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PROJECT REPORT

ON

ABSENTEEISM
CAUSES, EFFECTS & CONTROL

AT
KSB PUMPS Ltd.

BY
POORNIMA POOJARI

UNDER THE GUIDANCE OF


Dr. (Mrs.) VANDANA GOTE

IN PARTIAL FULFILLMENT OF
MASTERS DEGREE IN BUSINESS MANAGEMENT,
UNIVERSITY OF PUNE, PUNE

YEAR 2004 - 2006

VISHWAKARMA INSTITUTE OF MANAGEMENT


S. NO. ¾, KONDHWA (BK), PUNE-48
ACKNOWLEDGEMENTS

I gratefully acknowledge the help and co-operation of the entire Personnel


Department of KSB Pumps Ltd. At the outset, I would like to thank Mr.
S.N.Makhale, Manager- Personnel, for giving me an opportunity to learn at KSB
Pumps.

My guide Mr. A.R. Bhilare, Dy. Manager- Industrial Relations, whose


versatile guidance provided me with an insight into the field of Personnel
Management and Human Resource Development, particularly deserves my
thanks.

A similar vote of thanks goes to Mr. Ranjit Mohite, Mr. Vivek Kunte,
Mr.Jade, Mr.Erande, Ms.Nita and Ms.Swati whose expertise in the field proved to
be of great value to me during my training.

I would like to thank Prof. Vandana Gote for her valuable guidance
in making my project successful. I also wish to thank Dr. Sharad Joshi and the
VIM staff whose contribution cannot be overemphasized. With all their
encouragement and well wishes, my project proved to be fruitful.
TO WHOMSOEVER IT MAY CONCERN

This is to certify that Ms. Poornima. K. Poojari is bonafide student of our

institute. She has successfully carried out her Summer Project titled Absenteeism

- Causes, Effects & Control at KSB Pumps Ltd, Pune.

This is the original study of Ms. Poornima. K. Poojari, and important

sources used by her have been acknowledged in her report. The report is

submitted in the partial fulfillment of two-year full time course Master in Business

Administration (2004-2006) as per the rules of the Pune University.

Dr. Sharad L. Joshi Dr. Mrs. Vandana Gote

(Director) (Project Guide)


CONTENTS

Chapter Chapter Name Page no.


No.
1. Introduction of subject 1
2. History & Profile of company 6
3. Objectives of the Project 16
4. Research methodology 17
5. Data Analysis and interpretation:
Assumptions in evaluation of absenteeism data 19
Graphical Representation 20
Inferences from the monthly data 29
Inferences from the yearly data 30
Control through Disciplinary Action 32
6. Observations & Findings 34
7. Conclusion 54
8. Suggestions to reduce absenteeism 55
9. Annexure
Annexure 1 57
Annexure 2 62

10. Bibliography 66

4
CHAPTER: 1

I ntroduction Of Subject

5
CHAPTER: 2

History & ProfileOf Company

6
CHAPTER: 3

Objectives Of TheProject

7
CHAPTER: 4

Research Methodology

8
CHAPTER: 5

Data Analysis &


I nterpretation

9
Graphical Representation

10
CHAPTER: 6

Observations & Findings

11
CHAPTER: 7

Conclusion

12
CHAPTER: 8

Suggestions To Reduce
Absenteeism

13
14
INTRODUCTION OF THE SUBJECT

Absenteeism refers to unauthorized absence of the worker from his job.


Absenteeism can be defined 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 .

In India, the problem of absenteeism is greater than other countries. When


the employee takes time off, on a scheduled working day with permission, it is
authorized absence. When he remains absent without permission or informing, it
is wilful absence without leave.

In these days, when the needs of the country require greater emphasis
upon increase of productivity and the economic and rational utilization of time and
materials at our disposal, it is necessary to minimize absenteeism to the maximum
possible extent.

Recent surveys indicate the following trends in absenteeism:

1. The higher the rate of pay and the greater the length of service of the
employee, the fewer the absences.
2. As an organization grows, there is a tendency towards higher rates of
absenteeism.
3. Women are absent more frequently than men.
4. Single employees are absent more frequently than married employees.
5. Younger employees are absent more frequently than older employees but
the latter are absent for longer periods of time.
6. Unionized organizations have higher absenteeism rates than non-union
organizations.

15
The rate of absenteeism can be calculated by considering the number of
persons scheduled to work and the number actually present. Thus, the rate of
absenteeism can be estimated in the following way:

Rate of Absenteeism = No. of Total Manshifts Lost


X 100
No. of Total Manshifts scheduled to work

CAUSES:
Important factors leading to absenteeism can be summarized as follows:
1. Long hours of work.
2. Bad working conditions.
3. Boredom.
4. Lack of co-operation and understanding between management
and workers.
5. Sickness.
6. Accidents.
7. Occupational disease.
8. Problem of transport facilities.
9. Low wages.
10. Lack of proper medical aid and health programmes.
11. Lack of canteen services, rest rooms, etc.
12. Bad housing conditions.
13. Evil of drinking.
14. Lack of marketing facilities.
15. Social or religious festivals.
16. Harvest seasons.
17. Marriages.
18. Education of children.
19. Domestic problems and consequent worries, etc.

16
Among these causes, in the existing Indian conditions, wage level in
industries, has a direct bearing on absenteeism. Sickness on account of bad
housing conditions contributes highest to industrial absenteeism. Social and
religious causes can be accounted as the second important contributing factor for
absenteeism.
Absenteeism in industry varies from place to place, depending on the
festival, marriage, harvest season and other factors.

EFFECTS :
Absenteeism is one of the root causes of labour unrest. It affects the
worker s earnings as well as the company in the following manner:

1. Decrease in Productivity :
Employees may be carrying an extra workload or supporting new or
replacement staff.
Employees may be required to train and orient new or replacement
workers.
Staff morale and employee service may suffer.
2. 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.
3. 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.

The definition of absenteeism, its causes, its affects on productivity, and its
costs in terms of finances and administrative effectiveness are quite clear.

17
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.

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 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.

If absenteeism is to be controlled, the physical and emotional needs of


employees must be addressed. Incentives can be introduced to discourage
absenteeism. Attendance bonus is awarded in certain establishments, merit
increases and promotions are linked to minimum attendance. Good leave record
of the employee is an important factor in considering him for more responsible
positions. These incentives, no doubt, will be effective inducements for regular
attendance and work which, in turn, will ensure efficient service.

Habitual absenteeism must be treated as a misconduct and it must be


stated that habitual absentees are liable for disciplinary action

18
KSB PUMPS LTD.

Established in: 1960

Location : Pimpri, Pune

19
COMPANY PROFILE

1. NAME OF THE COMPANY : KSB Pumps Limited.


2. DATE OF REGISTRATION : 11th April, 1960
3. CERTIFICATE NUMBER : 11635
4. LEGAL FORM : Public Limited Company
5. WORKS AND HEAD OFFICE : Irrigation and Process Division (IPD)
Mumbai-Pune Road, Pimpri,
Pune-411018
6. MANUFACTURING UNITS : Power Project Division (PPD)
Chinchwad, Pune.
Foundry Division,
Vambori, Ahmednagar.
Grade-O-Castings,
Ahmednagar.
Water Pumps And Valves
Division, Nashik.
Mil Controls Limited,
Trichur.
7. REGISTERED OFFICE : 126, Makers Chambers III,
Nariman Point, Mumbai 400021.
8. ZONAL OFFICES : East : Kolkata
West : Nariman Point
North : Noida
South : Chennai.
9. BUSINESS : Manufacturers of Pumps, Valves and
Iron and Steel Castings.

10. COLLABORATORS : M/s KSB Aktiengesellschaft,


Germany.

20
BRIEF HISTORY OF KSB

1871: The Frankenthaler Maschinen-and Armatur-Fabrik Klein, Schanzlin


and Becker (Machine and Valve Factory) was established.

1896: KSB sets up a British subsidiary, its first venture outside Germany.

1941: Argentina becomes home to the first of ten current KSB Companies in
America.
.
1953: The foundation of a Pakistani subsidiary marks a move into the Asian-
Pacific market, where KSB today has 15 group companies.

1960: Manufacturing of first submersible pump in India, at Pimpri, Pune.

1974: The Foundry Division was set up at Vambori.

1978: A new plant at Chinchwad began manufacturing high performance


pumps for power plants.

1984: KSB sets up a company in Australia.

1986: The leading French pump manufacture, Paris-based Pompes Guinard


S.A., joins the KSB group.

1987: The Coimbatore unit came up to increase pump manufacturing capacity


and add industrial valve to their product basket.

1988: KSB acquires a majority interest in U.S. slurry pump manufacturer GIW
industries.

1989: Acquisition of Amri S.A., Paris, the world s second largest


manufacturer of butterfly valves.

1991: KSB takes over Pumpenwerk Halle and converts it into an


environmental engineering center.

1994: The company acquires a majority stake in KSB Shanghai Pumps Co.

1995: Nashik was added to the growing list of KSB manufacturing centers.

1996: KSB becomes 100% share holder in GIW (Georgia Iron Works), one of
the world s largest manufacturers of slurry pumps.

1997: Acquisition of MIL Controls Ltd., India-producer of ANSI and control


valves.

21
KSB QUALITY CONTROL

QUALITY OBJECTIVES:

KSB aim to maintain their position as leading Indian and International


suppliers of pumps and valves, related systems and services which are deeply
rooted in a tradition of successful engineering and high integrity in their business
dealings.

The needs of their customers set the standards for the work they do.
KSB s objective is to provide trend setting technology and high quality of their
products and services together with a demanding quality consciousness, which
ensure them of a position of market leadership. For its customers, KSB is liable
partner.

KSB s thinking and actions are profit and market oriented. Entrepreneurial
initiative at all levels ensures profitable growth, stability and independence, thus
securing the future of KSB and its employees.

The KSB work environment is multinational and is characterized by


mutual respect and humanity in their dealing with one another. Dedicated
employees work together with sense of responsibility and productivity, towards a
common goal s help to develop their high level of qualification through individual
support and training.

When doing their work, KSB is committed to the goals, needs and laws of
the society it lives in. KSB wants to be an open and fair partner to all. While
manufacturing and during operation of their products, they try their best to protect
their environment and use natural resources as sparingly as possible.

22
KSB QUALITY POLICY:

Maximum customer satisfaction governs KSB s actions:

KSB s customer sets the standards for the quality of their products and
services. KSB comprehensively and punctually fulfill his requirements.

Every employee bears the responsibility at his work place towards


meeting the customers requirements:

The internal customer supplier relationship is important, the very next


person in internal work sequence is the customer, he receives defect free
work.

Promoting quality awareness is an important task of the management:

The high qualification of KSB employees is ensured through consistent


training and comprehensive information. Managerial staff sets an example
in realizing Quality concept.

Preventing defects supersedes removing defects:

Removing defects is not enough; more important is to find the causes of


defects and to take preventive action to permanently eradicate them.

Improving quality is a continuous obligation:

The initiative of each individual towards continuously improving processes


methods and work environment is an important contribution to personal
success and satisfaction. This ensures KSB s market leadership.

23
PLANNED PROGRESS OF KSB IS AS FOLLOWS:

1960: Submersible motor pump set.

1968: Process Pumps (CPK).

1970: Non-Clog pumps for sewage and solid handling.

1976: Vertical pumps for condensate extraction (WKT)

1978: High pressure Boiler feed pumps (HDB)

1980: Primary coolant pumps for nuclear power station.

1983: Pumps for mine dewatering (VM25).

1984: Submersible pumps for sewage and effluent handling (KRTU)

1985: Canned motor pumps for nuclear applied action (CMP)

1987: Submersible pumps sets

1988: Vertical high pressure modular pumps (MOVI)


Vertical high pressure oil pumps (WKVM)
Solar pump sets

1989: High pressure multistage pumps (HG)

1990: Barrel casing pumps (CHT)


Pressure seal valves

1991: Barrel casing pumps for refinery applications (CHTR)

1992: Stock pumps (APP)

1993: Back pullout pumps (MEGA)

1994: New series of gate type industrial valves


High capacity submersible pump sets (PNT)
Low capacity submersible pump sets (AMA Drainer)

1995: High capacity moderate head pumps (OMEGA)

1996: Low capacity high pressure multistage pumps (MOVICHROM)

24
TYPES OF PUMPS:

In KSB PUMPS Ltd., many types of pumps are manufactured. Some of them
are listed below:

MEGA : Low Pressure Centrifugal Pump.

OMEGA : Horizontal Split Volute Casing Pump.

CPK : Chemical Process Pump.

RPK : Refinery Process (heavy duty) Pump.

APP : Stock Process Pump.

WK : High Pressure Centrifugal Pump.

WL : High Pressure Centrifugal Pump.

WKT : Vertical Barrel type High Pressure Centrifugal Pump.

KRTU : Submersible Motor Pump for Sewage and Effluent

Handling.

RPHb : Refinery Process (Heavy Duty) Pump.

25
DEPARTMENTS AT KSB:

There are 4 main Departments in the Company:

PRODUCTION DEPARTMENT: Machine Shop, Rotor Stator, Horizontal


Assembly, Winding, Testing, Deburring, Tool Room, IED, and Packing.

SALES GROUP: Business Group.

ADMINISTRATION GROUP: Security, Internal Audit, Personnel Department,


Accounts, and Planning & Control.

WAREHOUSE & STORES: E/DITS, Excise & Dispatch, Import, Purchase &
Stores.

EMPLOYEE STRENGTH AT PUNE:

Irrigation and Process Division (Pimpri) : 537


Staff (Supervisors Directors) : 189
Company Trainees : 3
MRE s : 56
HRW s : 289

Power Project Division (Chinchwad) : 814


Staff (supervisor Directors) : 373
Company Trainees : 6
MRE s : 66
HRW s : 369

26
HUMAN RESOURCE DEPARTMENT ACTIVITIES

The Functions of the Human Resource Department are:

1. EMPLOYMENT
Man Power Planning
Recruitment and Selection
Induction
Promotion and Transfer
Separation

2. WAGE AND SALARY ADMINISTRATION


Employee classification including job evaluation
Rate determination
Merit rating
Supplemental compensation

3. INDUSTRIAL RELATIONS
Communication
Collective bargaining
Employee discipline

4. ORGANISATION PLANNING AND CONTROL


Organization planning
Employee appraisal
Human Resource Development
Training
Counseling

5. EMPLOYEE SERVICES
Medical/Canteen services
Recreation
Safety, Security, Transport

27
ORGAN IZATION STRUCTURE OF HR
D EPARTMEN T:
Mr. M. S. Srinivas
General Manager
HRD Corporate

Mr. A. R. Bhilare Mr. R. S. Mohite Mr. Mohan Iyer Mr. Jade Dr. Bidve Mr. Erande
IR-IPO IR-IPO Security Canteen / Time Dispensary / Time Office
Dy. Manager IR Asst. Manager IR Office Ambulance Room
Mr. Vivek Kunte
HRD T & D
IPD

28
Mr. S. N. Makhale Mr. C. M. D silva Mr. Thomas
Manager -Personnel
PP IR-IPO Officer
Dy. Manager IR

K. V. Subramaniam
P & A CBE Phelics Joseph Ms. Jayanti S. Subramaniam V. Demasundaram
IR Welfare Time Office Secretary

Mr. A. S. Nanajkar
P & A Nasik T. D. Mairal V. S. Shinde R. D. Khele V. V. Verma M. G. Badhe
P&A P&A Security Ex. & Desp Ex & Desp
OBJECTIVES OF THE PROJECT

The objectives of the project are:

To understand and analyze:

1. What are the main causes of absenteeism in KSB Pumps?

2. What are the effects of the unauthorized absenteeism by the employees in

the company?

3. What are the current disciplinary actions taken by the HR dept. for

reducing absenteeism?

4. What is the attitude of employees towards these disciplinary actions?

5. What factors are to be considered in order to reduce absenteeism?

6. What suggestions can be given to the management to improve the regular

attendance of the employees in the company?

Thus, the above objectives have been observed and analyzed in a detailed

manner in this project report. I have made an attempt to go into root causes of the

subject by using the various techniques of Research Methodology.

29
RESEARCH METHODOLOGY

A project is like a journey and it is always better to have atleast the faintest
of ideas of the probable direction of our destination. Initially we have to decide
upon the general area of interest or the aspect of the subject to inquire into. This
decision is rather broad and not very precise. It is crude indication of the purpose
of the study and is of little help for further planning and organization of the study.

Research Methodology is defined as a more systematic activity directed


towards discovery and the development of an organized body of knowledge. An
efficient research contributes to the evaluation of a proper decision, which
ultimately affects the path the organization will choose. The data collected is of
paramount importance and hence the research process has to be effective and an
efficient one.

Research Methodology involves adopting various techniques which are


best suited for the research and study of the problem, for investigation and
analysis of the problem. It starts with data collection from various sources i.e.,
primary and secondary sources, data analysis and interpretation and finally the
findings or conclusion from the analysis.

In this project, Primary data was collected by Questionnaire Survey. The


workmen selected for the interview purpose were from the hourly rated workmen
segment, which affect the production directly, in case they remain absent. A
random selection of samples from the workmen segment was done in the
company. There are 289 hourly rated workmen, from which 25 groups of 11
members each were formed. From these groups, one workman was selected
randomly as sample to avoid any bias. Thus, 25 workmen were selected for
survey through the questionnaires prepared. This helped to be fair to all by not
keeping in view the past record of absenteeism of individuals.

30
The secondary data was collected from:
Monthly absenteeism data.
Yearly absenteeism report.
Leave records of employees.

After the collection of data, the response of the 25 individuals were arranged in
a chronological pattern and then evaluated. Many inferences could be drawn from
both the primary as well as secondary data available which are put forth in the
analysis section.

It is often beneficial to undertake an intensive study of a few well selected


instances of the phenomenon of interest. The method demands for great
sensitivity and receptivity on our part. As new information pours in, the study is
reformulated and redirected.

Hence, to be on the safer side, it would always be wise to work keeping a


particular method in mind.

31
ASSUMPTIONS IN EVALUATION OF THE
ABSENTEEISM DATA

1. As per the objectives of the project, the analysis is to be done to find out
the causes of absenteeism and also to know the disciplinary action taken
against them. The following data was referred to draw the inferences:

a. Monthly Absenteeism data.


b. Yearly Absenteeism report.
c. Leave record of the employees.

2. From the monthly and yearly data, the monthly trends of absenteeism can
be observed by division of leaves in the following 2 categories:

a. Paid Leave: Privilege Leave (PL), Casual Leave (CL), Sick Leave (SL).
b. Unpaid leave: Authorized Leave (AL), Certified Sickness Leave (CS),
and Unauthorized Absence (UA).

3. The leave record is maintained from the month of January to December.


The monthly salary is calculated from 20th of the starting month to the 21st
of the next month with reference to the leave record.

4. The settlement agreement mentions the consumption of leave by an


individual worker per annum as:

a. Privilege Leave 20 p.a.


b. Casual Leave 8 p.a.
c. Sick Leave 10 p.a.

32
MANPOWER STRENGTH DURING YEAR 1994- 2004

265 591
295
1994

33
330
654 1995
348 1996
1997
1998
1999
2000
2001
350 2002
629 2003
402 2004

424 535
MANPOWER STRENGTH OF THE COMPANY DURING 1994-2004

700
654

629
600
591
535
500

34
424
402
400
350 348
330 STRENGTH
295
300
265

NO. OF EMPLOYEES
200

100

0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
PL TREND DURING 1994-2004

6.00

4.82 4.96 4.97


5.00 4.82 4.86
4.84
4.48 4.60
4.48

4.00 3.97

35
3.00 3.00 PL

% OF DAYS
2.00

1.00

0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
CL TREND DURING 1994-2004

2.50

2.23 2.26
2.22 2.21
2.15
2.09
2.14 2.10 2.12
2.00
1.95

36
1.59
1.50

CL

% OF DAYS
1.00

0.50

0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
SL TREND DURING 1994-2004

3.50
3.22

3.03 3.06 3.08


3.00
2.90 2.90

2.49
2.50
2.44
2.29

37
2.00

1.81 SL
1.66

% OF DAYS
1.50

1.00

0.50

0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
AL TREND DURING 1994-2004

0.50

0.47
0.45

0.40

0.35

38
0.30

0.25 AL
0.23 0.22

% OF DAYS
0.20
0.18

0.15
0.13

0.10

0.05
0.03 0.02 0.03 0.02
0.01 0.02

0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
CS TREND DURING 1994-2004

2.50

2.29
2.13

2.00 1.98

39
1.59 1.54
1.50

CS
1.11

% OF DAYS
1.00
0.81
0.78 0.74

0.62
0.50
0.53

0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
UA TREND DURING 1994-2004

25.00

20.65
20.00

40
15.00

UA

% OF DAYS
10.00

5.00

1.83
1.51 1.00 0.71
0.65 0.34 0.39 0.54 0.61 0.75
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
41
NO. OF DAYS
0
50000
100000
150000
200000
250000

178391
1994

22607.0
1995 198606
58286.0
169235

1996
23744.5
161805

1997
19449.0
125104

1998
13146.5
123078

1999
13666.0

YEARS
101914

2000
10745.5
106350
TOTAL MDA AND MDL DURING 1994-2004

2001
11682.0
98891

2002
11427.0
90266

2003
10448.5
81090

2004
9441.5

MDL
MDA
INFERENCES FROM THE MONTHLY DATA

1. The PL consumption % is high during the months of April, May and June as
the schools in our country have vacations during these months and this
period being the marriage season in India, the leave consumption varies
from 3.9% to 4.84%.

2. The CL consumption is high during the months of July to October, when


most of the schools reopen and the individuals are busy settling those
activities. Most of the festivals like Ganesh festival, Durga Pooja, Diwali,
etc. are during this period. The leave consumption reduces after October
and varies from 1.95% to 2.21%.

3. The reasons for SL leave consumption are same as above. As the


proportion of CL is less, on occasional leave, the workmen prefer SL. The
period of leave consumption is from July to September and varies from
2.49% to 3.06%.

4. The rate of AL leave consumption is very low. i.e., 0.47% to 0.02%. This
leave is mostly consumed by the new comers or by the very rare cases of
the existing employees.

5. The Unauthorized Absence is the key factor in indicating the companies


rate of absenteeism. This leave is mostly consumed in January, April to
June and September to November. The rate of leave consumption varies
from 1.51% to 0.75%.

42
INFERENCES FROM THE YEARLY DATA

Calculation:
Average Leave = Average Strength x Leave p.a.
X 100
Available Mandays

Average PL = 9.8%
Average CL = 2.6%
Average SL = 3.2%

1. The PL availed per annum is 30 days. Therefore, on an average the


consumption should be approximately 10%. But the trend in the graph
shows a consistency of consumption of this particular leave from about 3%
to 4.5%. This leave comes under the category of paid leave and has a
benefit of encashment and so people have adopted a trend of saving this
leave.

2. The CL availed per annum is 8 days. The average CL leave consumption is


2.6% but from graph it is about 1% to 2.5%. This leave can be encashed, if
saved.

3. The SL leave trend shows a consistency as the leave is consumed


consciously and only for genuine sickness and genuine problems. Hence
the average and actual consumption is almost the same.

4. The authorized leave is granted only in case when employee has no


balance leave and faces some genuine problem or sickness. Thus, the
graph shows a declining trend as it was 046% in 1994 which has come
down to 0.02% in 2004. The company keenly keeps a watch on this
category of leave.

43
5. The graph of Certified Sickness shows a drastically downward trend. The
rate was 2.29% in 1994 which has dropped down to 0.74% in 2004. This
has been possible due to the efforts of the HR Department and the
Company Doctor.

6. Absenteeism is mainly observed through the rate of Unauthorized


Absence. This has been minimized by the company s disciplinary action
system, counseling efforts and provision of ready help to the employees.
This has also helped in increasing productivity, profits and efficiency.

7. Due to the above measures, the company has been successful in retaining
high Mandays.

8. The graph of manpower strength show declining trend as the company had
reduced or cut off manpower by implementing CRS and VRS scheme.

44
CONTROL THROUGH DISCIPLINARY ACTION

KSB Pumps Ltd. is a large company and hence the manpower


engaged here is in large number. The company is engrossed in continuous
production of pipes and valves. Company s main and important asset is the
manpower and thus, it s activities are to be keenly monitored as any reduction
or other incidents with the asset causes a great loss to the company.

The HR Department deals with various activities among which


monitoring absenteeism and taking the appropriate disciplinary action is one of
the important and sensible issues in the company. This matter has to be
handled very consciously so that correct steps are taken by the management
in reducing absenteeism.

The Industrial Relations department takes the disciplinary action in


KSB. They have certain rules specified in the Standing Orders, which act as a
guideline for the process of disciplinary action.

The attendance system in the Time Office maintains the record of


the In time and Out Time which helps to know his personal strata. This
system helps to calculate his monthly salary and keep record of his leave
system. It also helps to find out his balance leaves and his total absenteeism
during the month. The system helps in identifying the chronic cases, as
monthly report is prepared through the available data. Thus, necessary action
is taken by the department against the chronic cases among the employees.

KSB has dealt with many cases and have brought about a very
uniform discipline in the employees.

45
PROCEDURE OF DISCIPLINARY ACTION:

1. Chronic cases are identified from the daily data.


2. Warning is given to them for at the most 3 times.
3. After giving warning, even if the employee follows the same thing, then
show cause notice is issued to him.
4. If same case is further identified, then he is suspended.
5. In super chronic cases, inquiry is held and if findings say so, then he is to
be dismissed.

BENEFITS TO THE EMPLOYEES:

1. To do work in better way.


2. To regain their lost identity.
3. To get regular wages.

BENEFITS TO THE MANAGEMENT:

1. To gain higher mandays.


2. To get good profits.
3. To harmonize the industrial relations.

Thus, it can be observed that disciplinary action helps in controlling


absenteeism and gaining high production as well as profits.

46
EVALUATION OF THE QUESTIONNAIRE
1. My job in company is very interesting.

Not at all To some Extent Average To great Highly


Extent Interesting

Options a b c d e Total

Response 0 5 7 9 4 25

% 0 20 28 36 16 100

a
e b
0%
16% 20%
a
b
c
d
d c e
36% 28%

Findings:
From the above chart, it can be seen that 86% of the workmen like their job
varying from average to a higher extent. Thus, their job interest levels are high.

47
2. Reason for taking employment:
To spend time.
Forced by family Members.
To take care of my family.
Liking of the work.

Options a b c d Total

Response 0 4 11 10 25

% 0 16 44 40 100

a
b
0%
16%

d a
40%
b
c
d
c
44%

Findings:
From the above chart, it is clear that 44% of the workmen come to the
company to support their family while 40% of workmen have a liking towards their
work.

48
3. Are you aware of the leave rules of the company?

Not at all To some Extent To great Strongly


Extent Aware

Options a b c d Total

Response 2 5 7 11 25

% 8 20 28 44 100

a
8%

b
d 20% a
44% b
c
d

c
28%

Findings:
From the above chart, it is observed that 44% of the workmen are strongly
aware of the leave rules while 8% of the workmen are not at all aware of the leave
rules.

49
4. How many paid leaves are availed by you per annum?

1-2 days 3-5 days 6-10 days More than


10 days

Options a b c d Total

Response 1 2 13 9 25

% 4 8 52 36 100

a b
4% 8%
d
36% a
b
c
d
c
52%

Findings:
It can be seen that 52% of workmen take around 6 -10 days of paid leaves
while 36% of the workmen avail more than 10 days paid leave per annum.

50
5. How many unpaid leaves are availed by you per annum?

1-2 days 3-5 days 6-10 days More than


10 days

Options a b c d Total

Response 4 6 13 2 25

% 16 24 52 8 100

d a
8% 16%

a
b
b c
24%
c d
52%

Findings:
It can be observed that 52% of the workmen take 6-10 days of unpaid
leave while 24% of workmen avail 3-5 days leave per annum.

51
6. What is the percentage of your absenteeism in last one year?

0-20% 21-40% 41-60% 61-80% 81-100%

Options a b c d e Total

Response 8 11 4 1 1 25

% 32 44 16 4 4 100

d e
4% 4%
c a
32% a
16%
b
c
d
e
b
44%

Findings:
From the above chart, it can be seen that 44% of the workmen quoted their
absenteeism in the percentage range of 21- 40% in the past one year while 32%
of workmen have reported 0 20% absenteeism last year.

52
7. Main reason behind high leave consumption:
Personal
Family related
Work related
Social
Addiction
Indebtness

Options a b c d e f Total

Response 2 10 4 2 5 2 25

% 8 40 16 8 20 8 100

f a
8% 8%

e a
20% b
c
b d
d 40% e
8% f
c
16%

Findings:
It can be observed that the main reason behind high leave consumption is
that 40% of the workmen have family related problems, while 20% of the workmen
have addiction problem.

53
8. My colleagues are highly supportive.

Not at all To some Extent To great Always


Extent

Options a b c d Total

Response 0 5 9 11 25

% 0 20 36 44 100

a
b
0%
20%

d a
44% b
c
d
c
36%

Findings:
From the above chart, 44% of the workmen feel that their colleagues are
supportive to a great extent. Thus, the working environment in the company is
very friendly and comfortable.

54
9. Disciplinary actions taken by management on absenteeism has reduced
absenteeism in our company.

Not at all To some Extent To great Highly


Extent True

Options a b c d Total

Response 0 4 12 9 25

% 0 16 48 36 100

a
b
0%
16%
d
36% a
b
c
d
c
48%

Findings:
It can be observed from the above chart that 48% of workmen accept that
disciplinary actions taken by management have reduced absenteeism to a very
great extent. The company has very strict rules policy. However those who have
breached the rules are given warnings, show cause notices or suspension.

55
10. In our company, real, genuine sickness cases claiming sick leave are
either:

0-20% 21-40% 41-60% 61-80% 81-100%

Options a b c d e Total

Response 4 5 9 5 2 25

% 16 20 36 20 8 100

e a
8% 16%
d a
20% b
b c
20%
d
e
c
36%

Findings:
From the above chart, it can be seen that 36% of workmen have opted that
41- 60% of the cases are real, genuine ones who claim sick leave.

56
11. I interact with the company s management staff without hesitating.

Not at all To some Extent To great Highly


Extent True

Options a b c d Total

Response 3 7 11 4 25

% 12 28 44 16 100

d a
16% 12%
a
b b
28% c
d
c
44%

Findings:
It can be observed from the above chart that 44 % of the workmen are very
comfortable in interacting with the management staff. Thus, the management
subordinate relations are very clear and good without resistance.

57
12. How is your family condition and family atmosphere?

Satisfactory Average Unsatisfactory

Options a b c Total

Response 10 9 6 25

% 40 36 24 100

c
24%
a
40% a
b
c

b
36%

Findings:
It can be observed that 40% of the workmen s family condition is
satisfactory while 24% of them are unsatisfied.

58
13. Is your salary structure adequate?

Yes No

Options a b Total

Response 13 12 25

% 52 48 100

b a
a
48% b
52%

Findings:
52% of the workmen are satisfied with their salary structure while 48% of
them are not happy about the present salary structure as it is not adequate for
them.

59
14. If No, are you and your family members engaged in some business?

Yes No

Options a b Total

Response 7 5 12

% 58 42 100

b
42% a
a b
58%

Findings:
From the 12 workmen, who are not satisfied with the salary structure, 58%
of workmen and their family are engaged in some business such as small shops
or providing mess facilities at home for the working people.

60
15. Is this involvement in business a cause of your absenteeism?

Sometimes Mostly Not at all

Options a b c Total

Response 5 3 4 12

% 42 25 33 100

c
33% a
a
42%
b
c

b
25%

Findings:
From the above chart, it is clear that involvement in some business is not
related to the absenteeism in the company. 42% of the workmen feel that
sometimes this involvement affects.

61
16. The cause of my absenteeism is taking alcohol.

Not at all To some Extent To great Highly


Extent True

Options a b c d Total

Response 11 8 5 1 25

% 44 32 20 4 100

d
c 4%
20%
a a
44% b
c
d
b
32%

Findings:
From the above chart, it can be seen that 32% of the workmen are addicted
to alcohol.

62
17. The cause of my absenteeism is taking smoking.

Not True Partially True Almost Highly


True True

Options a b c d Total

Response 13 12 0 0 25

% 52 48 0 0 100

c
0%
d
0%
a
b a b
48% 52% c
d

Findings:
It is observed that 48% of workmen are addicted to smoking but it has no
relevance to their remaining absent at the company.

63
18. The cause of my absenteeism is taking chewing habits.

Not at all To some Extent To great Highly


Extent True

Options a b c d Total

Response 14 6 5 0 25

% 56 24 20 0 100

d
c 0%
20%

a
b
a c
b 56%
d
24%

Findings:
It can be seen from the above chart that 20% of workmen are addicted to
chewing habits to a great extent, but it does not directly affect their attendance in
the company.

64
19. The cause of my absenteeism is taking drugs.

Not True Partially True Almost Highly


True True

Options a b c d Total

Response 15 10 0 0 25

% 60 40 0 0 100

c
0%
d
0%
b a
40% b
a c
60% d

Findings:
From the chart, it can be seen that 60% of the workmen are not involved in
any type of drug addiction, while 40% of workmen are taking drugs.

65
20. The cause of my absenteeism is regular health problems.

Not at all To some Extent To great Highly


Extent True

Options a b c d Total

Response 2 11 9 3 25

% 8 44 36 12 100

d a
12% 8%

a
b
c b c
36% 44% d

Findings:
It can be seen that to some extent, 44% of the workmen remain absent due
to their irregular health problems.

66
CONCLUSION

Thus, it can be observed that absenteeism can be controlled and reduced


to a great extent if the workers are committed and are supported by all levels of
management. An effective attendance record-keeping system, consultation and
open communication by the management can create a healthy productive work
environment in the company. This would reduce grievances and give greater
employee satisfaction.

Only when the positive approach is unsuccessful does the company need
to use the remedial approach to deal with habitual abusers or with excessive
absentee cases. In all cases the company's actions must be fair and reasonable
and consistently applied.

While tackling workplace absenteeism by direct action may alleviate the


problem in the short- term, addressing the cause of the problem will provide long-
term benefits.

67
SUGGESTIONS TO REDUCE ABSENTEEISM

1. Provide Incentives: Giving workers incentives for reduced


absenteeism is not the same as rewarding or giving workers bonuses
for reduced absenteeism. An incentive provides an employee with a
boost to their motivation to avoid unnecessary absenteeism. The
general rule of thumb is to reward workers more frequently the younger
they are and the more difficult the work is to perform.

2. Non Monetary Awards: A notice board could be put up at the shop


floor displaying the name of the workmen and his department who is
being conferred this award. This award could be like:
Worker of the month award based on Efficiency.
A quarterly attendance award.
Disciplinary awards can be given to workers against whom there
are no reports of misconduct.

3. Conduct Workshops: Identify the chronic absentees and conduct a


workshop focusing on their areas of interest in work and their job
satisfaction definitions. This response can be discussed with the
subordinates openly and they can be placed in their respective
departments of work so that their talents and capabilities can be
utilized efficiently.

4. Training to Supervisors: They must be given training on their


behavioral aspects with the workers and they must be given a human
oriented approach so that they prove to be good friends of the workers
and the working environment becomes pleasant.

5. Job Rotation: Workers must be given different jobs at different shifts


so that his job does not become monotonous, repetitive and boring.
Flexi-time can also be allowed within certain limitations.

68
6. Verification of Medical certificate: It is generally observed that
workers take unauthorized leave and then provide a medical certificate.
The leave then becomes authorized. Thus, the medical certificates
must be verified by the management for their authenticity.

7. Counseling: The Union representatives could visit the houses of the


absentee worker and counsel them about the ill effects of their being
absent. e.g., their financial losses, their importance in the production of
the company, their family conditions, etc.

8. Company as a second home: The management could display the


worker s names on the notice boards at the shop floor, wishing them on
their birthdays or encouraging them in company s activities like sports,
etc. this creates a sense of belonging among the workers towards the
company.

9. Wage Link: Wages could be directly linked to attendance and their


performance at work.

10. Disciplinary Action: If all the above measures fail to improve


attendance of a worker then strict disciplinary action is the only option
against him.

11. Attendance Management Programme: The purpose of this


programme is to develop a willingness on the part of all the workers to
attend work regularly and to assist them in motivating their co-workers
to attend work regularly. This can be done through:
Addressing the physical and emotional needs of the workers.
Communicating the attendance goals of the organization so employees
can understand and identify with them.
Dealing with cases of excessive absenteeism effectively and fairly so
deterrence can occur.

69
ANNEXURE-I

TABULAR REPRESENTATION OF MONTHLY & YEARLY


ABSENTEEISM OF HRW IPW

1994 - 2004

70
71
% OF DAYS
0.00
5.00
10.00
15.00
20.00
25.00

3.97
1.95
2.49
0.47
1994

2.29
1.51
3.00
1.59
2.29
0.23
1995

1.59
20.65
4.48
2.14
3.22
0.22
1996
2.13
1.83
4.82
2.23
1.81
0.18

1997
1.98
1.00
4.48
2.26
1.66
0.13

1998
1.54
0.65
4.96
2.22
2.44
0.03

1999
1.11

YEARS
0.34
4.60
2.10
2.90
0.02

2000
0.53
0.39
ABSENTEEISM DURING 1994-2004

4.82
2.09
2.90
0.01

2001
0.62
0.54
4.97
2.15
3.03
0.02

2002
0.78
0.61
4.86
2.12
3.06
0.03

2003
0.81
0.71
4.84
2.21
3.08

2004
0.02 0.74
0.75

AL
SL
PL
CL

UA
CS
72
NO. OF DAYS
0
50000
100000
150000
200000
250000

178391
1994

22607.0
198606
1995

58286.0
169235
1996 23744.5
161805

1997
19449.0
125104

1998
13146.5
123078

1999
13666.0

YEARS
101914

2000
10745.5
106350
TOTAL MDA AND MDL DURING 1994-2004

2001
11682.0
98891

2002
11427.0
90266

2003
10448.5
81090

2004
9441.5

MDL
MDA
UA TREND DURING 1994-2004

25.00

20.65
20.00

15.00

73
UA

% OF DAYS
10.00

5.00

1.83
1.51 1.00 0.71
0.65 0.34 0.39 0.54 0.61 0.75
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
CS TREND DURING 1994-2004

2.50

2.29
2.13

2.00 1.98

1.59 1.54
1.50

74
CS
1.11

% OF DAYS
1.00

0.78 0.81
0.74

0.62
0.50
0.53

0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
AL TREND DURING 1994-2004

0.50

0.47
0.45

0.40

0.35

0.30

75
0.25 AL
0.23 0.22

% OF DAYS
0.20
0.18

0.15
0.13

0.10

0.05
0.03 0.02 0.03 0.02
0.01 0.02

0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
SL TREND DURING 1994-2004

3.50

3.22

3.03 3.06 3.08


3.00
2.90 2.90

2.49
2.50
2.44
2.29

2.00

76
1.81 SL
1.66
1.50

1.00

0.50

0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
CL TREND DURING 1994-2004

2.50

2.23 2.26
2.22 2.21
2.15
2.09
2.14 2.10 2.12
2.00
1.95

1.59
1.50

77
CL

% OF DAYS
1.00

0.50

0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
PL TREND DURING 1994-2004

6.00

4.82 4.96 4.97


5.00 4.82 4.86
4.84
4.48 4.60
4.48

4.00 3.97

78
3.00 3.00 PL

% OF DAYS
2.00

1.00

0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
MANPOWER STRENGTH OF THE COMPANY DURING 1994-2004

700
654

629
600
591
535
500

424
402
400

79
350 348
330 STRENGTH
295
300
265

NO. OF EMPLOYEES
200

100

0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
MANPOWER STRENGTH DURING YEAR 1994- 2004

265 591
295
330 1994
1995
654

62
348 1996
1997
1998
1999
2000
2001
350 2002
629 2003
402 2004

424 535
63
QUESTIONNAIRE ON STUDY OF ABSENTEEISM

Name: ________________ Department & Designation:_____________


Age: ________________ No. of years in service :_____________

I. Job Satisfaction and Income:

1. My job in company is very interesting.

Not at all To some Extent Average To great Highly


Extent Interesting
2. Reason for taking employment:
To spend time.
Forced by family Members.
To take care of my family.
Liking of the work.

II. Work atmosphere and relationship:

6. Are you aware of the leave rules of the company?

Not at all To some Extent To great Strongly


Extent Aware

7. How many paid leaves are availed by you per annum?

1-2 days 3-5 days 6-10 days More than


10 days

8. How many unpaid leaves are availed by you per annum?

1-2 days 3-5 days 6-10 days More than


10 days

6. What is the percentage of your absenteeism in last one year?

0-20% 21-40% 41-60% 61-80% 81-100%

64
21. Main reason behind high leave consumption:
Personal
Family related
Work related
Social
Addiction
Indebtness

22. My colleagues are highly supportive.

Not at all To some Extent To great Always


Extent

23. Disciplinary actions taken by management on absenteeism has reduced


absenteeism in our company.

Not at all To some Extent To great Highly


Extent True

24. In our company, real, genuine sickness cases claiming sick leave are
either:

0-20% 21-40% 41-60% 61-80% 81-100%

25. I interact with the company s management staff without hesitating.

Not at all To some Extent To great Highly


Extent True

III. Family, domestic and other problems:

26. How is your family condition and family atmosphere?

Satisfactory Average Unsatisfactory

27. Is your salary structure adequate?

Yes No

28. If No, are you and your family members engaged in some business?

Yes No

65
29. Is this involvement in business a cause of your absenteeism?

Sometimes Mostly Not at all

IV. Habits and Attitude:

30. The cause of my absenteeism is taking alcohol.

Not at all To some Extent To great Highly


Extent True

31. The cause of my absenteeism is taking smoking.

Not True Partially True Almost Highly


True True

32. The cause of my absenteeism is taking chewing habits.

Not at all To some Extent To great Highly


Extent True

33. The cause of my absenteeism is taking drugs.

Not True Partially True Almost Highly


True True

34. The cause of my absenteeism is regular health problems.

Not at all To some Extent To great Highly


Extent True

66
ANNEXURE-II

QUESTIONNAIRE FOR RESEARCH

67
BIBLIOGRAPHY

Books

Industrial Relations and Personnel Management

- Prof. Dr. M.V. Pylee and A. Simon George, Pages 75 76

Human Capital

- Magazine March 2005 issue, Volume 8, Pages 32 - 36

Manual

Personnel Manual of KSB Pumps Ltd.

Websites

www.ksbindia.co.in

www.google.com

www.employer-employee.com
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