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A project report submitted to Andhra University in partial fulfillment for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION Submitted By VULLINGALA TRINADHA RAO 111225602145 Under the esteemed Guidance of Assistant Professor in Management Studies

DEPARTMENT OF MANAGEMENT STUDIES NOBLE INSTITUTE OF SCIENCE AND TECHNOLOGY Affiliated to Andhra University, Visakhapatnam (Approved by AICTE New Delhi, India) Visakhapatnam. (2011-2013)


NOBLE INSTITUTE OF SCIENCE AND TECHNOLOGY Affiliated to Andhra University, Lankelapalem, Visakhapatnam

CERTIFICATE This is to certify that the MAIN project report entitled EMPLOYEE ABSENTEEISM is being submitted by VULLINGALA TRINADHA RAO to NOBLE INSTITUTE OF SCIENCE AND TECHNOLOGY in partial fulfillment of the requirement for the Award of the Degree of Master of Business Administration. This work has been carried out by him under my guidance and supervision.

Mrs. G.V.S. SAILAJA. MBA, M.Phil. (PhD) ASSOCIATE PROFESSOR Head of the department

Mr. U.V. CHANDRA SEKHAR (Project guide)


In this endeavor, i would like to express my deep sense of gratitude to all those who helped me in carrying out this study and resenting this report successfully. I feel immense pleasure and pride of bring part of NOBLE INSTITUTE OF SCIENCE AND TECHNOLOGY, that has natured me to the present state and I feel a deep sense of gratitude towards it. I would also wish to thank......................., Special officer who has provided me the opportunity to do project and for the successful completion of my project. I am very much indebted .................................Head of the department, M.B.A whose cooperation has resulted in bringing out this work. I express my thanks to............................... Assistant Professor & Project guide for having encouraged me to under gone this project and his excellent guidance given to me in completing project successfully. I am very earnestly acknowledging my deep sense of gratitude, thankfulness to all other professors...................................................., those have a constant source of help and guidance to me i caring out this study and presenting this report successfully. I also wish to thank all other members of SEEDS INTIMATE APPERAL PRIVATE LTD, who helped me in completion of my project.



I hereby declare that this project report were entitled EMPLOYEE ABSENTEEISM has been prepared by V.TRINADHA RAO in partial fulfillment of the requirement for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION. I further declare that this project work is a result of my own effort and that it has not been submitted to any other university for any degree or diploma.

Place: Date: (V.TRINADHA RAO)

The project report entitle A STUDY ON EMPLOYEES ABSENTEEISM IN SEEDS INTIMATE APPAREL INDIA PRIVATE LTD, is intended to determine the employees condition, salary, Facilities, attendance program, training programme, motivation techniques and promotions.

To achieve this defined objective structured questionnaire based on the preliminary study made is prepared. The prepared questionnaire is used to get the direct responses from the employees of SEEDS INTIMATE APPAREL INDIA PRIVATE LTD

The response given by the employees of SEEDS INTIMATE APPAREL INDIA PRIVATE LTD analyzed and interpreted using different type of statistical tools used are percentage analysis , weighted average method , chi square , correlation .

After analysis and interpretation it reveals the following points are important in improving the working condition ,increasing the salary , transport facilities , introduction of attendance programmed , promotion incentives , increasing leave , welfare facilities , the above all conclusion will helpful for management to improve the presenteeism.


In present days of industrial working the objects of the workers and management are not contrary. Everyone comes to an industrial undertaking with individual needs to earn a lively hood for himself and his family. Organization employees the person who renders certain services which the person qualities and gets the job. If any of the objects is not fulfilled, the agreement between the two will not last long. A healthy organization will always look to the fulfillment of individuals needs and through these aspects; it may strive for higher productivity through strong policies. On the other hand, an individual should see what position he is managing and what the duties to be rendered in that position are. Considering the above aspects, it is important to study the relationship between people and organization structure. It is a major force, which influences development of the industry. Reducing absenteeism is a challenging task, because it deals with a highly complex, fast developing, every changing and expanding field. The present work consists of VIII chapters, well arranged in a coherent manner. Chapter I deals with profile of the organization, Chapter II presents Review of literature, Chapter III deals with Objectives, Chapter IV presents the Research Methodology, , Chapter V deals with the analysis and interpretation of data, Chapter VI deals with findings,

suggestions and recommendations, Chapter VII presents conclusion of the study, Chapter VIII deals with limitations and scope for study.




Introduction of Human Resource Management: Human Resources is an evolving and dynamic field that challenges the ability of even the most seasoned professional to keep abreast of policies, procedures, compliance requirements, and best practices. Human resource management has become the central concern of any organization either in public, private or co-operative sector. Human resources play a vital role in the development of modern economics. In the changing economic environment, HRM is assuming much greater importance than ever before. It is conceived to be different from the traditional and conventional notion of personnel management. Meaning: Human resource management means employing people developing their resource, utilizing, maintaining and compensating their services in tune with the job and organizational requirement with a view to contribute to the organization, individual and the society. Michael J. Jucius: defined personnel management as the field of management which has to do with planning, organization, direction and controlling the functions of procuring, developing, maintaining and utilizing a labor force. Introduction to Employee Absenteeism: The term absenteeism for the first time was defined by the labor bureau, simla in a circular of the of the department , Government of India starting Total man shifts lost because of absence as a percentage of the total number of man shifts schedule to work . Absenteeism has been defined by various authorities. According to WEBSTORS DICTIONARY Absenteeism is the practice of habit of being an absence is one who habitually stays away .

In other words it signifies the absence of an employee from work when he is schedule to be at work, it is unauthorized, unexplained and willful absence from work. Determining the productivity and advancement of organization lies in the efficiency and experience of Employees. But attainment of such objective is not possible so long as the extent of absenteeism and labor turnover is not reduced in fact absenteeism is the main obstacle in advancement of organization. Employers need to be aware of the impact that unplanned absence could have on their ability to trade and employees need to know that throwing a sickie rather than asking for time off could result in disciplinary procedures. In todays world, HR is the utmost important department. In last decade the HR managers used to look after the employees welfare and safety in the organization but as the competitiveness is increasing, the contribution of ideas and business development is also in the hands of HR. Seeds intimate team is working for various companies to provide them cost effective solutions for business development. o Success in the human resources profession requires fast and easy access to information and that requires an automated HR information management system. o Selecting an EMPLOYEE ABSEENTISM is a major decision. Getting approval for such a system is often difficult. The guidelines and worksheets that follow are designed to assist HR professionals in putting together the facts, the figures, and the presentation to convince senior management that the expenditure for an EMPLOYEE ABSEETISM makes sense. o An EMPLOYEE ABSEETISM generally should provide the capability to more effectively plan, control, and manage HR costs; achieve improved efficiency and quality in HR decision making; and improve employee and managerial productivity and effectiveness.


The success of any manufacturing organization depends largely on the workers, the employees are considered as the backbone of SEEDS INTIMATE APPAREL INDIA PRIVATE LTD The study is on employee absenteeism in SEEDS INTIMATE APPAREL INDIA PRIVATE LTD The employee absenteeism is booming HR issue in many industries .It helps to know the employee satisfactions level and it help to find cause of employee absenteeism, based on certain factor like working condition, Leadership style, work stress, leaves days, and salary level. This study can be helpful to the management to improve its core weaknesses by the suggestions and recommendations prescribed in the project. The need of this study can be recognized when the result of the related study need suggestions and recommendations to the similar situation.


The main objective of the study is to find the various studies on absenteeism of man hour and suggestion to reduce absenteeism.

To study the concept of Employee Absenteeism.

To portray the profile of consultancy services with special focus on SEEDS INTIMATE APPAREL INDIA PRIVATE LTD

To elicit the opinion of employee of SEEDS intimate existing various absenteeism methods provided by organization.

To examine various methods adopted by the SEEDS Intimate to employee to reduce absenteeism.

To offer useful suggestions upon the employee absenteeism which will contribute to the well being of the organization.


RESEARCH DESIGN A research design is the arrangement of conditions for collection and analysis data in a manner that aims to combine relevance to the researcher purpose with economy in procedure. It constitutes the blueprint for the collection, measurement and analysis of data. As such the design includes an outline of what the researcher will do form writing the hypothesis and its operational implication to the final analysis of data. More explicitly, the design decisions happen to be in respect of; What is the study about? Why is the study being made? Where will the study be carried out? What type of data is required? Where can the data are found? What periods of time will the study include? What will be the sample design? How will the data be analyzed? In what style will the report be prepared? What techniques of data collection will be used? The Research Design undertaken for the study is Descriptive one. A study, which wants to portray the characteristics of a group or individuals or situation, is known as Descriptive study. It is mostly qualitative in nature. TYPES OF DATA COLLECTED Primary Data Questionnaires are prepared and personal interview was conducted. Most of the questions are consist of multiple choices. The structured interview method was undertaken. The interview was conducted in English as well as in Telugu. Proper care was taken to frame the interview schedule in such a manner it should be easily understood in view of educational

level of the employees. Generally 25 questions are prepared and asked to the employees of the Seeds intimate apparel India private ltd. Secondary Data Secondary data was collected from Internets, various books, Journals, and Company Records. QUESTIONNAIRE CONSTRUCTION Questionnaires were constructed based on the following types Open ended questions Close ended questions Multiple choice questions

DEFINING THE POPULATIONS The Population or Universe can be Finite or infinite. The population is said to be finite if it consist of a fixed number of elements so that it is possible to enumerate it in its totality. So In this projects consist of finite population. Nearly 2500 workers working in the Company. SAMPLING PLAN A sampling plan is a definite design for obtaining a sample from the sampling frame. It refers to the technique or the procedure the researcher would adopt in selecting some sampling units from which inferences about the population is drawn. Sampling design is determined before any data are collected. SAMPLESIZE Nearly 50 samples are taken in Seeds intimate apparel India private ltd.


The field works is done at SEEDS INTIMATE APPAREL INDIA PRIVATE LTD. PERIOD OF SURVEY The period is from May2012 to June20112. DESCRIPTION OF STATISTICAL TOOLS USED Percentage method Chi-square test Correlation Weighted average method Analysis of variance (TWO-WAY ANOVA) PERCENTAGE METHOD In this project Percentage method test was used. The percentage method is used to know the accurate percentages of the data we took, it is easy to graph out through the percentages. The following are the formula

No of Respondent Percentage of Respondent = Total no. of Respondents From the above formula, we can get percentages of the data given by the respondents. CHI-SQUARE ANALYSIS In this project chi-square test was used. This is an analysis of technique which analyzed the stated data in the project. It analysis the assumed data and calculated in the study. The Chi-square test is an important test amongst the several tests of significant developed by statistical. Chi-square, symbolically written as x2 (Pronounce as Ki-Spare), is a statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance. x 100


(O-E) 2 2 = E O E = = Observed frequency Expected frequency

CORRELATION Correlation analysis deals with the association between two or more variables. It does not tell anything about cause and effect relationship. Correlation is classified in two types as Positive and Negative correlation. SPEARMAN Correlation method, it also can be said as Rank Correlation. It is defined by the symbol r 6 di FORMULA r = 1- ______________ n (n-1) Correlation value shall always lie between +1 and-1. When r =1, it shows there is perfect positive correlation between variables. When r = 0, There is no correlation WEIGHTED AVERAGE METHOD Weighted average can be defined as an average whose component items are multiplied by certain values (weights) and the aggregate of the products are divided by the total of weights. One of the limitations of simple arithmetic mean is that it gives equal importance to all the items of the distribution. Certain cases relative importance of all the items in the distribution is not the same. Where the importance of the items varies. It is essential to allocate weight applied but may vary in different cases. Thus weightage is a number standing for the relative importance of the items.

Chapter1: Deals with introduction of the study, need, objectives, methodology
and limitations

Chapter2: Deals with profile of HR consultancy industry and profile of Seeds intimate
apparel India private ltd.

Chapter3: Deals with theoretical framework of the project employee absenteeism and also
deals with various methods implemented by Seeds intimate apparel India private ltd.

Chapter4: Deals with analysis and interpretation Chapter5: Deals with summary, findings and suggestions




A textile or cloth is-a flexible woven material consisting of a network of natural or artificial fibers often referred to as thread or yarn. Yarn is produced by spinning raw fibers of wool, flax, cotton, or other material to produce long strands. Textiles are formed by weaving, knitting, crocheting, knotting, or pressing fibers together (felt). . However, there are subtle differences in these terms in specialized usage. Textile refers to any material made of interlacing fibers. Fabric refers to any material made through weaving, knitting, spreading, crocheting, or bonding that may be used in production of further goods (garments, etc.). Cloth may be used synonymously with fabric but often refers to a finished piece of fabric used for a specific purpose (e.g., table cloth). History: The discovery of dyed flax fibers in a cave in the Republic of Georgia dated to 34,000 BCE suggests textile-like materials were made even in prehistoric times. The production of textiles is a craft whose speed and scale of production has been altered almost beyond recognition by industrialization and the introduction of modern manufacturing techniques. However, for the main types of textiles, plain weave, twill, or satin weave, there is little difference between the ancient and modern methods. Incase have been crafting quipus made of fibres either from a protein, such as spun and plied thread like wool or hair from camelids such as alpacas, llamas, and camels or from a cellulose like cotton for thousands of years. Khipus are a series of knots along pieces of string. They have been believed to only have acted as a form of accounting, although new evidence conducted by Harvard professor, Gary Urton, indicates there may be more to the khipu than just numbers. Preservation of khipus found in museum and archive collections follow general textile preservation principles and practice.

During the 15th century, Textiles were the largest single industry. Before the 15th century textiles were only in a few towns but during, they shifted into districts like East Anglia, and the Cotswolds. Uses: Textiles have an assortment of uses, the most common of which are for clothing and containers such as bags and baskets. In the household, they are used in carpeting, upholstered furnishings, window shades, towels, covering for tables, beds, and other flat surfaces, and in art. In the workplace, they are used in industrial and scientific processes such as filtering. Miscellaneoususesinclude flags, backpacks, tents, nets, cleaning devices such as handkerchiefs and rags, transportation devices such as balloons, kites, sails,

and parachutes, in addition to strengthening in composite materials such as fiber glass and industrial geo-textiles. Children can learn using textiles to make collages, sew, quilt, and toys. Textiles used for industrial purposes, and chosen for characteristics other than their appearance, are commonly referred to as technical textiles. Technical textiles include textile structures for automotive applications, medical textiles (e.g. implants), geo textiles (reinforcement of embankments), agro textiles (textiles for crop protection), protective clothing (e.g. against heat and radiation for fire fighter clothing, against molten metals for welders, stab protection, and bullet proof vests). In all these applications stringent performance requirements must be met. Woven of threads coated with zinc oxide Nano, laboratory fabric has been shown capable of "self-powering Nano systems" using vibrations created by everyday actions like wind or body movements. Source and types: Textiles can be made from many materials. These materials come from four main sources: animal (wool, silk), plant (cotton, flax, jute), mineral (asbestos, glass fibre), and synthetic (nylon, polyester, acrylic). In the past, all textiles were made from natural fibres, including plant, animal, and mineral sources. In the 20th century, these were supplemented by artificial fibers made from petroleum.

Textiles are made in various strengths and degrees of durability, from the finest gossamer to the sturdiest canvas. The relative thickness of fibers in cloth is measured in deniers. Micro fiber refers to fibers made of strands thinner than one denier. Animal textiles Animal textiles are commonly made from hair, fur or skin. Wool refers to the hair of the domestic goat or sheep, which is distinguished from other types of animal hair in that the individual strands are coated with scales and tightly crimped, and the wool as a whole is coated with a wax mixture known as lanolin (aka wool grease), which is waterproof and dirt proof. . Woolen refers to a bulkier yarn produced from carded, non-parallel fiber, while worsted refers to a finer yarn which is spun from longer fibres which have been combed to be parallel. Wool is commonly used for warm clothing. Cashmere, the hair of the Indian Cashmere goat, and mohair, the hair of the North African Angora goat, are types of wool known for their softness. Other animal textiles which are made from hair or fur are alpaca wool, vicua wool, llama wool, and camel hair, generally used in the production of coats, jackets, ponchos, blankets, and other warm coverings. Angora refers to the long, thick, soft hair of the Angora rabbit. Qiviut is the fine inner wool of the muskox. Wadmal is a coarse cloth made of wool, produced in Scandinavia, mostly 1000~1500CE. Silk is an animal textile made from the fibres of the cocoon of the

Chinese silkworm which is spun into a smooth fabric prized for its softness. There are two main types of the silk: mulberry silk produced by the Bombyx Mori, and wild silk such as Tussah silk. Silkworm larvae produce the first type if cultivated in habitats with fresh mulberry leaves for consumption, while Tussah silk is produced by silkworms feeding purely fed on oak leaves. Around four fifths of the worlds silk production consists of cultivated silk.

Plant textiles Grass, rush, hemp, and sisal are all used in making rope. In the first two, the entire plant is used for this purpose, while in the last two; only fibres from the plant are utilized. Coir (coconut fiber) is used in making twine, and also in floor

mats, doormats, brushes, mattresses, floor tiles, and sacking. Straw and bamboo are both used to make hats. Straw, a dried form of grass, is also used for stuffing, as is kapok. Fibers from pulpwood trees, cotton, rice, hemp, and nettle are used in making paper. Cotton, flax, jute, hemp, modal and even bamboo fiber are all used in clothing. Pia (pineapple fiber) and ramie are also fibres used in clothing, generally with a blend of other fibres such as cotton. Nettles have also been used to make a fiber and fabric very similar to hemp or flax. The use of milkweed stalk fiber has also been reported, but it tends to be somewhat weaker than other fibres like hemp or flax. Seaweed is used in the production of textiles. A water-soluble fiber known as alginate is produced and is used as a holding fiber; when the cloth is finished, the alginate is dissolved, leaving an open area Lyocell is a man-made fabric derived from wood pulp. It is often described as a manmade silk equivalent and is a tough fabric which is often blended with other fabrics cotton for example. Fibres from the stalks of plants, such as hemp, flax, and nettles, are also known as 'bast' fibres. Mineral textiles Asbestos and basalt fiber are used for vinyl tiles, sheeting, and adhesives, panels and siding, acoustical ceilings, stage curtains, and fire blankets.

Clover, MAST, Brandot. and Brandix Group are planning to set up a manufacturing operation in India in the name of Seeds Intimate Apparel India Private Limited (SIAIPL). The operation will be located on Brandix India Apparel City Special Economic Zone in Visakhapatnam, Andhra Pradesh and will manufacture Lingerie (Bra) Apparels.

When the company is operational at full capacity it will employ around 4000 people
and consists of a turnover of approximate US$ 70m.

In these company Total 92% Staff is womens and remaining 8% are Gents.These are supporting staff to Womens.

Clover group of China: Founded in1956, Clover Group Is one of the leading manufactures of intimate lingerie for numerous prestige brand labels throughout North America and Europe. Our production complexes are located in china and Cambodia with workforce over 7,000.For the past half century; We aim to keep abreast with the industry transcendence from being a basic functional requirement into a bodice enhancement. Clover Group has always maintained its posture and embraced the challenges ahead even facing the ever changing needs and behavior of customers. MAST industries USA: Mast industries Is one of the Worlds largest contract manufacturers importers, and distributors of mens, and childrens apparel with revenues of approximately $3.0 billion or approximately $5.0 to $7.5 billion at retail. Mast industries is the major suppliers to limited brands -- one of the Worlds largest multi branded specialty retailersas well as many other significant fashion brands. Brandix Group Srilanka: Brandix Lanka Ltd is the largest exporter of apparel in Sri Lanka.As the holding company of the Brandix group of companies, it is engaged in developing, manufacturing and marketing end-to-end apparel solutions to global fashion superbrands.A peek into an exclusive portfolio reveals Victorias Secret, Gap,Next,Mark and Spencer , Liz Claiborne, Abercrombie and Fitch, amongst other excellent company.
PROJECT BACKGROUND: As part of this growth strategy Seeds Intimate Apparel saw a huge potential in India both in terms of the manufacturing capabilities to support its expected increase in turnover with Victorias Secret, and other international brands. There are also the possibilities of supplying the hugely expanding local market.

NATURE OF NEW BUSINESS UNIT: Seeds Intimate Apparel have committed to taking a long-term lease of a 15 acre site within the Brandix India Apparel City textile complex in Visakhapatnam. A manufacturing facility of 175000square foot is planned to be erected, which will predominantly manufacture lingerie. The construction of the unit will commence in Q2 of 2009-2010 with operations coming on line in Q4 of 2009-2010.Initially the business will employ around 1000 people from the local area,with plans to ultimately expand this to between 3500 and 4000.Brief profiles of the directors of Seeds Intimate Apparel India Private Limited are as follows:

MR.MOHAMED ASHROFF OMAR Brandix Group Director (55): He was appointed Chief Executive Officer (CEO) in 2004.He spearheaded The Groups first joint venture with Mast Industries, the first of sixteen business

operations that followed and several other strategic acquisitions within the apparel industry. His entrepreneurial spirit and strategic of vertical integration has resulted in the success of

Brandix. A frequent spokesperson for the Apparel industry he is also the former Chairman of the Sri Lanka Apparel Exporters Association and presently the chairman of the Joint Apparel Association Forum (JAAF) the apex body of the apparel industry, primarily involved in driving strategy for the industry and lobbying on its behalf. He is a Steering Committee Member of the European Commission-Sri Lanka Joint Study and is also responsible for negotiating with the European Union for added benefits for the apparel industry in Sri Lanka. He also serves as a Non-Executive Member of the Board of John Keels Hotels Limited.

MR. FEROZ OMARBrandix Group Director (46) His career began as Managing Executive of MKC Industries, which has the Groups maiden foray into the manufacture of knitted lingerie. As Brandix grew , logical integration required a fabric processing mill , which he fulfilled by converting a Greenfield site into Brandix Textiles a leader in fabric manufacturing today, with a customer base that spans the region. In addition, he is currently responsible for Ocean Lanka and Quenby Lanka Prints,both of which he helped form, and Brandix Finishing. Further, with a passion for community development he drives Brandix Social Responsibly initiatives.


He has been appointed as Director of seeds Intimate Apparel India Private Limited with effect from 9th July 2009. He has given leadership to Bodyline and Intimate Fashions since their inception.Both Companies have grown to become two of the most successful Bra manufacturers in the world. He was also responsible for MAS Investments, MAS Research &Innovation and Commercial &Logistics. He has been closely involved in IT initiatives, making a significant contribution to the development of IT infrastructure and services in the MAS Group. He has held Board level positions at MAS Holdings, MAS Apparel, Bodyline, Intimate Fashions, MAS Research &Innovations, MAS Intimates and MAS investments. He

is a Fellow member of the Chartered Institute of Management Accountants, UK. He has received extensive executive education at Ashridge Management College, UK and the National University of Singapore.

SALES AND MARKETING STRATEGY: Victorias Secret is a major customer of the clover Group. Clover Group is one of the leading manufacturers of intimate lingerie for numerous prestige brand labels throughout North America and Europe. Our production complexes are located in China and Cambodia with workforce over 7000. For the past half century, we aim to keep abreast with the industry transcendence from being a basic functional requirement into a bodice enhancement. Clover group has always maintained its posture and embraced the challenges ahead even facing the ever-changing needs and behavior of our customers. Our goal is persistently enhancing ourselves with the first-class reputation we have built up during our first 50 years well into the coming 50 years and beyond. The proposed project is to establish a world class manufacturing plant in BCIAPLSEZ for production of Lingerie for the US and Euro markets.

FINANCIAL FEASIBILITY: Investment: The investment in the project is as follows:

INR in Lakhs Land and Buildings Machinery and Equipment Working capital Total 3498 2987 1015 7500



BENEFITS: Employee provident fund: Employer and employee contribute are equal in provident fund which is 12%. It is deducted on Basic+D.A+Cash value of food allowance @12% Crche Facility:

Below 5Years childrens Ambulance facility:

Canteen facility with subsided food:

Medical facility: Doctor visit 3days in a week, Nurse facility at first aid room

Marriage Bonus: Company will provide car due to marriage purpose, Money+Gift

Production incentives

Workmen compensation Maternity bonus Transport facility: Nearly 25 Buses is there.

VALUES: Integrity

Team work

Customer service

Learning & growth

Ownership &


Business Analysis: The proposed project is to establish a world-class manufacturing plant. This will achieve the following objectives Secure a low cost supply route for innovate products to our chosen market. Reduce our dependency on third party sources. Provide Groups with a balanced spread of risk both geographically and financially. Manufacturing is to commence in Q4 2009-10 and will be at full capacity of 10m pcs Lingerie per annum by year 5 this will provide Seeds Intimate Apparel with an annual sales value of production of $70 million



Absenteeism is a habitual pattern of absence from a duty or obligation. An absence refers to time an employee is not on the job during scheduled working hours, except for a granted leave of absence, holiday, or vacation time. However, employee absenteeism is not just an employee issue it is an organizational problem and therefore becomes everyone's responsibility.

FRANCES DAVIES Absenteeism can have an enormous effect on the productivity of an organization. The average American worker takes six days sick leave a year, and although this is significantly less than in places such as Europe it is still having a big impact on US staffing resources and productivity. The loss of productivity due to short/long-term illness, disability is therefore proving to be a major headache for companies. Effective absence management programs can be the best remedy for reducing absenteeism. Every time an employee is absent from work there is a loss of productivity to the organization, explains Sharon Kaleta, President and CEO of the Disability Management Employers Coalition (DMEC). One person absent from work may not create a problem, but several people absent for one or more days can have a significant financial impact to the organization. IMPACT OF ABSENTEEISM There are many forms of absenteeism, ranging from short-term illness, long-term illness, unauthorized absence and persistent lateness, to other authorized absences such as annual leave, paternity leave, time off to care for dependents and compassionate leave. Other causes might also include low morale, stress and poor working conditions, many of which are preventable. The effect absenteeism can have on a business can be wide-ranging, but particularly affects those employees left to pick up the pieces. According to Wayne Wending, Senior Director of

Research at the International Foundation of Employee Benefit Plans. The workings of a company have changed and employees are now much more interconnected than previously and, as a result, organizations are much more dependent on their employees. When someone is absent, the entire web of interaction among employees can be disturbed in terms of workflows and the availability of information, he explains. Part of that is overcome as more files are now open to people who can fill in and help with the tasks that the individual may have been performing. However, there is a definite ripple effect through the organization when someone is unexpectedly ill. The productivity of others is also being impacted. WORKING WELL There are many measures that an employer can take to help mitigate the rippling effects of absenteeism on the workforce. Sometimes it really is the little things that make the most difference. Allowing employees to visit doctors and dentists, health surveillance, health education and stress management interventions are all good examples. Once they are measuring absence and then reducing it, they will find that a fitter workforce will perform better and productivity will increase giving them a competitive edge in any business environment, enthusesBawden. One of the most effective ways to combat absenteeism, however, is to maintain a happy working environment where people actually enjoy coming to work. Have a workplace that people love to come to work in and they feel they are doing something meaningful, Wending recommends. Although not always preventable, absenteeism is something that can be mitigated to a certain degree, and absence management programs can definitely help. Fostering a caring working environment where workers are supported during any illness or disability can only work in the favor of the company and ensures that work isnt something for employees to be sick of.

Report Author: ANNE COUGHLAN Senior Research Executive, IBEC Research and Information Service IBEC WORKPLACE ABSENCE SURVEY 2004 The report contains data from the IBEC WORKPLACE ABSENCE SURVEY 2004, which was based on responses received from 557 private sector companies employing 147,000 employees. Absence affects more than just the person who is absent. The absent employees themselves and their dependents may have a reduced income as a result of absence, besides incurring possible additional medical expenses. Employers are affected by direct costs such as sick pay, overtime and staff replacement costs, plus the indirect costs associated with the effects of absence on, for example, production and quality, management time and the potential loss of customers. The co-workers of an absent employee may have to work under increased pressure, in order to meet deadlines. Many organizations appear to accept a certain level of absence i.e. where a proportion of their employees are away on any particular day. The recent IBEC study found that over half of the respondents did not consider they had a problem with absence. However, more than four out of ten companies in the survey considered their absence levels to be a cause for concern. As only a portion of absence days are subject to organization control it is important to determine what portion of employee absence is avoidable. Employees can feel they have been treated unfairly when they perceive other absent employees as getting away with it. Absence can also be a symptom of a more serious underlying problem, such as bullying and/or harassment, communication breakdown, stress, etc., which could, if not investigated, lead to significant costs to the organization, as well as causing long-term damage to the employee.

A recent IBEC survey showed that personal problems were cited as a cause of absence in a significant number of companies, for both males and females. Nowadays, apart from sickness, employees can be absent from work for any one of a number of reasons, either

under statutory leave entitlement (such as annual leave, maternity or adoptive leave, parental leave), or under arrangements agreed at an individual company level (such as compassionate or bereavement leave, study and/or exam leave, marriage leave, training, etc.). HOW TO DEAL WITH EMPLOYEE ABSENTEEISM For Employees Who Are Absent For Supervisors/Managers: Recently, I was asked by a manager how he should deal with the fact that on any given day 10% of his employees are absent from work. I informed the manager that the problem of employee absenteeism is a problem best resolved by taking the following four positive interventions versus taking a negative or punitive approach.

Change Working Conditions: The employees in your company probably work in a well-lighted climate controlled building. The working conditions I am referring to relate to coworker relationships. Not only does relationship stress occur between the employee and manager, but it also exists between employees. Frequently I hear employees say they did not go to work because they are fearful of or angry with another employee. These employees usually report they just could not deal with "so and so" today, so they called in ill. Companies that adopted policies and values that promote employee respect and professionalism, and promote an internal conflict resolution procedure, are companies that reduce employee stress. A reduction in employee stress reduces employee absenteeism. Provide Incentives:

Giving employees incentives for reduced absenteeism is not the same as rewarding or giving employees bonuses for reduced absenteeism. An incentive provides an employee with a boost to their motivation to avoid unnecessary absenteeism. It simply helps the employee decide to go to work versus staying home and watching Jerry Springer. The types of incentive programs used by companies are numerous. Some companies allow employees to cash-in unused sick days at the end of every quarter, others give an employee two hours of bonus pay for every month of perfect attendance; and still others provide employees with a buffet lunch, a certificate of achievement, or even a scratch-off card concealing prizes. The type of incentive program that your company uses should be one created especially for your company. You can create an incentive program tailored to your unique company by allowing employees to help you develop the incentive program. The duration of the incentive program is also very important. Some companies find that they can simply reward employees with perfect attendance once a year, while others decide once a month is best, and still others decide once a week works best. Develop an Attendance Policy: Every company should have an attendance policy. An attendance policy allows a manager to intervene with an employee who is frequently absent. Besides stress as a primary reason for employee absenteeism, other causes relate to alcoholism, domestic violence, and family problems. If you confront an employee about his or her frequent absenteeism, and they inform you it is due to personal problems, consider referring the employee to an Employee Assistance Program (EAP). If the employee's absenteeism relates to a medical problem or a family member with a medical problem, you may have to consider allowing the employee to use the benefits allowed to them under the American's with Disability Act (ADA) or the Family and Medical Leave Act (FMLA). Early identification of these employees will get them back to work as fast as possible. Lastly, make sure that you have an attorney review your attendance policy to make sure it does not violate any State or Federal labor laws. By incorporating the above four

strategies into your company you will not only reduce absenteeism you will reduce employee burnout, turnover, poor morale, and workplace negativism. For Employees Who Are Frequently Absent

One of the most important steps you can take if you are frequently absent is to keep your employer informed. Employees who are frequently absent without good cause are generally absent due to numerous frivolous reasons. Employees who are absent for good cause have legitimate reasons, e.g. sickness or family member illness, and the employee needs time off to resolve their personal problems. Most employers generally understand the need to be gone from work due to a legitimate reason; therefore, it is important to communicate clearly and accurately frivolous reasons. As an employee you are allowed to take up to 12 weeks of unpaid leave under the federal Family and Medical Leave Act (FMLA). The 12 weeks of leave may be taken continuous or intermittently, thereby allowing the employee to work on a less than full-time schedule. FMLA can be used for the care of a child after birth, adoption, or foster care placement. FMLA is available to care for an immediate family member (spouse, child, and parent) who has a serious health condition. FMLA can be used for your own serious health concerns. It does not cover for the common cold, flu, ear aches, upset stomach, common headache, or routine dental care. In order to be covered by FMLA you must be considered an "eligible" employee. An eligible employee must have 12 months (1,250 hours) of employment, and your employer must employ 50 or more employees within 75 miles of the worksite. Employees must so your employer does not assume you are out for