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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 P
UNE, PUNE
YEAR 2004 - 2006
VISHWAKARMA INSTITUTE OF MANAGEMENT S. NO. , KONDHWA (BK), PUNE-48
ACKNOWLEDGEMENTS
I gratefully acknowledge the help and co-operation of the entire Personnel Depar
tment of KSB Pumps Ltd. At the outset, I would like to thank Mr. S.N.Makhale, Ma
nager- Personnel, for giving me an opportunity to learn at KSB Pumps.
My guide Mr. A.R. Bhilare, Dy. Manager- Industrial Relations, whose versatile gu
idance provided me with an insight into the field of Personnel Management and Hu
man 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 he
r valuable guidance in making my project successful. I also wish to thank Dr. Sh
arad Joshi and the VIM staff whose contribution cannot be overemphasized. With a
ll 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 inst
itute. 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 us
ed by her have been acknowledged in her report. The report is submitted in the p
artial fulfillment of two-year full time course Master in Business Administratio
n (2004-2006) as per the rules of the Pune University.
Dr. Sharad L. Joshi (Director)
Dr. Mrs. Vandana Gote (Project Guide)
CONTENTS
Chapter Chapter Name No. 1. 2. 3. 4. 5. Introduction of subject History & Profil
e of company Objectives of the Project Research methodology Data Analysis and in
terpretation: Assumptions in evaluation of absenteeism data Graphical Representa
tion Inferences from the monthly data Inferences from the yearly data Control th
rough Disciplinary Action 6. 7. 8. 9. Observations & Findings Conclusion Suggest
ions to reduce absenteeism Annexure Annexure 1 Annexure 2
Page no.
1 6 16 17
19 20 29 30 32 34 54 55
57 62
10.
Bibliography
66
4
CHAPTER: 1
I ntroduction Of S ct ubje
5
CHAPTER: 2
History & ProfileOf C pany om
6
CHAPTER: 3
Obje s Of TheProje ctive ct
7
CHAPTER: 4
Re arch Me se thodology
8
CHAPTER: 5
Data Analysis & I nte tation rpre
9
Graphical Re se pre ntation
10
CHAPTER: 6
Obse rvations & Findings
11
CHAPTER: 7
C onclusion
12
CHAPTER: 8
S stions To Re ugge duce Abse e nte ism
13
14
INTRODUCTION OF THE SUBJECT
Absenteeism refers to unauthorized absence of the worker from his job. Absenteei
sm can be defined as failure of employees to report for work when they are sched
uled to work. Employees who are away from work on recognized holidays, vacations
, approved leaves of absence, or leaves of absence allowed for under the collect
ive agreement provisions would not be included .
In India, the problem of absenteeism is greater than other countries. When the e
mployee takes time off, on a scheduled working day with permission, it is author
ized absence. When he remains absent without permission or informing, it is wilf
ul absence without leave.
In these days, when the needs of the country require greater emphasis upon incre
ase of productivity and the economic and rational utilization of time and materi
als at our disposal, it is necessary to minimize absenteeism to the maximum poss
ible 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, t
he 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. Si
ngle employees are absent more frequently than married employees. 5. Younger emp
loyees 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 s
cheduled 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 Manshi
fts Lost No. of Total Manshifts scheduled to work
X 100
CAUSES:
Important factors leading to absenteeism can be summarized as follows: 1. 2. 3.
4. Long hours of work. Bad working conditions. Boredom. Lack of co-operation and
understanding between management and workers. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14
. 15. 16. 17. 18. 19. Sickness. Accidents. Occupational disease. Problem of tran
sport facilities. Low wages. Lack of proper medical aid and health programmes. L
ack of canteen services, rest rooms, etc. Bad housing conditions. Evil of drinki
ng. Lack of marketing facilities. Social or religious festivals. Harvest seasons
. Marriages. Education of children. Domestic problems and consequent worries, et
c.
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 conditi
ons contributes highest to industrial absenteeism. Social and religious causes c
an be accounted as the second important contributing factor for absenteeism. Abs
enteeism in industry varies from place to place, depending on the festival, marr
iage, 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 Producti
vity : Employees may be carrying an extra workload or supporting new or replacem
ent staff. Employees may be required to train and orient new or replacement work
ers. Staff morale and employee service may suffer. 2. Financial Costs : Payment
of overtime may result. Cost of self-insured income protection plans must be bor
ne plus the wage costs of replacement employees. Premium costs may rise for insu
red plans. 3. Administrative Costs : Staff time is required to secure replacemen
t employees or to reassign the remaining employees. Staff time is required to ma
intain and control absenteeism. The definition of absenteeism, its causes, its a
ffects on productivity, and its costs in terms of finances and administrative ef
fectiveness 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 avoidan
ce. Traditional methods of absenteeism control based only on disciplinary proced
ures have proven to be ineffective. It is almost impossible to create a fair dis
ciplinary procedure because even well run disciplinary systems, which treat simi
lar 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 caus
es of absenteeism. Every employee who takes time off in defiance of company regu
lations has reasons, right or wrong, which justify to themselves the legitimacy
of their actions. Unless a management attendance program identifies and addresse
s the causes of employee absenteeism it will be ineffective and unfair. Traditio
nal disciplinary programs alone can, at best, give the illusion of control. It i
s no secret that there are ways to beat even the best systems. The fear of disci
pline often only increases the desire to avoid management systems. If absenteeis
m is to be controlled, the physical and emotional needs of employees must be add
ressed. 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, wi
ll ensure efficient service. Habitual absenteeism must be treated as a misconduc
t and it must be stated that habitual absentees are liable for disciplinary acti
on
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KSB PUMPS LTD.
Established in: 1960
Location : Pimpri, Pune
19
COMPANY PROFILE
1. NAME OF THE COMPANY 2. DATE OF REGISTRATION 3. CERTIFICATE NUMBER 4. LEGAL FO
RM
: : : :
KSB Pumps Limited. 11th April, 1960 11635 Public Limited Company Irrigation and
Process Division (IPD) Mumbai-Pune Road, Pimpri, Pune-411018
5. WORKS AND HEAD OFFICE :
6. MANUFACTURING UNITS
:
Power Project Division (PPD) Chinchwad, Pune. Foundry Division, Vambori, Ahmedna
gar. 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 subsid
iary, its first venture outside Germany. 1941: Argentina becomes home to the fir
st of ten current KSB Companies in America. . 1953: The foundation of a Pakistan
i subsidiary marks a move into the AsianPacific market, where KSB today has 15 g
roup companies. 1960: Manufacturing of first submersible pump in India, at Pimpr
i, 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, Pari
s-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 pr
oduct basket. 1988: KSB acquires a majority interest in U.S. slurry pump manufac
turer 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 acqu
ires a majority stake in KSB Shanghai Pumps Co. 1995: Nashik was added to the gr
owing 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 pum
ps. 1997: Acquisition of MIL Controls Ltd., India-producer of ANSI and control v
alves.
21
KSB
QUALITY OBJECTIVES:
QUALITY CONTROL
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 dealing
s.
The needs of their customers set the standards for the work they do. KSB s objec
tive is to provide trend setting technology and high quality of their products a
nd services together with a demanding quality consciousness, which ensure them o
f a position of market leadership. For its customers, KSB is liable partner.
KSB s thinking and actions are profit and market oriented. Entrepreneurial initi
ative 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 togeth
er with sense of responsibility and productivity, towards a common goal s help t
o develop their high level of qualification through individual support and train
ing.
When doing their work, KSB is committed to the goals, needs and laws of the soci
ety it lives in. KSB wants to be an open and fair partner to all. While manufact
uring and during operation of their products, they try their best to protect the
ir 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 sta
ndards for the quality of their products and services. KSB comprehensively and p
unctually fulfill his requirements.
Every employee bears the responsibility at his work place towards meeting the cu
stomers requirements: The internal customer supplier relationship is important,
the very next free
person in internal work sequence is the customer, he receives defect work.
Promoting quality awareness is an important task of the management: The high qua
lification of KSB employees is ensured through consistent training and comprehen
sive 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 t
o permanently eradicate them. Improving quality is a continuous obligation: The
initiative of each individual towards continuously improving processes methods a
nd work environment is an important contribution to personal success and satisfa
ction. 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 pump
s for sewage and solid handling. 1976: Vertical pumps for condensate extraction
(WKT) 1978: High pressure Boiler feed pumps (HDB) 1980: Primary coolant pumps fo
r nuclear power station. 1983: Pumps for mine dewatering (VM25). 1984: Submersib
le pumps for sewage and effluent handling (KRTU) 1985: Canned motor pumps for nu
clear applied action (CMP) 1987: Submersible pumps sets 1988: Vertical high pres
sure modular pumps (MOVI) Vertical high pressure oil pumps (WKVM) Solar pump set
s 1989: High pressure multistage pumps (HG) 1990: Barrel casing pumps (CHT) Pres
sure seal valves 1991: Barrel casing pumps for refinery applications (CHTR) 1992
: Stock pumps (APP) 1993: Back pullout pumps (MEGA) 1994: New series of gate typ
e industrial valves High capacity submersible pump sets (PNT) Low capacity subme
rsible pump sets (AMA Drainer) 1995: High capacity moderate head pumps (OMEGA) 1
996: 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 OMEGA CPK RPK APP WK WL WKT KRTU
: Low Pressure Centrifugal Pump. : Horizontal Split Volute Casing Pump. : Chemic
al Process Pump. : Refinery Process (heavy duty) Pump. : Stock Process Pump. : H
igh Pressure Centrifugal Pump. : High Pressure Centrifugal Pump. : Vertical Barr
el type High Pressure Centrifugal Pump. : 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) Staff (Supervisors Company Trainees MRE
s HRW s Directors)
: 537 : 189 : 3 : 56 : 289
Power Project Division (Chinchwad) Staff (supervisor Directors)
: 814 : 373 : 6 : 66 : 369
Company Trainees MRE s HRW s
26
HUMAN RESOURCE DEPARTMENT ACTIVITIES
The Functions of the Human Resource Department are: 1. EMPLOYMENT Man Power Plan
ning Recruitment and Selection Induction Promotion and Transfer Separation 2. WA
GE AND SALARY ADMINISTRATION Employee classification including job evaluation Ra
te 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 Sa
fety, Security, Transport
27
ORGAN IZATION STRUCTURE OF HR D EPARTMEN T:
Mr. M. S. Srinivas General Manager HRD Corporate Mr. A. R. Bhilare IR-IPO Dy. Ma
nager IR Mr. R. S. Mohite IR-IPO Asst. Manager IR Mr. Mohan Iyer Security Mr. Ja
de Canteen / Time Office Dr. Bidve Dispensary / Ambulance Room Mr. Erande Time O
ffice
Mr. Vivek Kunte HRD T & D
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IPD PP
Mr. C. M. D silva IR-IPO Dy. Manager IR Mr. Thomas Officer Phelics Joseph IR Wel
fare Ms. Jayanti Time Office S. Subramaniam T. D. Mairal P&A V. S. Shinde P&A R.
D. Khele Security
Mr. S. N. Makhale Manager -Personnel
K. V. Subramaniam P & A CBE
V. Demasundaram Secretary
Mr. A. S. Nanajkar P & A Nasik
V. V. Verma Ex. & Desp
M. G. Badhe Ex & Desp
OBJECTIVES OF THE PROJECT
The objectives of the project are: To understand and analyze: 1. What are the ma
in causes of absenteeism in KSB Pumps? 2. What are the effects of the unauthoriz
ed absenteeism by the employees in the company? 3. What are the current discipli
nary actions taken by the HR dept. for reducing absenteeism? 4. What is the atti
tude 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 t
he 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 sub
ject 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 dec
ide upon the general area of interest or the aspect of the subject to inquire in
to. This decision is rather broad and not very precise. It is crude indication o
f the purpose of the study and is of little help for further planning and organi
zation of the study.
Research Methodology is defined as a more systematic activity directed towards d
iscovery and the development of an organized body of knowledge. An efficient res
earch contributes to the evaluation of a proper decision, which ultimately affec
ts the path the organization will choose. The data collected is of paramount imp
ortance 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 selec
tion 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. Thu
s, 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 absentee
ism report. Leave records of employees.
After the collection of data, the response of the 25 individuals were arranged i
n a chronological pattern and then evaluated. Many inferences could be drawn fro
m both the primary as well as secondary data available which are put forth in th
e 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 sensitivit
y and receptivity on our part. As new information pours in, the study is reformu
lated and redirected.
Hence, to be on the safer side, it would always be wise to work keeping a partic
ular method in mind.
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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 th
e employees.
2. From the monthly and yearly data, the monthly trends of absenteeism can be ob
served by division of leaves in the following 2 categories:
a. Paid Leave: Privilege Leave (PL), Casual Leave (CL), Sick Leave (SL). b. Unpa
id 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 mon
thly salary is calculated from 20th of the starting month to the 21st of the nex
t month with reference to the leave record.
4. The settlement agreement mentions the consumption of leave by an individual w
orker per annum as:
a. Privilege Leave b. Casual Leave c. Sick Leave
20 p.a. 8 p.a.
10 p.a.
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MANPOWER STRENGTH DURING YEAR 1994- 2004
295 330
265 591
33
402 424 535
654
348
350 629
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
MANPOWER STRENGTH OF THE COMPANY DURING 1994-2004
700 654 629
600 535
591
500 424 402 350 348
NO. OF EMPLOYEES
34
1995 1996 1997 1998 1999 YEARS 2000 2001
400 330 295 265 STRENGTH
300
200
100
0 2002 2003 2004
1994
PL TREND DURING 1994-2004
6.00
5.00 4.48 4.60
4.82 4.82
4.96 4.97
4.86 4.84
4.48 3.97
4.00
% OF DAYS
35
3.00 1995 1996 1997 1998 1999 YEARS 2000 2001
3.00
PL
2.00
1.00
0.00 2002 2003 2004
1994
CL TREND DURING 1994-2004
2.50 2.23 2.22 2.09 2.14 2.10 2.12 2.15 2.26 2.21
2.00
1.95
% OF DAYS
36
1.59 1995 1996 1997 1998 1999 YEARS 2000 2001
1.50
CL
1.00
0.50
0.00 2002 2003 2004
1994
SL TREND DURING 1994-2004
3.50 3.22 3.03 2.90 2.49 2.44 2.29 2.90 3.06 3.08
3.00
2.50
% OF DAYS
37
1.81 1.66 1994 1995 1996 1997 1998 1999 YEARS 2000
2.00 SL
1.50
1.00
0.50
0.00 2001 2002 2003 2004
AL TREND DURING 1994-2004
0.50 0.47
0.45
0.40
0.35
% OF DAYS
38
0.23 0.22 AL 0.18 0.13 0.03 0.02 0.01 0.02 0.03 0.02 1994 1995 1996 1997 1998 19
99 YEARS 2000 2001 2002 2003 2004
0.30
0.25
0.20
0.15
0.10
0.05
0.00
CS TREND DURING 1994-2004
2.50 2.29 2.13 1.98
2.00
% OF DAYS
39
1.59 1.54 CS 1.11 0.78 0.81 0.74 0.62 0.53 1995 1996 1997 1998 1999 YEARS 2000 2
001 2002 2003 2004
1.50
1.00
0.50
0.00
1994
UA TREND DURING 1994-2004
25.00
20.00
20.65
% OF DAYS
40
UA 1.83 1.51 1.00 0.65 1997 1998 0.34 1999 YEARS 0.39 2000 0.54 2001 0.61 2002 0
.71 2003 0.75 2004 1994 1995 1996
15.00
10.00
5.00
0.00
NO. OF DAYS
22607.0 198606 58286.0 169235 23744.5 161805 19449.0 125104 13146.5 123078 13666
.0 101914 10745.5 106350 11682.0 98891 11427.0 90266 10448.5 81090 9441.5
41
100000 150000 178391 200000 250000 50000 0 1994 1995 1996 1997 1998 1999 2000 20
01 2002 2003 2004 YEARS
TOTAL MDA AND MDL DURING 1994-2004
MDA MDL
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 thi
s 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 cons
umption 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 leav
e 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 o
f absenteeism. This leave is mostly consumed in January, April to June and Septe
mber 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. Available Mandays Ave
rage PL = 9.8% Average CL = 2.6% Average SL = 3.2% X 100
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 und
er 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 a
nd 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 lea
ve 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 possibl
e 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 effo
rts and provision of ready help to the employees. This has also helped in increa
sing 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 reduce
d 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 larg
e 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 ar
e to be keenly monitored as any reduction or other incidents with the asset caus
es a great loss to the company.
The HR Department deals with various activities among which monitoring absenteei
sm and taking the appropriate disciplinary action is one of the important and se
nsible 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 h
ave 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 d
epartment against the chronic cases among the employees.
KSB has dealt with many cases and have brought about a very uniform discipline i
n 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 furt
her 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 industria
l relations.
Thus, it can be observed that disciplinary action helps in controlling absenteei
sm 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 g
reat Extent Highly Interesting
Options Response %
a 0 0
b 5 20
c 7 28
d 9 36
e 4 16
Total 25 100
e 16%
a 0%
b 20% a b c d
d 36%
c 28%
e
Findings: From the above chart, it can be seen that 86% of the workmen like thei
r job varying from average to a higher extent. Thus, their job interest levels a
re high.
47
2. Reason for taking employment: To spend time. Forced by family Members. To tak
e care of my family. Liking of the work. Options Response % a 0 0 b 4 16 c 11 44
d 10 40 Total 25 100
a 0% d 40%
b 16% a 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 Extent c 7 28 Strongly Aware d 11 44 Total 25 100
Options Response %
a 2 8
b 5 20
a 8% b 20% a b c d c 28%
d 44%
Findings: From the above chart, it is observed that 44% of the workmen are stron
gly 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 day
s More than 10 days
Options Response %
a 1 4
b 2 8
c 13 52
d 9 36
Total 25 100
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 leav
es 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 d
ays More than 10 days
Options Response %
a 4 16
b 6 24
c 13 52
d 2 8
Total 25 100
d 8%
a 16% a b c d
c 52%
b 24%
Findings: It can be observed that 52% of the workmen take 6-10 days of unpaid le
ave 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 Response %
a 8 32
b 11 44
c 4 16
d 1 4
e 1 4
Total 25 100
c 16%
d e 4% 4%
a 32%
a b c d e
b 44%
Findings: From the above chart, it can be seen that 44% of the workmen quoted th
eir 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 relat
ed Social Addiction Indebtness
Options Response %
a 2 8
b 10 40
c 4 16
d 2 8
e 5 20
f 2 8
Total 25 100
f 8% e 20%
a 8% a b c b 40% d e f
d 8% 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 workme
n have addiction problem.
53
8. My colleagues are highly supportive. Not at all To some Extent To great Exten
t Always
Options Response %
a 0 0
b 5 20
c 9 36
d 11 44
Total 25 100
a 0%
b 20% a b c d c 36%
d 44%
Findings: From the above chart, 44% of the workmen feel that their colleagues ar
e 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 absenteei
sm in our company. Not at all To some Extent To great Extent c 12 48 Highly True
d 9 36 Total 25 100
Options Response %
a 0 0
b 4 16
a 0% d 36%
b 16% a b c d c 48%
Findings: It can be observed from the above chart that 48% of workmen accept tha
t disciplinary actions taken by management have reduced absenteeism to a very gr
eat extent. The company has very strict rules policy. However those who have bre
ached 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 Response %
a 4 16
b 5 20
c 9 36
d 5 20
e 2 8
Total 25 100
e 8% d 20%
a 16% a b c d e
b 20%
c 36%
Findings: From the above chart, it can be seen that 36% of workmen have opted th
at 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 al
l To some Extent To great Extent Highly True
Options Response %
a 3 12
b 7 28
c 11 44
d 4 16
Total 25 100
d 16%
a 12% a b c d
b 28% c 44%
Findings: It can be observed from the above chart that 44 % of the workmen are v
ery comfortable in interacting with the management staff. Thus, the management s
ubordinate relations are very clear and good without resistance.
57
12. How is your family condition and family atmosphere? Satisfactory Options Res
ponse % Average a 10 40 b 9 36 Unsatisfactory c 6 24 Total 25 100
c 24% a 40% a b c
b 36%
Findings: It can be observed that 40% of the workmen s family condition is satis
factory while 24% of them are unsatisfied.
58
13. Is your salary structure adequate? Yes No
Options Response %
a 13 52
b 12 48
Total 25 100
b 48%
a 52%
a b
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 Options
Response % No a 7 58 b 5 42 Total 12 100
b 42% a 58%
a b
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 Optio
ns Response % Mostly a 5 42 b 3 25 Not at all c 4 33 Total 12 100
c 33%
a 42%
a 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 som
etimes this involvement affects.
61
16. The cause of my absenteeism is taking alcohol. Not at all To some Extent To
great Extent Highly True
Options Response %
a 11 44
b 8 32
c 5 20
d 1 4
Total 25 100
c 20%
d 4% a 44% a b c d
b 32%
Findings: From the above chart, it can be seen that 32% of the workmen are addic
ted to alcohol.
62
17. The cause of my absenteeism is taking smoking. Not True Partially True Almos
t True Highly True
Options Response %
a 13 52
b 12 48
c 0 0
d 0 0
Total 25 100
c 0% d 0% b 48% a 52% a b 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 Ext
ent To great Extent c 5 20 Highly True d 0 0 Total 25 100
Options Response %
a 14 56
b 6 24
c 20%
d 0% a b c d
b 24%
a 56%
Findings: It can be seen from the above chart that 20% of workmen are addicted t
o chewing habits to a great extent, but it does not directly affect their attend
ance in the company.
64
19. The cause of my absenteeism is taking drugs. Not True Partially True Almost
True Highly True
Options Response %
a 15 60
b 10 40
c 0 0
c 0% d 0%
d 0 0
Total 25 100
b 40% a 60%
a b c d
Findings: From the chart, it can be seen that 60% of the workmen are not involve
d 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 E
xtent To great Extent Highly True
Options Response %
a 2 8
b 11 44
c 9 36
d 3 12
Total 25 100
d 12%
a 8% a b
c 36%
b 44%
c d
Findings: It can be seen that to some extent, 44% of the workmen remain absent d
ue to their irregular health problems.
66
CONCLUSION
Thus, it can be observed that absenteeism can be controlled and reduced to a gre
at extent if the workers are committed and are supported by all levels of manage
ment. An effective attendance record-keeping system, consultation and open commu
nication by the management can create a healthy productive work environment in t
he company. This would reduce grievances and give greater employee satisfaction.
Only when the positive approach is unsuccessful does the company need to use th
e remedial approach to deal with habitual abusers or with excessive absentee cas
es. In all cases the company's actions must be fair and reasonable and consisten
tly applied. While tackling workplace absenteeism by direct action may alleviate
the problem in the short- term, addressing the cause of the problem will provid
e longterm 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 a
bsenteeism. An incentive provides an employee with a boost to their motivation t
o 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 perfo
rm.
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 conferr
ed this award. This award could be like: Worker of the month award based on Effi
ciency. A quarterly attendance award. Disciplinary awards can be given to worker
s against whom there are no reports of misconduct.
3. Conduct Workshops: Identify the chronic absentees and conduct a workshop focu
sing 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 plac
ed in their respective departments of work so that their talents and capabilitie
s can be utilized efficiently.
4. Training to Supervisors: They must be given training on their behavioral aspe
cts with the workers and they must be given a human oriented approach so that th
ey prove to be good friends of the workers and the working environment becomes p
leasant.
5. Job Rotation: Workers must be given different jobs at different shifts so tha
t 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 ta
ke unauthorized leave and then provide a medical certificate. The leave then bec
omes authorized. Thus, the medical certificates must be verified by the manageme
nt 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 fami
ly 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 encourag
ing them in company s activities like sports, etc. this creates a sense of belon
ging 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 w
ork regularly and to assist them in motivating their co-workers to attend work r
egularly. This can be done through: Addressing the physical and emotional needs
of the workers. Communicating the attendance goals of the organization so employ
ees can understand and identify with them. Dealing with cases of excessive absen
teeism effectively and fairly so deterrence can occur.
69
ANNEXURE-I
TABULAR REPRESENTATION OF MONTHLY & YEARLY ABSENTEEISM OF HRW IPW
1994 - 2004
70
% OF DAYS 10.00 15.00 20.00 25.00 0.00 1994 1995 1996 1997 1998 1999 2000 2001 2
002 2003 2004 YEARS
0.23 3.00 1.59 2.29 1.59 4.48 0.22 2.23 1.81 0.18 1.98 1.00 2.26 1.66 0.13 1.54
0.65 2.22 2.44 0.03 1.11 0.34 2.10 2.90 0.02 0.53 0.39 0.01 0.62 0.54 2.09 2.90
0.02 0.78 0.61 2.15 3.03 2.12 3.06 0.03 0.81 0.71 2.21 3.08 0.02 0.74 0.75
3.97 1.95 2.49 0.47 2.29 1.51
2.14 3.22 2.13 1.83
4.82
4.48
4.96
ABSENTEEISM DURING 1994-2004
4.60
4.82
4.97
4.86
4.84
71
5.00
20.65
PL CL SL AL CS UA
NO. OF DAYS
22607.0 198606 58286.0 169235 23744.5 161805 19449.0 125104 13146.5 123078 13666
.0 101914 10745.5 106350 11682.0 98891 11427.0 90266 10448.5 81090 9441.5
72
100000 150000 178391 200000 250000 50000 0 1994 1995 1996 1997 1998 1999 2000 20
01 2002 2003 2004 YEARS
TOTAL MDA AND MDL DURING 1994-2004
MDA MDL
UA TREND DURING 1994-2004
25.00
20.00
20.65
15.00
% OF DAYS
73
1.83 1.51 1.00 0.65 1998 0.34 1999 YEARS 0.39 2000 1994 1995 1996 1997
UA
10.00
5.00
0.54 2001
0.61 2002
0.71 2003
0.75 2004
0.00
CS TREND DURING 1994-2004
2.50 2.29 2.13 1.98
2.00
1.50
1.59
1.54
% OF DAYS
74
1.11 0.53 1994 1995 1996 1997 1998 1999 YEARS 2000
CS
1.00 0.78 0.81 0.74 0.62
0.50
0.00 2001 2002 2003 2004
AL TREND DURING 1994-2004
0.50 0.47
0.45
0.40
0.35
0.30
% OF DAYS
75
0.23 0.22 0.18 0.13 0.03 0.02 0.01 1994 1995 1996 1997 1998 1999 YEARS 2000 2001
0.25
AL
0.20
0.15
0.10
0.05
0.02
0.03
0.02
0.00 2002 2003 2004
SL TREND DURING 1994-2004
3.50 3.22 3.03 2.90 2.90 3.06 3.08
3.00
2.49 2.44 2.29
2.50
2.00 1.81 1.66 SL
76
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
1.50
1.00
0.50
0.00
1994
CL TREND DURING 1994-2004
2.50 2.23 2.22 2.09 2.14 2.10 2.12 1.95 2.15 2.21 2.26
2.00
1.59
1.50
% OF DAYS
77
1995 1996 1997 1998 1999 YEARS 2000 2001
CL
1.00
0.50
0.00 2002 2003 2004
1994
PL TREND DURING 1994-2004
6.00
5.00 4.48 4.60
4.82 4.82 4.86
4.96 4.97
4.84 4.48 3.97
4.00
% OF DAYS
78
3.00 1994 1995 1996 1997 1998 1999 YEARS 2000 2001
3.00
PL
2.00
1.00
0.00 2002 2003 2004
MANPOWER STRENGTH OF THE COMPANY DURING 1994-2004
700 654 629
600 535
591
500 424 402 350 348
400 330 295 265 STRENGTH
NO. OF EMPLOYEES
79
1995 1996 1997 1998 1999 YEARS 2000 2001
300
200
100
0 2002 2003 2004
1994
MANPOWER STRENGTH DURING YEAR 1994- 2004
295 330
265 591
62
402 424 535
654
348
350 629
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
63
QUESTIONNAIRE ON STUDY OF ABSENTEEISM
Name: ________________ Age: ________________ Department & Designation:__________
___ 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 g
reat Extent Highly Interesting
2. Reason for taking employment: To spend time. Forced by family Members. To tak
e 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 Extent Strongly Aware
7. How many paid leaves are availed by you per annum? 1-2 days 3-5 days 6-10 day
s More than 10 days
8. How many unpaid leaves are availed by you per annum? 1-2 days 3-5 days 6-10 d
ays 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 rela
ted Social Addiction Indebtness 22. My colleagues are highly supportive. Not at
all To some Extent To great Extent Always
23. Disciplinary actions taken by management on absenteeism has reduced absentee
ism in our company. Not at all To some Extent To great Extent Highly 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 al
l To some Extent To great Extent Highly True
III.
Family, domestic and other problems:
26. How is your family condition and family atmosphere? Satisfactory Average Uns
atisfactory
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 Mostl
y IV. Habits and Attitude: Not at all
30. The cause of my absenteeism is taking alcohol. Not at all To some Extent To
great Extent Highly True
31. The cause of my absenteeism is taking smoking. Not True Partially True Almos
t True Highly True
32. The cause of my absenteeism is taking chewing habits. Not at all To some Ext
ent To great Extent Highly True
33. The cause of my absenteeism is taking drugs. Not True Partially True Almost
True Highly True
34. The cause of my absenteeism is regular health problems. Not at all To some E
xtent To great Extent Highly True
66
ANNEXURE-II
QUESTIONNAIRE FOR RESEARCH
67
BIBLIOGRAPHY
Books
Industrial Relations and Personnel Management - Prof. Dr. M.V. Pylee and A. Simo
n George, Pages 75 Human Capital - Magazine March 2005 issue, Volume 8, Pages 32
- 36 76
Manual
Personnel Manual of KSB Pumps Ltd.
Websites
www.ksbindia.co.in www.google.com www.employer-employee.com
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