A TRAINING REPORT

On

ABSENTEEISM
AT:
FEDERAL MOGUL GOETZE (INDIA) LTD,
BAHADURGARH, PATIALA.

SUBMITTED TO:
DRONACHARYA INSTITUTE OF MGMT &
TECHNOLOGY , KURUKSHETRA
In the partial fulfillment of the requirement for the
degree of MBA

Submitted By:
VIKAS SHARMA

MBA 3rd. SEMESTER

 ACKNOWLEDGEMENT

Concentration, dedication, hard-work & application are essential

but not only the factors to achieve the desired goal. All these are
supplemented by guidance, assistance & co-operation of people to
make it success. Every complete successful assignment is the result
of many hands join together.

It is a matter of pride and privilege for me to adequately express

my deep indebtedness, thanks and guidance to my project guide
Ms. Prableen Kaur ( Incharge , Training & Development) for her
valuable guidance, co-operation and constant inspiration.

I take the opportunity to express my gratitude to Mr. Sanjay who

took pains to see that I get all facilities required for my project
work and enlightened me about real working of organization.

I gratefully acknowledge the overwhelming support of Mr.Sanjeev

Nanda’s efforts, professional experience proved bliss for me
during this work I also acknowledge my thanks to all the other
staff members. who directly or indirectly helped me in completing
this project

Lastly, how can I forget to owe my indebtedness to my parents

who provided moral support as well as adequate finances during
the course of my studies.

VIKAS SHARMA
 DECLARATION

I, Vikas Sharma hereby declare that the project entitled

EMPLOYEE ABSENTEEISM, assigned to me by
FEDERAL MOGUL GOETZE (INDIA) LTD, during my
six weeks training for the partial fulfillment of M.B.A,
Degree from DRONACHARYA INSTITUTE OF MGMT
& TECHNOLOGY , KURUKSHETRA is the Original
work done by me and the information provided in the study
is authentic to the best of my knowledge.

This study has not been submitted to any other institution or

university for the award of any other degree.

Vikas Sharma
INTRODUCTION
To
The Company
 Our History
1899 – 1940: Founded on
Innovation
1941 – 1956: Diversifying for
Success
1957 – 1974: Going Global
1975 – 2005: A Bright Future

Federal-Mogul Corporation is an innovative and diversified $6.3

billion global supplier of quality products, trusted brands and
creative solutions to the automotive, light commercial, heavy-duty
truck, off-highway, agricultural, marine, rail and industrial
markets. The 45,000 people of Federal-Mogul located in 35
countries drive excellence in all they do.

Company’s globally networked engineering and

technical centers in the U.S., Europe and Asia enable
to bring customers breakthrough in advanced technology and
innovation.

Federal Mogul is a premier supplier of products, services and

solutions to original equipment manufacturers that use quality
components in their vehicles and automotive systems, and to
aftermarket customers who sell company’s world-renowned brand-
name replacement parts through repair shops and retail outlets. As
partner with a global network of suppliers whose commitment to
excellence and on-time delivery is crucial to company success.

For more than a century, Federal Mogul has developed the

innovative products, which customers need to produce the next
generation of vehicles. Federal-Mogul has been creating value
through innovation and leading technology for more than 100
years. Today, the company is a key player in the global
marketplace, serving industries that range from automotive and
commercial vehicles to railroad and aerospace. Customers know
they can rely on Federal-Mogul’s quality excellence in products,
trusted brands and creative solutions.

This company started with a bold idea, with a global workforce

thousands strong. The Federal-Mogul team has celebrated
countless victories and worked hard to overcome the inevitable
challenges.

The company utilizes its engineering and materials expertise,

proprietary technology, manufacturing skill, distribution flexibility
and marketing power to deliver quality products and services, and
leading brands. Federal-Mogul is focused on driving global
profitable growth and creating value to satisfy customer, employee
and stakeholder expectations.

Headquartered in Southfield, Michigan, the Company, which

reported sales of $6.3 billion in 2005, employs 42,000 people
worldwide. Federal-Mogul was founded in Detroit in 1899. The
Company’s principal customers include many of the world’s
foremost original equipment manufacturers of automotive, light
commercial, heavy-duty truck, agricultural, marine, rail and
industrial vehicles and equipment as well as the worldwide
aftermarket.

Federal-Mogul employees throughout the organization create value

for their stakeholders and continuously strive to exceed their
customers’ expectations by following these core values:

• We are a team first.

• We respect, trust and help each other.
• We act with integrity.
• We are driven to be the best in all we do.
• We create value through innovation.

• We celebrate our success.

.
FEDERAL MOGUL GOETZE (INDIA) LTD.
BAHADURGARH, PATIALA
(History)

Goetze (I) Ltd., Bahadurgarh, Patiala was set up in 1954

with the collaboration of M/s. Goetze Werke, Germany which
started its production of Piston Rings for automobile industry
in 1957. The plant is situated at Bahadurgarh, about 10
kms. from Patiala on the Patiala-Rajpura Road.

Considering the need of complete Piston assembly, Escorts

Ltd. ventured into manufacturing of Pistons in 1958 with the
collaboration of M/s. Mahle GmbH, Germany, which
delivered the Indian automobile industry its Pistons in
1960.

Escorts entered in collaboration with M/s. SUKO GmbH,

Germany for Piston Rings in 1967 and manufacturing started
in 1968. To meet the increasing demand of market, in 1977,
a parallel unit for manufacturing Pistons and Piston Pins was
set up in Bangalore.

From 1 October 1996, Escorts Ltd. entered into joint venture

with M/s. Mahle GmbH, Germany with the formation of the
new company Escorts Mahle Ltd. in 1998, Goetze also
became a part of Federal Mogul, a well-known group of USA.
In June 2000, both Escorts Mahle Ltd. and Goetze have
become QS-9000 certified companies.

The present capacity of the plant is 285.09 lacs nos. Piston

Rings and 52.68 lac nos. Pistons (on 302 working days). The
total capital employed as on 31 March 2004 is 134.46 crores
in Ring Activity and Piston Activity. The workforce including
managers and supervisors is 1131 nos. in Ring Activity and
1304 in Piston Activity as on 31 March 2004. The turnover of
the Patiala Plants is 159 crores excluding Excise (combined
in Ring Activity and Piston Activity) as on 31 March
2004.
 BRANDS

Federal-Mogul Goetze (India) Limited

 • Manufacturer of world-class pistons, piston rings,
sintered parts and cylinder liners covering a wide range of
applications including two/three-wheelers, cars, SUVs,
tractors, light commercial vehicles, heavy commercial
vehicles, stationary engines and high output locomotive
diesel engines.
• Widest range of piston rings and pistons varying from
30mm to 300mm diameter.
• The most modern production facilities at Bangalore,
Patiala and Bhiwadi are certified TS 16949, ISO14001 and
OHSAS 18001.
• Market leaders both in OEM and aftermarket. Exports
to many countries.
• Goetze and Goetze Brico provide leading-edge
technologies and competitive solutions for original
equipment manufacturers and the automotive aftermarket.

Production Piston rings 55 Million

Capacity:
Pistons 13 Million
Turnover: April 05 -March 06 INR 5124 Million
Net Profit (after April 05 -March 06 INR (505) Million
tax):

MILESTONES
1954 Incorporated as a JV with Goetze Werke

1957 Ring & liner production

Patiala

1958 Piston production as escorts (Automotive Division)

(Collaboration:Mahle)

Patiala

1960 Cast iron / Forged piston production started

Patiala

1968 Pins / ring carrier production started

Patiala

1977 Piston / ring production started

Bangalore

1982 Steel rings / Large bore locomotive piston

Bangalore

1985 Light alloy products

Patiala

1989 Auto thermic pistons production

Bangalore

1990 Moly coated / IKA / chrome oil rings

Patiala

1992 Large bore rings / pistons for battle tanks

Bangalore

1994 Composite pistons / new ring foundry

Bangalore

1996 Escorts (Automotive Division) hived off into joint venture with M/S
Mahle, Germany

1997 Goetze TP (India) Ltd. - Manufacturer of steel rings

2001 Merger of Federal-Mogul sintered products Ltd. with Goetze (India)

Ltd.

2003 Merger of Escorts pistons activities with Goetze (India) Ltd.

2004 Introduction of chrome-ceramic rings

2004 Technical collaboration for pistons with Federal-Mogul Corporation

2006 Majority stakeholding acquisition by Federal-Mogul Corporation

2006 Name changed "Goetze (India) Limited" to "Federal-Mogul Goetze

(India) Limited"

Management
Board of directors Name

Chairman Mr. Charles B.Grant

Vice Chairman, Managing Director

& C.E.O. Mr. Arun Anand

Directors Mr. Rainer Juestock

Mr. Charles H. Polzin

Mr. Mukul Gupta

Mr. Vishavjeet
Kanwarapal

Corporate Leaders

Executive Directors–Sales & Marketing Mr. Mohan Narayan

a) Original Equipment Sales Mr. Yogesh

b) After Market Sales Mr. Sanjeev Singh

c) Exports Mr. G.S. Arshi

Executive Directors – Manufacturing Operation Mr. Andreaf Kolf

a) Bangalore Plant Mr. K. Saravana

b) Patiala Plant Mr. Sunit Kapur

c) Bhiwadi Plant Mr. A. R. Ahuja

Financial Controller & Company Secretary Mr. Rajan Luthra

General Manager Corporate Planning Mr. Ashish Mathur

 Quality Policy

FEDERAL MOGUL GOETZE (INDIA) LIMITED commits itself to

leadership in national market for all its products and
ensuring total customers’ satisfaction highest in industry. It
commits to develop and build an image in the international
market to achieve a sustained annual growth in exports.

Policy
We shall continue to manufacture all our products in
conformity with accepted international norms/ standards.

We shall also continue to retain our leadership in

development of products through technical know-how from
our Collaborators and in-house developments.Consistent
development of human resources through training at all
levels will be our major thrust area.

MR.CHARLES B.GRANT
(Chairman & Managing Director)

Mission of the Company

“Steadily moving towards leadership with piston with vision
strategy seeing it as the best way to leaders in business”

Vision of the Company

“To be one of the worlds leading automotive solutions provider”

Share Holding Pattern:

Federal-Mogul Corporation 51.0 %

Goetze India Ltd. 24.5 %
Teikoku Piston Rings Co. Ltd., Japan 24.5 %

EXPORT DESTINATION
• Dubai

• Bangladesh

• Singapore

• Egypt

• Mauritius

• U.S.A

• Germany

• Nepal

• Sri Lanka

• Uganda

COLLABORATIONS
A. GERMANY

o Faun
o Class

B. JAPAN

o Yamaha
o Kayaka
o Mikni

C. UK

o JCB (Goetze)
o Ford

D. USA

o HUGHES

E. FRANCE

o Bosch
o Dynapal

PRODUCT RANGE
Federal Mogul Goetze (I) Limited manufactures wide range of Liners,
Brackets, Shock Absorber, Gudgeon Pins, Light Alloy casting &
Sintered Products.

Piston, Piston rings, Piston Pins, Cylinder blocks, Cylinder Liners,

Brackets, Shock Absorber, Gudgeon Pins, Light Alloy casting &
Sintered Products.
 PISTONS
Federal-Mogul Goetze India has state-of-the-art test bed
facilities, design facilities for products and dies and tooling with
CAD/PRO-E.

Production Capacity:

13 million pistons per annum

Product Range:

30 mm to 300 mm diameter

Applications

Bi-wheelers
 Cars

SUVs

Tractors

Light commercial vehicles

Heavy commercial vehicles

Heavy output locomotive diesel engines

Stationary engine

Industrial

Products suitable for

4 stroke engines

2 stroke engines

Gasoline engines
Piston Rings

Goetze piston rings of OEMs and Aftermarket in India has

state-of-the-art design facilities for products, tooling with
CAD/PRO-E/GLIDE SOFT and test bed facilities.

Federal-Mogul Goetze India is dedicated to developing new

technologies and continuously improving its products.

Production Capacity:

55 million rings per annum

Product Range:

30mm to 300mm diameter

Goetze manufactures a wide range of piston rings for:

Bi-wheelers

Tractors

Passenger cars & SUVs

Commercial vehicles (HCVs, MCVs & LCVs)

Locomotive engines

Stationary engines

Industrial

Tx Type Expander & Cr Plated Rails

 Chrome Plated Ring

Coating On Running Surface

Chrome ceramic plated rings (CKS)

Molybdenum coated rings

Plasma filled rings

Semi-inlaid rings

Ferrox filled rings

Features

Thin rings made from SG iron

Asymmetric profile rings

Specially honed chrome rings

Lower sharp edge rings

Reverse torsion rings

Conformable chrome oil rings

Keystone
 Napier

Nitriding

Drilled hole oil ring

Interrupted cut

Narrow land

I-Ring with Cr plated Periphery

Cylinder Liners

Federal-Mogul Goetze India manufactures wet and dry cylinder

liners with honnong and sleeves for bi-wheeler applications for its
quality conscious customers.

Applications

Bi-wheelers

Cars

Tractors

Light commercial vehicles

 Heavy commercial vehicles

Stationary engines

Production Capacity:

0.5 million liners per annum

Product Range:

50 mm to 120 mm internal diameter

Features

Thin-walled

Plateau honed

With and without flanges

Coating
 Phosphating

Metal Castings

Federal-Mogul Goetze (India) Ltd. makes a wide variety of light metal

castings, including cylinder blocks; cylinder heads for single cylinder
engines; and aluminum tube castings and aluminum crown handles for
motorcycles.

TIMINGS

The factory runs round the clock in three shifts, namely- Morning,
Afternoon and Night.
TIMINGS SHIFTS

6.30 a.m. to 2.30 p.m. Morning Shift

2.30 p.m. to 10.30 p.m. Afternoon Shift

10.30 p.m. to 6.30 a.m. Night Shift

However the Non-production department works in a

General Shift.
(From 9 a.m. to 5 p.m.).

MAJOR CUSTOMERS OF THE

COMPANY

PASSENGER CARS & JEEPS

 Hindustan Motors Ltd.

Premier Automobiles Ltd.

Mahindra & Mahindra Ltd.

Maruti Udyog Ltd.

Telco

BI-WHEELERS
Bajaj Auto Ltd.

Escorts Yamaha Ltd.

Kinetic Engineering Ltd.

TVS Suzuki Ltd.

Majestic Auto Ltd.

Scooters India Ltd.

Ideal Jawa (I) Ltd.

Lohia Machines Ltd.

c. TRACTORS

Eicher Tractors Ltd.

Mahindra & Mahindra Ltd.
Escorts Ltd. (TD)
Escorts Ltd. (Farmtrac Division)
HMT Ltd.

d. COMMERCIAL VEHICLES (LCV’s &

MCV’s)

Telco

e. DEFENCE

Vehicles Factory, Jabalpur

f. COMPRESSORS

Telco

g. STATIONERY ENGINES

Kirloskar Oil Engines Ltd.

LOCATION OF DEPOTS
Market Share Of Ppiston Manufacturers
In India
Company Name Market Share (%)
FMGI 36.5

Perfect Circle 12.0

IP Ring 16.5

Shriram Piston 22.5

SAMKRG Piston 9.0

Menon Piston 3.5

ORGANISATION
 OF
FEDERAL MOGUL GOETZE
(INDIA) LTD.

ORGANISATION GOALS
The company has laid down for itself goal of
improving the “value” to the customers through:

1. LEADERSHIP: To maintain leadership in

following categories

Market share: to maintain its status as brand

leaders in the country for Piston and Piston Pins.

Product Development: To develop Piston and

Piston Pins for all new applications as identified.

Technology: modernization and up gradation of

technology to the latest improvements to meet
customer requirements.

2. CUSTOMER SATISFACTION:

It shall strive to achieve customer satisfaction

rating more than 90%.

3. TECHNICAL REQUIREMENT:

Products are manufactured as per specifications

based on DIN / JIS / IS / MAHLE NORMS / SUKO
NORMS as also against customers specific
requirements.

4. QUALITY:

To improve quality consistently through quality

assurance and process control.

5. DELIVERY:
 To strive to achieve 100% on time delivery as
per customer requirements

6. ENVIRONMENT AND SAFETY :

FMGI is fully aware of its environment and social

responsibilities. To keep the environment
healthy, several measures like smoke
precipitators, effluent treatment plant,
plantation programs etc. have been adopted.
Pollution control methods adopted by the
company have been approved by the Central
Govt. Periodic checks and regular training is
conducted to ensure safety.

7. MEDICAL FACILITIES :

Company takes a lot of interest in the extra

curricular activities like medical programs and
rural development programs etc. The company
has its own medical centre as well as a heart
institute and research centre, where employees
get treatment on reimbursement basis.

ORGANISATION SET UP
The organizational set up of the following departments is
studied in detail:
1. HR Department
2. Finance Department
3. Purchase and Store Department
4. Production Department

HR DEPARTMENT

HR department advises the management on all

matters relating to HR administration. The top
management takes into account its advice before
arriving at final decisions on human resources and
administrative matters. HR Policies in FEDERAL
MOGUL GOETZE (INDIA) LIMITED have been divided
into three parts:

a. HR FUNCTIONS to encourage the adoption and

utilization of latest methods and techniques in
areas of manpower planning and development
and keeping avenues of promotion open to
employees.
b. PROVISION OF COMMUNICATION, TRAINING
AND WELFARE MEASURES, EMPLOYEE
COMMUNICATION so that employees contributes
their best to company’s objectives and also get
opportunities for advancement and self-development.
 c. INDUSTRIAL RELATIONS between employer and
employee so as to promote satisfactory relations by
providing channels for upward and downward
communication and establishing systematic procedure
for redress.

FINANCE DEPARTMENT

The realization of cash for the purpose of raw materials

components and spares to pay wages and salaries to incur
day to day expenses and overhead costs, to meet selling
costs to provide credit facilities to customers and to
maintain inventories is also the function of this department.
The formulation of policies with regard to profitability risk and
liquidity, decisions about comparison and level of current assets
and liabilities, formulation of production policy to keep the
production steady by accumulating inventories, formulation and
execution of credit policy is also the function of Finance
Department.

This Department is responsible for handling transaction relating to

purchase of raw material as well as accounts relating to sales. It is
also concerned with payment of all expenses incurred by the
company like purchase of raw material, electricity bills, repairs etc.
It is also concerned with valuation of various costs relating to
inventories.
It deals with determination of monthly wages, salaries of
employees, fringe benefits of retirement, provident funds
deduction, incentives, bonus and all the rewards, which the
employees get for rendering their services to the company

PURHCASE AND STORE DEPARTMENT

Purchase and Store are two Departments, which go hand in

hand. It is very essential that there should be proper
synchronization between Purchase Department and Store
Department.

In GOETZE (INDIA) LIMITED, the main responsibility of

Purchase Department is to receive orders from other
Departments, do the market survey, list the potential sellers
and the rates, choose the best and go ahead with purchase.
The purchase order is placed only with approved
contractors. The Purchase Department scrutinize the
following aspects:

a. Quality and Technical specifications

b. Delivery
c. Prices

Once the purchase order has been placed, it is sent to stores

where the store gets ready to receive the incoming material.
When the material is received, a notification is sent to the
Finance Department.

Stores deal with an array of material, which can be divided

into:

a. Raw materials
b. Components
 c. Standard items or patent items

PRODUCTION DEPARTMENT

The Department is responsible for production of various

items fixed on basis of production budget, which includes:

a. Raw material budget

b. Labor budget
c. Plant utilization budget

GOETZE (INDIA) LIMITED turns out a wide variety of Piston

Rings for Bi-Wheelers, Heavy Light Commercial Vehicles and
Motor Cars etc. The Company has maintained steady growth
in Piston Rings in view of ready acceptability of its products.
Form modes production of 22517 rings in 1957 it touched a
figure of 24 million in 2003-04.
INTRODUCTION
TO
PROJECT

REASONS TO CHOOSE THE PROJECT

When I joined the training at FEDERAL MOGUL GOETZE
(INDIA) LTD, BAHADURGARH, PATIALA I was allotted the
project of “ABSENTEEISM”. 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 staff, who 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 ‘buggins turn’ mentality may emerge. Frequent
absence may have serious repercussions where staff are
employed in customer-facing 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.

ABSETEEISM
An absence from the workplace refers to time a team
member is not on the job during scheduled working hours,
except for a granted leave of absence or holiday time. Left
unchecked, high absenteeism can rapidly develop into
serious business problems including morale issues and high
turnover.

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.

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 mmebers 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 team members call in sick when they really do

not want to go to work. They would not call you up and say,
“I’m not coming in today because my supervisor abuses me.”

Or, “I’m not coming in today because my chair is

uncomfortable.” Or, “I’m 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? In

many cases, under- trained supervisors could be a
contributing factor.

What are the real causes for absences?

It is commonly expected that low pay, poor benefits and high

workloads will be the major causes.

However, in numerous employee surveys absenteeism

generally has been identified as a symptom of low job
satisfaction, sub-standard 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 workplaces 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 member’s 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.
 Causes of Absenteeism

The causes of absenteeism may include:

• serious accidents and illness

• low morale
• poor working conditions
• boredom on the job
• lack of job satisfaction
• inadequate leadership and poor supervision
• personal problems (financial, marital, substance abuse,
child care etc.)
• poor physical fitness
• transportation problems
• the existence of income protection plans (collective
agreement )
• benefits which continue income during periods of illness
or accident.)
• stress
• workload
• employee discontent with the work environment

Most if not all of these causes can be prevented by taking a

positive approach to things. By showing the employees that you
care, you can help lower absenteeism in the work place.
 LOSS DUE TO ABSENTEEISM

Absenteeism and disability constitute the most important

causes of work discontinuity. The consequences are
enormous. In addition to loss of productivity in connection
with the duration of the absence, the long-term
consequences are far-reaching, both for the employer and
for the employee. The production of the employee has to be
taken over by others, whilst the financial consequences of
the worker’s absenteeism are for many years to the charge
of the employer.

There is an increasing need for limitation and prevention of

the drop-out, and for gaining a clear insight into and control
over the financial consequences.

ABSENTEEISM RATE
Normally, the rate of absenteeism is calculated by dividing
the number of working days lost through absence in any
given period by the total number of available working days in
that same period, as follows:

Absenteeism Rate = Number of lost working days due to

absence /(Number of team members) x (Number of
Workdays) x 100.

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).
 ABSENTEEISM RATE
AT
FEDERAL MOGUL

1.8

1.6

1.4

1.2

1
2007
0.8 2008
0.6

0.4

0.2

0
jan mar may july sept nov

Absenteeism- Types & Control

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

1. 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.

2. 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 counselling 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 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:

1. Initial counselling(s)
2. Written counselling(s)
3. Reduction(s) of hours and/or job reclassification
4. Discharge

Initial Counselling

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 Counselling

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.

Reduction(s) of hours and 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 a 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.

1. Has the employee done everything possible to regain their

health and return to work?
2. Has the employer provided every assistance possible? (i.e.
counselling, support, time off.)
3. Has the employer informed the employee of the unworkable
situation resulting from their sickness?
4. Has the employer attempted to accommodate the employee
by offering a more suitable position (if available) or a
reduction of hours?
5. Has enough time elapsed to allow for every possible chance
of recovery?
6. 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.

1. The absences must be shown to be clearly excessive.

2. It must be proven that the employee will be unable to attend
work on a regular basis in the future.

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
counselling 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: [Utilizing counselling
memorandum]

1. Initial Warning(s)
2. Written Warning(s)
3. Suspension(s)
4. Discharge

Verbal Warning

Formally meet with the employee and explain that income

protection is to be used only when an employee is legitimately ill.
Advise the employee that his/her attendance record must improve
and be maintained at an improved level or further disciplinary
action will result. Offer any counselling 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 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 counselling 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 provide the employee personally with
the written warning and place a copy of his/her file. The written
warning should identify any noticeable pattern

If the amount and/or pattern continues, 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, the 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.
 Guidelines For Absenteeism Control

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.

1 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.

2 Where and when is excessive absenteeism occurring?

Numerous studies have concluded that under trained supervisors

are 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 obvious--undertrained 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.

3 A What are the real causes for abscences ?

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 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.

4 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.

The Bradford Factor & Absenteeism

The Bradford Factor is a Human Resources tool used by many
organisations 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 staff 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 organisations use the Bradford Factor?

There are no set rules for using the Bradford Factor; it is down to
each organisation to determine the ways in which it uses the score.

However, used effectively, the 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 utilised to deter unnecessary absenteeism.

For example the Bradford Factor can be utilised by creating “triggers”

whereby certain actions are taken when an employee’s 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 organisation 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 organisation led by the Bradford Factor, an organisation
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 organisations with a two pronged
method for tackling absence: proactively deterring absence in the first
place and utilising a set procedure to identify and tackle persistent
absenteeism.

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 employee’s 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 organisation wants to tackle absenteeism effectively, using the

Bradford Factor, including using an employee’s 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 organisation will need to ensure:
 • Absence reporting and monitoring is consistent,
equal and accurate both over time and across the whole
organisation.
• The calculation of an employee’s 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. In addition to this;
unequal processes for reporting and calculating the Bradford Factor
could be discriminatory; everyone’s Bradford Factor score should be
subject to the same, indisputable criteria.
SCOPE & OBJECTIVE
OF
STUDY

OBJECTIVES OF THE STUDY

The objectives of present study are as follows:

Major Objectives:
• To study the reasons of employee absenteeism.
• To put forward the suggestions and to find those areas
where it can be improved.

Minor Objectives:
• To study the problems of workers faced during the
work period.
• To find out whether job satisfaction & motivation level
are low. If yes, then what are the reasons.
• To find out whether the workers feel stress during the
work.
 Limitations Of The Study

• The personal biases of the respondents might have

entered into their response.
• Time allotted for the survey was less.
• Some of the respondents give no answer to the
questions which may affect the analysis.
• Generally the respondents were busy in their work and
were not interested in responding rightly.
• Respondents were reluctant to disclose complete and
correct information.
 RESEARCH METHODOLOGY

The methodology used for the collection of data has been divided
into two groups:

Primary Data
This data is based upon personal discussion with managers,
officers , employees & workers working in various sections of HR
Department, Piston Ring Foundry Shop and Piston Ring Machine
Shop.

Secondary Data
It is mainly based upon office records and other published
documents of Goetze (India) Ltd., Bahadurgarh, Patiala.

Sample Size : 50 Workers

Sampling Technique
In this project the primary data was collected through
questionnaire method. A structured questionnaire was administered
and workers were asked to fill it. The interview method was also
considered as in it the interviewer and the interviewee can interact
face to face.

Data Analysis Technique

Percentage method is used for the analysis of data and bar graphs
are used to present that data.

Questionnaire
Personal Information
Name –
Age-
Sex-
Job status-

• For how many years you are working with FMGI ?

0-1 yr
1-2 yr
2-5 yr
< 5 yr

• How often you remain absent in a month ?

Nil
Once
Twice
< Twice

• According to you what is the main reason for employees absent ?

Health problem / domestic reasons
Stress
Work dissatisfaction
Working environment

• Your views regarding the present Absenteeism Policy of FMGI ?

Excellent
Good
Fair
Don’t know

• Are you clear about your work / job responsibilities ?

Well clear
Good
Fairly clear
Don’t know
 • Are you satisfied with your work ?
Well satisfied
Good
Fair
Not satisfied

• Your views regarding the working environment of FMGI & work

place ?
Excellent
Good
Fair
Poor

• How are your relations with your superiors / co-workers ?

Excellent
Good
Fair
Poor
• Your superiors behaviour towards your problems ?
Excellent
Good
Fair
Poor

• Your views regarding the fascilities provided to you by FMGI ?

Excellent
Good
Fair
Poor

Any suggestions / Comments- _____________________________________

 ANALYSIS
&
INTERPRETATION
Q. For how many yrs you are working with
FMGI ?

Interpretation – it can be seen that 56% of the workers at FMGI

are working for more than 10 years whereas 36% are working for
more than 5 yrs.
Q. How often you remain absent in a month ?

100%
90%
80%
70%
60%
50% no of absents in a
40% month
30%
20%
10%
0%
nil once twice >twice

Interpretation- it can be seen that 96% of the workers do not

remain absent.
Q. According to you what is the main reasons
for employees absent ?

100%
90%
80%
70%
60%
50%
reason for being
40%
absent
30%
20%
10%
0%
stress personal
prob

Interpretation- according to 96% workers, personal problem is

the reason for being absent. 4% think that stress can also be the
reason.
Q. Your views regarding present Absenteeism
Policy of FMGI ?

80%
70%
60%
50%
40% views regarding
absenteeism policy
30%
20%
10%
0%
excellent good fair poor

Interpretation- it can be seen that 76% workers rate the present

absenteeism policy as good whereas 22% rate it as excellent.
Q. Are you clear about your work / job
responsibilities ?

100%
90%
80%
70%
60%
50%
40% clarity regarding work
30%
20%
10%
0%
well clear good fairly don't
clear know

Interpretation- it can be seen that 94% of the workers at FMGI

are clear regarding their work responsibilities.
Q. Are you satisfied with your work ?

90%
80%
70%
60%
50%
40% satisfaction regarding
30% work
20%
10%
0%
well fair
satisfied

Interpretation- 82% of the workers are fully satisfied with their

work whereas 16% workers think their work as good.
Q. Views regarding working environment of
FMGI ?

90%
80%
70%
60%
50%
views regarding
40% working env.
30%
20%
10%
0%
excellent good fair poor

Interpretation- 82% workers feel that the working

environment at FMGI is good & 14% feel it as excellent.
Q. Your relations with your superiors ?

80%
70%
60%
50%
40% relations with
superiors
30%
20%
10%
0%
excellent good fair poor

Interpretation- 76% workers have good relations with the

superiors whereas 22% have excellent relations with the superiors.
 Q. Yours superiors behaviour towards your
problem ?

60%

50%

40%

30% superiors behaviour

towards your
20% problems

10%

0%
excellent good fair poor

Interpretation- 42% workers think that their superiors

behaviour toward their problems is excellent & 56% workers
consider it as good.
Q. Yours views regarding fascilities provided
FMGI ?

90%
80%
70%
60%
50%
fascilities provided
40% at FMGI
30%
20%
10%
0%
excellent fair

Interpretation– 86% workers consider that fascilities provided

to them are good whereas 10% consider them as excellent.
Conclusion
 Findings

Almost 56% of the workers at FMGI 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 at FMGI 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 superior’s behaviour towards their

problems is excellent & 56% workers consider it as good.
Suggestions
 Suggestions and Recomendations

Following points can be suggested for the chronicle absentees -

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 can also be used to identify and cure excessive

absenteeism.
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 FMGI, Patiala 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 FMGI
who helped me in accomplishing this project and boosting my
morale by appreciating and recognizing my efforts.
 BIBLIOGRAPHY

o www.goetzeindia.com
o www.benifits.org
o www.employer-employee.com
o www.citehr.com
o www.management-issues.com
o www.e-days.com
THANKS

TO

ALL