DECLARATION

I, NEHA S.S hereby declare that all the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere for the requirement
of a degree programmed. Any literature, data or work done by others and citied within
this dissertation has been given due acknowledgement and listed in the reference section.

The information given in this project report is true and correct to the best of my
knowledge. I am also declaring that all the work in this project is done by me and not
copied from anywhere.

NEHA S.S
M.B.A
Global Institutes of Management

PREFACE

The theory without practical is lame and practical without theory is blind.

Absenteeism is a serious workplace problem and an expensive occurrence for

both employers and employees seemingly unpredictable in nature. Human resource
is an important part of any business and managing them is an important task.
Summer training is an integral part and the student of Management have to
undergo training session in a business organization for six weeks to gain some
practical knowledge in their specialization and to gain some working experience.
Our institution has come forward with the opportunity to bridge the gap by
imparting modern scientific management principle underlying the concept of the
future prospective managers.
To the emphasis on practical aspect of management education the faculty of
Global Institutes of Management has with a modern system of practical
training of repute and following management technique to the student as integral
part. In accordance with the above obligation under going project in AIRCEL,
Amritsar. The title of my project is Absenteeism of Employee.
Certainly this analysis explores my abilities and strength to its fullest extent for
the achievement of organization as well as my personal goal.

ACKNOWLEDGEMENT

If you know where you are going any road will take you there, but I was quite
fortunate to have professional steersmen to lead me through the right road.
Although project work is through thought which is based on one shoulder but
remain unseen. Any research is never an individual effort. It is contributory efforts
of many hearts and heads.
My debt to those who have helped me in one way or the other is heavy indeed.
I take an opportunity to thank all of them. They are too numerous to be mentioned
on this brief ACKNOWLEDGEMENT.
This form a piece of acknowledgement may not be sufficient to express the feeling
of gratitude towards people who have helped me in the successful completion of
my training.
Firstly I am thankful to the almighty, and then I am grateful to Mr. Harmilap
Singh Grewal who stood by me as a pillar of strength throughout the course of
work and under whose guidance the project came out successfully. I am grateful to
him for his valuable suggestions.
I owe my debt for his regular encouragement and time to time consideration at
every stage.
I would also like to thank my project guide Mr. Rajesh Sharma (Lecturer Global
Institutes of Management), for the contribution made by them in completion of
my project.
I would like to thank each and every person who has helped me in this project
through thick and thin.

CONTENTS

Preface
Acknowledgement
Title
About Company
Introduction
Brand Values
Goals
Mission Statement

Awards and Milestones

Corporate Social Responsibility
Strategic Business Unit
Company Products
Financial Performance

Reason to choose this Project

Absenteeism
Features of Absenteeism
Causes of Absenteeism
Effect of Absenteeism
Analysis of Causes
Absenteeism Types & Their Control
Innocent Absenteeism
Culpable Absenteeism
Guidelines & Measures for Control of Absenteeism
The BRADFORD FACTOR & Absenteeism
Research Methodology
Objectives
Limitations of the Study
Analysis & Interpretation
Conclusion & Suggestion
Questionnaire
4

AIRCEL
INTRODUCTION
Aircel Limited is a mobile service provider in India. Aircel Limited is a joint venture
between Maxis Communication Berhad of Malaysia and Sindya Securities & Investments
Private Limited. The company is engaged in providing prepaid and postpaid GSM
cellular and associate services to broad customer segment. It is Indias fifth largest GSM
mobile service provider with a subscriber base of over 27.7 million, which represents
12.8% market share among the GSM operators in India.
The Aircel group is a result of alliance between Maxis Communications Berhad of
Malaysia (74% equity) and Sindya Securities & Investments Private Limited (26%
equity).The Aircel group formed in 1994 offers affordable and outstanding mobile
services to a vast subscriber base in India. Aircel has a vision of delighting its customers
by giving them the respect they deserve. Their goal is to provide their customers with
exemplary service and persistently look for new ways to surpass their expectations.
Aircel commenced operations in 1999. In their first decade of operations, they
concentrated on building their foundations in southern part of the country, and soon
emerged as the regional market leaders. They worked hard and achieved that success by
remaining focused on growth opportunities. The company began its expansion in 2005
and now has set its sight on becoming a pan India operator. Their project pipeline is
robust, allowing for sustainable long-term growth.
In addition to their leadership position in Tamil Nadu, Aircel met with extraordinary
success in the Eastern frontier circles. They pride themselves on customer satisfaction
and managed to emerge as the market leaders in Assam and North Eastern states within
18 months of operations. During this period, the company gained a strong foothold in 10
circles, to provide better access to customers. Today Aircel operates in 18
telecommunication circles and the company is ready to embark on a dynamic expansion
plan, swiftly rolling out in new circles in near future.
Aircel recognizes the tremendous growth in its customer base. They also got an
authorization from the department of Telecommunications for ILD and NLD telephony
services and are now on track to realize their dream of becoming a nationwide player by
the year 2010.
In December 2003, it launched commercially in Chennai and quickly established itself as
a market leader a position it has held since. Aircel began its outward expansion in 2005
and met with unprecedented success in the Eastern frontier circles. It emerged a market
leader in Assam and in the North Eastern provinces within 18 months of operations.
During this period, the company gained a foothold in 9 circles. The Company has

currently gained a momentum in the space of telecom in India post the allocation of
additional spectrum by the Department of Telecom, Govt. of India for 13 new circles
across India.
These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana,
Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP
(West)and UP (East).

Aircel offers its customers, services and products that are easy to understand and use. All
offerings are stimulating and at the same time extremely unique as Aircel continue to reinvent it constantly to deliver the best and most up-to-date services. The brand instills a
felling of pride, confidence and reliance among all stakeholders by anticipating their
desires and fulfilling the same efficiently.
With their foundation deeply set on their brand values simplicity, creativity, trust and
excitement, they will continue to deliver superior services to their customers and will do
their
best
to
live
up
to
their
high
expectations.

About Maxis Communications Berhad

Maxis Communications Berhad is a leading mobile communications service provider in
Malaysia that started operations in the year 1995. Maxis' vision is to bring superior
communication services to enhance its customers' lives and businesses, in a manner that
is simple and personalized, by efficiently and creatively harnessing leading edge
technology, and delivering a brand of service experience that is reliable and enchanting.

BRAND VALUES
The principles of Simplicity, Creativity, Trust and Excitement lie at the heart Aircel, as
their core values. It is these core values that guide them as an organization and drive them
to ensure that you receive the best of services and technology available, making your
experience a pleasant one and helping you explore your world of possibilities.

Simplicity:Simplicity with Aircel signifies freedom from hardship, effort or confusion. Their
products are elegant yet easy to understand and their services imply purity and clarity
for their valued subscribers.
Creativity:Creativity in Aircel refers to discovery of new ideas or concepts to find innovative
solutions to problems. Here at Aircel they encourage original thoughts, imagination,
novelty required to bring fresh ideas to life.
Trustworthiness:Aircel strives to be worthy of your confidence and deserving of your trust. They
Endeavour to achieve the same by being dependable, reliable and by keeping the
promises they have made.

GOALS

Customers:
Customers are the most valued assets. They will strive to exceed their expectations at
all time by providing them with superior services that embody value, innovation,
quality and care.

People:
People are greatest resources. They will attract, train and retain the best. They will
challenge them to develop their full potential in the context of the company goals.

Integrity:
They will maintain and strive for the highest levels of personnel and professional
integrity and honesty in all their dealings. They will keep their promises.

Respect:
They will treat with respect and integrity all people they deal with.

Excellence:
They are committed to excellence in all what they do. There will be no place for
mediocrity.

Work:
They will promote a work environment that embraces creativity, promotes
empowerment, and encourages team work, innovation, prudent risk taking, honest
and open communication.

Quality:
The hallmark of their internal and external outputs and processes will be quality. This
will pervade every aspect of their functioning.

MISSION STATEMENT

They are conditionally committed to exceeding their customers expectations.

They will provide network and services that are innovative and reliable, allowing
their customers anytime, anywhere communication.

They will attract, develop and retain an exceptional team of people.

They are committed to enhancing the quality of all in the community in which they
operate.

They will meet the financial expectations of their shareholders.

AWARDS AND MILESTONE

Since its inspection, Aircel has strived to provide the best of features and services to its
customers. It is this passion and enthusiasm that has helped them grow leaps and bounds
from what started as operations in Tamil Nadu in 1999, to a pan India presence across 18
circles today.
Aircel has also been recognized for its consistent and reliable efforts, receiving the
highest rating for overall customer satisfaction and network quality by Voice and Data in
2006, an accolade given to only a select few. They succeeded in keeping their promises to
their customers as they were recognized for the same award by IDC in 2007.
Aircel emerged as the top mid-size utility company in Business worlds 'List of Best MidSize Companies' in 2007. Additionally, they have also been recognized as the best
regional operator by the Tele.net Publication in 2007 and have been honored by CMAI
INFOCOM for excellence in marketing of new telecom service in 2009.
Thanks to their loyal customers, they have been rated as one of the most admired mobile
service brand in a pan-India survey conducted in Sep'09. Aircel today has reached a
subscriber base of 46 million plus and is still going strong. Rest assured Aircel's
commitment to providing you with the best of services and features will be an ongoing
Endeavour.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

At Aircel, they continually pursue healthy corporate citizenship. Their aim is not to
merely discharge social responsibility, but conduct business in a manner which reinstates
respect for people, communities and the environment.
They emphasize on an inclusive work culture to appreciate differences and believe
engagement with their employees is quite essential for an effective CSR plan. They share
adequate information on the organizations vision and CSR initiatives, because it
promises healthy operations and subsequently adds to the overall quality of life. This
motivates the employees and their family members to contribute to society.

10

Aircel maintains integrity and respect in its interactions with its stakeholders, customers,
retailers, investors, NGO partners and the government. They are careful in not partnering
with any PR/communication that induces distrust in the sincerity of their efforts. Their
stringent belief in delighting customers with good products and services helps build a
strong relationship.

Aircel is always proactive in supporting NGOs and NPOs. They extend all possible
assistance to their projects for a minimum of 3 to 5 years and there after support new
projects. Besides, they aim at continual involvement with their business partners and the
government for economic and social development of the underprivileged.

Aircel engages external audit agencies to guarantee authenticity, and maintains and
monitors an external profile of the CSR activities which are shared with the shareholders
in the annual reports and websites. They incorporate the CSR policies in their core
business to ensure ethical business practices in all the functions to harness a healthy
society.

11

STRATEGIC BUSINESS UNIT

Holding
Company

Dish-net
Wireless

Aircel
Cellular
Limited

Aircel
Business
Solutions

DISHNET WIRELESS LIMITED: This Company provides broadband services in

different circles & it is one of the company which uses WI-MAX technology.

AIRCEL CELLULAR LIMITED: This Company provides mobile services in

different circles.

AIRCEL BUSINESS SOLUTIONS: This is the sub part of Aircel Cellular Limited
which executes the ILD, NLD, WIMAX operations for Aircel cellular.

12

COMPANY PRODUCTS

Aircel mainly deal in its core business of cellular connection. It provides variety of
products such as:-

Postpaid mobile connections

Prepaid mobile connections
Recharge vouchers
Value added services
Broadband connections

with the help of these products company operate its business in the market & company
launches other products but they can be depend on either the competition or customer
preference.

13

FINANCIAL PERFORMANCE

Chennai-based Aircel is beginning to play a major role in the financial performance of

Malaysias Maxis Communication sever since it was acquired in March 2006 from
C.Sivasankaran of the Sterling Group.
Aircel has substantially increased its contribution in Maxis overall revenue as well as in
the EBITDA growth, besides the overall subscriber growth during the first quarter of
2007.
Aircels contribution to Maxis overall revenue in the first quarter has gone up sharply to
15% as against 10% in the previous quarters, while the contribution to EBITDA went up
to9% as against 7% a few quarters ago, Maxis said in a communication to investors
recently.
In value, Aircel contributed RM 320 million (close to Rs390crore) to the groups turnover
of RM 2,157 million (Rs 2,600crore) in the quarter as against RM 29million (Rs 38
crore) i.e. more than 10 times over the previous quarter.
Similarly, Aircels contribution on EBITDA was around RM102 million (close to Rs 122
crore) as against groups EBITDA of RM 1,082 million (Rs 1,300 crore), Maxis pointed
out. The Indian arm was key to this increase in the groups both revenue and EBITDA,
the company said further.
This was possible, as the subscriber base of Aircel has more than doubled to 5.5 million as
of March 2007 as compared to 2.6million a year back, taking Maxis total subscriber base
to 14 million during the quarter. Aircel managed to retain its market share in Chennai and
Tamil Nadu with 26% and 29% respectively.
In the other five circles, the company's market share rose from9.3% to 11% in the current
quarter. In the last quarter under review alone Aircel has gained 1 million subscribers,
Maxis said. Aircel is operational in nine circles with immediate market coverage to 350
million people, a quick gain on population from last quarter's 230 million people from
seven circles.
Having earmarked around $1 billion investments in India over a period of three years,
Maxis sees its Indian subsidiary become a key player in the groups overall growth in
revenue and profits.

14

REASONS TO CHOOSE THE PROJECT

When I joined the training at AIRCEL, I was allotted the project of

ABSENTEEISM OF EMPLOYEES. Initially it appeared to me quite a simple
project, but as I started working on it only then I understood its real significance.

It is often easier for the organizations to make arrangement to cover staffs, which
are going to be off for long periods. However, employees taking odd days off here
and there are more problematic, can have an immediate impact. If remain
unchecked, this type of absence can send out the wrong signals to colleagues who,
in some jobs, are likely to have to cover for those absent.

If employers fail to take action, a bug gins turn mentality may emerge. Frequent
absence may have serious repercussions where staff are employed in customerfacing roles or employed on production lines. The impact of absence may be most
directly felt and the need to arrange cover at short notice may be paramount.

15

ABSENTEEISM
INTRODUCTION
The co-operation of workers is essential for the good health of any organization.
Sometimes labour turnover and absenteeism become a major problem for the
management. The exit of workers or their absence from work disrupts production
schedules. Any make shift arrangement foe absent workers will be a costly affair
for the enterprise.
According to Websters Dictionary, Absenteeism is the practice or habit of
being in absence and an absenter is one who habitually stays away.
According to Labour Bureau (Govt. of India), Absenteeism is the failure of a
worker to report for work when he is scheduled to work
Absenteeism is the average percentage of workers absent from work per day for
any reason. Absenteeism in not the problem of underdeveloped countries only but
it is a universal phenomenon. It varies from 7% to 30% but in extreme cases it
goes up to even 40%. The degree of absenteeism may differ from place to place,
occupation to occupation and industry to industry. It may be high in some
occupations and industries as compared to others. Even in a particular industry,
the degree of absenteeism may vary in different departments.
Absenteeism is a universal phenomenon and is not peculiar to Indian Industries.
But the rate of absenteeism has been relatively higher in India. The Royal
Commission of Labour reported that, High absenteeism prevails among
industrial labour mainly due to their rural orientation. Since then, a number of
individual researchers have investigated the problem and have pointed out that
absenteeism in our industry varies from 7% to 15%. On the basis of the studies
undertaken in different parts of the country certain observations have been made.

16

CONCEPT
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. If they find their supervisor or
job unpleasant - really unpleasant -they look for legitimate excuses to stay home
and find them with things such as upset stomachs or splitting headaches.
Any effective absentee control program has to locate the causes of discontent and
modify those causes or eliminate them entirely. In other words, if we deal with
the real reasons team members stay home it can become unnecessary for them to
stay away. Any investigation into absenteeism needs to look at the real reasons
for it.
Sometimes teams members call in sick when they really do not want to go to
work. They would not call you up and say, Im not coming into day because my
supervisor abuses me.
Or, Im not coming in today because my chair is uncomfortable.
Or, Im not coming in today because the bathrooms are so filthy; it makes me
sick to walk into them.
There are a few essential questions to consider at the outset if you want to make
a measurable improvement to your absenteeism figures.

Why is your present absenteeism policy ineffective?

Where and when is excessive absenteeism occurring?
What are the real causes for absences?

It is commonly expected that low pay, poor benefits and high work loads will be
the major causes. In many cases, under- trained supervisors could be a
contributing factor. However, in numerous employee surveys absenteeism
generally has been identified as a symptom of low job satisfaction, sub-standard
17

working conditions and consistent negative and unfair treatment received by

first-line supervisors. How much formal training have your supervisors received
on absenteeism containment and reduction? If your answer is none or very little
maybe you have found the solution. As with every other element within your
organization, you cannot ask a person to do a job he or she has never been
trained to do. Many human resources specialists have found that repetitive,
boring jobs coupled with uncaring supervisors and/or physically unpleasant work
places are likely to lead workers to make up excuses for not coming to work.
If your team members perceive that your company is indifferent to their needs,
they are less likely to be motivated, or even to clock on at all. One way to
determine the causes of absenteeism is to question your supervisors about
excessive absenteeism, including what causes it and how to reduce it.
Of course, if your supervisors have made no efforts to get to know the team
members in their respective departments, they may not be able to provide
reasons. However, just the act of questioning may get the ball rolling and signal
to your supervisors that their involvement is important.
Once a manager finds the real reasons for absenteeism there is another important
step. Through open communication, you need to change the team members way
of reacting and responding to discontent other problems will no doubt arise in the
future. If the way of responding has not been reviewed, then the same cycle is
likely to start all over again. So often absenteeism problems can be sheeted back
to the supervisor level and to unsatisfactory working conditions. Without
improvement in these areas, you can expect your high rate of absenteeism to
continue.

ABSENTEEISM RATE
Absenteeism rate is the ratio of days lost to the total number of days for which
employment is available. For calculating absenteeism rate, the number of persons
expected to report for duty and the actual number of those who are present
should be known. A worker is considered present even if a worker reports for a
half shift. A worker enjoying sanctioned holidays is not counted in the persons
expected to be present.

18

FEATURES
Absenteeism is lowest on pay day and is highest immediately after the pay
day.
Absenteeism is high among workers of less than 25years and above
40years.
Absenteeism percentage is higher in night shifts than in day shifts.
Absenteeism rate varies from department to department within a unit.
Absenteeism is higher in departments where supervisors are work oriented
and careless for employee welfare.
Absenteeism rate is higher in days before and after a holiday.
Workers tend to be absent more frequently than supervisors and managers.

EFFECTS OF ABSENTEEISM
Excessive absenteeism is harmful to both employees and workers in the
following ways: Regular flow of work in the factory/office is disturbed.
Production schedules are delayed, so the orders cannot be executed in
time.
Overall production declines.
Overtime bill increases considerably.
Quality of work suffers because the casual workers employed to maintain
work schedules are not properly trained.
Work pressure on available and present employees increases.
Repairs and maintenance costs increase due to frequent break down of
machinery by inexperienced workers.
Incidence of industrial accidents increase.
Workers lose wages for unauthorized absence from duty.
Reduction in earnings increases indebtedness of workers which is further a
cause of absenteeism.
Workers who are habitually absent may be removed from service causing
hardships to them and their family members.

19

CAUSES OF ABSENTEEISM
The Royal Commission Labour observed that high absenteeism among Indian
labour is due to rural orientation and their frequent urge for rural exodus.
According to Acharaya In modern industrial establishment the incidence of
industrial fatigue, mal nutrition and bad working conditions aggravate that
feeling for change among industrial worker and some time impel them to visit
their village home frequently for rest and relaxation. Some of the causes of the
absenteeism are discussed as follows:

Maladjustment at Work Place: Workers sometimes do not adjust to the

situation prevailing at work place. Workers coming from rural to urban
areas do not adjust at those places. The congestion, insanitation, fast life
at urban areas does not like of village folk. They frequently go back to
villages after absenting from work.

Unhealthy Working Conditions: If working conditions are not good, then

workers frequently absent themselves from work. Heat, moisture, noise,
bad lighting, dust, over- crowding affect workers health causing them to
remain absent for longer periods.

Social and Religious Ceremonies: Social and religious ceremonies are a

major cause for absenteeism. These functions divert the attention of
workers and they spend too much time on these activities. Some studies
have shown that rate of absenteeism has been higher during festival
periods as compared to other periods.

Industrial Fatigue: Fatigue is also an important cause of absenteeism. To

earn more wages, workers may do overtime or may work at a higher speed
under incentive plans and start feeling tired for the next day. Low wage
rates also compel them to do some part time work after working hours.
They may not be able to face additional burden and thus fall ill leading to
long absenteeism.

20

Inadequate Welfare Facilities: Inadequate welfare facilities also lead to

absenteeism. There may be inadequate facilities for drinking water,
sanitation, canteen, rest-rooms, crches, etc. Workers feel inconvenience
at work. They go back to their homes for having some rest.

Alcoholism: The habit of alcoholism is very common among workers.

They want to forget their domestic worries by drinking alcohol. Drinking
becomes their habit and its hangover on the next day compels them to be
absent from work. Workers indulge in more drinking after getting their
wages and more absenteeism is reported in these days .

Inadequate Leave Facilities: The workers do not get proper facilities for
attending to family work. Since they are entitled for limited number of
leaves, they do not go to work, whenever they have to attend to family
needs.

Age: Absenteeism is higher among teenagers and old persons.

Teenagers are casual in their work and old people exhausts after
continuous work.

Absence of Housing and Transport Facilities: Housing is a major

problem in cities and in the absence of company houses, workers either
stay alone or at far off places. Thus, quite often they have to travel long
distances to reach of the work place. Without company transport, they are
often unable to reach in time. Thus, housing and transport problems result
in absenteeism .

Management Systems: When the managers treat workers as mere tools,

the rate of absenteeism is likely to be high. In the absence of proper
management control, workloads, shift arrangements and personnel policies
may be unbalanced causing absenteeism.

Rural Ties: The most of the factory workers come from villages. They
leave behind their families and relatives while coming to cities for
employment. They go to their villages often for festivals, religious and

21

social ceremonies, sowing and harvesting of crops, etc. This leads to high
rate of absenteeism.

Indebtedness: Most of the workers suffer from a high degree of

indebtedness. Some workers absent themselves or even resign to escape
the usurious money lenders. As a result absenteeism is high.

ANALYSIS OF CAUSES

FAMILY ORIENTED & RESPONSIBILITES: It was observed that about

40% case absenteeism is family oriented and more responsibilities of
workers. It increases in harvesting season.
SOCIAL CEREMONIES : In 20 % cases it was found that social and
religious functions divert worker from work.
HOUSING FACILITY: In about 30% cases, the workers remain absent
because there is no housing facilities and the workers stay alone and great
distance from factory.

SICKNESS AND ACCIDENT: In 20% case the workers remain absent due
to ill health and disease and in 15% cases workers remain absent due to
accident.

22

ABSENTEEISM - TYPES & THEIR CONTROL

There are two types of absenteeism, each of which requires a different type of
approach.

INNOCENT ABSENTEEISM
Innocent absenteeism refers to employees who are absent for reasons beyond their
control; like sickness and injury. Innocent absenteeism is not culpable which means
that it is blameless. In a labour relations context this means that it cannot be
remedied or treated by disciplinary measures.

CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization for
reasons which are within their control. For instance, an employee who is on sick
leave even though he/she is not sick, and it can be proven that the employee was
not sick, is guilty of culpable absenteeism. To be culpable is to be blameworthy. In
a labour relations context this means that progressive discipline can be applied. For
the large majority of employees, absenteeism is legitimate, innocent absenteeism
which occurs infrequently. Procedures for disciplinary action apply only to culpable
absenteeism. Many organizations take the view that through the process of
individual absentee counseling and treatment, the majority of employees will
overcome their problems and return to an acceptable level of regular attendance.
COUNSELLING INNOCENT ABSENTEEISM
Innocent absenteeism is not blameworthy and therefore disciplinary action is not
justified. It is obviously unfair to punish someone for conduct which is beyond
his/her control. Absenteeism, no matter what the cause, imposes losses on the
employer who is also not at fault. The damage suffered by the employer must be
weighed against the employee's right to be sick. There is a point at which the
employer's right to expect the employee to attend regularly and fulfill the

23

employment contract will outweigh the employee's right to be sick. At such a point
the termination of the employee may be justified, as will be discussed.
The procedure an employer may take for innocent absenteeism is as follows:

Initial counseling
Written counseling
Reduction of hours and/or job reclassification
Discharge

Initial

Counseling:

Presuming

you

have

communicated

attendance

expectations generally and have already identified an employee as a

problem, you will have met with him or her as part of your attendance
program and you should now continue to monitor the effect of these efforts
on his or her attendance. If the absences are intermittent, meet with the
employee each time he/she returns to work. If absence is prolonged, keep in
touch with the employee regularly and stay updated on the status of his/her
condition. (Indicate your willingness to assist.)
You may require the employee to provide you with regular medical
assessments. This will enable you to judge whether or not there is any
likelihood of the employee providing regular attendance in future. Regular
medical assessments will also give you an idea of what steps the employee is
taking to seek medical or other assistance. Formal meetings in which verbal
warnings are given should be given as appropriate and documented. If no
improvement occurs written warning may be necessary.

Written Counseling: If the absences persist, you should meet with the
employee formally and provide him/her with a letter of concern. If the
absenteeism still continues to persist then the employee should be given a
second letter of concern during another formal meeting. This letter would be
stronger worded in that it would warn the employee that unless attendance
improves, termination may be necessary and provide him/her with a letter of
concern.

24

 Reduction of Hours or Job Reclassification: In between the first and

second letters the employee may be given the option to reduce his/her hours
to better fit his/her personal circumstances. This option must be voluntarily
accepted by the employee and cannot be offered as an ultimatum, as a
reduction in hours is reduction in pay and therefore can be looked upon as
discipline.
If the nature of the illness or injury is such that the employee is unable to
fulfill the requirements of his/her job, but could for example benefit from
modified work, counsel the employee to bid on jobs of such type if they
become available. (N.B. It is inadvisable to "build" a job around an
employee's incapacitates particularly in a unionized environment. The onus
should be on the employee to apply for an existing position within his/her
capabilities.)
Discharge: Only when all the previously noted needs and conditions have

been met and everything has been done to accommodate the employee can
termination be considered. An Arbitrator would consider the following in
ruling on an innocent absenteeism dismissal case.
Has the employee done everything possible to regain their health and return

to work?
Has the employer provided every assistance possible? (i.e. counseling,

support, time off.)

Has the employer informed the employee of the unworkable situation

resulting from their sickness?

Has the employer attempted to accommodate the employee by offering a

more suitable position (if available) or a reduction of hours?

Has enough time elapsed to allow for every possible chance of recovery?
Has the employer treated the employee prejudicially in any way?

As is evident, a great deal of time and effort must elapse before dismissal can take
place.
These points would be used to substantiate or disprove the following two fold test.
The absences must be shown to be clearly excessive.
It must be proven that the employee will be unable to attend work on a
regular basis in the future.
25

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already indicated, culpable absenteeism consists of absences where it can be
demonstrated that the employee is not actually ill and is able to improve his/her
attendance.
Presuming you have communicated attendance expectations generally, have
identified the employee as a problem, have met with him/her as part of your
attendance program, made your concerns on his specific absenteeism known and
have offered counseling as appropriate, with no improvement despite your positive
efforts, disciplinary procedures may be appropriate.
The procedures for corrective/progressive discipline for culpable absenteeism are
generally the same as for other progressive discipline problems. The discipline
should not be prejudicial in any way. The general procedure is as follows:

Initial/Verbal Warning
Written Warning
Suspension
Discharge

Initial/Verbal Warning: Formally meet with the employee and explain that
income protection is to be used only when an employee is legitimately ill.
Advice the employee that his/her attendance record must improve and be
maintained at an improved level or further disciplinary action will result.
Offer any counseling or guidance as is appropriate. Give further verbal
warnings as required. Review the employee's income protection records at
regular intervals. Where a marked improvement has been shown, commend
the employee. Where there is no improvement a written warning should be
issued.
Written Warning: Interview the employee again. Show him/her the
statistics and point out that there has been no noticeable (or sufficient)
improvement. Listen to the employee to see if there is a valid reason and
26

offer any assistance you can. If no satisfactory explanation is given, advise

the employee that he/she will be given a written warning. Be specific in your
discussion with him/her and in the counseling memorandum as to the type of
action to be taken and when it will be taken if the record does not improve.
As soon as possible after this meeting provides the employee personally
with the written warning and place a copy of his/her files. The written
warning should identify any noticeable pattern
If the amount and/or pattern continue, the next step in progressive discipline
may be a second, stronger written warning. Your decision to provide a
second written warning as an alternative to proceeding to a higher level of
discipline (i.e. suspension) will depend on a number of factors. Such factors
are the severity of the problem, the credibility of the employee's
explanations, the employee's general work performance and length of
service.
Suspension (only after consultation with the appropriate superiors): If the
problem of culpable absenteeism persists, following the next interview
period and immediately following an absence, the employee should be
interviewed and advised that he/she is to be suspended. The length of the
suspension will depend again on the severity of the problem , his credibility
of the employee's explanation, the employee's general work performance and
length of service. Subsequent suspensions are optional depending on the
above condition.
Dismissal (only

after

consultation

with

the

appropriate

superiors):

Dismissals should only be considered when all of the above conditions and
procedures have been met. The employee, upon displaying no satisfactory
improvement, would be dismissed on the grounds of his/her unwillingness to
correct his/her absence record.

27

GUIDELINES & MEASURES FOR CONTROL OF ABSNTEEISM

Absenteeism is a disease that appears whenever a company fails to inoculate itself
through the use of sound management practices. To cure excessive absenteeism,
one has to know the exact causes and then examine the available, workable and
proven solutions to apply against those causes.
To embark upon a successful absenteeism reduction program, you need to make
sure you have some basic information and facts about absenteeism in your
company. Consider the following four questions, which should help you further
focus your ideas and put a plan into action.
Q. Why is your present absenteeism policy ineffective?
Absenteeism policies vary in effectiveness. Most ineffective policies I have
reviewed have a common denominator: They allow "excused" absences, whereas
those that do work are "no fault" policies.
Q. Where and when is excessive absenteeism occurring?
Numerous studies have concluded that under trained supervisors is one of the main
causes of absenteeism. Therefore, any company experiencing absenteeism of
greater than 3 percent should consider supervisors as a potential contributor to the
problem. Given that this may be the case, you first should check the percentage of
employee absenteeism by supervisor to see if it is concentrated around one or two
supervisors. If it is, you've begun to uncover the obviousunder trained
supervisors. If, however, your research reveals that the rate of absenteeism is
almost equally distributed throughout your factory, you will need to investigate
other possible causes.
Q. What are the real causes for absences?
People-oriented companies are very sensitive to employee opinions. They often
engage in formal mini-studies to solicit anonymous employee opinions on topics of
mutual interest. These confidential worker surveys commonly ask for employee
opinion regarding higher-than-normal absenteeism. In other words, employees
revealed that repetitive, boring jobs coupled with uncaring supervisors and/or
28

physically unpleasant workplaces led them to make up excuses for not coming to
work, such as claiming to be sick. One way to determine the causes of absenteeism
is to question your supervisors about their employees' excessive absenteeism,
including what causes it and how to reduce it.
Q. How much formal training have your supervisors received on absenteeism
containment and reduction?
If you find that your supervisors hesitate to provide meaningful answers to your
questions, then you're on the right track toward a solution. Ask yourself, "How
much formal training have I given my supervisors in the areas of absenteeism
reduction and human resources skills?" If your answer is none or very little, your
solution can't be far behind. The fact of the matter is, you cannot ask a person to do
a job he or she has never been trained to do.
Following are the measures to control absenteeism: ADOPTION OF A WELL DEFINED RECRUITMENT PROCEDURE:
The selection of employees on the basis of command, linguistic and family
consideration should be avoided. The management should look for aptitude
and ability in the prospective employees and should not easily yield or
pressure of personal likes and dislikes .Application blanks should invariably
be used for a preliminary selection and tools for interviews. The personal
officer should play more effective role as coordinator of information,
provided that he has acquired job knowledge in the function of selection.
Employers should also take into account the fact that selection should be for
possible rely on employment exchange. .

PROVISION

OF

HEALTHFUL

AND

HYGENIC

WORKING

CONDITION: In India, where the climate is warm and most of the work
involves manual labour, it is essential that the workers should be provided
with proper and healthy working conditions. The facilities of drinking water,
canteens, lavatories, rest rooms, lighting and ventilation, need to be
improved. Where any one of these facilities is not available, it should be

29

provided and all these help in keeping the employee cheerful and increase
productivity and the efficiency of operations throughout the plant.
PROVISION OF REASONABLE WAGES AND ALLOWANCE AND
JOB SECURITY TO WOTRKERS: The wages of an employee determine
his as well as his family standard of living. This single factor is important
for him than other. The management should, therefore pay reasonable wages
and allowances, taking into account the capacity of the industry to pay.
MOTIVATORS

WELFARE

AND

SOCIAL

MEASURES:

The

management should consider the needs of workers and offer them adequate
and cheap housing facilities, free of subsidized food, free medical and
transport facilities, free education facilities for their children and other
monetary benefits. As for social security is concern, the provision of
Provident Fund, SBI facilities, Gratuity and Pension, all those need to be
improved.
IMPROVED COMMUNICATION AND PROMPT REDRESSAL OF
GRIEVANCES: Since a majority of the workers are illiterate or not highly
educated bulletins and written notices journals and booklets are not easily
understood by them. Meetings and concealing are called for written
communication becomes meaningful only when workers can readied
understood them, too many notices should be avoided only the essential ones
should be put on the boards, which should be placed near the entrance inside
the canteen and in areas which are frequently visited by the workers so that
they are aware of the policies of the company and any sort changes being
made.
LIBERAL GRANT OF LEAVE: The managements strict attitude in
granting leave and holidays even when the need for them is genuine, tempts
workers to go on E.S.I. leave for under this scheme, they can have 56 days
leaves in years on half pay. An effective way of dealing with absenteeism is
to liberalize leave rules.
SAFETY AND ACCIDENT PREVENTION: Safety at work can be
maintained and accidents can be prevented if the management tries to
30

eliminate such personal factors as negligence, overconfidence, carelessness,

vanity, etc and such material factorizes unguarded machinery and
explosives, defective equipment and hand tools. Safe methods of operation
should be taught. In addition consistent and timely safely instruction, written
instructions (manual) in the regional language of the area should be given to
the work force.
CORDIAL RELATIONS BETWEEN SUPERVISORS AND WORKERS:
The supervisor should be recognize that industrial work is a groups task and
cannot be properly done unless discipline is enforced and maintained.
Cordial relations between the supervisors and these workers are therefore
essential for without them, discipline cannot be increased. One of the
consequences of unhealthy relations between supervisors and subordinates is
absenteeism.
DEVELOPMENT OF WORKERS BY TRAINING: The system of
workers education should be so designed as to take into account their
educational needs as individuals for their personal evaluation, as operatives
for their efficiency and advancement, as citizens for happy integrated life in
the community, as members of a trade union for the protection of their
interests. The educational programs according to their national commission
on Labour should be to make a worker:

A responsible, committed and disciplines operative

Aware of his rights and obligations.
Lead a calm, clean and health life, based on a firm ethical foundation.
A responsible and alter citizen.

31

THE BRADFORD FACTOR & ABSENTEEISM

The Bradford Factor is a Human Resources tool used by many organizations to
measure and identify areas of absenteeism. The theory is that short, frequent and
unplanned absences are more disruptive than longer absences. It is based on the
fact that it is normally easier to make arrangements to cover for staffs who are
going to be off for long periods, and which are more likely to be suffering from a
genuine illness. However, employees taking odd unplanned days off here and there
actually cause more disruption to the business. If this pattern is repeated regularly,
the employee will have a high Bradford Factor score; which may raise questions
about how genuine the illness actually is.
The formula for the Bradford Factor is:
E x E x D = Bradford Factor Score
Where E is the number of episodes of absence and
D is the total number of days absent in a rolling 52 week period.
So, for employees with a total of 10 days absence in one year, the Bradford Factor
score can vary enormously, depending on the number of episodes of absence
involved.
For example:
One absence episode of 10 days is 10 points (i.e. 1 x 1 x 10)
Five absence episodes of two days each is 250 points (i.e. 5 x 5 x 10)
Ten absence episodes of one day each is 1,000 points (i.e. 10 x 10 x 10)

How do organizations use the Bradford Factor?

There are no set rules for using the Bradford Factor; it is down to each organization
to determine the ways in which it uses the score. However, used effectively, the
32

Bradford Factor can reduce absenteeism dramatically, serving as a deterrent and a

method for tackling persistent absenteeism.
Studies have shown that by educating staff about the Bradford Factor, and then
showing them their score on a regular basis, absenteeism can be reduced by over
20%. This is largely down to staff understanding that taking the odd day off here
and there will quickly multiply their Bradford Factor score. The Bradford Factor
places a value on the absence which an employee can clearly see. Where the
absence is not absolutely necessary, this can serve to deter absenteeism. When this
is used in conjunction with a points system the Bradford Factor can be effectively
utilized to deter unnecessary absenteeism.
For example:
The Bradford Factor can be utilized by creating triggers whereby certain actions
are taken when an employees Bradford score reaches a certain point. For example,
the UK Prison Service has used the following triggers

51 points verbal warning

201 points written warning
401 points final warning
601 points dismissal

Setting these triggers is entirely dependent on the organization using the Bradford
Factor. It is usually advisable to use the Bradford Factor as one of a number of
absence policies. However, setting these triggers and making staff aware of them,
in addition to taking action, resulted in the Prison Service reducing absenteeism by
18%.
By implementing mandatory procedures for tackling absenteeism across an
organization led by the Bradford Factor, an organization can remove the potential
for differences across teams and management and remove the difficulties and
reluctance that line managers often face when having to discipline a close staff
member. The Bradford Factor can provide organizations with a two pronged
method for tackling absence: proactively deterring absence in the first place and
utilizing a set procedure to identify and tackle persistent absenteeism.

33

Implementing the Bradford Factor

Calculating the Bradford Factor for one member of staff over a given period is not
a difficult proposition. However, calculating the Bradford Factor over a rolling 52
week period, across multiple teams and locations and considering different types of
absence is a very difficult task. As a result of the exponential nature of the formula
{E x E x D}, even the slightest mistakes in calculation can result in a wide variance
of an employees Bradford Factor score.
For example:
For an employee who has had 10 days off in a year in total, on two separate
occasions:
2 X 2 X 10 = 40 {which does not trigger a warning fewer than 50}
However, if their absence is either not recorded correctly, or is calculated wrong by
just one day:
3 X 3 X 10= 90 {which does trigger a warning over 50}
You can see that their score is more than double, despite the small mistake. Getting
the formula the wrong way round can have even more significant results:
10 X 10 X 2 = 200 {which would trigger disciplinary proceedings over 200}
If an organization wants to tackle absenteeism effectively, using the Bradford
Factor, including using an employees Bradford Factor score in potential
disciplinary proceedings, then the process for calculating the Bradford Factor has to
be full proof, consistent and equal.
To achieve this, an organization will need to ensure:
Absence reporting and monitoring is consistent, equal and accurate both
over time and across the whole organization.
The calculation of an employees Bradford Factor score is based on these
accurate, equal and updated absence records.
Management and staff have access to updated Bradford Factor scores.
Without these processes in place the calculation of the Bradford Factor is
extremely difficult and time consuming.
34

RESEARCH METHODOLOGY

The research reveals that one of the major problems is absenteeism in our industry.
Absenteeism hinders planning, production, efficiency and functioning of the
organization. In fact high rates of absenteeism affect an organization state of health
and also supervisory and managerial effectiveness.

OBJECTIVES OF RESEARCH
To identify the rate of absenteeism of worker.
To identify the causes of absenteeism.
To suggest any measures to reduce the rate of absenteeism

SAMPLE SELECTION AND SIZE

The population for the study comprised of absentees for current year, the
total sample 50 workers.

DATA COLLECTION AND STATISTICAL TOOLS

The sources of data for the purpose of study were both primary and
secondary. Primary data was collected through questionnaire which was
mainly close-ended questionnaire and discussion with workers whereas
secondary data was collected from records maintained by personal
department and time office. Percentage method is used for the analysis of
data and bar graphs are used to present that data

35

LIMITATION OF THE STUDY

There are some limitations for research which are as follows: As it was not possible to visit each department the true picture of working
condition could not be judged.
The workers were busy with their work therefore they could not give
enough time for the interview.
The personal biases of the respondents might have entered into their
response.
Some of the respondents give no answer to the questions which may affect
the analysis.
Respondents were reluctant to disclose complete and correct information
Because of a small period of time only small sample had to be considered which
doesnt actually reflect and accurate and intact picture.

36

ANALYSIS AND INTERPRETATION

Q1. For how many years you are working with Aircel?

Interpretation: It can be seen that 56% of the workers are working for more than
10 years whereas 36% are working for more than 5 yrs.

Q2. How often you remain absent in a month?

Interpretation: It can be seen that 96% of the workers do not remain absent.

37

Q3. According to you what are the main reasons of employee absent?

Interpretation: It can be seen that 96% of the workers remain absent for personal
problem and 4% says stress can be the reason.

Q4. Your views regarding present Absenteeism Policy of Aircel?

Interpretation: It can be seen that 76% of the workers rate Present Absenteeism Policy
as good where as 22% rate it as excellent.

38

Q5. Are you clear about your job/work responsibility?

Interpretation: It can be seen that 94% of the workers are clear about their job
responsibility.

Q6. Are you satisfied with your work?

Interpretation: It can be seen that 82% of the workers are fully satisfied with
their work whereas 16% rate it as good.

39

Q7. Views regarding work environment of Aircel?

Interpretation: It can be seen that 82% of the workers feel that environment is
good and 14% rate it as excellent.

Q8. Your relations with your superiors?

Interpretation: It can be seen that 76% of the workers have good relations with
their superiors and 22% rate it as excellent.
40

Q9. Your superiors behavior towards your problem?

Interpretation: It can be seen that 42% of the workers say that their superiors
attitude towards their problem is excellent and 56% rate it as good.

Q10. Yours views regarded facilities provided at Aircel?

Interpretation: It can be seen that 86% of the workers consider that facilities provided to
them are good whereas 10% rate it as excellent.

41

CONCLUSION

Finding and analysis reveals the following conclusion:

Almost 56% of the workers are working for more than 10 years whereas
36% are working for more than 5 yrs.
Almost 96% of the workers do not remain absent.

According to 96% workers, personal problem is the reason for being

absent. 4% think that stress can also be the reason.
Almost 76% workers rate the present absenteeism policy as good whereas
22% rate it as excellent.

Almost 94% of the workers are clear regarding their work responsibilities.
82% of the workers are fully satisfied with their work whereas 16%
workers think their work as good.
76 % workers have good relations with the superiors whereas 22% have
excellent relations with the superiors.

42% workers think that their superiors behavior towards their problems is
excellent & 56% workers consider it as good.

42

SUGGESTIONS AND RECOMMENDATIONS

Absenteeism is a serious problem for management because it involves heavy

additional expenses. The management should take the following measures to
reduce the rate of absenteeism: Provide Incentives: An incentive provides an employee with a boost to
their motivation and avoid unnecessary absenteeism. Incentives like two
hours of bonus pay for every month of perfect attendance can improve a
lot.
Employee Assistance Program: If you confront an employee about his or
her frequent absenteeism and you find out that it is due to personal
problems refer them to EAP.
Sickness Reporting: Tell employees that they must phone in as early as
possible to advise why they are unable to make it to work and when they
expect to return.
Return to Work Interview: When an employee returns to work then
ensure that they have a return to work interview.
Bradford Factor: It can also be used to identify and cure excessive
absenteeism.

43

The summer internship for partial fulfillment of Post graduate diploma in

management course in training program was a very good experience for me.
This training gives us an exposure to professional working culture prevailing
in industry, which is very important for a management student. It also
provides a mind set to work hard during the initial phase of career. I did my
training in human recourse department of a well reputated &
well established company. I am sure that this training helps me a lot in future
career. I again thanks to everyone who has contributed to make this
experience truly complete & stimulating.

In the end to conclude this report I would like to specify that the project
allotted to me on ABSENTEEISM was of immense help to me in
understanding the working environment of an organization, thereby providing
a first hand practical experience. In this project while identifying the reasons
of absenteeism of the workers of AIRCEL I got an opportunity to interact
with workers to observe their behavior and attitude. In the end I would once
again like to thank the people of AIRCEL who helped me in accomplishing
this project and boosting my morale by appreciating and recognizing my
efforts.

44

QUESTIONNAIRE
Personal Information
Name
Age
Sex
Job status
For how many years you are working with AIRCEL?
(a) 0-1 yr
(b) 1-2 yr
(c) 2-5 yr
(d) < 5 yr
How often you remain absent in a month?
(a) Nil
(b) Once
(c) Twice
(d) More than twice
According to you what is the main reason for employees absent?
(a) Health problem / domestic reasons
(b) Stress
(c) Work dissatisfaction
(d) Working environment
Your views regarding the present Absenteeism Policy of AIRCEL ?
(a) Excellent
(b) Good
(c) Fair
(d) Dont know
Are you clear about your work / job responsibilities?
(a) Well clear
(b) Good
45

(c) Fairly clear

(d) Dont know
Are you satisfied with your work?
(a) Well satisfied
(b) Good
(c) Fair
(d) Not satisfied
Your views regarding the working environment of AIRCEL & work
place?
(a) Excellent
(b) Good
(c) Fair
(d) Poor
How are your relations with your superiors / co-workers?
(a) Excellent
(b) Good
(c) Fair
(d) Poor
Your superiors behavior towards your problems?
(a) Excellent
(b) Good
(c) Fair
(d) Poor
Your views regarding the facilities provided to you by AIRCEL?
(a) Excellent
(b) Good
(c) Fair
(d) Poor
Any suggestions / Comments

46

BIBLIOGRAPHY

Books
Research Methodology C. R. Kothari

Websites:
http://en.wikipedia.org
http://www.aircel.com
http:// www.ibef.com
http://www.scribd .com
http:// www.trai.gov.in

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