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Absenteeism is referred to herein as failure of employees to report for work when they are scheduled to work. Employees who are away from work on recognized holidays, vacations, approved leaves of absence, or leaves of absence allowed for under the collective agreement provisions would not be included. The definition of absenteeism, its causes, its affects on productivity, and its costs in terms of finances and administrative effectiveness are quite clear. What is not as clear is how to take affirmative action to control absenteeism in such a way as not to create mistrust, costly administration and systems avoidance (game players). Traditional methods of absenteeism control based only on disciplinary procedures have proven to be ineffective. It is almost impossible to create a fair disciplinary procedure because even well run 1|Page

disciplinary systems, which treat similar actions in consistently similar ways, are usually seen as unfair. The reason for this is discipline alone usually does not identify or address the root causes of absenteeism. Every employee who takes time off in defiance of company regulations has reasons, right or wrong, which justify to themselves the legitimacy of their actions. Unless a management attendance program identifies and addresses the causes of employee absenteeism it will be ineffective and unfair. Traditional disciplinary programs alone can, at best, give the illusion of control. It is no secret that there are ways to beat even the best systems. The fear of discipline often only increases the desire to avoid management systems. TYPES OF ABSENTEEISM There are two types of absenteeism, each of which requires a different type of approach. INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond their control; like sickness and injury. Innocent absenteeism is not culpable which means that it is blameless. In a labor relations context this means that it can not be remedied or treated by disciplinary measures. CULPABLE ABSENTEEISM Culpable absenteeism refers to employees who are absent without authorization for reasons which are within their control. For instance, an employee who is on sick leave even though he/she is not sick but it can be proven that the employee was not sick, is guilty of culpable absenteeism. To be culpable is to be blameworthy. In a labor relations context this means that progressive discipline can be applied.

For the large majority of employees, absenteeism is legitimate, innocent absenteeism which occurs infrequently. Procedures for disciplinary action apply only to culpable absenteeism. Many organizations take the view that through the process of individual absentee counseling and treatment, the majority of employees will overcome their problems and return to an acceptable level of regular attendance.


THE CAUSES OF ABSENTEEISM The causes of absenteeism are many and include: Serious accidents and illness Poor working conditions Lack of job satisfaction Inadequate leadership and Poor supervision Personal problems (financial, marital, substance abuse, child care etc.) Poor Physical Fitness Transportation Problems Workload THE COST OF ABSENTEEISM DECREASE IN PRODUCTIVITY Employees may be carrying an extra workload or supporting new or replacement staff Employees may be required to train and orientate new or replacement workers Staff morale and employee service may suffer FINANCIAL COSTS Payment of overtime may result Cost of self-insured income protection plans must be borne plus the wage costs of replacement employees Premium costs may rise for insured plans ADMINISTRATIVE COSTS Staff time is required to secure replacement employees or to re-assign the remaining employees Staff time is required to maintain and control absenteeism. IDENTIFYING EXCESSIVE ABSENTEEISM

Attendance records should be reviewed regularly to be sure that an employee's sick-leave days are excessive compared to other employees. If a supervisor suspects that an employee is excessively absent, this can be confirmed through reviewing the attendance records. 3|Page


If all indications show that an employee is excessively absent, the next step is to gather as much information as possible in order to get a clearer picture of the situation. The employees' files should be reviewed and the employees immediate supervisor should document all available information on the particular employee's history. INDIVIDUAL COMMUNICATION

After all available information has been gathered, the administrator or supervisor should individually meet with each employee whom has been identified as having higher than average or questionable (or pattern) absences. This first meeting should be used to bring concerns regarding attendance to the employee's attention. It is also an opportunity to discuss with the employee, in some depth, the causes of his or her attendance problem and possible steps he or she can take to remedy or control the absences. Listen carefully to the employee's responses.

The tone of the meeting should not be adversarial, but a major purpose of the interview is to let the employee know that management treats attendance as a very important component of overall work performance. Keep your comments non-threatening and workoriented. Stick to the facts (i.e. patters, profiles, rates etc.). The employee should be given a copy of there attendance report with absences highlighted for discussion. This interview will give you the opportunity to explore in depth with the employee the reasons for his or her absence. Gather facts - do not make any assumptions. Provide support and counseling and offer guidance as the occasion demands to assist the employee to deal with the specific cause of the absence.

Often, after the initial meeting employees reduce their absenteeism. The meeting shows that you are concerned and that absenteeism is taken seriously. The employee's attendance should be closely monitored until it has been reduced to acceptable levels. Appropriate counseling should take place as is thought necessary. If a marked improvement has been shown, commend the employee. The meeting should be documented and a copy placed in the employee's file.



Sometimes it is helpful in counseling employees with excessive innocent or culpable absenteeism to inquire or verify the nature and reasons of their absence. The extent to which an employer may inquire into the nature of and reasons for an employee's absence from the workplace is a delicate issue. The concepts of an employee's privacy and an employer's need for information affecting the workplace often come into conflict. Seldom is the conflict more difficult to resolve than where personal medical information is involved.

Unions will often strongly object to any efforts by management to inquire more deeply into the nature of an employee's illness. You will need to consider the restraints of any language in collective agreements in relation to this issue.

Generally speaking, however, the following "rules of thumb" can be derived from the existing jurisprudence: There is a prevailing right to privacy on the part of an employee unless the employer can demonstrate that its legitimate business interests necessitate some intrusion into the employee's personal affairs. When such intrusion is justified it should be strictly limited to the degree of intrusion necessitated by the employer's interests. An employee has a duty to notify his employer of an intended absence, the cause of the absence and its expected duration. This information is required by the employer to meet its legitimate concerns to have at its disposal facts which will enable it to schedule work and organize its operation. An absent employee has an obligation to provide his employer with information regarding any change to his condition or circumstances relating to it which may affect the employer's needs as described in item #3 above. As such, the interest of the employer in having this information outweighs the individual employee's right to privacy. An employer rule requiring proof for every absence is unreasonable if an absenteeism problem does not exist. A mere assertion by the person claiming to be sick is not satisfactory proof.


The obligation to prove sickness, where the employer requires proof, rests with the employee. An employer is entitled upon reasonable and probable grounds to refuse to accept a physician's certificate until it contains sufficient information to satisfy the employer's reservations. (i.e. seen by physician, some indication of return to work, etc.). Non-production of a required medical certificate could result in loss of pay until the certificate is produced. Where a medical certificate is rejected by an employer (as in #8 above) the employer must state the grounds for rejection and must point out to the employee what it requires to satisfy the onus of proof. An employer may require an employee to prove fitness for work where it has reasonable grounds to do so. In a health care setting the nature of the employer's business gives it a reasonably irresistible interest in this personal information for the purpose of assessing fitness. Where any unusual circumstances raise reasonable suspicion that an employee might have committed an abuse of an income protection program an employer may require an employee to explain such circumstances. For example, an employer may require responses as to whether the illness confined an employee to his/her bed or home; whether an employee engaged in any outside activity and the reasons for the activity.

In summary then, any intrusion into the employee's privacy must be shown to be reasonable, based on the individual circumstances and in relation to the operation of the employer's business. If income protection abuse is suspected the extent to which such intrusion is "reasonable" would be far greater than in the case where it is not. If you are not clear on whether an inquiry is legally justified it is advisable to consult your superior. AFTER THE INITIAL INTERVIEW

If after the initial interview, enough time and counseling efforts, as appropriate, have passed and the employee's absenteeism has not improved, it may be necessary to take further action. Further action must be handled with extreme caution - a mistake in approach, timing or severity can be crippling from both an administration and labor relation's point of view. 6|Page


Determining whether counseling or disciplinary action is appropriate, depends on whether the employee's absences are innocent or culpable. If the employee's absenteeism is made up of both innocent and culpable absences, then each type must be dealt with as a separate issue. In a labor relation's context innocent absenteeism and culpable absenteeism are mutually exclusive. One in no way affects the other. THEORETICAL FRAMEWORK

A theoretical framework is a conceptual model of how one theorizes or makes logical sense of the relationships among the several factors that have been identified as important to the problem. Developing such a conceptual framework helps us to hypothesize and test certain relationship and thus to improve our understanding of the dynamics of the situation. In our project the variables that have been identified as important to the problem are: DEPENDENT VARIABLE Absenteeism of Employees. INDEPENDENT VARIABLES Personal Problems (Family Care) Social Events Health Problems (Physical & Psychological) Serious Accident Lack of Job Satisfaction Transportation Problems MODERATING VARIABLE Poor Working Environment Work Load INTERVENING VARIABLE Employers Behavior (Poor Supervision, Inadequate Leadership)




Personal Problems

Social Events

Health Problems

Employees Absenteeism

Serious Accident

Lack of Job Satisfaction

Transportation Problems

Independent Variable

Dependent Variable




Personal Problems Dependent Variable

Social Events

Health Problems

Employees Absenteeism

Serious Accident

Transportation Problems

Lack of Job Satisfaction

Employers Behavior

Independent Variable

Intervening Variable




Moderating Variable

Personal Problems

Work Load Dependent Variable

Social Events

Health Problems

Employees Absenteeism

Serious Accident Working Environment Transportation Problems

Lack of Job Satisfaction

Employers Behavior

Independent Variable

Intervening Variable

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A hypothesis and be defined as a logically conjectured relationship between two or more variables expressed in the form of a testable statement. Relationships are conjectured on the basis of the network of association established in the theoretical framework formulated for the research study. By testing the hypothesis, it is expected that solution can be found to correct the problem encountered.

Hypothesis # 1: Single employees are absent more frequently than married employees.

Hypothesis # 2: The higher the rate of pay and the greater the length of service of the employee, the fewer the absences


We have conducted questionnaire development for the survey. We conducted the review of the relevant literature to identify existing scale of measure. We have also conducted in-depth interview with various organizational employees concerning to Government and Private Sector. SCIENTIFIC DATA COLLECTION After the development of the hypothesis, data with respect to each variable in the hypothesis need to be obtained. In other word further scientific data collection is need to test the hypothesis that are generated in the research. POPULATION FRAME Population frame consist of those persons or individuals who are providing their services as an employee in the organization. As the population is enormous so it is rather very difficult for us to make our exact targeted individual because many of them have not sufficient time to fill the questionnaire.

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SAMPLE FRAME The sample size is 100 and it is taken from the population frame. Each subject is very precisely and deliberately considered. The sample is taken randomly and no consideration is made to draw sample stratified or cluster sampling. VALIDITY AND RELIABILITY Great consideration is made while collection of data that responded should be rational about their services and answer the best one. As we have taken the sample randomly according to statistician there is no malfunction in random sampling. No any class is tending to protect while making survey. Although we made our level best effort to reduce non-serious respondent and only considered those who are serious and rational.

CHANGE MANAGEMENT STYLE We are all aware of the fact that when employees call in ill, it does not mean they are truly too physically ill to work. One reason, outside of illness, that employees are absent is stress, and the number one reason employees are stressed has to do with their relationship with their manager/supervisor. Management styles that are too authoritarian tend to promote high levels of absenteeism among employees. Authoritarian managers are managers who have poor listening skills, set unreachable goals, have poor communication skills, and are inflexible. In other words, they yell too much, blame others for problems, and make others feel that it must be their way or the "highway." Authoritarian managers tend to produce high absenteeism rates. By identifying managers who use an authoritarian style, and providing them with management training, you will be taking a positive step not only toward reducing absenteeism, but also reducing turnover, job burnout, and employee health problems such as backaches and headaches.

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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. For example, your employees may not care about receiving a $25.00 U.S. saving bond for perfect attendance, but they might respond very well to being able to leave one hour early on Friday if they have perfect attendance all week.

The duration of the incentive program is also very important. Once again allow your employees to help guide you to determine the length of time between incentives. 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. The general rule of thumb is to reward workers more frequently the younger they are 13 | P a g e

and the more difficult the work is to perform. Also, it is best to start with small incentives and work up to larger ones if necessary.

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). DEALING WITH ABSENTEEISM

Even the best employees miss a day of work now and then. When calling in sick becomes the rule rather than the exception, however, you have a problem. Absenteeism can cause all sorts of serious problems for your business, from other employees having to cover for the missing worker to missed deadlines to dissatisfied customers. Here are some steps to control absenteeism:

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Keep track of absences. It is important that you keep careful records so you can compare the absences of all your employees. Check back over your records and see if any patterns emerge, such as an employee who seems to call in sick only on Fridays or warm summer days.

Find out if absenteeism is voluntary or unavoidable Has the employee been missing work due to an unavoidable problem, such as a serious illness in the family? Or does the employee seem to be lacking a good reason? Talk to the employee to find out what the specific problem is. Ask the employee what you can do to help. However, if you suspect your employee isnt being straight with you, you may want to ask for validation of future absences. Schedule a meeting with the employee. If youre not satisfied with the initial conversation, have a private meeting. Have your facts in front of you and don't yell or scold--try to keep the discussion friendly. Tell the employee that you want to understand and solve the problem. Don't discipline the employee at this meeting. If things dont get better, hold another meeting. Explain how the employee's absence is affecting others, and tell him you need an improved performance and better attendance on the job. Write a report. It is important to document what has occurred with this employee. Create a written report that is placed in the employee's personnel file. Include the date of all the absences, the meeting dates and the gist of the two conversations. Be sure to give a copy of this written report to the employee as well. Give an ultimatum The employee has two choices at this time: start coming to work regularly or find another place of employment. If the employee decides to leave at this time, know that letting the employee stay would have been a detriment to you and your other employees. 15 | P a g e

ATTENDANCE MANAGEMENT The management of attendance is an important aspect of supervision in the workplace. The cost of absenteeism is greater than the direct payment of wages and benefits paid durance the absence. Organizations must also consider the indirect cost of staffing, scheduling, re-training, lost productivity, diminished moral, turnover, opportunity cost. The indirect costs often exceed the direct cost of absenteeism. Every person day of absence costs $2,500 (based on 9 days absent out of 250 working days and an average payroll of $35,000). Effective supervisory efforts in attendance management will affect a relatively small percentage of employees but will generate substantial savings, increased productivity and morale. PURPOSE OF ATTENDANCE MANAGEMENT The purpose of attendance management is to develop a willingness on the part of all our employees to attend work regularly and to assist them in motivating their coworkers to attend work regularly. This can be done through; 1. addressing the physical and emotional needs of our employees 2. communicating the attendance goals of the organization so employees can understand and identify with them 3. dealing with cases of excessive absenteeism effectively and fairly so deterrence can occur Successful administration of an attendance management program requires managers and supervisors to be aware of, and create work environments in which the following can be actualized. 1. The greater the extent to which individuals identify their goals with the goals of the organization and care what happens to it, the greater their motivation to be regular in attendance. 2. The more people find their jobs meaningful to them, the greater their motivation to be regular in attendance. 16 | P a g e

3. As employees workload increases due to the absence of a co-worker, peer pressure is exerted on the absent co-worker to attend work on a regular basis. 4. The more people like working for the organization the higher their motivation to attend regularly. Recognition of good employee attendance helps improve attendance. 5. Employees will have a lower absence ratio if they feel free to discuss their on-thejob problems with their immediate supervisor. 6. Employees with a low absence ratio have attitudes of confidence and "team" spirit. 7. Low absence ratio employees are found to be more satisfied with their opportunity for promotion and upgrading. ATTENDANCE MANAGEMENT PROGRAM An attendance management program can be split into three basic parts: 1. Development of information/communication systems 2. Information Testing 3. Taking appropriate group action 1. Information Communication Systems The first step of an effective attendance management program is to identify specific areas which are affecting attendance.. The best way to find which specific areas are affecting absenteeism in a specific work environment is to develop open communication between managers, supervisors and employees. The reason for this is that it is not really the physical realities of the work place that influence employees willingness to work but rather their perceptions of these realities. For example, workload is only a problem if it is thought to be one. It is important that employees are encouraged to voice their concerns so their perceptions of the work place are clear and can be dealt with. This type of communication is especially important in unionized environments as employees often tend to communicate only with their union representatives. The result is that vital feed back necessary for effective management is lost. Cooperation with union representatives can be very helpful in attendance management and should be encouraged if possible. Formal communications networks such as regularly scheduled department meetings are an excellent way not only to hear employee perceptions and concerns but also to 17 | P a g e

communicate organizational goals. When employees are encouraged to make a difference they are less likely to withdraw their participation through absenteeism. Employees must not only be heard, they must be answered in such ways as to assure them their input is worthwhile. Staff development meetings are important in molding company ideals with employee needs. They are also important in developing a sense of team spirit among coworkers. Full participation in such meetings is to be encouraged if they are to be effective. Informal communications are also very effective in identifying and dealing with employee needs and perceptions. Informal communication involves all levels of managers and supervisors. Supervisors are especially important because of their hands-on approach and contact with employees. An employee's relationship with their supervisor can greatly influence their feelings about their work, their coworkers and thus their attendance at work. Insight, intuition, creative thinking and listening are all powerful ways of finding areas which affect attendance. Ideas and information should be encouraged from all sources. The establishment of varied communication channels is useful in gathering information and to an extent, in confirming it. Effective communication in itself can effectively reduce absenteeism. 2. Information Testing Once communication networks are established, information on perceived problems from employees will be bountiful. Before taking action on any issue, no matter what the source of information, it should be confirmed. A simple and effective way to check whether a specific issue truly affects absenteeism is by finding correlations through using attendance records. If it is suggested, for instance, that absenteeism is increasing due to employee dissatisfaction with their workload, all one need do is match the attendance records during a period of "high" workload to a period of "normal" workload. If absenteeism is found to be significantly higher during increased workload periods, then it has been confirmed that actual workload "is related to" absenteeism levels. If no correlation exists it may be that employee perception of workload affects absenteeism. In this case the importance of the employee perception could be

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confirmed through staff development meetings. In any case two different problems have been distinguished which require different types of attention. Attendance records also should be used to monitor attendance trends. Are long term or short term absences more common? What percentage of employees have excessive absences? Attendance record forms are designed to facilitate the determination of whether or not absenteeism patterns exist. 3. Taking Appropriate Group Action The best way to handle any given situation is to handle it on its own merits and within the guidelines of the goals one is trying to achieve. This paper does not attempt to give all the answers to every possible situation but rather, offers suggestions and guidelines on which answers can be built. In summary, to run an effective attendance management program it is important to: 1. develop ways for each and every employee to feel free to contribute ideas and suggestions even though these may be outside the scope of their job responsibilities 2. make each employee aware that they are a valued member of the "team", that they play an important role in your organization and that their attendance is critical 3. hold regular meetings, keep your staff informed and involved 4. know your employees; without prying show an interest in their personal lives 5. be aware of problems that may effect employee attendance or performance 6. familiarize yourself with community programs which you can recommend to an employee if he/she has a need for assistance (i.e. marital or financial counselling) 7. awareness, commitment and involvement by all levels of staff Positive motivation should be the main body of any attendance management program because it produces the best results. If an employee's experiences in the work place are pleasant, if he/she feels valued and appreciated, if supervision is fair but firm, that employee will be more motivated to attend work regularly.

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GUIDELINES FOR ABSENTEEISM CONTROL COUNSELING 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 counseling(s) 2. Written counseling(s) 3. Reduction(s) of hours and/or job reclassification 4. Discharge Initial Counseling Presuming you have communicated attendance expectations generally and have already identified an employee as a problem, you will have met with him or her as part of your attendance program and you should now continue to monitor the effect of these efforts on his or her attendance. If the absences are intermittent, meet with the employee each time he/she returns to work. If absence is prolonged, keep in touch with the employee regularly and stay updated on the status of his/her condition. (Indicate your willingness to assist.) You may require the employee to provide you with regular medical assessments. This will enable you to judge whether or not there is any likelihood of the employee providing regular attendance in future. Regular medical assessments will also give you an idea of what steps the employee is taking to seek medical or other assistance. Formal meetings in which verbal warnings are given should be given as appropriate and documented. If no improvement occurs written warning may be necessary. 20 | P a g e

Written Counseling If the absences persist, you should meet with the employee formally and provide him/her with a letter of concern. If the absenteeism still continues to persist then the employee should be given a second letter of concern during another formal meeting. This letter would be stronger worded in that it would warn the employee that unless attendance improves, termination may be necessary. 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 can not 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. 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. counseling, 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?

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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. 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 counseling as appropriate, with no improvement despite your positive efforts, disciplinary procedures may be appropriate. The procedures for corrective/progressive discipline for culpable absenteeism are generally the same as for other progressive discipline problems. The discipline should not be prejudicial in any way. The general procedure is as follows: 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 employees that his/her attendance record must improve and be maintained at an improved level or further disciplinary action will result. Offer any counseling or guidance as is appropriate. Give further verbal warnings as required. Review the employee's income protection records at regular intervals. Where a

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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 counseling memorandum as to the type of action to be taken and when it will be taken if the record does not improve. As soon as possible after this meeting 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 continue, the next step in progressive discipline may be a second, stronger written warning. Your decision to provide a second written warning as an alternative to proceeding to a higher level of discipline (i.e. suspension) will depend on a number of factors. Such factors are the severity of the problem, the credibility of the employee's explanations, the employee's general work performance and length of service.

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Company Profile

Honeypot IT Consulting is internationally established software Technology Company with offices in USA and India. The Indian offshore centre is located in a state-of-art facility in the heart of Hyderabad City.

Honeypot IT initialized its unique opportunity project / product development and enterprise service offerings to deliver value for money results to our customers / clients.

Honeypot IT strongly believes to partner with leading technology companies worldwide to ensure technology focus that helps it provide solutions in line with the emerging technologies.

Our technology understanding ahead of the market place and our domain experts and business development team is constantly updated. This ensures our technical team

upgrades its skill sets all the time converting them into our most powerful assets.

Honeypot IT offers its clients a dedicated coordinated two-pronged approach to their technical requirements.

Our offshore development centre in India is well structured in terms of resources, with 24 | P a g e

senior project managers to deliver best of breed technology solutions tailored to customer requirements.

Honeypot's onsite team is a smaller team, however, top-notch technical people led by well experienced project manager, works at client site to ensure the effective and efficient delivery and deployment exceeding the client's expectations.

Vision Our vision statement underlies our aspirations to establish the Honeypot as the benchmark reference for the provision of software ser vices and even further, in line with the increased needs of our customers operating across the globe. Mission

To imagine, conceive, create and deploy creative and effective products and services that can help our clients meet their objectives.


Our commitment to the highest standards of business ethics and our alertness in the protection of the necessary trust required of a financial institution.

Customer Centric The assurance of quick, dedicated & unrivalled ser vices to our valuable customers.

Teamwork Our approach towards synergistic potential among our people & between the companies of the Group alongside leveraging individual skills & competencies.

Innovation A long-standing in-house tradition of proactively seeking for opportunities at the technological, operational & managerial levels - a long string of market firsts testifies to this.

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Knowledge A strong commitment to nurture our human capital through lifelong development & learning towards achieving our vision.

Excellence Our ability to constantly rethink ourselves and reflecting our effort to instill, collectively & individually, behaviors tuned to outstanding performance.

Corporate Code of Conduct We strive to develop our own technologies and supply products and services that are valuable to customers.

We incorporate customer feedback into the way we conduct our business and strive to improve customer satisfaction.

We place top priority on the quality and safety of our products and services through a quality assurance system based on our Group Quality Guidelines.

To create new value that our customers will support and trust, we are actively developing technologies that can be applied in every stage of the production process, from development to production, distribution, and sales.

We provide accurate information to our customers and deliver a sense of security and reliability along with our products and services.

We respond promptly, sincerely, and politely to customer complaints by quickly confirming the facts of the situation, identifying the causes of the problem, and taking appropriate measures to achieve a solution.

Quality Honeypot is committed to assure quality deliverables to its customers. Our quality program is the prime vehicle by which we ensure that our philosophy of agility, expertise and capability is consistently delivered to provide business value to customers.

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Quality System covers Design, Development, Marketing, Support and Maintenance of Application Software covering Projects, Products and Software Tools. This integrated quality system, which is implemented in SRA, ensures that quality is built into the software during the various stages of the Software Development Life Cycle.

Honeypot's Offshore Development Center has well established with best practices, processes and procedures. The quality system is designed for continuous improvement and for tailoring. We realize that processes have to be customized based on the nature of tasks and the need to work seamlessly with our customers' quality systems.

Defect Prevention The quality methodology at Honeypot has been both reductionistic and holistic. We give close attention to the quality of components built upon various platforms and sources and at the same time, give broad attention to the emergent proper ties of the whole assembled system, in terms of its overall fit to business requirements.

All our methodologies and processes are in line with the quality expectations of both internal and external clients. Many leading inter national clients have assigned their QA activities and testing services to Honeypot - thanks to the reliable and agile Quality Processes that have been built over the years.

The Team With Honeypot's Team network in place, your offshore team will seem like they are sitting next door. You get the best of both worlds - high quality, reliability and expertise at lower costs.

Also, you can avail reliable management assistance, state-of-the-art infrastructure support and the option of leveraging compliant software processes for no additional cost. Our agile team, which is intrinsically capable to ramp up in short notices can perform a variety of roles and possesses a wide variety of skills. Team comprises of providing a dedicated team that will work alongside your IT team. The Team Lead will be the technical liaison for you to ensure the smooth completion of the project on time.

The Team network Model shows the various members involved in a typical IT Services 27 | P a g e

offering. The core of the team consists of the Team Lead and the members of the team. The Team Lead co-ordinates with members and is your primary point of contact. You would have access to individual team members as well, if required.

The difference in time zones between the US and India is used to advantage with overlapping work hours between the US and India. Honeypot Team - A virtual technology that works closer to you ensures that Support Services are provided 24x7.

Technical Competency

Microsoft Technologies Honeypot's agility in Microsoft technologies - both in project development and product development should result in the setting up of a Microsoft .Net Center of Excellence. It is exclusively dedicated to development work on .Net Technologies.

Services provided Product Initiatives: Port existing products of Honeypot and build new products on .Net platform.

Project Initiatives: Provide clients timely, cost-effective, end-to-end solutions coupled with high standards of service and support in .Net related projects.

Consultancy Initiatives: Address the gap in the supply of quality professionals who are required to help customers realize their .Net vision.

The .Net Center of Excellence delivers focused skills transfer, application design & architectural assistance and software development mentoring. This allows rapid learning and application of new development skills to define business and technology problems.

We have a strong background in web and interactive media, as well as php, mysql, ajax, frame works, zend , zencart, oscommerce, smarty template intigration, google map intigrations, yahoo map integartions, google xpath integrtaions, cre etc.

We have an excellent reporting , website design team with creativity , graphic designers , 28 | P a g e

multimedia developers who together create some of the most innovative, attractive and intelligent web pages.

Human Resources at Honeypot Honeypot has highly charged technical whiz kids, with an eye for future technology, working towards shaping Technology of the Future. The objective of this group is to deliver software services, solutions and products, using emerging technologies, through innovation and creativity, with the highest standards of quality and integrity. The ambit of the Human Resource management team at Honeypot goes beyond the number game into the subtler areas of employee attitude, behavior and commitment.

The tasks constantly before the HR team include: Encouraging employees to be creative, generating fresh ideas and innovative practices that enhance the company's ability to compete with competitors and accept new Responsibilities and participate in activities aimed at making systems more efficient, and processes more streamlined, effective and valuable.

Developing and maintaining an environment that promotes a cohesive, inclusive, and diverse community, affirming the inherent worth of all individuals and underscoring the importance of teamwork, trust, and open communication to create a positive living and learning environment.

The HR policies at Honeypot are centered on how we treat people, how we operate, what we deliver, how we feel and how we think. Similarly the recruitment policy at Honeypot is tailored around what we have, new skill sets required to accomplish the pre-set goals and how we fit in with the plans of the professionals.

Honeypot believes in recruiting professionals with not merely the right skill set and expertise but with the right attitude to fit into its environment. Like any startup in the IT industry, Honeypot is flexible without compromising quality. The same can be said of its recruitment policy.

The HRD team believes that great companies are made, not born. The secret behind it is in hiring the right people. This is, of course, easier said than done. Statistically, half of all 29 | P a g e

employment situations result in mis-hire, i.e., hiring the wrong person for the job. For building a team of professionals to hold various responsible positions, to carry out the activities, the HRD team takes utmost care to ensure the inflow and management of the right skill into the organization at the right time.

The HRD team believes in re-inventing relationships and building a shared vision with its employees. It helps the organization by framing policies and procedures for the company and ensuring that these are implemented and the employees are educated on the need to heed these policies and procedure.

Infrastructure With the Internet expanding rapidly across every corporate network, businesses are making huge investments in complex mission critical network infrastructure. This increases the challenges of managing and administering them.

Honeypot has certified engineers on SUN, CISCO, Oracle, IBM, and Microsoft among other platforms. Honeypot, with its extensive experience in building and managing data centers and IP networks, is well positioned to assist its clients with all aspects of managed services. Honeypot provides services such as System Administration, Network Management, Messaging Solutions, Database Administration, Data Center Support and Help Desk.


Recruitment will be by Honeypot under the following purposes: To Fulfill the requirements in the client place Expansion into new areas To fill a vacancy created in an existing position

Vacancies will be made known internally and externally. The CEO announces all vacancies in accordance with the approved Annual Plan & Budget or after approval of the 30 | P a g e

Managing Committee of Honeypot. Some employments with Honeypot may be on contractual basis depending on the requirement.

Sources of Recruitment: Word-of-Mouth/Networks/Website/ other Job Placement Websites Database with Honeypot Campus Recruitment

Selection process: The whole process of selection would take place in two stages. Internal Recruitment Technical Round HR Round Appointment Induction External Recruitment Written Test Voice & Accent Round JAM Session HR Round

HOURS OF WORK: Working hours in Honeypot will be between 10.00 a.m. to 6:00 p.m., Monday to Friday with a lunch interval from 1:00 p.m. to 2:00 p.m. In case of staff requiring leaving office early or late to office, sanction may be taken from the CEO/Director Operations. A total of three late comings of one hour each are allowed per month and subsequent late comings will be treated as half a day casual leave. CEO will have discretion to waive this clause under exceptional circumstances.

LEAVE POLICY: Staff with Honeypot will be entitled for Leaves and Holidays which will be in accordance with the calendar year.

HOLIDAYS: The CEO will declare the official list of Holidays at the beginning of the calendar year after reviewing the Government Holiday list. A maximum of 15 days holidays per annum.

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CASUAL LEAVE: Staff is eligible for casual leave of 8 days per annum. Unused casual leave cannot be accumulated. It can not be combined with sick leave. Staff can not avail more than three casual leaves at a time.

SICK LEAVE: Staff shall be eligible for 12 days sick leave per annum. Unused sick leave can be accumulated for a maximum of 120 days, and is not encashable.

MATERNITY LEAVE: The maternity leave entitlement is as per the provisions of the Maternity Benefit Act, 1981 or any such Act that be in force from time to time.

PATERNITY LEAVE: Male Staff, within the first month of becoming a father, are entitled for a paternity leave of 6 days.

LOSS OF PAY LEAVE: Staff on leave without the same being approved by the concerned authority will be considered or treated as being on Leave with Loss of Pay. Continuous absence for more than ten days without consent will result in disciplinary action including dismissal. PROCEDURE FOR APPLYING LEAVE:

Step 1: Employee sends an e-mail to M.D(CC: To HR) with clear reasons and type of leave required. Excepting unavoidable or emergent sanction. Step 2: up-dating If leave is sanctioned, the application will be forwarded to HR Department for employee leave records. If leave is not sanctioned. The employee concerned situations, all leaves must have prior

may be advised/counseled accordingly.

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Prior Approval: No leave is sanctioned, if an employee avails of leave without getting it sanctioned and also he is not allowed to regularise it on the date of resuming duty excepting reasons which are of emergency or unavoidable nature. This will be decided by HOD concerned.

If this attitude is repeated, HOD may discuss with Personnel /HR Dept to take appropriate action against erring employees. Just applying leave does not mean that he got the

sanction. He must get the leave sanctioned and only then, he may proceed on leave.

Over Staying: Employees are not allowed to extend their leave except in the reasons/Situations which are beyond the control. If this attitude is repeated, concerned HOD may take up the matter with Personnel Manager to take appropriate action against erring employees.

ABSENCE: If an employee is absent continuously more than 7 days, without any Valid reasons, his name will be removed from the rolls of the Company and Suitable disciplinary action will be taken against the faulty employees.

ANNUAL INCREMENT The professional/staff of the Honeypot may be eligible for a performance based annual increment. Staff will be eligible for an Annual Increment in Basic Pay as applicable to their respective level. STAFF WILL GET: 30% hike , if he/she had been completed one year of service. A proper Performance Appraisal system shall be put in place which shall have provision to assess the average, good and excellent performance of staff during the year.

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

The general cause of absenteeism may be summarised as below: -



In factory the worker finds caught within factory walls, he is bewildered by heavy traffic, by strangers speaking different and subjected to strict discipline and is ordered by complete strangers to do things which he cannot understand. As a result he is under constant strain, which cause him serious distress and impairs his efficiency. All these factors tend to persuade him to maintain his contacts with village.



Social and religious ceremonies divert workers from workers to social activities. In large number of cases incidence of absenteeism due to religious ceremonies is more than due to any other reason.



Workers also experience housing difficulties. Around 95% of housing occupied by industrial workers in India is unsatisfactory for healthful habitations. This leads to loss the interest in work.



Low wages compel a worker to seek some part time job to earn some side income. This often result inconstant fatigue, which compels to remain absent for next day. 34 | P a g e




Irritating and intolerable working conditions exist in a factory. Heat, moisture, noise, vibration, bad lighting, dust fumes and overcrowding all these affect the workers health causing him to remain absent from work a long time.



High rate absenteeism is also due to lack of adequate welfare facilities Welfare activities include clean drinking water, canteen, room shelter, rest rooms, washing and bathing facilities, first aid appliances etc.



Some of the habitual drunkards spend whole of their salary during first week of each month for drinking purpose. Therefore 2 or 3 weeks after getting their salary absent themselves from their work. 8) INDEBTNESS

All those workers who undergo financial hardships usually borrow money lenders at interest rate which are very high, which often cumulates to more than 11 12 times their actual salaries. To avoid the moneylenders they usually absent themselves from work because they are unable to return the money in stipulated time.



Due to favouritism and nepotism which are in the industry the workers generally become frustrated. This also results in low efficiency, low pr oductivity,

unfavourable relationship between employee and supervisor, which in turn leads to long period of absenteeism.

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10) INADEQUATE LEAVE FACILITIES Negligence on part of the employee to provide leave facility compel the worker to fall back on ESI leave. They are entitled to 50 days leave on half on pay. Instead of going without pay the worker avail themselves of ESI facility

SUGGESTION Following are the measures to control absenteeism:-

1) ADOPTION OF A WELL DEFINED RECRUITMENT PROCEDURE The selection of employees on the basis of command, linguistic and family consideration should be avoided. The management should look for aptitude and ability in the prospective employees and should not easily yield or pressure of personal likes and dislikes. Application blanks should invariably be used for a preliminary selection and tools for interviews. The personal officer should play more effective role as coordinator of information, provided that he has acquired job knowledge in the function of selection. Employers should also take into account the fact that selection should be for employees development, their reliance. They should as far as possible rely on employment exchange. .







In India, where the climate is warm and most of the work involves manual labour, it is essential that the workers should be provided with proper and healthy working conditions. The facilities of drinking water, canteens, lavatories, rest rooms, lighting and ventilation, need to be improved. Where any one of these facilities is not available, it should be provided and all these help in keeping the employee cheerful and increase productivity and the efficiency of operations throughout the plant.

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3) PROVISION OF REASONABLE WAGES AND ALLOWANCE AND JOB SECURITY TO WOTRKERS The wages of an employee determine his as well as his family standard of living. This single factor is important for him than other. The management should, therefore pay reasonable wages and allowances, taking into account the capacity of the industry to pay.

4) MOTIVATORS WELFARE AND SOCIAL MEASURES The management should consider the needs of workers and offer them adequate and cheap housing facilities, free of subsidised food, free medical and transport facilities, free education facilities for their children and other monetary benefits. As for social security is concern, the provision of Provident Fund, SBI facilities, Gratuity and Pension, all those need to be improved.

5) IMPROVED COMMUNICATION AND PROMPT REDRESSAL OF GRIEVANCES Since a majority of the workers are illiterate or not highly educated bulletins and written notices journals and booklets are not easily understood by them. Meetings and concealing are called for written communication becomes meaningful only when workers can readied understood them, too many notices should be avoided only the essential ones should be put on the boards, which should be placed near the entrance inside the canteen and in areas which are frequently visited by the workers so that they are aware of the policies of the company and any sort changes being made.

6) LIBERAL GRANT OF LEAVE The managements strict attitude in granting leave and holidays even when the need for them is genuine, tempts workers to go on E.S.I. leave for under this scheme, they can have 56 days leaves in years on half pay. An effective way of dealing with absenteeism is to liberalise leave rules.

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7) SAFETY AND ACCIDENT PREVENTION Safety at work can be maintained and accidents can be prevented if the management tries to eliminate such personal factors as negligence,

overconfidence, carelessness, vanity, etc and such material factorizes unguarded machinery and explosives, defective equipment and hand tools. Safe methods of operation should be taught. In addition consistent and timely safely instruction, written instructions (manual) in the regional language of the area should be given to the work force.

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND WORKERS The supervisor should be recognise that industrial work is a groups task and cannot be properly done unless discipline is enforced and maintained. Cordial relations between the supervisors and these workers are therefore essential for without them, discipline cannot be increased. One of the consequences of unhealthy relations between supervisors and subordinates is absenteeism.

9) DEVELOPMENT OF WORKERS BY TRAINING The system of workers education should be so designed as to take into account their educational needs as individuals for their personal evaluation, as operatives for their efficiency and advancement, as citizens for happy integrated life in the community, as members of a trade union for the protection of their interests. The educational programs according to their national commission on Labour should be to make a worker:-

a) A responsible, committed and disciplines operative. b) Aware of his rights and obligations. c) Lead a calm, clean and health life, based on a firm ethical
foundation. A responsible and alter citizen.

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Attendance improvement programs can work! What the employees require is commitment and support from all levels of management, an effective attendance record-keeping system, consultation and open communication on the reasons for the attendance program. Implementing and maintaining a work environment where open communication and team spirit can thrive will at first sometimes seem a mammoth and somewhat unrealistic task. If you need encouragement just consider some of the benefits; reduced absenteeism, open communication, team spirit, reduced grievances and greater employee satisfaction. Only when the positive approach is unsuccessful does the employer need to use the remedial approach to deal with habitual abusers or with excessive absentee cases. In all cases the employer's actions must be fair and reasonable and consistently applied. With a well communicated, implemented, and administered program, the majority of the employees should agree with the attendance management program and cooperation should follow.

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Management, Third Edition, Tata McGraw-Hill Kothari








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