1.

1 INTRODUCTION

Absenteeism is a serious workplace problem and an expensive occurrence for both employers
and employees seemingly unpredictable in nature. A satisfactory level of attendance by
employees at work is necessary to allow the achievement of objectives and targets by a
department. Employee Absenteeism is the absence of an 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 of employees from work leads to back logs, piling of work and thus
work delay.

Modern industry with its high degree of specialization and interdependence of operations
requires regular and prompt attendance of all workers. In textile industries, almost every
production process is dependent upon other processes and an unexpected absence of an
employee in a particular department may result in a drastic dislocation of production in another
department or even in the entire plant. Absenteeism is one of the factors affecting optimum
utilization of human resources. It is an industrial malady affecting productivity, profits,
investments and workers themselves. As such, increasing rate of absence adds very considerably
to the cost of industry and hampers industrial progress. The absence of a few workmen is an
imposition on others, affects work scheduling and adds to costs that push the price of
absenteeism far beyond one day’s salary.
1.2 OBJECTIVES OF THE STUDY

 To identify the reasons for absenteeism among employees in retail sector with reference to
textile in (MENTION PLACE).

 To measure the employees absenteeism level in textile retail in (PLACE).

 To identify the steps required to decrease the absenteeism in textile retail in (MENTION
PLACE).

 To identify the factors that motivates the employees in textile retail in (MENTION
PLACE).

 To study variation in the perception about absenteeism among employees with reference to
selected background like: Experience, Marital status and Gender.
1.3 SCOPE OF THE STUDY

Absenteeism is a serious workplace problem and an expensive occurrence for both employers
and employees seemingly unpredictable in nature. A satisfactory level of attendance by
employees at work is necessary to allow the achievement of objectives and targets by a
department. Employee Absenteeism is the absence of an 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 of employees from work leads to back logs, piling of work and thus
work delay.
1.4 NEED OF THE STUDY

The main objective of the study is to analyze the causes and effect of Absenteeism in a textile
organization at (Mention Place). The study also aims at strategies to reduce absenteeism which is
a major problem of many organizations.

Absenteeism is one of major human problem of Indian textiles industries. Absenteeism is the
term generally used to refer to unscheduled employee absences from the workplace. It is a
habitual pattern of absence from a duty or obligation. Absenteeism is a big barrier for any kind of
organization because its effect on organization growth. This research shows how absenteeism is
a big barrier for retail sector and how it’s give the inverse effect on organization growth and
development. The textile shops earn huge amount of profit especially during vacations, i.e.,
Festival season, Marriages, Birthdays, Anniversary and so on. Hence it is important for every
employee be present in the shop in order to attend the customers.
1.5 STATEMENT OF THE PROBLEM

“ABSENTEEISM” is one of the great disasters faced by all the organizations in this modernized
world which results in turnover. “ABSENTEEISM” not only indicates the physical presence it
starts with the “Mental absence” of an individual so the firm has to take this as a important issue
before initiating any remedial actions through that and along with the participative management.
This study ensures that it will reveal a clear good result for the absence. Due to absence of
employees, the management is in compulsion to give target production.

The rate of absenteeism varies from industry to industry depending upon various factors. After
globalization variety of companies organized and also multinational companies established their
centres wherever possible. The opportunities for the workers have also enriched providing
competitive wages, perks and benefits. Employees use the demand for their advantage.
Particularly in the textile industry the labour turnover is significant and also absenteeism is
increasing tremendously day by day. Absenteeism is a concern for the management. However,
the question is that, what management does to reduce the absenteeism. Unorganized sectors lack
proper organisational structure.

Small enterprises have mostly owner- manager structure. They lack exposure to modern
management systems and do not appreciate the benefits of the practices. Performance
management is an important business system; it makes a difference in organizational
performance; approaches to performance management are changing; and senior managers must
be attentive to the performance management systems in their organizations.

Recent studies have identified trends in effective performance management systems and
determined the impact of these systems on organizational success. Performance management to
be effective will require a great amount of planning, monitoring, measuring and feedback. A
good performance management system influences many aspects of business. Performance
management systems directly influence five critical organizational outcomes: financial
performance, productivity, product or service quality, customer satisfaction, and employee job
satisfaction. This raises the question, Does performance management have an influence on
employee absenteeism in the textile industry of Tamilnadu ?
REVIEW OF LITERATURE

Purohit and kavita (2004) the traditional retailers are not very much clear about the consequences
of the modern retailing the traditional retailers are neutral or undecided, modern retailing will cut
the profit margin of the traditional retailers; the modern retailing will lead healthy competition in
the market, modern retailing will reduce the sales volume of the traditional retailers and
traditional retailers should improve customer care services in the era of modern retailing.

The CBS Interactive Network, (2007) “Reducing and Managing Workplace Absenteeism”,
Productivity loss due to absenteeism is a serious and growing challenge. In the United States, the
annual cost to employers for time lost due to accidents is almost $100 billion, and other
unscheduled worker absences costs even more. Absence management is a growing body of
knowledge and experience that managers apply to the control and reduction of these costs.

Picoars and Payers (2009) “A research study on absenteeism of employees in retail sector”
According to Picoars and Payers ‘unexpected absence disturbs the efficiency of the group as the
jobs are inter-connected, if one single man remains absent without prior notice the whole
operation process is distributed. This absenteeism results in production losses because, due to
absenteeism, workers cost increases and thus efficiency of operations is affected.

Muchinsky (1997) Studies examining the psychometric properties of absence measures are
reviewed, along with the relationship between absenteeism and personal, attitudinal and
organizational variables chronic absentees into four categories such as; entrepreneurs, status
seekers, family oriented and sick and old.

Absenteeism rate can be calculated for different employees and for different time periods like
month and year. The frequency rate reflects the incidence of absence and is usually expressed as
the no of separate absence in a given period, irrespective of absence. The frequency rate
represents the average no of absence per worker in a given period.
1.6 REVIEW OF THE PROBLEM

The definition of absenteeism, its causes, its affects on productivity, and its costs in terms
of finances and administrative effectiveness are quite clear. What is not as clear is how to take
affirmative action to control absenteeism in such a way as not to create mistrust, costly
administration and systems avoidance (game players). Traditional methods of absenteeism
control based only on disciplinary procedures have proven to be ineffective. It is almost
impossible to create a fair disciplinary procedure because even well run disciplinary systems,
which treat similar actions in consistently similar ways, are usually seen as unfair. The reason for
this is discipline alone usually does not identify or address the root causes of absenteeism.

Every employee who takes time off in defiance of company regulations has reasons, right
or wrong, which justify to themselves the legitimacy of their actions. Unless a management
attendance program identifies and addresses the causes of employee absenteeism it will be
ineffective and unfair. Traditional disciplinary programs alone can, at best, give the illusion of
control. It is no secret that there are ways to beat even the best systems. The fear of discipline
often only increases the desire to avoid management systems. If absenteeism is to be controlled.
The physical and emotional needs of employees must be addressed. In a 1985 study on "Rates of
Absence among Textile Industry" it was found that 50% of absenteeism could be controlled
through attending to employees physical and emotional needs.
1.7 RESEARCH METHODOLOGY

Research Design
Explorative methodology is used in the study. The Primary data was collected from the
respondents by administering a structured questionnaire and the secondary data is being collected
through text books, journals, academic reports and internet.

Study period: The researcher has did research on this topic for the period of 6 months.

Study Location: The study location is T-Nagar, Chennai and the researcher has covered
both organized and unorganized retail sector.

Sampling Method: Convenience sampling method has been used for the study in (PLACE).

Sample Size: Out of the total population, the sample taken among respondents from the
sector is 300.

Tools used: The researcher has used Ratio analysis, t-test and Anova for the research
analysis and findings.
1.7.3 SAMPLING
Convenience sampling (also known as grab sampling, accidental sampling, or opportunity
sampling) is a type of non-probability sampling that involves the sample being drawn from that
part of the population that is close to hand. This type of sampling is most useful for pilot testing.

A convenience sample is a type of non-probability sampling method where the sample is taken
from a group of people easy to contact or to reach. For example, standing at a mall or a grocery
store and asking people to answer questions would be an example of a convenience sample. This
type of sampling is also known as grab sampling or availability sampling. There are no other
criteria to the sampling method except that people be available and willing to participate. In
addition, this type of sampling method does not require that a simple Random sample is
generated, since the only criteria is whether the participants agree to participate.

Advantage:-
Convenience sampling can be used by almost anyone and has been around for generations. One
of the reasons that it is most often used is due to the numerous advantages it provides. This
method is extremely speedy, easy, readily available, and cost effective, causing it to be an
attractive option to most researchers.
Expedited data collection
When time is of the essence, many researchers turn to convenience sampling for data collection,
as they can swiftly gather data and begin their calculations. It is useful in time sensitive research
because very little preparation is needed to use convenience sampling for data collection. It is
also useful when researchers need to conduct pilot data collection in order to gain a quick
understanding of certain trends or to develop hypotheses for future research. By rapidly
gathering information, researchers and scientists can isolate growing trends, or extrapolate
generalized information from local public opinion.
Ease of research
For researchers who are not looking for an accurate sampling, they can simply collect their
information and move on to other aspects of their study. This type of sampling can be done by
simply creating a questionnaire and distributing it to their targeted group. Through this method,
researchers can easily finish collecting their data in a matter of hours, free from worrying about
whether it is an accurate representation of the population. This allows for a great ease of
research, letting researchers focus on analyzing the data rather than interviewing and carefully
selecting participants.
Ready availability
Since most convenience sampling is collected with the populations on hand, the data is readily
available for the researcher to collect. They do not typically have to travel great distances to
collect the data, but simply pull from whatever environment is nearby. Having a sample group
readily available is important for meeting quotas quickly, and allows for the researcher to even
do multiple studies in an expeditious fashion.

Cost effectiveness
One of the most important aspects of convenience sampling is its cost effectiveness. This method
allows for funds to be distributed to other aspects of the project. Oftentimes this method of
sampling is used to gain funding for a larger, more thorough research project. In this instance,
funds are not yet available for a more complete survey, so a quick selection of the population
will be used to demonstrate a need for the completed project.

Application
Convenience sampling is not often recommended for research due to the possibility of sampling
error and lack of representation of population. But it can be handy depending on the situation. In
some situations, convenience sampling is the only possible option. For example, a college
student who is doing a term project and wants to know the average consumption of coke in that
college town on Friday night will most probably call some of his friends and ask them how many
cans of coke they drink, or go to a nearby party to do an easy survey. There is always a trade-off
between this method of quick sampling and accuracy. Collected samples may not represent the
population of interest and therefore be a source of bias.
In the example above, if said college town has a small population and mostly consists of
students, and that particular student chooses a graduation party for survey, then his sample has a
fair chance to represent the population. Larger sample size will reduce the chance of sampling
error occurring.
1.7.4 TOOL USED FOR ANALYSIS

ANALYSIS OF VARIANCE (ANOVA)

Analysis of variance (ANOVA) is a collection of statistical models and their associated

estimation procedures (such as the "variation" among and between groups) used to analyze the
differences among group means in a sample. ANOVA was developed
by statistician and evolutionary biologist Ronald Fisher. In the ANOVA setting, the
observed variance in a particular variable is partitioned into components attributable to different
sources of variation. In its simplest form, ANOVA provides a statistical test of whether the
population means of several groups are equal, and therefore generalizes the t-test to more than
two groups. ANOVA is useful for comparing (testing) three or more group means for statistical
significance.

ANOVA is a form of statistical hypothesis testing heavily used in the analysis of experimental
data. A test result (calculated from the null hypothesis and the sample) is called statistically
significant if it is deemed unlikely to have occurred by chance, assuming the truth of the null
hypothesis. A statistically significant result, when a probability (p-value) is less than a pre-
specified threshold (significance level), justifies the rejection of the null hypothesis, but only if
the a priori probability of the null hypothesis is not high.
In the typical application of ANOVA, the null hypothesis is that all groups are random samples
from the same population. For example, when studying the effect of different treatments on
similar samples of patients, the null hypothesis would be that all treatments have the same effect
(perhaps none). Rejecting the null hypothesis is taken to mean that the differences in observed
effects between treatment groups are unlikely to be due to random chance.
By construction, hypothesis testing limits the rate of Type I errors (false positives) to a
significance level. Experimenters also wish to limit Type II errors (false negatives). The rate of
Type II errors depends largely on sample size (the rate is larger for smaller samples),
significance level (when the standard of proof is high, the chances of overlooking a discovery are
also high) and effect size (a smaller effect size is more prone to Type II error).
The terminology of ANOVA is largely from the statistical design of experiments. The
experimenter adjusts factors and measures responses in an attempt to determine an effect. Factors
are assigned to experimental units by a combination of randomization and blocking to ensure the
validity of the results. Blinding keeps the weighing impartial. Responses show a variability that
is partially the result of the effect and is partially random error.
ANOVA is the synthesis of several ideas and it is used for multiple purposes. As a consequence,
it is difficult to define concisely or precisely.
"Classical" ANOVA for balanced data does three things at once:

1. As exploratory data analysis, an ANOVA employs an additive data decomposition, and

its sums of squares indicate the variance of each component of the decomposition (or,
equivalently, each set of terms of a linear model).
 2. Comparisons of mean squares, along with an F-test ... allow testing of a nested sequence
of models.
3. Closely related to the ANOVA is a linear model fit with coefficient estimates and
standard errors.
In short, ANOVA is a statistical tool used in several ways to develop and confirm an explanation
for the observed data.
Additionally:

4. It is computationally elegant and relatively robust against violations of its assumptions.

5. ANOVA provides strong (multiple sample comparison) statistical analysis.
6. It has been adapted to the analysis of a variety of experimental designs.
As a result: ANOVA "has long enjoyed the status of being the most used (some would say
abused) statistical technique in psychological research." ANOVA "is probably the most useful
technique in the field of statistical inference."
ANOVA is difficult to teach, particularly for complex experiments, with split-plot designs being
notorious. In some cases the proper application of the method is best determined by problem
pattern recognition followed by the consultation of a classic authoritative test.

Analysis of variance (ANOVA) is an analysis tool used in statistics that splits an observed
aggregate variability found inside a data set into two parts: systematic factors and random
factors. The systematic factors have a statistical influence on the given data set, while the
random factors do not. Analysts use the ANOVA test to determine the influence that independent
variables have on the dependent variable in a regression study.

The t- and z-test methods developed in the 20th century were used for statistical analysis until
1918, when Ronald Fisher created the analysis of variance method. ANOVA is also called the
Fisher analysis of variance, and it is the extension of the t- and z-tests. The term became well-
known in 1925, after appearing in Fisher's book, "Statistical Methods for Research Workers." It
was employed in experimental psychology and later expanded to subjects that were more
complex.

The Formula for ANOVA is:

Analysis of variance (ANOVA) is an analysis tool used in statistics that splits an observed
aggregate variability found inside a data set into two parts: systematic factors and random
factors. The systematic factors have a statistical influence on the given data set, while the
random factors do not. Analysts use the ANOVA test to determine the influence that independent
variables have on the dependent variable in a regression study.

The t- and z-test methods developed in the 20th century were used for statistical analysis until
1918, when Ronald Fisher created the analysis of variance method. ANOVA is also called the
Fisher analysis of variance, and it is the extension of the t- and z-tests. The term became well-
known in 1925, after appearing in Fisher's book, "Statistical Methods for Research Workers." It
was employed in experimental psychology and later expanded to subjects that were more
complex.

F= MSE/MST
where:

F=ANOVA coefficient
MST=Mean sum of squares due to treatment
MSE=Mean sum of squares due to error

CHARACTERISTICS
ANOVA is used in the analysis of comparative experiments, those in which only the difference
in outcomes is of interest. The statistical significance of the experiment is determined by a ratio
of two variances. This ratio is independent of several possible alterations to the experimental
observations: Adding a constant to all observations does not alter significance. Multiplying all
observations by a constant does not alter significance. So ANOVA statistical significance result
is independent of constant bias and scaling errors as well as the units used in expressing
observations. In the era of mechanical calculation it was common to subtract a constant from all
observations (when equivalent to dropping leading digits) to simplify data entry. This is an
example of data coding.

KEY TAKEAWAYS

 Analysis of variance, or ANOVA, is a statistical method that separates observed variance

data into different components to use for additional tests.
 A one-way ANOVA is used for three or more groups of data, to gain information about the
relationship between the dependent and independent variables.
 If no true variance exists between the groups, the ANOVA's F-ratio should equal close to 1.
1.8 LIMITATION OF THE STUDY

All the conceptual review on Absenteeism and other factors are based on author’s experiences
and seem to be true and factual. Although the research was conducted at good pace but still some
limitations could be seen. The need of the research was to collect factual information from the
employer regarding worker behavior related to absenteeism, which was quite a difficult task as
the waiting time was sometimes too long.

The second part of the study that was quite challenging was to collect data from workers via
questionnaire and interview. Some were cooperative but some were reluctant. Time factor can
also be considered as one of the important and obvious limitation. The findings of the study were
extracted through the information provided by the respondents. The target respondents were the
skilled workers of the company and some important interview questions were asked by the
employers of those companies. Apart from this, it was very difficult to get the genuine data of
turnover of the companies, otherwise a bit of that would also have been included in the study.
The accuracy of the findings was limited by the accuracy of statistical tools used for analysis.