annum
7) Computers-40 percent per annum
Working Capital
In Klene Paks Ltd, the gross and net working capitals are as follows:
Gross working capital: Rs28,60,94,540
Net working capital: Rs25,36,19,405

PURCHASE DEPARTMENT
The main raw materials for the company are Raffia grade, fillers and
master batch.
The raw material Raffia grade is the main material in the whole
production of HDPE/PP laminated and non-laminated fabrics and sacks.
This raw material is being purchasing from
1) Reliance Industry limited
2) Gas authority of India
They will place an order through three agents and they are,
1) N K agencies
2) Soubhagya Polymers limited
3) Amsa Trading Corporation.
The Filler is another raw material, which is useful for melting and for
whiteness purpose. This raw material has been being purchasing from
Kalpana industries and the Colorings are called as master batch and are
purchased from the SCJ plastics.Always there will be a buffer stock of 10
days.
Hierarchy Structure of purchase department
Chart No: 3.3
Raw material purchase
Machinery Purchases and Maintenance
Hierarchy Structure of Machinery purchase and maintenance department

Heirarchy Structure of Machinery purchase and maintenance
department
Chart No: 3.4
Machinery purchase manager handles the purchase of required machines

for production of HDPE/PP laminated and non-laminated fabric/sacks.
Usually the machines are purchased from the J.P industries, Lohiyya Star
Linger Limited and others.
Some of the machines are as follows.
1) Looms machines-116
2) Extruder- 02
3) Lamination plant-01
4) Bobbin plants-03
5) Printing machines-12
6) Stitching machines-20
7) Baling machines-05
8) Captive power (Generators) -03
Block Diagram of routine functions
Chart No: 3.5
The purchase department not only purchases the required machines for
production, but it also maintains the machines for smooth run of
production. There are 1300 items in a standard list at stores level to
maintain the all machines of the company. If any item reaches to reorder
level then the In-charge officer will fill the Material Purchase Request
(MPR) form and submit it to the machinery purchase manager. The
machinery purchase manager will place an order to supplier, based on
material purchase request form.
When the suppliers send the ordered materials to the company stores,
the In-charge officer checks the quantity, defects, and confirms the
received items. Later In-charge officer will send the bills to the machinery
purchase manager. After final verification, the machinery purchase
manager sends the bills to accounts departments for clearance of
purchased items of machineries.
If some other materials are required at shop floor then they have to take
the approval of In-charge officer to purchase those required materials.
The In-charge officer will check the necessity of the requested materials
to purchase. That means, if any item not present in 1300 items list and
required for production then they have to fill the Material Requisition
Form (MRF) and have to take the approval of the In-charge officer. Later
the In-charge officer will fill the Material Purchase Request (MPR) form
and send it to the machinery purchase manager. After this same
procedure as mentioned earlier.
Statistical technique used by the company to place an order
As the order size increases, the carrying charges will increase while the
ordering cost will decrease. On the other hand, as the order size
decreases, the carrying cost decreases and the ordering cost increases.
Economic Order Quantity (EOQ) is that size or order, which minimizes
total annual (or any other time period as specified by individual firm)
costs of carrying inventory and cost of ordering.
Formula to find out the economic order quantity to place an order is as

follows,
EOQ= 2 D Co
Ch
Where EOQ = Economic Order Quantity
D = Annual demand
Co = Ordering cost
Ch = Carrying cost
In Klene Paks Ltd, the machinery purchase manager has fixed the
Reorder Level to each item in the list of 1300 items, to maintain the
machines through out the production and life of that machine. At stores
level, the In-charge officer regularly checks for the reorder level of 1300
items. As soon as the item reaches to reorder level, then the In-charge
officer will inform (by MPR) to machinery purchase manager to place an
order for required material. Then the machinery purchase manager will
place an order Machinery Replacement Policy
In Klene Paks Ltd, machinery purchase manager will purely replace the
machines based on,
1) When productivity of machine decreases
2) When maintenance cost increases

In Klene Paks Ltd, there is no such fixed time period to replace purchased
machine. For every machine, they maintain a logbook, which contains
the information of maintenance. As the maintenance cost increases and
productivity decreases, machines are replaced.
MARKETING DEPARTMENT
Klene Paks Ltd is so popular so that the company does not require to
advertise heavily about the company. The parties itself call for
company’s quotations, if the parties are satisfied with the quotations,
then they place order(s).
Sometimes parties call for tender, by advertising in newspapers,
magazines. Company specifies their quotations, if party accepts KPL’s
quotations from among the others, then it will get the order by that party
and KPL manufactures the order according to specification to fulfill
party’s requirements.
Marketing Strategy
1. Quality maintenance
2. On time deliveries
3. All over news covering
4. Distributors problem solving
Hierarchy Structure of Marketing Department
Chart No: 3.6
Assistant managers 1 and 2 handle the customers of Tamil Nadu. In

Tamil Nadu, there are about 350 customers. Therefore, to handle the
huge customer base, the marketing manager has assigned two assistant
managers for Tamil Nadu region.
To solve distribution problem of Tamil Nadu, the Marketing Manager has
bifurcated Tami Nadu as Chennai, Coimbatore, Salem, and other districts.
In Chennai and Salem KPL has opened a godown and is planning to open
another godown in Coimbatore.
Assistant manager 3 is handles Maharashtra state. In Maharashtra there

are no such bifurcations. There are nearly about 100 customers.
Assistant manager 4 handles Karnataka state. In Karnataka the

Marketing Manager’s acrivities are bifurcated for local (Bangalore) and
other districts. In Karnataka there are more than 100 customers.
Assistant manager 5 handles Andhra Pradesh state. In Andhra Pradesh

the Marketing manager’s activities have been bifurcated for Hyderabad,
Guntur and other districts. To solve distribution problem, in Hyderabad
and Guntur godowns have been opened there.
In Klene Paks Ltd, the customers give orders by,
1) Post
2) E – Mail
3) Message
There is no acceptance of oral orders by telephones.
For every incoming order by the customers, they will be assigned a

number called as order acceptance number. According to specification of
the customer, the marketing department makes a sales slip, which
contains the gross weight, net weight, average weight, and type of
fabric. This Sales slip will be given to the despatch department to check
for the availability of the specified fabric.
If the specified material is available then despatch department sends

back that sales slip to marketing department. If the specified material is
not available then despatch department informs the production
department to start production of that specified material. It may take 4
to 6 days. It is highly depends on the bulk of ordered fabric.
With the information of availability of the ordered fabric, the marketing

manager or assistant marketing manager prepares the bill (invoice) for
ordered fabrics.
Customer
Order
Acceptance
Despatch
Department
Availability
Marketing Production
Department
Bills
Clearance by
Customer
Despatch Delivery
Department
Customer
Order
Acceptance
Despatch
Department
Availability
Marketing Production
Department
Bills
Clearance by
Customer
Despatch
Delivery
Department
Block Diagram of Routine Functions
Chart No: 3.7
The raw material prices changes every 7 to 10 days by Reliance industry

limited. As the raw material prices changes, the prices of fabric also
changes and customer has to pay the amount at the time of ordering
rates, irrespective of the delivery of the fabrics.
The prices of fabrics are as follows.
Fabric price with effect from 25-06-2009
PP fabric UL/ L 81.00
HDPE fabric UL/L 86.00
Stitching yarn- HDPE 88.00
Nano fabric 84.00
All these prices are based on the per kg bases, not on the bases of
meters of the fabric.
After preparing the bill the marketing persons communicate to the

customers for clearance of ordered bill. If customer pays the bill amount
by check, cash, demand draft (DD). The accounts department issues the
amount and gives the LR receipt. This bill now goes to the despatch
department.
The despatch department will load those ordered fabrics. The bill
contains the delivery place, amount etc. The bill, LR receipt will send
along with transportation or they will post it. The customer gets their
ordered fabrics if and if they (Customer) show that clearance bill and LR
receipt. The aggregate sale of Klene Paks Ltd varies between 80 – 100
tones of sales every day.
Production Department
Hierarchy Structure of production department
Chart No: 3.8
Product Layout
Product layouts, often called production lines or assembly lines, are

designed to accommodate only few types of product designs. Such
layouts are designed to allow a direct material flow through the facilities
for products.
Product layouts typically use specialized machines that are set up once
to perform a specific operation for a long period of time on one product.
To change over these machines to a new product design requires great
expense and long down time.
Companies that produce only few product types often set up a different
production line for each product type. The facility layout would allow for
the different product lines to be separated from each other.
Workers in product layouts repeatedly perform a narrow range of

activities on only a few product designs. The amount of skill, training,
and supervision required is small. Although the planning and scheduling
activities associated with these layouts are complex, they are not
ongoing. Rather, planning and scheduling tend to be done intermittently
as product changeover occurs.
Klene Paks Ltd belongs to product layout categories. In this company

there are four plants are there to produce HDPE/PP fabrics of laminated
and non-laminated. Before going to production process, it is necessary to
know, what materials. The company uses. They are as follows.
PP - H030SG, H350FG, B250EG, H033MG
HD – W50A001, E52009, 53EA010
Lamination (PP) - H350FG, B250EG
(LD/LLD) - 1070LA17, E36009A, E24065
PP stands for POLY PROPELYNE
HDPE stands for HIGH DENSITY POLY ETHYLENE

The PP fabrics are somewhat rough as compared to HDPE fabrics. The
company produces 80 percent only PP fabrics. If customer orders HDPE
fabric, then company produce as per the customer’s order.
Like wise if customer orders the laminated PP/HDPE fabric, they will
laminate to the fabric. Otherwise, all output is always in non-laminated
form.
Production Process
In Klene Paks Ltd, the production process is carried for HDPE/PP fabric
laminated and un-laminated. Therefore, the production is carried out for
two shifts from 9 to 7 and from 7 to 9.
I ) Production for Bobbins:-
For the production of bobbins, three (3) plants are there.
To each plant the required workers is as follows,
1) Plant operators = 10
2) Winders = 8
3) Helpers = 4
The raw materials, Raffia grade, fillers, and colors (if required) supplies
into plant. The operators give the settings to plant for thickness of out
coming thin sheet. This thin sheet further cuts into threads. These
threads wrap by the winders. Thus from raw materials it becomes
bobbins.
In this process the type of workers are semi-skilled and unskilled. This
process runs for two shifts.
II ) Production of the un-laminated fabric

Klene Paks Ltd is using 116 looms machines, for the production of the un-
laminated fabric. To produce this, the required workers are,
1) 1 viewer for 2 looms machines. Therefore, 56 viewers are

required in each shift.
2) For setting and maintenance purpose, 10 workers are there.
Here the bobbins are placed according to required color of the fabric.
According to given settings, the looms machine weaves it and the output
fabric wrapped as big roll. This is the production procedure of the
HDPE/PP non-laminated fabric.
III ) Production of the laminated fabric
By taking HDPE/PP un-laminated fabric into lamination plant makes it

laminated HDPE/PP laminated fabric by giving setting to the lamination
plant. The workers in this process are as follows,
1) Lamination plant operators are 5 in each shift

2) 12 helpers are there in each shift
If the customer has ordered for laminated HDPE/PP fabric, company will
despatch it. If the customer has ordered for laminated sacks then it goes
for finishing section.
IV ) Finishing work for Sacks
This finishing work is for the HDPE/PP laminated/un-laminated fabric.

After finishing work, it becomes the sacks. In this section, total number of
workers is 65.
This section consist of,

1) Supervisor 1
2) Assistant supervisor
3) Printing operators 3 and Helpers 3. Likewise total 4 tables
4) Tailors 3 and Helpers 3
5) Cutting (only ladies) workers 4. Likewise total 4 tables
6) Reversing the bag, workers 4. Total 5 tables
The supervisor has a job card, which consist of the number of orders to
be produce and specifications of the parties. Suppose the fabric is
laminated one then, the first they cut according to the specification.
Next, they make it reverse. The tailors stitch it. Now it is a sack (bag).
Finally, the printing operators print the specified print on sacks. These
sacks are delivering to the parties.
Human Resource Department

The most important resources of any organization are its human
resources the people supply the organization with their work, talent,
creativity and drive. Thus, most important aspect of an organization is
the Personnel management.
The personnel department handles all the employees’ personal record

keeping and documentation activities related to employees. There are
two assistants who assist the personnel manager. The personnel
manager looks after attendance, salary, recruitment, absenteeism etc.
The employee strength of this unit is nearly about 125 (skilled and semi-
skilled) and 250 unskilled workers who are working for the development
of the organization. The promoters have the unique quality in then of
choosing the right person for the right job at the right time. This has
taken them to the heights they have achieved in a very short span of
time to ensure that products (fabric) of a very high order in its quality
and standards.
Objectives
1) To recruit and retain the human resources of required quantity and
quality.
2) To foresee the employee turn over and arrange for minimizing turn
over and filling up consequent vacancies.
3) To meet the needs of workers at the time of programs of
expansion, diversification etc.
4) To foresee the impact of technology on work, existing employees
and future human resources requirements.
Functions
1) Attendance management
2) Training and Development
3) General Administration
4) HR Records
5) Ensuring good relations
6) Complying communication through meeting
7) Managing the facilities
Procedure of Salary Payment
1. Salary list is prepared based on attendance

sheet of all employees.
2. The payment is usually done on 7th and
between 10th of each month.
3. For employee is 30 days in a year
Recruitment Policy
Once the required number and kind of human resource are determined
the top management plans to recruit the vacant post. It conducts
meetings where all directors and heads of departments participate in
that. It searches for the right kind of people, doing a right job for the
organization.
(a) Internal Recruitment
1. Existing employees are considered for the vacant job in the

organization..
2. A recommendation of any Experienced Employee for the vacancy
of a right person is considered.
3. If previous employee again wants to join the organization, it will
recruit them.
(b) External Recruitment
The organization never goes for institution or any agency. It follows only
one method of external recruitment. The candidate who comes directly
to the organization will be considered for recruitment.
Selection Policy
After identifying the right person, the directors call that candidate for
interview. In the interview the candidates qualification, performance in
education, knowledge about work, ability of controlling situation, his
commitment and whether the candidate will do what the organization
wants or not will be tested.
His earlier work will be taken into consider at the time of selection. If
Directors and MD feels good and particular candidate is fit for the job and
he will take the organization to words progressive trend then only think
to select that candidate. Salaries of the candidate are finalized at the
time of interview only. Selected on the basis of following qualities
a. Skill
b. Knowledge
c. Ability
d. Special qualities
Training and Development
Training and Development being one of the pillars of HRM activity, HR

department is in charge of this pillar. In order to enable employees for
better performance, Training and Development activities is undertaken.
Training here is imparting specific skills and basic training is also given to
fresh, successful candidates placed on jobs in order to perform
effectively.
The most widely used methods of training take place on the job. This can
be attributed to the simplicity of such methods and the impression that
they are less costly to operate. sense.
One of the drawbacks to on-the-job training can be low productivity while
the employees develop their skills. Another drawback can be the error
made by the trainees while they learn. However, when the damage the
trainees can do is minimal, where training facilities and personnel are
limited or costly, and where it is desirable for the workers to learn the job
under normal working conditions, the benefits of on-the job frequently
offset its drawback.
In Klene Paks Ltd, senior or experienced employees and workers give the
training in terms of on-the-job training.
Employee Welfare
KPL favors employee welfare because that bears a direct influence on the
Employee and it motivates them to perform better. KPL intra mural

facilities are in other words welfare measures inside the work place
consist of
a) Good working condition

b) Safety and cleanliness
c) Good ventilation, lighting, temperature and elimination of smoke
etc.
d) Good sanitation
e) Provision for meal time and tea breaks
f) Various conveniences like provisions for drinking water, water
coolers and canteen services etc.
g) Workers health services: Factory health education, emergency aid

and
medical examination for workers.
h) Employee recreation: In door Games and contests during festivals
and
i) Other occasions.
Fringe benefits
Extra benefits given or provided for the employees to improve relation

with management and to improve his productivity and feeling job
satisfaction.
In KPL following are the fringe benefits given to the workers.
1) Canteen facility
2) Bonus for every workers of below Rs7500 salary
3) Tea and coffee to employees
4) Gifts to employees on festivals
Despatch Department
Hierarchy Structure of Despatch department
Chart No: 3.9
Functions
1) Recording the information of available fabrics

2) Taking request from marketing department
3) Checking for availability of the fabrics
4) If available, then loading the given order.
5) If not, giving information to production department to produce
required fabrics.
Following the request of marketing department, the despatch
department checks for availability of the ordered HDPE/PP
Laminated/non-laminated fabrics. If the specified material is available
then despatch department sends back that sales slip to marketing
department. If the specified material is not available then despatch
department informs the production department to start production of
that specified material. It may take 4 to 6 days. It is highly depends on
the bulk of ordered fabric.
With the help of 10-12 members of loading team, the despatch

department will load the ordered HDPE/PP Laminated/non-laminated
fabrics. They use the unique technique to load the given order and with
the help of information gathering team, the despatch department can
easily identify or come to knowledge about who many, where the fabrics
are available.
Transportation
Klene Paks Ltd uses transportations to deliver the ordered fabrics to

different destinations. Moreover, they started their own transportation for
good customer services. The customers have to pay the cost delivering
fabrics and freight charges. Some of the transportations names used by
Klene Paks Ltd are,
1) VRL
2) GRT
3) SRMT
4) KLL (KLENE LOGISTICS)
Quality Control and Quality Assurance
Quality controller will take the ten bobbins. From each bobbin, they will
take 9 meters long thread. So by taking total ten threads, they place it in
weighing machine, such that, it has to show the 55 grams of total weight.
To check the capacity or strength of the fabric they take 2 inches of
piece of every produced fabric and place it into strength machine. It will
give the respective weight handling capacity. For width checking
purpose, they use measuring tape.
CHAPTER 4
RESEARCH METHODOLOGY
Statement of the Problem
Absenteeism has far reaching consequences. The absent employees

themselves and their dependents may have a reduced income because
of absence, besides incurring possible additional medical expenses.
Employers are affected by direct costs such as sick pay, overtime and
staff replacement costs, plus the indirect costs associated with the
effects of absence. From an economic point of view, there is the loss of
potential output, and the increased expenses on social security
payments. However, absence control is not just about costs. The notion
of what constitutes absenteeism has changed through the years as
employees statutory leave entitlements and authorized company-level
leave have increased. Nowadays apart from sickness, employees can be
absent from work for any one of a number of reasons, either under
statutory leave entitlement, or under agreements agreed at an individual
company level. Hence, the reasons for employee absenteeism can be
researched upon in order to curb its occurrence and decrease losses to
the company. The research study is carried out to identify the critical
factors that have contributed towards absenteeism.
Literature Review
The study entitled “A study on absenteeism at Canara Workshop Limited,

Mangalore” was conducted by Mr. Muni Raj, who was pursuing M.B.A.
during the year 2007-08 in order to know the personal profile of the
respondents, to study the reasons for absenteeism, to know the opinion
of the employees on absenteeism, to find out the level of satisfaction, to
suggest measure for reducing absenteeism. The researcher selected 50
respondents for the study through simple random sampling technique.
The main findings of the study was that majority of the respondents were
dissatisfied with the salary provided to them, relationship with the
superiors and were tormented by family problems. It was suggested that
the company should concentrate on increasing their employee
satisfaction in order to improve loyalty of employees. Also it was
suggested that the company should compensate the employees
sufficiently and support them.
The study entitled “A study on absenteeism and labour turnover at

United Chemical Industries Ltd” was conducted by Ms. Firdous Ahmed,
who was pursuing M.B.A. during the year 2008 in order to study pattern
and the procedure followed regarding absenteeism and labour turnover
in U.C.I. Ltd, to analyze the absenteeism rate, during the years, to study
the existing scenario, to make a critical review of the effectiveness of
present policies and make suitable recommendations. The study is
confined to the limits of U.C.I. Ltd only. The main findings of the study
were that the absenteeism rate was more among the younger employees
and that the employees were not satisfied with their pay and the job
assigned to them. However, the facilities available to them are
satisfactory. In addition, the labour turnover during the year was very
high and was mainly due to poor pay, poor relationship with supervisors
and transportation facilities. Hence, it is suggested that better salary be
paid to the employees and effective training be given to them. It is also
said that they should be treated with respect and harmonious
relationship be maintained.
This study entitled “A Study Comparing Absenteeism Rates of Two Sister

Concerns of S.A.G. Solutions” was conducted by Mr. Kushal Karia, who
was pursuing M.B.A. during the year 2007-08 with an aim of comparing
the absenteeism rates of two sister concerns of S.A.G. Solutions. It also
aimed at finding out the reasons for increased absenteeism rate and
suggest correct measures. The main findings were that one of the
concerns had higher absenteeism rate when compared with the other.
The main reasons that can be attributed to this are ineffective
supervision, absence of control over employees, groupism etc. Measures
suggested were to train supervisors effectively and impose punishments
when rules are not adhered to, make employees aware of bad effects of
absenteeism and discourage groupism.
Significance of the study
When absence is not addressed or addressed in an inconsistent manner,

lower morale can result. Employees, themselves, also may have personal
circumstances that require them to take time off work. Due to twin fold
impact of absenteeism on production as well as welfare of the employees
there is an urging need for monitoring the phenomenon of absenteeism,
on a continuous basis. This would provide valuable inputs for the
management. Such monitoring would be done by studies focusing on
absenteeism in regular intervals. The study helps to improve the
production process and increase the effectiveness of the employees. It
also helps to make prevention methods to reduce the absenteeism and
adopt various measures to overcome the difficulties.
Scope of the Study

This study is helpful in finding out major reasons for absenteeism in
Klene Paks Ltd. However, no emphasis is laid on the impact of
absenteeism on workers’ productivity. The study is directed towards
finding the major causes for absenteeism in the organization. It does not
strive to introduce measures to reduce absenteeism.This study will help
both management and workers to find out what kind of relationships
exist in the organization..
Objectives of the study
The study strives to find out the various causes of absenteeism faced by
the company.
Methodology
The study conducted is of descriptive nature. The entire employees in

the organization constitute the population. A sample of 50 employees is
drawn from the population using judgmental sampling technique.
Primary data was collected by survey method through a questionnaire
that was distributed to the employees and secondary data was collected
from company records, company website, the internet, books, previous
dissertations etc. Analysis of data is done by using charts, bar-diagrams
and tables.
Limitations of the Study
1. The study is also subject to individual bias of the employees.

2. The study suffered due to lack of cooperation of staff.
CHAPTER 5
ANALYSIS AND INTERPRETATION

1. Sex and Marital status
Here, the responses of employees with reference to their sex and marital
status are being analyzed. General trends are being studied.
Table No: 5.1
Sex and Marital status
Sex/
Grand
Marital status Married Unmarried Total
Female 5 5 10
Male 40 40
Grand Total 45 5 50
Source:
From the table above, we can see that among the 10 female
respondents, 5 are married and 5 are unmarried. Likewise, of the total of
40 male respondents, all of them are married. Therefore, we see that all
the male respondents are married and half the females are married. Thus
married respondents are more in number. So should be their family
responsibilities.
2. Age group and Educational qualification
The age group of the respondents in connection with their educational

qualification is being studied here. The age groups are divided into 4
categories, that is, 20-30 yrs, 31-40 yrs, 41-50 yrs and 50- above yrs
categories. The educational qualification categories are above SSLC,
below SSLC, diploma/graduate and ITI.
Table No: 5.2
Age group and Educational qualification
Age Above Below Diploma/ ITI Grand

group/Educatio SSLC SSLC Total
Graduate
nal
qualification
20-30 1 1
31-40 5 16 21
41-50 13 13
51-above 10 4 1 15
Grand Total 28 17 4 1 50
Source:
From the above table it can be inferred that, all the respondents
belonging to the age group of 20-30 yrs have an educational qualification
of below SSLC. It is also seen that of the 21 respondents of the 31-40 yrs
age group, 5 have an educational qualification of above SSLC and the
rest 16 have an educational qualification of below SSLC. All of the 13
respondents of age group of 41-50 yrs belong to above SSLC educational
qualification category. Of the remaining respondents all of who belong to
age group of 51-above yrs category, 10 belong to above SSLC and 4
belong to diploma/graduate categories respectively.
3. Work experience and Nature of employment
Here, the work experience of employees is being analyzed along with

vthe nature of their employment. The categories that have been
identified for work experience variable are 0 to 6 months, 6 to 12
months, 12 to 18 months and 18 months and above. Employees have
been divided into permanent and temporary employees on the basis of
nature of employment.
Table No: 5.3
Work experience and Nature of employment

Work
Grand
experience(months)/Na Permanent Temporary
Total
ture of employment
0 to 6 2 1 3
6 to 12 8 8
12 to 18 17 17
18-Above 22 22
Grand Total 49 1 50
Source:
Here, it is seen that of the 3 employees having a work experience of 0 to

6 months, 2 are permanent and 1 is temporary. All the respondents
having work experience of 6 to 12 months, 12 to 18 months and 18
months and above respectively are permanent.
4. Locality and Family type
The kind of locality in which the respondents live is being analyzed in

relation to their family types. The kind of localities has been identified as
rural and urban localities and the family types being studied here are
joint family and nuclear family system.
Table No: 5.4
Locality and Family type
Locality/Family Grand
Joint Nuclear
type Total
Rural 22 22
Urban 13 15 28
Grand Total 35 15 50
Source:
From the table above, we infer that all of the respondents living in rural
localities belong to joint families. Also, of the total of 28 respondents
living in urban localities, 13 belong to joint families and 15 belong to
nuclear families.
5. Job Satisfaction and work experience
Here, a relationship is established between job satisfaction of the

respondents and their work experience. The different levels of
satisfaction identified are highly satisfied, satisfied, neutral and
dissatisfied. Work experience as seen before includes categories of 0 to 6
months, 6 to 12 months, 12 to 18 months and 18 months and above.
Table No: 5.5
Job Satisfaction and work experience
Job
satisfaction/Work 6
experience(mont to 12 to 18- Grand
hs) 0 to 6 12 18 Above Total
Highly satisfied 3 8 5 16
Satisfied 12 7 19
Neutral 7 7
Dissatisfied 8 8
Source:
From the above table, we understand that of the 16 respondents who

were highly satisfied with their job, 3 had a work experience of 0 to 6
months, 8 had a work experience of 6 to 12 months and 5 had work
experience of more than 18 months. A total of 19 respondents were
satisfied with their job, out of which 12 had a work experience of 12 to 18
months and 7 had a work experience of 18 months and above. All of the
7 who took a neutral stand on this had work experience of 18 and more
than 18 months. There were 8 respondents who were dissatisfied with
their job. They all belonged to 18 months and above category of work
experience.
6. Job satisfaction and age group
The variables under study are job satisfaction of employees and the age
group to which they belong. The different levels of satisfaction identified
are highly satisfied, satisfied, neutral and dissatisfied. The age groups
that have been identified are 20-30 yrs, 31-40 yrs, 41-50 yrs and 51 yrs
and above.
Table No: 5.6
Job satisfaction and age group
Job
satisfaction/
51- Grand
Age 20-30 31-40 41-50
above Total
group(years
)
Highly
1 15 16
satisfied
Satisfied 6 13 19
Neutral 7 7
Dissatisfied 8 8
Source:
We can infer from the table above that of the 16 highly satisfied
respondents, 1 belongs to 20-30yrs age group while the remaining 15
belong to 31-40 yrs age group. There are 19 satisfied respondents
amongst whom 6 are under the age group of 31-40 yrs and 13 belong to
41-50 yrs age group. All of the neutral as well as dissatisfied respondents
belong to age group of 51 yrs and above respectively.
7. View on absenteeism problem
The respondents were asked about their view on why absenteeism

occurred. The options given to them were habitual problem, a regular
practice and an incorrigible problem.
Table No: 5.7
View on absenteeism problem

View No: of Percentage
Respondents
Habitual 22 44
Problem
A Regular 16 32
Practice
An Incorrigible 12 24
Problem
Total 50 100
25
No: of Respondents (%)
20
15
10
0
Habitual Problem A Regular An Incorrigible
Practice Problem
View
Respondents’ view on absenteeism problem
Chart No: 5.1
The table above tells us about the employees’ views on absenteeism as a

problem. A majority of 22 respondents think that the problem of
absenteeism is a habitual problem. It is closely followed by 16 employees
who feel that it is a regular practice. 12 of the respondents view
absenteeism as an incorrigible problem. Thus, we infer that it is mostly a
habitual problem wherein the employees are too used to absenting
themselves from work.
7. Causes/Reasons for absenteeism
Here attempts are made to find put the main reasons for absenteeism,
The important reasons taken into consideration here are low salary,
family problems, lack of transportation, poor relationship with colleagues,
heavy work load,
Table No: 5.8
Causes/Reasons for absenteeism
Causes/Reasons Yes Percentage No Percentage
Low salary 19 38 31 62
Family problems 37 74 13 26
Lack of transportation 32 64 18 36
Poor relationship with colleagues 16 32 34 68
Heavy work load 26 52 24 48
Pressure from higher authority 29 58 21 42
Unsatisfactory canteen & other

27 54 23 46
facilities
Poor health 16 32 34 68
Alcoholism 9 18 41 82
Unforeseen contingent situations 33 66 17 34
Source:
45
40
35 Ye
Respondents 30
25 No
20
15
10
5
0
c
re
ns
m
sp
ps
ob
th
ad
ry
fa
su
is
la
al
io
an
hi
pr
lo
ol
sa
he
at
ns
es
nt
tr
k
ly
oh
tu
ca
or
Pr
t io
w
or
of
Fm
si
c
W
Lo
Po
ry
Al
la
ck
n
ct
re
ee
La
sf
or
rs
st
Po
fo
Un
Un
Causes/Reasons
Causes/Reasons for absenteeism
Chart No: 5.2
From the figure above, we see that of the 50 respondents, majority of the
respondents, that is about 31 of them do not think that low salary is a
reason for absenteeism. Also, it is clear that most of the respondents, that
is, 37 and 32 of them respectively consider family problems and lack of
transportation as a major reason for absenteeism. While a majority
constituting 34 respondents do not think that poor relationships with
colleagues is a cause for absenteeism, a minority constituting 16
respondents consider poor health as an important cause. Also, we see that
pressure from higher authorities and unsatisfactory canteen and other
facilities are also perceived to be a reason for absenteeism. A large
number also consider unforeseen situations as a cause for absenteeism.
CHAPTER 6
FINDINGS, CONCLUSIONS AND SUGGESTIONS
Absenteeism is a common feature of industrial labor in India. It curbs

growth, productivity and affects the company’s progress in two-fold.
This study has two main parts: an organizational study and a topic study.
The organizational study has become an increasingly complex field in
which we need to keep abreast of current practices, legal requirements
and likely trends. The organizational study conducted here sets out to
study the overall organizational structure of Klene Paks Ltd and give an
overview of some departments that are relevant to the effective
management study. It strives to understand each department closely and
study its objectives, structure, functioning and operation. From the study,
the various strengths, weaknesses, opportunities and threats that the
organization faces are brought to light through a S.W.O.T. analysis.
The second part of the study is a topic entitled: “A study on absenteeism

at Klene Paks Ltd, Bangalore”. The study aims at finding the main causes
of absenteeism in the company. It is conducted across the entire
employee population of the organization using sampling technique. A
sample of 50 employees was drawn from the population by using
judgmental sampling. Data was collected from primary as well as
secondary sources. Primary data was collected through a well designed
questionnaire and secondary data was collected from company records,
company website, the internet, books, previous dissertations etc.
Analysis of data is done by using charts, bar diagrams and tables.
The major findings of the organizational study following the S.W.O.T.

analysis are as follows.
SWOT ANALYSIS
A S.W.O.T analysis of the organization is conducted and the following are

the findings of the analysis.
Strengths
a) KPL has a large customer base for profit as well as for survival of
their business.
b) KPL has brand equity in the market. Therefore, customers easily
purchase company’s products.
c) KPL has smooth work force throughout the organization.
d) The finance department is powerful.
e) The purchase, marketing, and production departments are strong.
f) KPL has its own transportation service.
g) The length of the cash cycle is of 8-10 days.
h) KPL has godowns of sufficient capacities to meet local demands
and for urgent deliveries.
i) Company has only equity shares. Therefore it is never burdened
with the responsibility of paying the preference dividend and debt
interest.
Weaknesses
a) There is a scope for development in the Human Resource

Department.
b) There is continuous variation in the number of unskilled labor.
c) Fringe benefits are not up to the mark. Workers are not satisfied
with the company’s fringe benefits.
d) Less number of techniques are used by the production and
purchase departments.
Opportunities
a) Company is planning for some more godowns in different

locations.
b) Customer coverage is increasing in every state.
c) Company has ability to produce different fabrics at different sizes,
which are not possible by every fabric producer.
Threats
a) Up coming fabric producers produces competition.

b) Customers may shift to eco-friendly fabrics/sacks.
c) Continuous increase in the technological changes is another
threat.
FINDINGS FOR ANALYTICAL STUDY
1. This study indicated that majority of respondents were married

males. Half the women were married. This could also mean that the
family responsibilities are more for a major portion of the
respondents.
2. The analysis reveals that majority of the respondents have an
educational qualification of above SSLC. The largest number of
highest qualified respondents was of the age group of 41-50 yrs.
Greatest number of respondents are of age 31-40.
3. It is found that majority of the respondents are having experience
mere than 18 months. Of this majority, all are permanent employees.
All of the respondents are permanent except for one who is
temporary. The company does not recruit on probation basis.
4. The study has found that a large portion of the respondents having
maximum work experience are dissatisfied with their job. Also, the
respondents with the least work experience have the highest amount
of satisfaction. Overall, majority of respondents are satisfied. Thus, it
can be said that the company has recruited the right persons for the
right jobs.
5. It is seen that a large number of middle aged respondents are
highly satisfied with their job while the respondents who are
dissatisfied with their jobs are the ageing group.
6. Most of the respondents feel that absenteeism is a habitual
problem and a slightly lesser number feel that it is a regular practice.
Thus, it is found that the employees have made it a habit to absent
themselves from work.
7. The study reveals that most of the employees do not consider low
salary as a reason for absenteeism. Thus, majority of the employees
are not dissatisfied with their salaries.
8. Highest number of the respondents said that absenteeism is
caused mainly due to family problems. This can be attributed to the
fact that most respondents belong to joint families.
9. A majority of respondents also feel that absenteeism is mainly
caused due to lack of transportation facilities. This shows that most
respondents stay quite far away from the place of work.
10.Most of the respondents said that poor relationship with colleagues
does not cause the employees to be absent from work. This means
that there exists harmonious relationship between the colleagues.
11.A large number of the respondents agree that heavy workload is
one of the main causes for absenteeism. Hence, it is understood that
the work assigned to the employees is quite heavy.
12.It is found that majority of respondents aid that pressure from
higher authorities is responsible for absenteeism. Hence, we
understand that the employees are pressurized excessively to meet
deadlines etc.
13.The study reveals that many respondents agreed that
unsatisfactory canteen and other facilities have lead to increased
absenteeism. Thus, the employees are not provided with enough
canteen and other facilities.
14.Major part of the respondents felt that absenteeism is caused due
to poor health conditions. This may point towards the fact that the
employees suffer from occupational diseases etc.
15.Majority of the respondents said that alcoholism does not
contribute to absenteeism. Hence we find that majority of
respondents’ is not much affected by alcoholism.
16.In this study it is found that majority of the respondents said that
absenteeism is caused most of the times due to unforeseen
contingent events.
SUGGESTIONS
1. The company should try to extract maximum

possible from its customers owing to their brand equity in the market.
2. The company’s Human Resources Department
has to be developed. There is a lot of scope for its development.
3. The production and purchase departments
should aim at improving the style and number of techniques used.
4. The company should design strategies like
advertising, promotion etc to fight competition from upcoming
players.
5. In order to retain the customers and prevent
them from switching to eco- friendly products, the company has to
build high levels of customer satisfaction.
6. The company should look at recruiting younger
employees to increase the productivity. They should be given
sufficient training too.
7. The company should consider recruiting
persons on probation and temporary basis because such employees
display higher levels of productivity and efficiency.
8. The employees should be given training and
awareness on how to tackle the habitual problem of absenteeism and
why it is detrimental to work and the employee as an individual.
9. The company should have an in-house
counselor who can help the employees with their family problems and
sort them out.
10. The company should be able to provide
transportation facilities to employees or accommodation nearby the
company in order to reduce absenteeism rate.
11. The company should consider reducing or
distributing the workload so that employees are not overburdened.
12. The company should not pressurize the
employee to work because that affects the employee’s morale.
13. The company should improve its canteen
facilities and other extra benefits.
14. The employees are absent mostly due to
health problems. Hence the company must take necessary steps
towards protecting the employees from occupational diseases.
CONCLUSION
The study provides an insight into the functioning of the different

departments of the organization, the strengths, weaknesses,
opportunities and threats of the organization. It also explains the reasons
for absenteeism in the organization and suggests measures to combat
absenteeism.
The study has concluded that most employees are satisfied with their job
and the organization has well developed and functioning departments.
The organization should consider providing some facilities like fringe
benefits, transportation and accommodation, training etc.
BIBLIOGRAPHY
1. Gupta K. Shashi, (2006), Human Resource Development, Sixth edition,

New Delhi; Himalaya Publishing House
2. Mamoria C.B., (1995), Personnel Management, Bombay; Himalaya
Publishing House
3. Kothari C.R.,(2006), Research Methodology, Fifth Edition, New age
International Publishers
4. www.klenepaks.com
5. http://www.indiastudychannel.com/resources/69871-Importance-
objectives-organization.aspx
6. http://socyberty.com/people/what-is-organization/
7. http://www.blurtit.com/q595581.html
8. www.managementparadise.com
9. www.citehr.com
APPENDIX
Questionnaire
Study on Absenteeism at Klene Paks Ltd
1. Name (optional) :
2. Sex : a) Male b) Female
3. Age : a) 20-30 b)31-40
c) 41-50 d) 51-and above
4. Marital status : a) Unmarried b) Married
c) Widow d) Widower
5. Educational Qualification: a) below SSLC b) SSLC
c) I T I d) diploma/ graduation
6. Work Experience : a) 0-6 year b) 6-12 years
c) 12-18years d) 18&above
7. Nature of Employment :
a) Temporary b) Permanent c) Probationary
8. Locality : a) Urban b) Rural
9. Type of family : a) Nuclear family b) Joint family
10.Are you satisfied and content with the job that has been assigned to
you?
a) Highly Satisfied b) Satisfied c) Neutral d) Dissatisfied e)
Highly Dissatisfied
11. You view the problem of absenteeism as a(n)
a) Habitual problem b) Regular practice c) An incorrigible problem
12. Indicate whether the following would constitute a reason for your
absenteeism from work.
S.L. CAUSES/REASONS YES NO
No:
1. Low salary
2. Family problems
3. Lack of transportation
4. Poor relationship with colleagues
5. Heavy work load
6. Pressure from higher authority
7. Unsatisfactory canteen and other
facilities
8. Poor health
9. Alcoholism
10. Unforeseen contingent situations
13. Your suggestions (if any)
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A

SCMS School of Technology and Management

SCMS School of Technology and Management,

This is to certify that the project entitled “Organization study

Mr. K.G. Makesh

This is to certify that the project entitled “Organization study

Dr. Radha Thevannoor

I understand that detection of any such copying is liable to be

Date: Preethi Mohan

I thank God Almighty, for his blessings and care.

I would like to express my deep sense of gratitude to SCMS School of Technology

CHAPTER CHAPTER NAME PAGE NO:

1. INTRODUCTION AND THEORETICAL 2-11

1.1 An Introduction to Organization 3

1.2 Organization Structure 5

1.3 Organization Study 6

1.4 Concept of Absenteeism 6

2. INDUSTRY, COMPANY AND PRODUCT 12-19

2.1 Packaging industry: An Overview 12

2.2 Klene Paks Limited: A Profile 15

2.3 HDPE/PP Woven Fabric: A Profile 19

3. ORGANIZATIONAL STRUCTURE AND 20-41

4. RESEARCH METHODOLOGY 42-44

4.1 Statement of the problem 42

4.2 Review of Literature 42

4.3 Significance of the study 43

4.4 Scope of the study 44

4.5 Objectives of the study 44

4.7 Limitations of the study 44

5. ANALYISIS AND INTERPRETATION 45-60

6. FINDINGS, CONCLUSIONS AND 61-65

6.1 SWOT analysis 61

BIBLIOGRAPHY AND APPENDIX 66-67

Chart No:3.2 Hierarchy Structure of 21

Chart No:3.3 Hierarchy Structure of 23

Chart No:3.4 Hierarchy Structure of 24

Chart No:3.5 Block Diagram of routine 25

Chart No:3.6 Hierarchy Structure of 28

Chart No:3.7 Block Diagram of Routine 30

Chart No:3.8 Hierarchy Structure of 32

Chart No:3.9 Hierarchy Structure of 40

Chart No:5.1 Job Satisfaction Level 49

Chart No:5.2 Respondents’ View 50

Chart No:5.3 Cause of Absenteeism: Low 51

Chart No:5.4 Cause of Absenteeism: 52

Chart No:5.5 Cause of Absenteeism: Lack 53

Chart No:5.6 Cause of Absenteeism: Poor 54

Chart No:5.7 Cause of Absenteeism: 55

Chart No:5.8 Cause of Absenteeism: 56

Table No:5.2 Age group of respondents 45

Table No:5.3 Marital Status of 46

Table No:5.4 Educational 46

Table No:5.5 Work Experience of the 47

Table No:5.6 Nature of the employment 47

Table No:5.7 Locality 48

Table No:5.8 Type of Family 48

Table No:5.9 Job Satisfaction Level 49

Table No:5.10 Respondents’ View 50

Table No:5.11 Cause of Absenteeism: 51

Table No:5.12 Cause of Absenteeism: 52

Table No:5.13 Cause of Absenteeism: 53

Table No:5.14 Cause of Absenteeism: 54