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ANNEXURE

EMPLOYEES ABSENTEEISM IN CPCL

1. Age:

2. Education:

QUESTIONNAIRE

a) 20-30

b) 3 1-40

c) 41-50

d) above 50

a) School Level I b) ITIIDiploma I c) UG

d) PG

4. Job status (Nature of Job)

a) Technical

I b) Non Technical

5. Experience

a) Less than 5 years

b) 5-10

years

c) 11-15 years

d) More than 16 years

6. Marital status

a) Single I b) Married

c) Separated

d) Divorce

  • 7. Nature of family:

a) Joint Family

b) Nuclear Family

8. No. of Members in the family

a) 2

b) 3-5

c) above

ABSENTEEISM FACTORS

Please mark the suitable scale

(SA- strongly agree, A- agree, N-neither agree nor disagree, DA-disagree, SDA

strongly disagree)

SI.

No.

DESCRIPTION

SAIAINiDAISDA

MANAGEMENT POLICIES ON EMPLOYEES

  • 1 Management introduced new policies for the improvement of employees in the organization

  • 2 They want to extract best from women

  • 3 National policies of reservation for employees is

  • 4 In each department employees are given responsible position

  • 5 Top level executives are always in favour of potentiality of women

  • 6 Management emphasis on awareness of women's role in the organization

  • 7 Environment of the organization is successful in women's development

    • 8 Profound system are introduced to involve the employees in all key activities Top executives believe that the success can be obtained through more efforts of women's

      • 10 Trust and opennt ss are shown towards

DEVELOPMENT OF EMPLOYEESPOTENTIALITY

  • 11 Talents of employees are identified.

  • 12 Assessing the employees in terms of their highest level of work.

  • 13 Future plans are appraised to them.

  • 14 Managerial skills are developed.

  • 15 Periodic evaluation is done in the organization.

  • 16 Employees are made to with stand future challenges

  • 17 Psychological test are conducted.
    18 Personal interactions with executives is useful to share their views

  • 19 Employees are posted in suitable departments

  • 20 Potential development gives more satisfaction to employees.

ORGANIZATIONAL DEVELOPMENT AND EMPLOYEES EMPOWERMENT.

Changes have been done in favour of women

  • 22 Systematic application of mind is taught to

  • 23 Innovative changes exposed to good technological skills to employees

  • 24 Employees attitudes about the organization are positive and optimistic in approach.

  • 25 Structures of the organization is highly encouraging

  • 26 A psychological conducive climate for the development of employees is prevailing.

  • 27 Employees teams are effectively encouraged.

  • 28 Climate problems are taught to solve

  • 29 Team management are taught for the involvement

  • 30 Employees in inter dependent units are taught to share their ideas

GOAL ACHIEVING

  • 31 Employees are allotted to achieve the suitable goals

  • 32 Colleagues are assisting achieve the needs

  • 33 Superiors are kind enough in teaching the process of achievement

  • 34 Departmental and organizational objectives are

REWARDS AND FACILITIES

  • 35 Special facilities are

given to employees for job

involvement strategies to remove family stress of

  • 37 Child care units are opened in the organization

  • 38 Maternity and other leaves are given with out any hesitation.

  • 39 Income is suitable for hard work.

  • 40 Over time and other extra works give more emoluments

ROLE OF WOMEN

  • 41 Participation and discussion are frequently taken place to achieve the target.

  • 42 Role in the organization is encouraging

  • 43 Role analysis gives involvement and responsibilities

  • 44 Women's potential properly channelised

111

  • 45 1 Inter personal relation ship helped to realize the

  • 46 1 Employees are placed in the key performance area.

1DVD1flP14 ANCF, (iF VMPLOYEES

CAREER DEVELOPMENT

Organization follows job rotation.

  • 55 4j

Employees strongly believe that they are suitable for

all the job.

  • 56 Promotion policy of the organization makes to

involve more in all the works

  • 57 Employees are requested to specialize all the areas.

  • 58 Career and individual efficiency are directly related in the view of organization

  • 59 Senior employees are given proper elevation.

TRAINING

  • 60 Women's development needs are identified

  • 61 Detailed reports of potentiality of employees are

given by the organization.

  • 62 Key areas of poor performance are concentrated

  • 63 Employees are taught to with stand against heavy

competition

  • 64 Training are given according changing of technology

and management system

  • 65 Case studies and audio visuals are used for training

  • 66 Work environment is made place for performance

and learning.

  • 9 Separate incentives and OD are given to attend the

67

68

training.

Organization initiates all the measures for women's

69

learning.

Innovative methods of training are given at the cost

of organization

iv

IMPACT ON ORGANIZATION

)LUME No. 1(2011), ISSUE No.2 (JUNE)

1SSN2231-4245

r. No.

A

ftDI M (3W1M CONTENTS

TITLE & NAME OF THE AUTHOR (S)

Page No.

INTERNATIONAL FINANCIAL REPORTING STANDARD ADOPTION, IMPLICATION ON MANAGEMENT ACCOUNTING AND TAXATION IN NIGERIAN ECONOMY

FOLAJIMI FESTUS ADEGBIE

MODERN PORTFIOLIO THEORY (MPT) AND FINANCIAL ECONOMICS: A THEORY OF LESSER TURF?

DR. ANDREY I. ARTEMENKOV

THE IMPACT OF STOCK MARKET OPERATIONS ON THE NIGERIA ECONOMY:A TIME SERIES ANALYSIS (1981-2008)

6

13

DR. OFURUM CLIFFORD OB!YO & TORBIRA, LEZAASI LENEE

PERFORMANCE APPRAISAL SYSTEM ON COMPANY PAY ROLL EMPLOY, SENIOR, MIDDLE & LOWER MANAGEMENT (A STUDY WITH REFERENCE TO INTERNATIONAL TOBACO COMPANY LTD., GHAZIABAD)

18

DR. RAGHVENDRA 0 WI VED! & KUSH KUMAR

  • S. CREDIT POLICY AND ITS EFFECT ON LIQUIDITY: A STUDY OF SELECTED MANUFACTURING COMPANIES IN NIGERIA

25

10.

11

12.

13.

14.

15.

16.

17.

18.

STEPHEN A. OJEKA

CREDIT RISK MANAGEMENT IN STATE BANK OF INDIA - A STUDY ON PERCEPTION OF SBI MANAGER'S IN VISAKHAPATNAM ZONE

31

DR. P. VEN! & P. SREE 0EV!

THE ARCHAEOLOGY OF RECESSION: DILEMMA BETWEEN CIVILIZATION AND CULTURE - TWO DIFFERENT APPROACHES OF WEST AND EAST WHILE COMBATING GREAT DEPRESSION

38

DR. V. L. DHARURKAR & DR. MEENA CHANDAVARKAR

TRANSFORMING A RETAIL CENTRE INTO A BRAND THROUGH PROFESSIONAL MALL MANAGEMENT

42

DR. N. H. MULLICK & DR. M. ALTAF KHAN

IMPACT OF EXCHANGE RATE VOLATILITY ON REVENUES: A CASE STUDY OF SELECTED IT COMPANIES FROM 2005 -2009

47

K. B. NALINA & DR. B. SN! VARAJ

DETERMINING WORKING CAPITAL SOLVENCY LEVEL AND ITS EFFECT ON PROFITABILITY IN SELECTED INDIAN MANUFACTURING FIRMS

52

KARAMJEETSINGH & FIREW CHEKOL ASRESS

FUTURE NUTRITION & FOOD OF INDIA - THE AQUA-CULTURE: AN ENVIRONMENTAL MANAGEMENT & CULINARY PARADIGM PERSPECTIVE STUDY FOR A SUSTAINABLE NATIONAL STRATEGY

57

DR, S. P. PATH, PROF. BISWAJIT DAS, PROF. SAT!SH JAYARAM & CHEF SUPPANA SAHA

A STUDY OF NON-FUND BASED ACTIVITIES OF MPFC - WITH SPECIAL REFRENCE TO CAUSES OF FAILURE AND PROBLEMS

65

DR. UTTAMJAGTAP& MANOHARKAPSE

CRM IN BANKING: PERSPECTIVES AND INSIGHTS FROM INDIAN RURAL CUSTOMERS

69

ARUN KUMAR, DEEPAL! S!NGH & P. ACHARYA

DETERMINANTS OF INCOME GENERATION OF WOMEN ENTREPRENEURS THROUGH SHGS

78

REVA TN! PANDIAN

AGRICULTURAL CREDIT: IMPACT ASSESSMENT

81

DR. RAMESH. 0. OLEKAR

MICRO FINANCE AND SELF- HELP GROUPS - AN EXPLORATORY STUDY OF SHIVAMOGA DISTRICT

87

  • - MAHESHA. V& DR. S. B. AKASH

INFORMAL SMALL SCALE BRICK-KILN ENTERPRISES IN GULBARGA URBAN AREA - AN ECONOMIC ANALYSIS

91

SHARANAPPA SAIDAPUR

EXTENT OF UNEMPLOYMENT AMONG THE TRIBAL AND NON-TRIBAL HOUSEHOLDS IN THE RURAL AREAS OF HIMACHAL PRADESH:

98

A MULTI-DIMENSIONAL APPROACH

19.

20.

21.

22.

23.

24.

25.

DR. SARBJEETSINGH

WOMEN SELF HELP GROUPS IN THE UPLIFTMENT OF TSUNAMI VICTIMS IN KANYAKUMARI DISTRICT

OR. C. S/VA MURUGAN & S. SHAKESPEARE !SREAL

FOREIGN BANKS IN INDIA— EMERGING LEADER IN BANKING SECTOR

  • - DR. C. PARAMAS! VAN AN EMPIRICAL EVALUATION OF FINANCIAL HEALTH OF FERTILIZER INDUSTRY IN INDIA SARBA PR! VA RAY A STUDY ON EMPLOYEE ABSENTEEISM IN INDIAN INDUSTRY: AN OVERVIEW

    • R. SURESHEABU& DR. D. VENKAIRAMARAJU

  • - LONG MEMORY MODELLING OF RUPEE-DOLLAR EXCHANGE RATE RETURNS: A ROBUST ANALYSIS PUNEET KLJMAR

  • - THE US ECONOMY IN THE POST CRISIS SCENARIO - HOLDING LITTLE CAUSE FOR CHEER

    • C. BARATH! & S. PRA VEEN KUMAR

  • - IMPLEMENTATION OF SS IN BANKS YADUVEER YADAV, GAURA V YADAV& SWAT! CHAUHAN

  • - REQUEST FOR FEEDBACK

106

110

114

119

124

131

135

149

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MEE pTqogr

PROF. K. K. AGGARWAL

Chancellor, Lingaya's University, Delhi

Founder Vice-Chancellor, Guru Gobind Singh Indraprastha University, Delhi

Ex. Pro Vice-Chancellor, Guru Jambheshwar University, 1-lisar

SH. RAM BHAJAN AGGARWAL

Ex. State Minister for Home & Tourism, Government of Haryana

Vice-President, Dadri Education Society, Charkhi Dadri

President, Chinar Syntex Ltd. (Textile Mills), Bhiwani

co-0I5vj4qOR.

Faculty, M. M. Institute of Management, Maharishi Markandeshwar University, Muilana, Ambala, Haryana

fiqyI2ISORS

vRO

Director A. C. D., School of Mana gement Studies,

.N.O.U., New Delhi

Chairman, M.B.A., Haryana Colt-ge nIT dnoLoy & Management, Kaithal

PROr

f

Principal (Retd ), Maha raja Agaei College, .iagadhri

i1• F

Dean (Academics), Tecnia Institute of Advanced Studies, Delhi

Faculty, M. M. Institute of Management, Maharishi Markandeshwar University, Mullana, Ambala, Haryana

Eq Iq 'oq w4L

r

ISoYBOJ4V

Faculty, School of Management & Market .

ing, Deakin University, Australia

i; ': VJt

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Faculty Lomar University, U.S.A.

DR. RAJESH-MODI

P

Faculty, Yanbu Industrial College, Kingdom of Saudi Arabia

PROF. SIKANDER KUMAR

Chairman, Department of Economics, Himachal Pradesh University, Shimla, Himachal Pradesh

PROF. SANJV MFFTAL

University School of Management Studies, Guru Gobind Singh I. P. University, Delhi

PROF. RAJENDER GUPTA

Convener, Board of Studies in Economics, University of Jammu, Jammu

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A STUDY ON EMPLOYEE ABSENTEEISM IN INDIAN INDUSTRY: AN OVERVIEW

SUSH bABU RESEARCH SCHOLAR BOTH INTERNAL, EXTERNAL & EXTERNAL (R/N/G) PROGRAM

DEPARTMENT OF COMMERCE, MANONMANAM SUNDARANAR UNIVERSITY TRUNELVEU - 627 012

DR, U. VENKATRAMARAJU ASSOCIATE PROFESSOR POST GRADUATE AND RESEARCH DEPARTMENT OF COMMERCE PACHAWAPPAS COLLEGE CHFNNA

ABSTRACT

bsenteeism is a serious workplace problem and an expensive occurrence for both employers and employees seemingly unpredictable in nature. A satisfactory 'yel of attendance by employees at work is necessary to allow the achievement of objectives and targets by a department. Employee Absenteeism is the absence fan employee from work. It is a major problem faced by almost all employers of today. Employees are absent from work and thus the work suffers. Absenteeism F employees from work leads to back logs, piling of work and thus work delay. These articles mainly focus on employee chronic absenteeism where the factors Dntributing to absenteeism from work include individual and environmentalfactors, and the remedial measure taken for such absenteeism in Indian industries.

:EYw0RD

lotivation, Job Satisfaction, commitment.

NITRODUCTION

bsenteeism is the term generally used to refer to unscheduled employee absences from the workplace. Many causes of absenteeism are legitimate— personal illness or family issues, for example—but absenteeism also can often be traced to other factors such as a poor work environment or workers are not committed to their jobs. If such absences become excessive, they can have a seriously adverse impact on a business's operations and, iltimately, its profitability Absenteeism means an individual remain absent without any information or intimation to his superior. Whether it is one day or more. ibsenteeism can at mass level also. Normally, 6-8 % absenteeism found in all industry. If it beyond consecutively, then the matter is serious. If any individual is in paid leave or outdoor, how can this absenteeism. It's only about unauthorized absenteeism. If individual remain absent beyond 3 times in period of 12 eonths without intimation, then he called as Habitual absent case, Or any individual remain absent more than 10 consecutive days also serious. In this case, we an issue Charge sheet to workmen who is habitual or 10 days absent. ibsenteeism in Indian industries is not a new phenomenon. It is the manifestation of a decision by employees not to present themselves at their place of work, it a time when it is planned by the management that they should be in attendance. Many research reports reveal that there has been a phenomenal increase in ibsenteeism in some industrial sectors. The absenteeism becomes a problem to organizational management particularly when employees absent from their cork environment without giving sufficient notice and by justifying their stand by furnishing fake reasons. The reasons for absenteeism are many. The factors :ontributing to absenteeism from work includes individual and environmental factors. These consists of sickness, accidents, occupational diseases, poor )roduction planning (flow of work), bad working conditions and inadequate welfare conditions, lack of trained laborers, insecurity in employment, collective Dargaining process, rigid control system, lack of supervisory support, lack of interest, lack of cohesive and cordial culture and so on. The individual reasons may ,ary from organization to organization depending upon the organizational climate, employee's attitude and influence of external organizational factors (market lorces, social activities that influence the industrial culture prevailing in geographical zone etc.).

NEED FOR THE STUDY

.

To find out the detrimental to industries in respect to the increased costs associated with high instances of absenteeism.

STATEMENT OF THE PROBLEM

To Study the existing literature an factors influencing employee Absenteeism

To find out the various personal factors affecting absenteeism

OBJECTIVES OF THE STUDY

To analyze the firm are highly influenced on financially burdened due to the lost productivity and increased costs associated with finding and paying for

temporary replacements Absenteeism is positively correlated with turnover. • This resulting turnover also financially impacts a business because of the costs associated with finding and a permanent replacement.

METHODOLOGY

DATA ANALYSIS

The Investigation used both qualitative and quantitative research methods. The initial quantitative study (100 respondents) aimed at identifying the important variables that drive the factors influencing absenteeism from the employees. The main research instrument used was a well structured questionnaire that was administered among the respondents mainly through personal contacts. Sampling population included the employee from all age groups and different financial backgrounds. It was found in our study that 70% of the responses were obtained from people of moderate family and 30% from elite family with respect to per capita income. The sample frame consisted of people from different fields. Individual respondents were the sampling element. Some of the respondents were also interviewed in order to have an in-depth analysis and find out the main reason behind their absence. The above generated pie chart shows the percentage

of respondents.

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'POTHESIS

ISSN 2231-4245

There is no association between age of employee and attitude of employee towards absenteeism

There is association between age of employee and attitude of employee towards absenteeism

There is no association between factors affecting employee absenteeism and working condition

There is association between factors affecting employee absenteeism and working condition

RCENTAGES OF RESPONDENT

Chronically ill?

tal respondent

= 100 (Men 50 and Women 50

= 75% (Men 40% & Women 35%)

= 25% (MenlO% & Women 15%)

Chronically ILL

DYes-75%

• No-25%

I. How often do they apply for leave?

otal respondent

i(lnaweek

>( In a fortnight

In a month

)Ina six month

s)Inayear

= 100 (Men 50 and Women 50)

=10

= 20

= 30

=20

=20

Apply for leave

20

10

20

20

Eli-a'

In a week

[ D d In a six rn

C: Require leave for which of the following reason?

Total respondent

= 100 (Men 50 and Women 50)

1) Marriage

2) Agricultural works

3) Sickness

4) Going around with friends 5) Fear from internal people

6) No interest in work 7) Not good relation with departmental colleague & supervisor

8( Fear from accident

30

D b) In a fortnight U c) In a month

•e)Inayear

= 27

=5

= 35

= 1.0

=5

=8

=5

=5

Reason for leayLB

10

5j

355

  • I 5

27

CHRONIC ABSENTEEISM

A person who is a habitual absentee worker is called a chronic absentee worker. Such a person as compared to regular employee is absent from work not so

much because of job or environment factors. Some of the following factors involves chronic absenteeism are

ENTREPRENEURS Such chronic absentees were found to be engaged in several social and cultural activities for status, power, recognition and money and the millwork was too meager to satisfy al these interests. Yet most of them wanted to preserve their job because if provided security, fringe benefits, like housing, purchases at mill

shop, loans and provident fund contribution. They had no complaints against work, company or supervisors and were found to belong to landowner and artisan

families. They also changed jobs frequency to improve their status and occasionally gambled and drank.

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tTUS SEEKER

sy enjoyed the ascribed status and were keen to achieve and maintain it. Since they undertook many social activities they were mostly absent from work.

sy were vocal and provided counseling and guidance to others. Hence, they carried more weight with other employees.

CUREANS

primary objective of epicureans was comfort and pleasure. They were characterized by excessive concern for physical comforts at the cost of money, did not

urge job yet had no involvement with the work. Except for the present job they did not involve themselves in any other economic activity. They were

erally passive and took no responsibility.

MILY ORIENTED

ey desired to be good family providers, regular employees and respectable citizens. However, over involvement with family distracted them from the very

ad of being a regular employee and good citizen. They were found to be withdrawn and disorganized.

K AND OLD

me chronic absentees stayed away from work because of ill health, weak constitution, chronic illness and just old age. Yet they were compelled to hold on to

uk for economic reasons. However, their physical conditions made them less responsive to work.

LJIDELINES FOR ABSENTEEISM CONTROL

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

NOCENT ABSENTEEISM

nocent absenteeism refers to employees who are absent for reasons beyond their control; like sickness and injury. Innocent absenteeism is not culpable which

eans that it is blameless. In a labour relations context this means that it can not be remedied or treated by disciplinary measures.

JLPABLE ABSENTEEISM

ilpable absenteeism refers to employees who are absent without authorization for reasons, which are within their control. For instance, an employee who is

sick leave even though he/she is not sick, and it can be proven that the employee was not sick, is guilty of culpable absenteeism. To be culpable is to be

ameworthy. In a labour relations context this means that progressive discipline can be applied. For the large majority of employees, absenteeism is legitimate,

nocent absenteeism, which occurs infrequently. Procedures for disciplinary action apply only to culpable absenteeism. Many organizations take the view that

rough the process of individual absentee counselling and treatment, the majority of employees will overcome their problems and return to an acceptable level

regular attendance.

)ENTIFYING EXCESSIVE ABSENTEEISM

ttendance records should be reviewed regularly to be sure that an employee's sick-leave days are excessive compared to other employees. If a supervisor

ispects that an employee is excessively absent, this can be confirmed through reviewing the attendance records. If all indications show that an employee is

xcessively absent, the nest step is to gather as much information as possible in order to get a clearer picture of the situation. The employees' files should be

rviewed and the employee's immediate supervisor should document all available information on the particular employee's history.

IDIVIDUAL COMMUNICATION

fter all available information has been gathered, the administrator or supervisor should individually meet with each employee whom has been identified as

aving higher than average or questionable (or pattern) absences. This first meeting should be used to bring concerns regarding attendance to the employee's

Stention. 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

ske to remedy or control the absences. Listen carefully to the employee's responses.

he 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

ery important component of overall work performance. Keep your comments non-threatening and work-oriented. Stick to the facts (i.e. patters, profiles, rates

tc.). The employee should be given a copy of there attendance report with absences highlighted for discussion.

his interview will give the opportunity to explore in depth with the employee the reasons for his or her absence. Gather facts - do not make any assumptions.

rovide support and counselling and offer guidance as the occasion demands to assist the employee to deal with the specific cause of the absence. Often, after

he initial meeting employees reduce their absenteeism. The meeting shows that you are concerned and that absenteeism is taken seriously. The employee's

tteridance should be closely monitored until it has been reduced to acceptable levels. Appropriate counselling should take place as is thought necessary. If a

narked improvement has been shown, commend the employee. The meeting should be documented and a copy placed in the employee's file.

)ROOF OF ILLNESS

;ometimes it is helpful in counselling employees with excessive innocent or culpable absenteeism to inquire or verify the nature and reasons of their absence.

[he 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 in 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 strong l y object to any efforts by management to inquire more deeply into the nature of in employees 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:

  • 1. 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.

    • 2 When such intrusion is justified it should be strictly limited to the degree of intrusion necessitated by the employers rnterests

    • 3 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

    • 4 An absent employee has an obligation to provide his employer with information regarding any change to he condition or circumstances relating to it which may affect the employers needs As such the interest of the employer in having this information outweighs the individual employees right to privacy.

      • S. An employer rule requiring proof for every absence is unreasonable if an absenteeism problem does not exist

        • 6 A mere assertion by the person claiming to be sick is not satisfactory proof.

          • 7. The obligation to prove sickness, where the employer requires proof, rests with the employee.

          • 8. 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.

          • 9. 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. 10 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. 11. 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.

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)RRECTIVE ACTIONS FOR CULPABLE ABSENTEEISM

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 tendance. Presuming you have Communicated attendance expectations generally, have identified the employee as a problem, have met with him/her as part your attendance program, made your concerns on his specific absenteeism known and have offered counselling as appropriate, with no improvement despite ur positive efforts, disciplinary procedures may be appropriate. The procedures for corrective/progressive discipline for culpable absenteeism are generally e same as for other progressive discipline problems. The discipline should not be prejudicial in any way. The general procedure is as follows: [Utilizing unselling memorandum] Initial Warning(s)

Written Warning(s)

Suspension(s)

Discharge

ERBAL WARNING

rmally meet with the employee and explain that income protection is to be used only when an employee is legitimately ill. Advice the employee that his/her tendance record must improve and be maintained at an improved level or further disciplinary action will result. Offer any counselling or guidance as is propriate. Give further verbal warnings as required. Review the employee's income protection records at regular intervals. Where a marked improvement has sen shown, commend the employee. Where there is no improvement a written warning should be issued. MITTEN WARNING iterview the employee again. Show him/her the statistics and point Out that there has been no noticeable (or sufficient) improvement. Listen to the employee 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 iarning. Be specific in your discussion with him/her and in the counselling memorandum as to the type of action to be taken and when it will be taken if the

scord 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 mitten warning should identify any noticeable pattern

U SPE N S ION

'the problem of culpable absenteeism persists, following the next interview period and immediately following an absence, the employee should be interviewed nd advised that he/she is to be suspended. The length of the suspension will depend again on the severity of the problem, the credibility of the employee's .xplanation, the employee's general work performance and length of service. Subsequent suspensions are optional depending on the above condition.

IISMISSAL )ismissals should only be considered when all of the above conditions and procedures have been met. The employee, upon displaying no satisfactory mprovement, would be dismissed on the grounds of his/her unwillingness to correct his/her absence record.

BSENTEEISM AMONG MALE AND FEMALE EMPLOYEES

EX STRUCTURE n a way it is true that female employees take more leave than male workers i.e. the rate of absenteeism for female is 15.19% and for males 13.47%. but if we :onsider that maternity leave is an essential and unavoidable part of a female employee life and if we do not consider maternity leave of female employee, the ate of absenteeism on male and female employee becomes 13.47% and 13.51% respectively, which is about the same.

EDUCATION

n male employee, the higher the education the less the amount of leave taken whereas in female workers, the higher the education, the higher the rate of

3bsenteeism unless there is very high level of education i.e., the female employee is post graduate or a Ph.D.

MARTIAL STATUS

Absenteeism increases in female employees when they are married whereas in male employee the opposite is true.

REASON FOR TAKING LEAVE

For most of the female employee the main reasons for taking leave are family responsibilities, domestic and household work etc. In male employee, personal

work, family responsibilities, visit to native place, entertainment etc, are the reason for taking leave.

SCOPE OF THE STUDY

The higher the rate of pay and the greater the length of service of the employee, the fewer the absences.

As an organization grows, there is a tendency towards higher rates of absenteeism

•Absenteeism is generally higher in the night shift than in the day shift. •The rate of Absenteeism is the lowest on pay day; it increases considerably on the following the payment of wages and bonus.

•Single employees are absent more frequently than married employees Younger employees are absent more frequently than older employees but the latter are absent for longer periods of time.

Unionized organizations have higher absenteeism rates than non-union organizations

Absenteeism is higher during the sowing (March - April May) and harvesting season.

ANALYSIS

is

Enhance job satisfaction.

Implement a job rotation or job enlargement strategy.

Reward and discipline employees for increased or decreased absenteeism.

 

Motivation

Management training program

Teambuilding

Incentive program

FINDINGS AND SUGGESTION

Many studies suggest that most of employee absenteeism, roughly between 60% and 70%, is due to reasons other than employee illness. The following are the

most common reasons employees tend to miss work. Employees are stressed or preoccupied by personal matters, such as parental concerns, marital problems, community involvement, family well-being, care

for elderly relatives, care for severely ill immediate family members, and so on. Employees are overwhelmed with their current working situation, or they are overworked due to workforce reductions and voluntary turnover.

Employees are dissatisfied with their current working conditions, position, supervisor, or overall organization. Employees are not committed to their team, department, or organization.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS & MANAGEMENT 122

A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories www.ijrcm.org.in

OLUME No: 1(2011), ISSUE NO.2 (JUNE)

Employees are not challenged by their position and have increased feelings of burnout.

DNCLUSION

1SSN2231-4245

senteeism can be extremely difficult, but with the proper understanding of what causes absenteeism and how to reduce it, firm can limit the negative side fects of employee attendance Issues. In addition to lowered workplace morale, less team cohesion, and decreased organizational commitment, employee >senteeism is detrimental to businesses in respect to the increased costs associated with high instances of absenteeism.

EFERENCE

www.researchover.com: 'Title: Understanding and Controlling Worker Absenteeism'http://ideas.repec.org: 'ILR Review, ILR School, Cornell University, vol.

50(2), pages

304-323'

www.busrep.co.za: 'Presenteeism causes greatest loss to companies' February 7, 2005 Health Management, Book 2, Dr Susan Steinman, 1st Edition, published by Services SETA,pages 32-48 Health Management, Book 2, Or Susan Steinman, 1st Edition, published by Services SETA,pages 32-48 Human Resource Management, PS Nel et al, 6th Edition, published by Oxford Press, Southern Africa, pages 548-553.

http://www.cch.com/absenteeism2007

Moore, E. (1977) 'Industrial Relations and the Social Order', p504 in Blennerhassett, E and Gorman, p (1986) 'Absenteeism in the Public Service - Information Systems and Control Strategies' Dublin: IPA

  • 1 s,

I

INTERNATIONAL JOURNAL OF RESEARCH N COMMERCE, ECONOMICS & MANAGEMENT

123

A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories

www.ijrcm.org.in

 

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Editor

VOL. - II

Dr. Anukrati Sharma

Managing Editor

Mrs. Kalpana Sharma

Editorial Board

Mr. S. C. Jam Dr. Divya Walia

rDecember, 2010

alSSUE - VI

a December -2010

Refereed

Advisory Board

Prof. (Dr.) Nawab Ah Khan

Department of Commerce,

Aligarh Muslim University, Aligarh (INDIA)

Prof. (Dr.) J

P. N. Sharma

.

Department of

Business Administration,

University of Rajasthan,

Jaipur (INDIA)

Dr. Sudhir K. Jam

Professor, Deptt. of

Management Studies,

Indian Institute of Technology,

Delhi (INDIA)

Dr. Bahaudin G. Mujtaba

Chair and Associate Professor

of Management,

H. Wayne Huizenga School

of Business and Entrepreneurship,

Nova Southeastern University,

Fort Lauderdale (USA)

Prof. (Dr.) Azhar Kazmi

Department of Management

& Marketing, King Fand

University of Petroleum &

Minerals, Dhahran

(SAUDI ARABIA)

Prof. (Dr.) Adel Rayan

Dean

Faculty of Commerce,

Assiut University,

Assiut (EGYPT)

Dr. A. S. Santhapparaj

Senior Lecturer,

Faculty of Management

Multimedia University,

Cyberjaya (MALAYSIA)

Mr. Lokinder Kumar Tyagi

Manager - Ph. D. Programs

(AlMA- Accredited

Management Teacher)

AlMA- Centre for

Management Education,

New Delhi (INDIA)

Mr. Alok Gupta

Consulting Engineer,

ING Vysya Bank,

Brussel (BELGIUM)

Prof. (Dr.) Jay A. Dewhurst

Simms Chair of Ethics &

Professor of Ethics &

Business, Univ. of Charleston,

Charleston (USA)

Mr. Siddharth Jam

FCA,

Jain Chowdhary & Co.,

Mumbai (INDIA)

I

I

I

Peer Revi-ew-ioa-rd

Dr. Chandana Perera

Department of Management of Technology University of Moratuwa, Sri Lanka

Dr.Raman Nair

Director, School of Communication and Management Studies, Muttom, Aluva, Cochin-India

Saundarjya Borbora

Professor (Economics). Department of Humanities & Social Sciences lIT Guwahati, Assam, India

Steve G. Sutton

KPMG Professor Kenneth G. Dixon School of Accounting, University of Central Florida, Orlando, FL USA

Walid Belassi

Associate Professor of Management Science Faculty of Business Athabasca University, Canada

Prof. P.T. Srinivasan

Professor and Head Dept. of Management Studies. University of Madras, Chennai, India

Paul D. Berger

Professor of Marketing Bentley University, United States

Dr. Shankar Chelliah

Faculty of International Business University Sains, Malaysia

John Currie

Faculty of Accounting, National University of Ireland

Dr. Katalin Dobrai

Associate Professor, Department of Leadership and Organization, University of Pecs, Hungary

Printer & Publisher - Kalpana Sharma on behalf of Jahanvi Publications Pvt. Ltd., 11/833, Malviya Nagar,Jaipur -302017 (Rai.) INDIA Designing & Printed at Kino Computer Graphics, Jaipur, Ph.: 0141-2742151 & Published from F-I, 33 Unique Siddarth', Udai Nagar, Nitman Nagax,Jaipur - 302020 (Raj.) INDIA Editor Dr. Anukrati Sharma For enquiries for Subscription / Articles and feedback, Write to The Editor, Proficient, Jahanvi Publications PVT. LTD., Regd. Off.: 11/833, Malviya Nagar, Jaipur - 302017 (Raj.) INDIA Head Off.,: F-I, 33" Unique Siddarth", Udai Nagar, Nirman Nagar,Jaipur -302020 (Raj.) INDIA

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III ................

Letter From t-h-e-----

Editor

.1

As the organizations grow and progress, their responsibility towards

society and humanity at large acquires greater significance. In the

present scenario social, environmental and humanitarian issues in

wake of industrial growth and advancement are drawing serious

attention. This issue focuses on some such industry and management

generated concerns that are directly affecting society and human life.

The first paper by Dr. Dileep Singh, "Retailing- An Overview"

describes the prospects of retail sector in present scenario. The

research paper 'An Empirical Study on the Role of Human

Resource" by Parul Garg, Gaurav Agarwal and Ankit Goel talks about

the role and importance of Human Resource Management for

corporate employees, management faculties and management

students. The third paper titled "The Influence of Service Quality on

Customer Satisfaction and Trust" by Sandip Ghosh Hazra is also a

research paper that examines the relationship of service quality and

customer satisfaction and trust in Indian Banking System from the

customer's perspective. "Yield Management in Indian Hotel and

Airlines Industry" by Dr. Atul Barisal throws light on the importance

of yield management, which is also known as revenue management

specifically in Hotel and Airlines Industry. The next paper is a case

study "From Superhero to Villain ?" byJashiwniJ.Narayan. The sixth

paper, 'Work Life Balance The Need of the Hour" by Dr. T.

Ramadevi and VN. Sailaja emphasizes the need for balance between

work and life. The paper "Green Business Practices" by Charu Bharti

andJatinder Kumar deals with the green environment issues.

The last paper, "Factors Influencing Employee Absenteeism in

Industries" by Dr. D. Venkatramaraju and R. Suresh Babu attempts to

highlight the causes for employees' absenteeism and its impact on the

individual as well as on the organization.

We wish an enriching reading experience to our esteemed readers!

Anukrati Sharma

Editor

VOL. - II

ISSUE - VI

December -2010

Refereed

Contents

Retailing: An Overview

Dr. Dileep Singh

1-5

An Empirical Study of The Role of Human Resource

Management in Developing Human Capital for

Achieving Global Excellence

Parul Garg, Gaurav Agrawal, Ankit Goel

6-17

The Influence of Service Quality on Customer

Satisfaction and Trust in Indian Banking Sector

Sandip Ghosh Nazar

18-29

Yield Management in Indian Hotel and Airlines

Industry

Dr. Atul Bonsai

30-39

From Superhero To Villain? The Case of an Exemplary

MD (CEO)

Jashiwini J.Narayan

40-49

Work-Life Balance The Need of The Hour

Dr. T.Rcimadevi, V.N. Sailaja

Green Business Practices

Charu Bharti, Jatinder Kumar

50-59

60-65

Factors Influencing Employee Absenteeism in Industries

Dr. D. Venkaframaralu, R. Suresh Babu

IV

66-77

December, 2OJb

7

Influencing Employee

Absenteeism in Industries

he term absenteeism refers to the failure to attend

T

to work. It is one of the major problems faced by the firms across the globe today. Unscheduled

absenteeism badly hurts the progress of an organization resulting in loss of productivity, increased costs in hiring additional staff and low morale among the workers. It is high time that employers address this problem on priority basis. Employees can be absent for a variety of reasons including sickness, lethargic attitude, family emergencies, too much workload and stress, monotonous work or a general dissatisfaction with the job. A sales professional cites some other reasons like workplace politics, long commute, strained relationship with the

immediate supervisor and lack of belongingness towards the organization as reasons for being absent from work. Whatever be the reason, absenteeism is not

December, 2010

Factors Influencing Employee Absenteeism In Industries

at all a healthy practice and steps should be taken to manage it effectively. This article discusses workplace absenteeism, which is defined as unscheduled employee absences from the workplace. It describes the different

types

of absenteeism that exist and the

problems that it causes, such as how it cuts

into a company's efficiency, profitability and sometimes even workplace harmony and

discusses some common factors across the influence of employee's absence. The findings have been used to derive the influencing variable with respect to absence. The study uses these frameworks to draw the managerial implications regarding the benefits given for the employee. It finally identifies the gaps in the existing literature with suggestion for future research direction.

bsenteeism is generally measured in the form of absenteeism rate. Absenteeism A rate is the percentage of man days lost due to voluntary absence (both authorized and un authorized) to the corresponding total of man days scheduled to work. Absenteeism in firm stops machines; disrupts processes; creates production bottle necks; hampers smooth flow or continuity of work; upsets production targets; results in production losses; increases work load of the inexperienced, less experienced or sub standard workers as substitutes, in turn creates

problems of recruitment, training, job adjustments, morale and attitudes. Man power planning is rendered impossible. Casual or substandard employees increase machine down time, rejection of finished goods, break down of machinery and consequent idle machine hours. Absenteeism directly contributes to the rise in production costs. Absenteeism is defined as the failure of a worker to report for work when he is scheduled to work. A worker is considered to be scheduled to work when the employer has work available for him and the worker is aware of it.

1 67

F

TM

roficient

Authorized absence is also treated as absence

while presence even for a part of the shift is

treated as presence for whole shift. Absence on

account of strikes, lockout, layoff, weekly rests or

suspension is not taken into account. Various

authorities have variously defined absenteeism.

The Encyclopedia of Social Science (Vol. I,

378) defines absenteeism as "the time lost by avoidable or unavoidable absence of employees,

but the time lost by strikes, or lateness amounting

to an hour is not included" The labour departments, Government of India define

absenteeism as "the total man-shifts lost because

of absentees as a percentage to the total number

of man shifts scheduled" (Singh and Singh, 1966). This definition does not include absence on

account of authorized leave, layoff, retrenchment, strikes, etc. More specifically absenteeism refers to

unauthorized absence from work. Unauthorized

absence includes all cases where work is available; the worker knows about it but fails to report for

duty and the employer has no prior information on workers not reporting for work.

Absence control can often be an important

step in the process of reducing firm costs.

Because of competitive pressures, firm can no

longer afford to carry unnecessary absence that they may have tolerated in the past. Therefore,

many firms are focusing on the issue of

eliminating, or at least reducing, unnecessary

levels of absence. Absence affects more than

just the person who is absent. Employers are

affected by direct costs such as sick pay,

overtime and staff replacement costs, plus the indirect costs associated with the effects of

absence on, for example, production and quality,

management time and the potential loss of customers. The co-workers of an absent

employee may have to work under increased

pressure, in order to meet deadlines. In literature

on absenteeism, a distinction is often made between "absence "and "absenteeism.' The term absence refers to all "stay away "from work

whether authorized or unauthorized while absenteeism refer to only unauthorized absence

(Vaid, 1966). The two rates are calculated by using the following methods

68

Absence rate

=

authorized leave + unauthorized leave Man shifts actually worked

x 100

Absenteeism rate =

unauthorized absence Man-shifts actually worked

X 100

There are 100 employees working in Pvt. Ltd.

on an average 1 employee remains absent 3 times in a year. Employee's average salary is 150 per day.

Total employees = 100

Average work days lost per year = 100

(employees) *3 (days in year) = 300 days

Average salary per employee = 150

Annual cost of absenteeism per year = 300 days * 150 (salary per day) =Rs. 45,000

Absenteeism in states

State-wise absenteeism rate amongst the directly employed regular workers during the year

2009. It has been observed that the rate of absenteeism in Census Sector at all India level

during the year 2009 has been recorded at 10.43

percent as compared to that of 10.79 percent

during the year 2008. Out of 31 States/Union

Territories, the rate of absenteeism was higher in 9 States than that of the national average. The

highest absenteeism rate of 17.30 percent reported in Himachal Pradesh, followed by

Maharashtra (14.48 percent) and Goa (14.30 percent); whereas the lowest absenteeism rate recorded in Nagaland at 1.98 percent, shows the State-wise and Sector-wise absenteeism rates during the year 2009. For the purpose of

studying absenteeism by type of ownership, units have been divided into three sectors, viz., Public, Joint and Private Sectors. It has been

observed that at all India level, the absenteeism rate was 10.48 percent in Public Sector, 11.25 percent in Joint Sector and 10.33 percent in

Private Sector. In public sector, the rate of absenteeism varied between the highest rate of 17.40 percent in Chandigarh to the lowest rate of 0.41 percent in Nagaland. In Joint Sector, the

absenteeism rate varied between the highest rate of 14.90 percent in Delhi to the lowest rate of

2.70 percent in Dadar & Nagar Haveli. In Private Sector, the absenteeism rate varied between the

December, 2010

FadorsInfIuencin Employee Absenteeism

Indtrie

highest rate of 17.53 percent in Himachal Pradesh to the lowest rate of 1.98 percent in Nagaland.

Vacation Absenteeism.

So far as Vacation is concerned, workers normally visit their native places during summer vacation of their children True Absenteeism

(is

It means out of the above causes, the following absences are to be excluded absence for which works are not directly or personally responsible. It includes lay-off, lock-outs, strikes and hartals. The absence due to availing casual and privilege leave is also excluded because it is the legitimate right of the workers to enjoy these leaves. So from the above we can summarize different types of Absenteeism as follows:

Table:— Man-days lost due to Industrial Disputes in India, 2003-2009

Number of disputes

Number of man days lost

millions)

Year

Strikes

Lockout

S

t i. i k

e

s

Lockouts

  • 2003 732

334

5.7

10.6

  • 2004 763

403

7.8

12.5

  • 2005 793

512

6.3

10.7

  • 2006 665

432

9.4

12.7

  • 2007 540

387

10.6

16.2

Source: Economic Survey2003 to 2009

Types of Absenteeism

Economists have classified the concept of Absenteeism in catagorie according to their philosophy and logic. Kerr classified Absenteeism in the following categories:

  • 1. Total Absenteeism.

  • 2. Excused Absenteeism.

  • 3. Un-excused Absenteeism.

  • 4. Vacation Absenteeism

Total Absenteeism It indicates absence of workers at a given time who are scheduled to work but remain absent for any reason whatsoever excluding lay-off and lock- out. Excused Absenteeism. Kerr stated that excused Absenteeism means absence of work for a bonafide cause. It may be because of self-illness or due to accident in the course of employment. Un-excused Absenteeism. It means an absence as a habit and not as a necessity. For example, a worker proceeded on 10 days leave out of his earned leave with prior sanction but overstayed for a month, then this overstayed period can be classified as un-excused absenteeism.

I Authorized Absenteeism

  • 2 Unauthorized Absenteeism

  • 3 Innocent Absenteeism

  • 4 Culpable Absenteeism

Authorized Absenteeism If a worker is absent from work by taking

permission from his superior and applying for

leave, such Absenteeism is called as Authorized

Absenteeism. Unauthorized Absenteeism If a worker is absent from work without informing or taking permission and without applying for leave, such Absenteeism is called Unauthorized Absenteeism. Innocent Absenteeism Innocent absenteeism refers to employees who are absent for reasons beyond their control; Eke sickness and injury. Innocent absenteeism is not culpable which means it is blameless. In labour relations context, this means that it cannot 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

December, 2010

69

.........

rroficient

  • 0 .............

is not sick, and it can be proven that the employee was not sick, is guilty of culpable absenteeism. To be culpable is to be blameworthy. In labour relations context, this means that progressive discipline can be applied.

Objectives A Questionnaire was prepared to study the Objectives and Hypothesis and it was circulated among 100 respondents (employees) in the Selected Industry. The objeetives are:- • To Study the existing literature on factors influencing employee Absenteeism • To find out the various personal factors affecting absenteeism. • To find out the association among the various factors. • To design and conduct a suitable interview to know the 'values' of the various personal factors for the employees. • Using some statistical methods develop an empirical relation to know the relative importance of each personal factors affecting absenteeism. After turnover, absenteeism can be one of the most critical human resource issues for firm. Observing, evaluating, and attempting to improve absenteeism can be extremely difficult, but with proper understanding of what causes absenteeism and how to reduce it, firm can limit the negative side effects of employee attendance issues. In addition to lowered workplace morale, less team cohesion, and decreased organizational commitment, employee absenteeism is detrimental to businesses in respect to the increased costs associated with high instances of absenteeism. When employees do not come to work, firm are financially burdened due to the lost productivity and increased costs associated with finding and paying for temporary replacements. Additionally, absenteeism is positively correlated with turnover, which means that the more an employee misses work, the more likely he or she is to eventually leave the company. This resulting turnover also financially impacts a business because of the costs associated with finding and paying a permanent replacement.

70

Methodology The Investigation used was both qualitative and quantitative research methods. The initial quantitative study (100 respondents) aimed at identifying the important variables that drive the factors influencing absenteeism from the employees. The main research instrument used was a well structured questionnaire that was administered among the respondents mainly through personal contact. Sampling population included the employees from all age groups and different financial backgrounds. It was found in our study that 70% of the responses were obtained from people of moderate family and 30% from elite family with respect to per capita income. The sample frame consisted of people from different fields. Individual respondents were the sampling elements. Some of the respondents were also interviewed in order to have an in-depth analysis and find out the main reason behind their absence. The below generated pie charts show the percentage of respondents.

Percentages of respondent

A Chronically iLL?

Total respondents

100

Yes

=75

No

=25

Chronically iLL

 

I

Yes-75%

I

No-25%

B) Reasons leave?

Total respondents

= 100

1)Marriage

=25

2)Sickness

35

3)Going around with friends =8

4)Fear from internal people = 6

5)No interest in work

= 14

IN(1fllTI'LIllh1

Factors Influencing Employee Absenteeism In Industries I

6) Not good relation with

departmental colleague

E) Other sources of income?

Total respondents =100

and supervisor

12

Yes

=25

 

No

75

Reason for Leave Required

• Marriage-25%

• Sick -35% Going With Friends -8%

Fear - 6%

• No Interest in work -14%

I Not Good Relation- 12%

C) Visit to the native place?

Other Sources Of Income

R Yes-25%

I No-75%

Total respondents

=100

Monthly

18

Quarterly

= 23

F) Willingness' for the job?

Half yearly

=24

Total respondents

= 100

Yearly

35

Yes

70

 

No

30

Visit to the Native Place

• Mon6ly-18%

• Quarterly-23%

Half Yearly-24%

Yearly-35%

D) Frequency of applying for leave?

Total respondents

= 100

a)Inaweek

=15

b)Ina fortnight

=20

c)Inamonth

16

d) In a six month

=23

e)Inayear

=26

Frequency of applying for leave

[December, 2010

• Week -15°/i

• Fortnight-20%

Month-16%

Six month-23%

• Year-26%

Willingness for the Job

• Yes-70%

• NO-30%

Factor Analysis

The following data were taken from the

Garment industry in Chennai Respected to Raj Garments Pvt Ltd to analyse the statistical tools

for the Employee Absenteeism.

Let X denotes total absenteeism rate (in percentage) and Y the loss of production. Let, us change the origin of X and Y to 13.59 and 1,00,000 respectively and also the scale of Y to

10,000 and let us write

xX13.59 and y, (Y 1100000) / 10000

11

...........

rroficient

TM

N

N

I

N

I

C

It

N

N CN
N
CN

N

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II

'-4

©

cq

•I

II

ON

ON

N

N

N

C

CoqII

N

C

_

Lfl

N

Ln

N

N

I

N

N

C

I

00

N00C

C

N

Ln

I

C

N

I

N

I

N

.

N

N

N

d

II C

o

C

C

C

C

C

NC

C

N

N

C

C

C

S

v

V

C

C

C

C

C

C

C

C

C

C

C

C

S

C

C

C

C

C

C

C

C

C

cn _

C

C

C

C

C

C

N

C

C

C

N

C

C

C

C

C

C

-

0

I)

en

.

IC)

C

IC)

4)

If)

-

0

0

C)

.December, 2010j

Factors

.nno of pairs of observation.

rxy.2 (i (

Thdyi - (Thd yi)/n - (•/)2) (yi 2 - (El)2)

-

352.212 - (-11.06 * - 92.06)

-

747*7101

-

146.717

-

530.4447

= 0.276

Since the correlation co-efficient between two variables is not affected with the choice of origin and scale, thus = 0.276

= r It indicates that there is a very low degree of positive relationship between the two variables.

In other words loss of production (Y) tends not to be influenced by increase or decrease in absenteeism rate (X) in H.N.G. To find out whether our computed value of r=0.276 is significant value or not, a Null Hypothesis as H0 and an alternative Hypothesis as H1 as a device of Testing of Hypothesis have been applied to the pursuit. To test, H0: p0

where p

H1: p>0 population co-efficient.

Here we use test statistics

.r v'n-2

vI -r2

Here t follows t distribution with (n-2) degree of freedom (d.f)

0.276v(5-2)

t.=

vi (0.276)2

Tabulated Value (TV) of t.053=2.35 Calculated Value (C.V) <TV We reject H0 at 5% level of significance and conclude that r0.276 is not a significant value. So the effect of absenteeism on production loss is statically not significant.

Productivity and Absenteeism

Absenteeism caused in additional manpower or its leads to decrease in production. The study group of productivity and incentive set up by the National Commission on labour defined productivity in this terms; " Productivity is the measure of the extent to which the resources are utilized to produce goods and services It measures this through determining the ratio between the output of wealth or net result and the input of resources It can be measured between any two stages in a production process. In other words we can measure productivity for a single operation in a process or the entire process or the entire plant, or the industry or the economy as a whole. It can be measured for each resource, i.e. for a man, for a group of men, a major material, capital, power, etc. Two productivity values will, however, be comparable if both of them are for the same resource, are in terms of the same unit, and are for the same stages of a productive process" If we look at every organization, very much successful in production department, having large number of employees with high Job Satisfaction and low absenteeism rate because productivity of an employee depends upon their satisfaction and if a worker is satisfied then he will be less absent from work. An organization is productive if it achieves its goals and does so by transferring inputs to outputs at the lowest cost. As such, productivity implies a concern for both effectiveness and efficiency and this will arise when the maximum number of employees will be present and simultaneously satisfied with their

work. .

If a worker remains absent due to self-

t.=

  • 0.4780 sickness or for some family problems, there would be a slackness and carelessness in the work. It

  • 0.4880 breeds instability and frittering away of energy.

= 0.979 <t.05,

I

"M*"*

1li1I

The productivity of that worker will be reduced. Low productivity affects industrial production,

73

r

TM

rofiioient

i ...........................................

which is the base of development and growth of the industry. Thus absenteeism reduces the productivity of labour that ultimately hampers the growth and development of the industry.

Prokopenko of the I.L.O. converts the total productivity of a firm into the following formula;

Pt=

 

C+R+O

Where,

 

Pt

total productivity

  • L Labour input factor

=

  • C Capital input factor

=

R = Raw material and purchased parts input:.

O = Other miscellaneous goods and services input factor (including management) Ot = Total output

"A proper productivity index for management use, however is dependent not only

on considering all factors, but also on how the factors are defined and used"

Steps taken by Management to minimize absenteeism

Enhance job satisfaction Job satisfaction is influenced by many employment factors. However, the best way to improve is to reduce workplace stress or to make working conditions more enjoyable and consistently provide honest and meaningful feedback and praise. Reward /punishments for increased or decreased absenteeism Although this may seem elementary, the

reward/punishment motive is still an effective

way to influence absenteeism rates in firm. If a financial or recognition-based reward is attached to instances of decreased absenteeism, employees that are motivated to receive the reward will have fewer instances of absenteeism and strive to achieve attendance goals. Furthermore, employees that are motivated to avoid consequences positively react to this type of strategy. Implementing a job rotation or job enlargement strategy

The system concept is very important in the area of productivity; how the various factors

of production interact and make up an integrated whole.

Causes of Absenteeism

Serious accidents and illness Low morale

• • Poor working conditions • Boredom on the job • Lack of job satisfaction Inadequate leadership and poor supervision

• Personal problems (financial, marital, substance abuse, child care etc.)

Poor physical fitness • Inadequate nutrition Transportation problems

The existence of

income protection plans

(collective agreement)

One of the reasons, employees are frequently absent is lack of challenging work due to repetition, boredom, and burnout. A way that HR can improve an employee's perspective of his or her position is to provide opportunities for job

rotation and for gaining more

skills and

knowledge in an area of personal and professional interest.

The employees receive motivation from their job if the production goals are more realistic, there are morl desirable job responsibilities, and : good working conditions. An HR can also increase extrinsic motivation by implementing a type of recognition or reward program.

:

Teambuilding helps to eliminate negative actions by fostering respect among employees. Such teams should be created that give team

Provisions, which continue income during : members the responsibility and power to solve periods of illness or accident,

Stress

problems, plan, and make decisions. Solving

1I1cI1Iuc1

C1

nice tney are

-

i,

.1

74

December,

Factors Influencing Employee Absenteeism In Industries

needed, while planning helps members learn

techniques to implement power to make decisions

various solutions. The

helps employees realize

their importance to the company. This feeling

of

importance increases morale. It also

improves

employees • Check from time to time that no employee is

treated badly by seniors.

• Bring a few changes in working conditions and give incentives to employees to motivate

attendance rates because this feeling of them to work.

importance makes the employees feel that the company really needs their presence. In order to set up a Team, HR has to facilitate as a leader as it

4

After taking all the measures, if an employee is not motivated and still remains absent from work take the matter seriously.

helps the team members feel empowered, think • Confront the employee and give him

things through thoroughly and utilize such employees in effective manner.

Developed incentive Program

Well formed incentive programs can improve both attitude and attendance rates. This works for several reasons. Some employees may lack the internal motivation necessary to keep their spirits up and give them the drive and desire to show up to work every day. These people may need the external motivation that incentives provide. The company can create an incentive program that is specifically linked to attendance including:

• The ability to cash-in unused sick days at the end of a specific period • Permission to the employees to leave early :

one Friday per month of perfect attendance

warnings orally as well as in writing and at last dismiss the employee from work.

in Absenteeism

Recent surveys in different organizations indicate the following trends in absenteeism. • The higher the rate of pay, the greater the length of service of the employee, the fewer the absences. • As an organization grows, there is a tendency towards higher rates of absenteeism

• Absenteeism is generally higher in the night

shift.

shift than in the day The rate of Absenteeism is the lowest on pay day; it increases considerably on the days following the payment of wages and bonus.

• Single employees are absent more frequently

• Bonus pay for periods of perfect attendance than married employees

• Gifts such as savings bonds or gift cards for periods of perfect attendance Various measures to be taken by HR to reduce absenteelsM • Talk to employees who are absent and find out the problem

4

Device

• Younger employees are absent more frequently than older employees but the latter are absent for longer periods of time. Unionized organizations have higher absenteeism rates than non-union organizations

measures to protect the interest of : ' 4 Absenteeism is higher during the sowing

Toecember, 2010nill

rroficient .

arch April May) and harvesting season.

Findings and Recommendations

Absenteeism is one of the action-oriented parameters that is caused not only due to workers' initiation but also due to organization's fault. Absenteeism restricts proper utilization of all resources. So proper utilization of physical and financial resource requires human resource. Therefore, for effective utilization of human resource, management should make its absenteeism policy in such a way that it helps the organization to utilize human resource's ability and potential effectively. In the light of observation and findings, some recommendations have been suggested for the improvement of workers attendance and production in Industry. The management should take proper steps in order to control. absenteeism among workers. In the factory, absenteeism is caused particularly due to leave taken by employees according to the rules and regulation. They should introduce attendance bonus for the unavailed or surrendered portion of casual leave so that a part casual leave can be converted into working days. The management should also introduce

"Monetary and non-monetary benefits

scheme" that will be linked with attendance so that workers feel reluctant to take leave and become conscious regarding their regular attendance. This will bring down the absenteeism rate. The management should introduce a scheme where "The Best Employee" with respect to absenteeism, performance and discipline will be rewarded with cash( Rs 500/- or Rs 1000/-) at the end of the year by top management and their respective photograph (big size painted) will be pasted at the entry and exit gates of the factory premises. The joint committee of workers and management should take the decision and judge the winner. This will work, as motivator and every employee will want his/her photograph to be pasted at the gate. If the condition of worker's canteen is very unhygienic and food supplied in the canteen is very low graded and

without subsidized rate workers need to go home for their lunch and some time they don't return for work. This leads to decrease in productivity and simultaneously increase in workload of other workers. This whole process leads to increase in cost of production. Workload in some departments is very high and in the others it is very low; so management should take necessary steps to balance tb number of workers in all department Management should take some steps to redu the workload of workers. Training an orientation programmes help to attain se development. They should not only be arranged but also evaluated from time to time to know the effect of training on the performance so that useful feedback can be obtained from the evaluation of the training and development programmes. Further, in order to provide relief to the workers engaged in monotonous job, job rotation should be arranged. The rate of absenteeism during the months May-June and November-December remains very high because during these month workers go to native places either for the purpose of marriage or agriculture works. The management should introduce special incentives during these months so that workers feel reluctant to go to their native place. Hot weather during the month of May and June is also reason for high absenteeism rate. So management should provide clean water, lemon water, glucose water and cooling facility to workers. Side business of workers is also a reason for absenteeism. Workers have their own side business along with work in industry. The management should take strict action against those proven workers who remains absent from work because of their side business. Finally, to develop work culture, it is imperative to nurture and motivate team spirit to perform the assigned jobs confidently and efficiently. The attitude of cooperation to join hands is essential for improving performance. It is also necessary to improve the " sense of belongingness" among the employees so as to improve the morale of the workers.

Factors Influencing Employee Absenteeism In Industries I

Conclusion /

ising absenteeism continues to plague today's employers! The increased costs of overtime, medical premiums, compensation, and support programmes are having an incredibly egative impact on profits and productivity Absenteeism is forcing management to deal with a wide range of problems from low morale, increased turnover, and disciplinary issues to production quality and stress related illnesses. The result of the present study will help the industries streamline their thoughts to the factors influencing employee absenteeism. Observing, evaluating, and attempting to improve absenteeism can be extremely difficult, but with the proper understanding of what causes absenteeism and how it can be reduced, the firms can limit the negative side effects of employee attendance issues. In addition to lowered workplace morale, less team cohesion, and decreased organizational commitment, employee absenteeism is detrimental to businesses in respect to the increased costs associated with high instances of absenteeism. When employees do not come to work, firms get financially burdened due to the lost productivity and increased costs associated with finding and paying for temporary replacements. Additionally, absenteeism is positively correlated with turnover, which means that the more an employee misses work, the more likely he or she is to eventually leave the company. This resulting turnover also financially impacts a business because of the costs associated with finding and paying a permanent replacement.

;!iit ILI•DE'

wwwresearchover.com: 'Title: Understanding and Controlling Worker Absenteeism'http://ideas.repec.org: 'ILR Review, ILR School, Cornell University, vol. 50(2), pages 304-323' • www.labourlawhandbook.co.za www.busrep.co.za: 'Business leaders must catch up to HIV/Aids effects in workplace' February 14, 2008 wwwbusrep.co.za: 'Presenteeism causes greatest loss to companies' February 7, 2005 • Health Management, Book 2, Dr Susan Steinman, 1st Edition, published by Services SETA,pages

32-48

• Human Resource Management, PS Nel et al, 6th Edition, published by Oxford Press, Southern Africa, pages 548 - 553. • http://www.cch.com/absenteeism2007 • Moore, E. (1977) 'Industrial Relations and the Social Order', p504 in Blennerhassett, E and Gorman, P (1986) 'Absenteeism in the Public Service - Information Systems and Control Strategies' Dublin: IPA • Human Resource Management- C.B.Gupta.

December, 2010

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ROLE OF CULTURE IN SHAPING BRAND POPULARITY

DR. MOUSUMI SENGIJPTA, DR. NILANJAN SENGIJPTA, BODI-ITSATrA BIIAUACHARYYA

[Abstract]

[PD F]

EVALUATION OF PARAMETERS AFFECTING SHOPPING

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RETENTION IN BPO INDUSTRY - A KEY CHALLENGE OF

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EMPLOYEE ABSENTEEISM IN BPO INDUSTRY: A KEY HR

  • 8 ISSUE DR. D. VENKATRAMAR.AJU, R. SURESH BABU

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RD.) INSTITUTION: PERAMBALUR DISTRICT

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EMPOWERMENT OF WOMEN SOME CHALLENGES AND

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IJIVIMR

Volume 2, Issue 2 (February, 2011)

ISSN 2229-6883

EMPLOYEE ABSENTEEISM IN BPO INDUSTRY:

A KEY HR ISSUE

Dr. D. VENKATRAMARAJU

M.B.A., M.Com. M.A., M.Ed., M.Phil., Ph.D., A.C.S.INTER

Associate Professor and Research Guide

Post Graduate and Research Dept of Commerce

Pachaiyappa' s College, Chennai, Tamilnadu, India

&

R. SURESH BABU

M.Com. M.Phil., M.B.A., PGDMA., (PhD)

PART TIME RESEARCH SCHOLAR

DEPARTMENT OF COMMERCE

MANONMANIAM SUNDARANAR UNIVERSITY

TIRUNELVELI, TAMILNADU, INDIA.

ABSTRACT

The term absenteeism refers to the failure to attend to work. It is one of the major

problems faced by BPO firm across the globe today. Unscheduled absenteeism badly

hurts the progress of an organization resulting in loss of productivity, increased costs in

hiring additional staff and low morale among the workers. This Article discusses

workplace absenteeism, which is defined as unscheduled employee absences from the

workplace. It describes the different types of absenteeism that exist and the problems that

it causes, such as how it cuts into a company's efficiency, profitability and sometimes

even workplace harmony and discusses some common factors across the influence of

employee absence

94

IJMIMR

Volume 2, Issue 2 (February, 2011)

INTRODUCTION

ISSN 2229-6883

Absenteeism is generally measured in the form of absenteeism rate.

Absenteeism rate is the percentage of man days lost due to voluntary absence (both

authorized and un authorized) to the corresponding total of man days scheduled to

work. Absenteeism is defined as the failure of a worker to report for work when he is

scheduled to work. Absence control can often be an important step in the process of

reducing firm costs. Because of competitive pressures, firm can no longer afford to

carry unnecessary absence that they may have tolerated in the past. Therefore, many

BPO firms are focusing on the issue of eliminating, or at least reducing, unnecessary

levels of absence. It is high time that employers address this problem on a priority

basis. Employees can be absent for a variety of reasons including sickness, lethargic

attitude, family emergencies, too much workload and stress, monotonous work or a

general dissatisfaction with the job. Whatever be the reason absenteeism is not at all a

healthy practice and steps should be taken to manage it effectively

..

The findings have

been used to derive the influencing variable with respect to absence. This study uses

these frameworks to draw the managerial implications regarding the benefits given for

employee. It finally identifies the gaps in the existing literature with suggestion for

future research direction. After turnover, absenteeism can be one of the most critical

human resource issues for firm. Observing, evaluating, and attempting to improve

absenteeism can be extremely difficult, but with the proper understanding of what

causes absenteeism and how to reduce it, firm can limit the negative side effects of

employee attendance issues. In addition to lowered workplace morale, less team

cohesion, and decreased organizational commitment, employee absenteeism is

detrimental to businesses in respect to the increased costs associated with high

instances of absenteeism. When employees do not come to work, firm are financially

burdened due to the lost productivity and increased costs associated with finding and

paying for temporary replacements. Additionally, absenteeism is positively correlated

with turnover, which means that the more an employee misses work, the more likely

he or she is to eventually leave the company. This resulting turnover also financially

impacts a business because of the costs associated with finding and a permanent

replacement.

95

IJIVIMIR

Volume 2, Issue 2 (February, 2011)

Causes of Absenteeism

. Serious accidents and illness

• Low morale

• Poor working conditions

• Boredom on the job

• Lack of job satisfaction

• Inadequate leadership and poor supervision

ISSN 2229-6883

• Personal problems (financial, marital, substance abuse, child care etc.)

• Poor physical fitness

• Inadequate nutrition

• Transportation problems

• The existence of income protection plans (collective agreement)

• Provisions, which continue income during periods of illness or accident. \

• Stress

OBJECTIVES

. To find out the various organizational factors affecting absenteeism.

• To find out the various Personal factors affecting absenteeism

• A Questionnaire is prepared to study the Objectives and Hypothesis and it is

circulated among 100 were respondent (employees) in the Selected BPO

Industry.

• To Study the existing literature on factors influencing employee

Absenteeism

METHODOLOGY

The Investigation used both qualitative and quantitative research methods. The initial

quantitative study (100 respondents- 50 are Men and 50 are Women) aimed at

identifying the important variables that drive the factors influencing absenteeism from

the employees. The main research instrument used was a well structured questionnaire

that was administered among the respondents mainly through personal contacts.

Sampling population included the employee from all age groups and different

financial backgrounds. It was found in our study that 70% of the responses were

IJMMR

Volume 2, Issue 2 (February, 2011)

ISSN 2229-6883

obtained from people of moderate family and 30% from elite family with respect to

per capita income. The sample frame consisted of people from different fields.

Individual respondents were the sampling element. Some of the respondent were also

interviewed in order to have an in-depth analysis and find out the main reason behind

their absence. The above generated pie chart shows the percentage of respondents.

Percentages of respondent

A: Chronically ill?

Total respondent

100 (Men 50 and Women 50)

Yes

No

75% (Men 40% & Women 35%)

25% (MenlO% & Women 15%)

Chronically iLL

DYes-75%

• No-25%

97

IJMIIvIR

Volume 2, Issue 2 (February, 2011)

ISSN 2229-6883

B) Require leave for which of the following reason?

Total respondent

100 (Men 50 and Women 50)

25% (Men 12% and Women 13%)

Marriage

 

35 %( Men 15% and Women 20%)

Sickness

Going around with friends

Fear from internal people

No interest in work

Not good relation with departmental

colleague and supervisor

8% (Men 5% and Women 3%)

6% (Men 2% and Women 4%)

14% (Men 7% and Women 7%)

12% (Men 7% and Women 5%)

W!4

Reason for Leave Required

  • I UMarriage-25% U Sick -35% DGoing With Friends -8% DFear - 6% •No Interest in work 44%

ONot Good Relation- 12%

C Visit native place?

Total respondent

Monthly

Quarterly

Half yearly

Yearly

-

100 (Men 50 and Women 50)

18% (Men 10% and Women 8%)

23% (Men 15% and Women 8%)

24% (Men 14% and Women 10%)

35% (Men 20% and Women 15%)

98

IJMJVIIR

Volume 2, Issue 2 (February, 2011)

Visit Native Place

ISSN 2229-6883

OMonthly-18%

• Quarterly-23%

Cl Half Yearly-24%

OYearly-35%

  • D) How often do they apply for leave?

Total respondent

  • a) In a week

  • b) In a fortnight

  • c) In a month

  • d) In a six month

  • e) In a year

100 (Men 50 and Women 50)

15% (Men 9% and Women 6%)

20% (Men 10% and Women 10%)

= 16% (Men 8% and Women 8%)

23% (Men 13% and Women 10%)

(Men 16% and Women 10%)

Often Apply For Leave

E) Other source of income?

Total respondent

Yes

No

aWeek -15%

UFortnight.20%

O Month-I 6%

OSix month-23%

•Year-26%

100 (Men 50 and Women 50)

(Men 1 and Women )

(Men 50%

r

L

IJMMIR

Volume 2, Issue 2 (February, 2011)

ISSN 2229-6883

Other Source Of Income

25%.NO75%

F) Like job or not?

Total respondent

Yes

No

100 (Men 50 and Women 50)

70% (Men 35% and Women 35%)

30% (Men 20% and Women 10%)

Willingness of Job

7O%•NO.3O0Io

Findings

• Absenteeism is one of the action-oriented parameters in BPO Industry that not

only caused due to workers initiation but also organization, some way or other,

are also help to flourish this unwanted evil.

• Absenteeism restricts proper utilization of all resources. So proper utilization

of physical and financial resource requires human resource. Therefore, for

effective utilization of human resource, management should make its

absenteeism policy in such a way that it would help the organization to utilize

human resource's ability and potential effectively.

100

Volume 2, Issue 2 (Fe

,2011)

ISSN 2229-6883

• In the light of observation and findings, some recommendations have been

suggested for the improvement of workers attendance and production in

Industry. The management should take proper steps in order to control

absenteeism among workers

• The management should also introduce "Monetary and non-monetary

benefits scheme that will be linked with attendance so that workers feel

reluctant to take leave and become conspicuous regarding their regular

attendance and as a result absenteeism rate can be reduced. The management

should introduce a scheme where "The Best Employe" with respect to

absenteeism, performance and discipline will be rewarded with cash( Rs 5001-

or Rs 1000/-) at the end of the year by top management and their respective

photograph (big size painted ) will be pasted at the entry and exit gate of the

BPO premises ..

• The condition of worker's canteen is very unhygienic and food supplied in the

canteen is very low graded and without subsidized rate. Due to this unhygienic

condition and low graded food, workers need to go home for their lunch and

some time they don't return back for work. This leads to decrease in

productivity and simultaneously increase workload to other workers. This

whole process leads to increase in cost of production.

• Workload in some department is very high and in some of the department is

very low, so management should take necessary steps to balance the number of

workers in all departments. Management should take some steps so that

workload of workers can be reduced. Training and orientation programmes

helps to attain self-development, should not only be arranged but also

evaluation of these programmes should be made from time to time to know the

effect of training on the performance so that useful feedback can be available

from the evaluation of the training and development programmes. Further, in

order to provide relief to the workers engaged in monotonous job, job rotation

should be arranged.

• The rate of absenteeism during the month May-June and November-December

remains very high because during these month workers used to go to native

101

IJMMR

Volume 2, Issue 2 (February, 2011)

ISSN 2229-6883

place either for the purpose of marriage or agriculture works. The management

should introduce special incentives during these months so that workers will

feel reluctant to go to native place. Hot weather during the month of May and

June is also reason for high absenteeism rate. So management should provide

clean water, lemon water, glucose water and cooling facility to workers.

• Side business of workers is also a reason for absenteeism. Workers have their

own side business along with work in management should take strict action

against those proven workers who remains absent from work because of their

side business.

• Finally, to develop work culture, it is imperative to nurture and motivate team

spirit to perform the assigned jobs confidently and efficiently. The attitude of

cooperation to join hands is essential for improving performance. It is also

necessary to improve the " sense of belongingness" among the employees so as

to improve the morale of the workers.

Conclusion

Rising absenteeism continues to plague today's employers! The increased costs of

overtime, medical premiums, compensation, and support programs are having an

incredibly negative impact on profits and productivity. Absenteeism is forcing

Management to deal with a wide range of problems from low morale, increased turnover,

and disciplinary issues to production quality and stress related illnesses. The result of the

present study will help the BPO industries streamline their thoughts to the factors

influencing employee absenteeism. Observing, evaluating, and attempting to improve

absenteeism can be extremely difficult, but with the proper understanding of what causes

absenteeism and how to reduce it, firm can limit the negative side effects of employee

attendance issues. In addition to lowered workplace morale, less team cohesion, and

decreased organizational commitment, employee absenteeism is detrimental to businesses

in respect to the increased costs associated with high instances of absenteeism. When

employees do not come to work, firm are financially burdened due to the lost

productivity and increased costs associated with finding and paying for temporary

replacements. Additionally, absenteeism is positively correlated with turnover, which

means that the more an employee misses work, the more likely he or she is to eventually

102

IJMMR

Volume 2, Issue 2 (February, 2011)

ISSN 2229-6883

leave the company. This resulting turnover also financially impacts a business because of

the costs associated with finding and a permanent replacement.

Suggestion

• Talk to employees who are absent and find out the problem

• Take measures to protect the interest of employees

• Check from time to time that no employee is treated badly by seniors.

• The firm can bring few changes in working conditions and give incentives to

employees to motivate them to work.

• After taking all the measures if an employee is not motivated and still remains

absent from work then matters have to be taken seriously.

• HR can confront the employees and give him warnings in verbal as well as in

writing and at last dismiss the employee from work.

REFERENCE

• www.researchover.com:

'Title:

Understanding

and

Controlling

Worker

Absenteeism'http://ideas.repec.org: 'ILR Review, ILR School, Cornell University, vol.

50(2), pages

304-323'

• www.labourlawhandbook.co.za

• www.busrep.co.za: 'Business leaders must catch up to HIV/Aids effects in workplace'

February 14, 2008

• www.busrep.co.za: 'Presenteeism causes greatest loss to companies' February 7, 2005

• Health Management, Book 2, Dr Susan Steinman, 1st Edition, published by Services

SETA,pages 32 - 48

• Human Resource Management, PS Nel et al, 6th Edition, published by Oxford Press,

Southern Africa, pages 548 - 553.

• http://www.cch.com]absenteeism2007

• Moore, E. (1977) 'Industrial Relations and the Social Order', p504 in Blennerhassett,

E and Gorman, P (1986) 'Absenteeism inthe Public Service - Information Systems

and Control Strategies' Dublin: IPA

• Human Resource Management- C.B.Gupta.

  • 1 (\ '
    1 U.)

Greener Advertising

Petro Retail

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Addressable Advertising

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VoI-XI

Issue-03 March 2011

'4,fr,a view pint

Emerging Trends in Advertising

elcome to this issue on hand of your favorite magazine, the

EDITOR E N Murthy

MANAGING EDITOR

GRK Murty

CONSULTING EDITOR

G Suresh

EDITORIAL TEAM

SV Srirama Rao (Associate Editor)

I Sri Jyothi M Gayathri

W Advertising Express. This issue has articles that cover contempo-

rary themes on one hand, and classic ideas on the other.

With India hosting two major cricketing events, the fight among

brands to capture the target audience is heating up. But which of the

two events will the brands go for. The cover page article "IPL 4 or ICC

World Cup 2011" tries to address the dilemma faced by corporate houses

and advertising agencies when it comes to choosing which event to

sponsor.

The 'Advertising' section has two articles, one of which is about

"Emerging Trends in Advertising". The world of advertising is in a

dynamic phase due to changes in macroeconomic environment as well

as due to cut-throat competition in the market. Newer and creative

ART DEPARTMENT

Bangaru Babu A (Chief Visualizer)

S Ganesh PRV Prasad Vinod Kumar Kasukurthi

tools are being used to attract attention, engage minds, trigger emo-

tions, and change the perception of consumers. Such efforts have led to

the emergence of various new concepts and trends in advertising sec-

tor and this article is an attempt to discuss the same. Out-of-home

advertising, popularly known as outdoor advertising, is becoming more

popular in India. Studying the pattern and trends of OOH in India, it is

DIRECTOR (PRODUCTION)

H Sitaram

noticed that the paradigms are generally adapted from the west. The

article "Present Scenario of Outdoor Advertising in India: New Emerg-

ing Trends" presents a few examples to bring forth the analysis as to

how the western ideas are influencing the creative minds of Indian

Send your feedback/articles to:

The Editor, IUP Publications Plot # 53, Nagauna Hills, Panagutta Hyderabad-500 082, Andhra Pradesh, India, Tel: +91 (40) 23430-448 to 451 Fax: 91 (40) 23430-447 E-mail: info@iupindia.in advexpress@iupindia.in Website: www.iupindia.in

Advertisement Enquiries David Wilson, Asst. Chief Manager IUP Publications #126, Mahalaxmi Towers, Srinagar Colony, Hyderabad - 500 073. Ph:+91(40) 2342 3101 to 3105 E-mail: advts@iupindia.in

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market.

The 'Perspective' section has three articles. The article "Marketing

to the New Age Indian Consumers" attempts to focus on the opportu-

nities and challenges of marketing to the young Indian consumers in

the light of changing demographic profile of the country. "Focusing on

the Environment: A Key Role of Greener Advertising" discusses about

the key role played by advertising for green products and more impor-

  • I tandy focusing on environment.

"Petro-Retail in India: Strategies and Scope" discusses how compa-

nies aim at providing quality products supported by the aligned ser-

vices to obtain maximum customer satisfaction.

"Star Enters into a New Orbit

"

...

featured in the section 'Case

Study', discusses how a well-established brand, which is not only popu-

lar but also a market leader in the industry, attempts for a brand refresh

to change with the changing times to reflect fresh perspectives and

new thinking.

Two research papers find a place in this issue: one "Addressable

Advertising: Future of Television Advertisement", and two, a survey-

based paper on "Conceptual Understanding of Electronic Advertising

Printed at M/s. ICIT Software Center Pvt. Ltd., Plot Nos 165 & 166 P, Phase-V, IDA, Jeedimetla, Hyderabad 500 055, Andhra Pradesh and published on behalf of IUP Publications, #126, Mahalaxmi Towers, Srinagar Colony, Hyderabad 500 073, Andhra Pradesh. Not for sale in US and Canada. Editor: E N Murthy.

for Cause Related Marketing Campaigns in India". The study finds

education as the most important cause an organization can associate

itself with.

Suresh Garimella

SN 0972-5326

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Marketing to the New Age Indian

Consumers

16

Viewpoint

Emerging Trends in Advertising

03

Focusing on the Environment: A Key

Role of Greener Advertising

19

Petro-Retail in India: Strategies

and Scope

23

News Roundup

Research

05

Addressable Advertising: Future of

television Advertisement

41

I ADVERTISING

Emerging Trends in Advertising

Present Scenario of Outdoor

Advertising in India:

New Emerging Trends

Conceptual Understanding of Electronic

  • 27 Advertising for Cause Related Marketing

Campaigns in India

Case Study

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Focusing on

nvironment

A Key Role of Greener Advertising

Green products are composed

of renewable resources. These

products are environmentally

accountable because their

impact is preferred over their

environment product life.

Through advertisements

businesses are responding to

the same by incorporating

green elements in their

products. It is hoped that

green products would consti-

tute a significant part of the

total market in future. This

article discusses the key role

played by advertising in this

direction thereby, focusing on

the environment.

R Suresh Bcibu

Research Scholar

(Part-time External)

Department of Commerce

Manonmaniam Sundaronar University

Tirunelveli, Tamil Nadu.

The author can be reached at

swisssuresh@gmail.com

Dr. D Venkatramaraju

Associate Professor & Research Guide

Post Graduate and Research Deportment

of Commerce, Pachalyappa's College

Chennai, Tamil Nadu.

The author can be reached at

prof.raiu@gmail.com

ince time immemorial, green

has been the symbol of fertil

S ity, birth, prosperity and joy.

Environmental pollution has been

our concern over the last few de-

cades, which had a devastating ef -

fect on the atmosphere and even-

tually disturbed our ecological bal-

ance. The basic objective of green

advertising is to minimize the ad-

verse effects that affect the natural

environment. The Surf Excel adver-

tisement that captions Do bucket

paani roz bachana, creates an aware-

ness to conserve the natural ele-

ment, water. Advertisements that

promote green products convey a

relationship between the product,

user's benefit and the environment.

In a way such promotional cam-

paigns reflect the principle of an

eco-friendly and socially respon-

sible organization. In an effort to

create the importance of ecology and

maintenance of its balance, Aircel

has "Save the Tiger" campaign ad-

vertisement celebrities' promotion

for the cause. Recently, green adver-

tising is considered to have a grow-

ing prominence in providing envi-

ronmental awareness to a number

of consumers who are willing to

back their environmental con-

sciousness with their money. It is a

marketing strategy to help our eco-

nomic resources. But this is possible

only when it is done in a right way.

Some important factors related to

green advertising are:

Educating customers through

green advertising campaigns.

Participation of customers

through environmental-friendly

action.

Genuine products.

Perceive environmental mar-

kets.

Green Penetration

We cannot definitely say how much

the green products have penetrated

the traditional market. For ex-

(0 2011 IUP All Rights Reserved.

mple, the market penetration of

iofuels can grow over 21% by 2030,

i auto and energy sectors, green

roducts penetration has been on a

riass scale. Green products are not

nly essential for the environment,

Ut are also necessary for business

xpansion. Green GDP is an index

f economic growth with all envi-

onmental consequences of that

rowth being factored in some en-

ironmental indicators like waste

er capita and CO emissions per

nnum, which can be aggregated

iito a sustainable development in-

[ex.

As demand for organic food and

ustainable products increases,

ome big companies are reinvest-

rig their products for capturing a

hare in the growing green market.

nnovative green advertising pro-

notes like fair-trade coffee, re-

.ycled furniture, organic clothing,

tc., have left the decision to the

uyer or the consumer. Green con-

umerism has resulted in various

onsumer products to be certified

vith a 'green label'.

reen Consumer

consumer who uses products free

rom non-green chemicals, or one

vho uses completely natural prod-

cts, can be considered as green.

/hat percentage of the purchas-

rig public can be identified as

'reen? An example is Philips en-

rgy efficient lighting. These are en-

ironmentally-oriented and corn-

nand brand loyalty "reuse, reduce

nd recycle" is a popular slogan as-

ociated with plastics and also

/aste materials (Exhibit). When-

ver we reuse a product instead of

sing virgin raw material to pro-

uce a new one, we save resources

nd energy. Products using low en-

rgy and water may be considered

s green products. Products that are

aturally processed which use less

energy, are less perilous, which

avoid toxic emissions, eliminate

pesticides, save and conserve en-

ergy, contribute to a healthy envi-

ronment, reduce in door contami-

nations and avoid noise are con-

sidered as green products.

Green marketing activities in-

clude the use of appropriate raw

materials in the manufacture of

products. Companies can change

the raw materials from chemicals to

natural resources. For example, bath

soaps, washing soaps, toothpaste,

edible salt, etc., we observe that the

manufacturers claim that their prod-

ucts contain natural materials like

neem, tulsi, clove oil, sea salt, water

from Ganges, milk and milk cream,

natural flowers for fragrances, etc.,

instead of harmful chemicals.

Green advertising further incor-

porated Integrated Waste Manage,

ment, which involves strategies to

prevent environmental pollution

and resource conservation. It also

controls the ultimate release of resi-

dues into the ecosyst em. I<