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ABSTRACT

The project report entitle a study on employee’s absenteeism is intended to determine the
employees condition, salary, facility, attendance program, training program, motivation
techniques and promotions. The purpose of this paper is to review on problems of
employee. Absenteeism as a form of withdrawal behavior apart from turnover. Employees
not showing up for work when scheduled can be a major problem for organizations. This
study aims to identify the most common cause of employee absences on employer cost.
Employee Absence is a serious problem for management because it involves heavy burden.
The job satisfaction is the primary cause of absenteeism. Absenteeism is one of the most
wide spread obstacles to productivity, profitability and competitiveness. Employee
harassed by co-workers or management is one of the reason for absenteeism. The responses
may be influenced by personal bias. It contributes toward the improvement of performance
and productivity, improving wellbeing of workforce and their families. Employees not
showing up for work when schedule can be a major problem of the organization. Employee
absenteeism is a worldwide phenomenon which, due to the financial impact on a nation’s
economy, is an important subject on the international agenda. The article consists of
objectives, limitations, company profile, research methodology, findings, suggestions and
conclusion. The information needed for the research has been gathered from primary and
secondary data.

1
CHAPTER-I
INTRODUCTION

2
INTRODUCTION
Absenteeism is the failure of employees to report for work when they are scheduled to
work. Employees who are away from work on recognized holidays, vacations, approved
leaves of absence, or approved leaves of absence would not be included. Absenteeism is
becoming a serious practice in labor-oriented industries especially in those large industries
where laborers are working in mass. It is a matter of prime concern for the supervisors and
managers. They have to find the ways to overcome absenteeism. 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.

Definitions of Absenteeism

Absenteeism refers to employees’ absence from his regular task when he is normally
scheduled to work.

“Absenteeism is the time lost in industrial establishments by avoidable or unavoidable


absence of employees”.-According to Seligman

“Absenteeism is the practice or habit of being an ‘absentee’ and an ‘absentee’ is one


who habitually stays away”.-According to Hachette

“Absenteeism is defined as pattern of missing work in which employee is habitually


and frequently absent from work”. –Federated Union of
Employers. (FUE)

“Employee absenteeism is all absence from work other than planned holidays”.

- Federated union of Employers.(FUE)

3
CONCEPT OF ABSENTEEISM

The habitual non-presence of an employee at his or her job. Possible causes of


absenteeism include job dissatisfaction, ongoing personal issues and chronic medical
problems. Regardless of cause, a worker with a pattern of being absent may put his
reputation and his employed status at risk. However, some forms of absence from work
are legally protected and cannot be grounds for termination.

In India, two agencies collect and compile data on absenteeism.

a. Labor Bureau, Shimla


b. Annual Survey of Industries, Kolkata.

According to Labour Bureau of Shimla: Absenteeism is defined as the total man


shifts lost because of absence as percentage of total number of man shifts scheduled to
work.

In other words, it signifies the absence of an employee from work when he is scheduled
to be at work. Any employee may stay away from work if he has taken leave to which
he is entitled or on ground of sickness or some accident or without any previous
sanction of leave. Thus, absence may be authorized or unauthorized, willful or caused
by circumstances beyond one’s control.

Maybe even worse than absenteeism, it is obvious that people such as malingerers and
those unwilling to play their part in the workplace can have a decidedly negative
impact.

Such team members need individual attention from front line supervisors and
management.

Indeed, as prevention is better than cure, where such a problem occurs, it is always
important to review recruitment procedures to identify how such individuals came to be
employed in the first place.

For any business owner or manager, to cure excessive absenteeism, it is essential to find
and then eliminate the causes of discontent among team members.

4
If they find their supervisor or job unpleasant, - unpleasant - they look for legitimate
excuses to stay home and find them with things such as upset stomachs or splitting
headaches.

Any effective absentee control program has to locate the causes of discontent and
modify those causes or eliminate them. In other words, if we deal with the real reasons
team members stay home it can become unnecessary for t hem to stay away.

Any investigation into absenteeism needs to look at the real reasons for it.

Sometimes team members call in sick when they really do not want to go to work. They
would not call you up and say, “I’m not coming in today because my supervisor abuses
me.”

Alternatively, “I’m not coming in today because my chair is uncomfortable.”


Alternatively, “I’m not coming in today because the bathrooms are so filthy; it makes
me sick to walk into them.”

There are a few essential questions to consider at the outset if you want to make a
measurable improvement to your absenteeism figures.

Why is your present absenteeism policy ineffective?

Where and when is excessive absenteeism occurring? In many cases, under – trained
supervisors could be a contributing factor.

What are the real causes for absences?

It is commonly expected that low pay, poor benefits and high workloads will be the
major causes.

However, in numerous employee surveys absenteeism generally has been identified as a


symptom of low job satisfaction, sub-standard working conditions and consistent
negative and unfair treatment received by first -line supervisors.

How much formal training have your supervisors received on absenteeism containment
and reduction? If your answer is none or very little, may be you have found the
solution.

5
As with every other element within your organization, you cannot ask a person to do a
job, he or she has never been trained to do.

Many human resources specialists have found that repetitive, boring jobs coupled with
uncaring supervisors and/or physically unpleasant workplaces are likely to lead workers
to make up excuses for not coming to work.

If your team members perceive that your company is indifferent to their needs, they are
less likely to be motivated, or even to clock on at all.

One way to determine the causes of absenteeism is to question your supervisors about
excessive absenteeism, including what causes it and how to reduce it.

Of course, if your supervisors have made no efforts to get to know the team members in
their respective departments, they may not be able to provide reasons.

However, just the act of questioning may get the ball rolling and signal to your
supervisors that their involvement is important.

Once a manager finds the real reasons for absenteeism there is another important step.
Through open communication, you need to change the team member’s way of reacting
and responding to discontent.

Other problems will no doubt arise in the future. If the way of responding has not been
reviewed, then the same cycle is likely to start all over again.

Therefore, often absenteeism problems can be sheeted back to the supervisor level and
to unsatisfactory working conditions. Without improvement in these areas, you can
expect your high rate of absenteeism to continue.

MEASUREMENT OF ABSENTEEISM

For calculating the rate of absenteeism, we require the number of people scheduled to
work and number of people actually present. Absenteeism can be finding out of absence
rate method.

Absence Rate = No.of man days lost × 100

6
No. of man-days planned to work

For Example:

a) Average number of employees in work force: 100

b) Number of available workdays during period: 20

c) Total number of available workdays (a x b): 2,000

d) Total number of lost days due to absences during the period: 93

e) Absenteeism percent (d [divided by] c) x 100: 4.65%

Since absenteeism is a major barometer of employee morale, absenteeism above 5


Percent has to be considered as very serious (across most industries 3 percent is
considered standard).

7
CHAPTER-II
REVIEW OF LITERATURE

8
Dakely C.A. (1948) “Absenteeism is the ratio of the number of production man-
days or shifts lost to the total number of production scheduled to work”.
The labour bureau (1962) defines absenteeism as the total shifts lost because of
absence as percentage of the total number of man shifts scheduled to work.
Likewise Hackett J.D (1929) defines it as “the temporary cessation of work for not
less than one whole working day initiative of the worker when his presence is
expected by the employer”. Similarly encyclopaedia of social science observes
“Absenteeism as the time lost in industrial establishment by avoidable or
unavoidable absence of employees. The time lost by the strikes or by lateness
amounting to an hour or two is not usually included”.
Knowles (1979) opined that although absence from work may be due to any of a
large number of factors, empirical evidence supporting the view that causal factors
can be organisational in nature is scant. Absence may be regarded as one facet of a
wider behavioural problem pervading entire organisational sub-units. The author
suggests that absence could be used along with other variables as a valuable
personnel statistic indicating areas of organisational dysfunction. This means that if
levels of absenteeism in such cases as these were to be improved the solution should
be looked for at the organisational level rather than at the individual or job level.
Gibert. Et.al., (1992) Studied if continuous exposure to airconditioning during
working hours has an observable effect on health. Absenteeism from ill health
recorded by company doctors was compared in two groups of employees of the
FrenchNational Electric and Gas Company in western France, working in similar
jobs and spending most of their time in either air- conditioned offices or a natural
atmosphere. No difference between the two groups was observed during the two
years studied with respect to the incidence, duration or frequency of medically-
related absences. A similar investigation of absences due only to respiratory
diseases resulted in the same conclusion. This study showed that air-conditioning
has no major effects on health.
Chevalier.et.al., (1993) Studied the health status of electricity workers exposed to
electromagnetic fields during their job. Two groups of exposed workers were
studied from 1978 to 1993: the live line workers (n = 121) and the substation
workers (n = 232.7) of the French Electricity Company (EDF). A control group was
randomly selected from all the company non-management male employees; one
control for each exposed subject was matched for the first year of employment.
Absenteeism indices and mortality rates were computed and compared in the
9
exposed and control groups. The absence rates were 1 .98% in the substation
workers and 2.5% in the control group (p<0.001) and 2.7% in the live-line workers
and 2.8% in the control group (NS). No effect of the length of exposure was found.
However the medical causes of sickness absence were different: exposed employees
had less psychiatric and respiratory diseases but more accidents at work than their
control group. Relative risks of accidents at work were 1.2 [95% confidence interval
(Cl) = 1.08–1.33] for substation workers and 3.22 (Cl = 1.78–5.88) for live line
workers. EDF electromagnetic field exposed workers seemed not to be affected by
any specific health problems except for an excess of accidents at work.
Morrow. Et.al., (1999) in their study established a positive relationship between
absenteeism and voluntary turnover and a negative relationship between
performance and turnover. An examination of the turnover literature, however,
reveals virtually no consideration of a possible interaction between these two
predictors of turnover. In order to test for such an interaction, company record data
were collected from a sample of nonexempt classification employees within a large
regional life insurance company. Records revealed that 113 of the company’s 816
employees had voluntarily left the firm over a 2-year period. Company data on
these “leavers” were compared with data on a random sample of 113 employees
who stayed. Logistic regression, as opposed to ordinary least-squares regression,
was used to determine the effects of prior absenteeism and performance ratings on
voluntary turnover, over and above the effects of demographic factors. Results
supported known relationships between absenteeism (as measured by sick leave
usage), performance ratings, and voluntary turnover, but did not reveal a significant
interaction effect, even over multiple time frames. Results are discussed in terms of
the potential uses of company record data for early detection of voluntary turnover.
Hoeven and de Jong (2007) reported that absenteeism figures are increasingly
applied as an integrated measure of health in the working population. However, a
comprehensive overview of employee well-being (compromising the relative
impact of physical, psychological, and organizational components) and how this
relates to reported absence frequency and duration is still lacking. The present study
investigates these relationships. The study has been conducted in a Dutch subsidiary
of an international financial consultancy firm. Three types of data collection were
used: a web-based survey among the firm’s employees, a physical health check, and
the employees’ absence rates reported to the company. Together the questionnaire
and the health check included the following clusters of independent variables: (a)
10
personal characteristics, (b) job characteristics, (c) physical health, (d) self-reported
well-being, and (e) perceptions of organization and communication. Of the 5
clusters of variables, the perceptions of organization and communication variables
appeared to be the strongest predictors of absence frequency. This study did not find
the assumed relationship between physical related wellbeing and individual absence
duration. Indian industries experience absenteeism as a major personal problem
measurement of absenteeism. The measurement of absenteeism can be expressed as
the ratio of the total amount of time lost through non-attendance to the planned
working time. A calculation of absenteeism rate can be made in terms of Mondays
lost.
Number of Mondays lost - ---------------------------------- × 100
Number of Mondays planned
Number of days lost -------------------------------- × 100 Average strength of
employees Number of Mondays worked

1. Ernest B. Akyeampong has written a research paper Trends and seasonality in


Absenteeism. In this paper the author focus on that at which time period the
employees are more absent. In this paper he said that illness-related absences are
highly seasonal, reaching a peak during the winter months (December to February)
and a trough during the summer (June to August). The high incidence in winter is
likely related to the prevalence of communicable diseases at that time, especially
colds and influenza. The low incidence during the summer may be partly because
many employees take their vacation during these months. Because of survey design,
those who fall ill during vacation will likely report „vacation‟ rather than „sickness
or disability‟ as the main reason for being away from work. Compared with the
annual average, part-week absences are roughly 30% more prevalent in the winter
months and almost 20% less so during the summer months. Seasonality is much less
evident in full-week absences.
2. Mariajosé Romero and Young-Sun Lee has written a research paper A
National Portrait of Chronic Absenteeism in the Early Grades. In this paper he
focused on the following points: (i) How widespread is the Problem of Early
Absenteeism? (ii) Does Family IncomesImpact Early Absenteeism? (iii) What is the
Impact of Early Absenteeism on Academic Achievement?
3. Morten Nordberg and Knut Røed has written a research paper Absenteeism,
Health Insurance, and Business Cycles. In this he wants to evaluate how the
11
economic environment affects worker absenteeism and he also isolate the causal
effects of business cycle developments on work-resumption prospects for ongoing
absence spells, by conditioning on the state of the business cycle at the moment of
entry into sickness absence. 10 The author finds that (i) That business cycle
improvements yield lower work-resumption rates for persons who are absent, and
higher relapse rates for persons who have already resumed work. (ii) That absence
sometimes represents a health investment, in the sense that longer absence „now‟
reduces the subsequent relapse propensity. (iii) That the work-resumption rate
increases when sickness benefits are exhausted, but that work-resumptions at this
point tend to be short-lived.

12
CHAPTER-III
RESEARCH METHODOLOGY

13
1.1 OBJECTIVES OF THE RESEARCH

i. To identify the rate of absenteeism of “EMPLOYEES”.

ii. To identify the causes of absenteeism.

iii. To suggest any measures to reduce the rate of absenteeism

iv. To provide suggestions in the form of solutions of reduce absenteeism.

v. To identify the level of absenteeism in organization.

1.2 NEED OF THE STUDY

The importance of human resource management is increasingly realized in industrial


and non-industrial organization both in India and abroad. This realization has come
about because of increasing complexity of management and administration. The present
critical problem facing most HR departments is tackling the problem of absenteeism in
their organization, a predominant feature of Indian industrial life. It fundamentally
depends on the organizational culture, the working condition and the resultant attitude
on the employees. Absenteeism is a predominant problem for a management because it
involves heavy expenses. The present work has been undertaken to analyze the problem
of absenteeism, its impact on TECUMSEH INDIA PVT LTD this realization has come
about because of increasing complexity of management and administration. The present
critical problem facing most HR departments is tackling the problem of absenteeism in
their organization, a predominant feature of Indian industrial life. The present work has
been undertaken to analyze the problem of absenteeism, its impact on TECUMSEH
INDIA PVT LTD.

1.3 SCOPE OF THE STUDY

The development of any organization depends on the regularity of employees. The


study is conducted to know the various levels and reasons for absence of employees in

14
an organization. By looking it, one can adopt corrective measures to decrease
irregularities in the organization, leads to organizational growth. The study is conducted
to know the various levels and reasons for absence of employees in an organization. By
looking it, one can adopt corrective measures to decrease irregularities in the
organization, leads to organizational growth

1.4 RESEARCH METHODOLOGY

The research reveals that one of the major problems is absenteeism in our industry.
Absenteeism hinders planning, production, efficiency and functioning of the
organization. In fact, high rates of absenteeism affect an organization state of health and
supervisory and managerial effectiveness.

SAMPLE SELECTION AND SIZE

The population for the study comprised of absentees for current year, the total sample
50 employees.

DATA COLLECTION AND STATISTICAL TOOLS

The sources of data for the purpose of study were both primary and secondary. Primary
data was collected through questionnaire, which was mainly close –ended
Questionnaire and discussion with employees whereas secondary data was collected
from records maintained by personal department and time office. Percentage method is
used for the analysis of data and bar graphs, pie charts are used to present that data.

Primary Sources

Primary Data are in the form of “raw material” to which statistical methods are applied for
the purpose of analysis and interpretations. The primary sources are discussion with
employees, data collected in questionnaire.

Secondary Sources

15
Secondary data’s are in the form of finished products as they have already been treated
statistically in some form or other.

The secondary data mainly consists of data and information collected from records,
company websites and also discussion with the management of the organization. Secondary
data was also collected from journals, magazines and books

LIMITATION OF THE STUDY

There are some limitations for research, which are as follows: -

i. As it was not possible to visit each department, the true picture of working condition
could not be judged.

ii. The employees were busy with their work therefore they could not give enough time for
the interview.

iii. The personal biases of the respondents might have entered into their response.

iv. Some of the respondents give no answer to the questions, which may affect the
analysis.

v. Respondents were reluctant to disclose complete and correct information because; of a


small period only small sample had to be considered which doesn’t actually reflect and
accurate and intact picture.

16
CHAPTER-IV
THEORETICAL FRAMEWORK

17
1. Employee absenteeism - Paul M Muchinsky – (1977)

The purpose of this paper is to review the literature on employee absenteeism as a form
of withdrawal behavior apart from turnover. Studies examining the psychometric
properties of absence measures are reviewed, along with the relationship between
absenteeism and personal, attitudinal, and organizational variables. Studies exploring
the relationship between absenteeism and turnover are examined according to the unit
of analysis studied in the research. Programmatic efforts to reduce employee
absenteeism are also reviewed. Throughout the paper emphasis is placed on the indices
used by investigators to measure absenteeism, and the problems that have arisen in the
literature through the use of multiple indicators of absenteeism. The review concludes
with suggestions for research that are of both theoretical and practical concern.

2. Work attitudes and employee absenteeism: A synthesis of the literature -


Rick D. Hacket*- (1998)

Three meta-analyses of the relationship of employee absenteeism to job satisfaction


have appeared in the literature (cf. Hackett &Guion, 1985; McShane, 1984; Scott &
Taylor, 1985). While the size of the parameter estimates was similar across the three
reviews, different interpretations were offered. Moreover, agreement was lacking over
the status and impact of moderators. This paper summarizes and compares the results of
these three separate reviews. Some refined analyses of the comprehensive data set
showed that the strongest relationships were between absence frequency and work
satisfaction (p = −0.21), and absence duration and overall job satisfaction (p = −0.23).
Sex was identified as a strong and consistent moderator. A synthesis of these findings is
offered.

3. A Study on Employee Absenteeism -S.Vijayalatha and Dr. G.Brindha – (2014)

The article report entitles A Study of Employee Absenteeism Is intended to determine


the workers condition, salary, facilities, attendance program, training program,
motivation techniques and promotions. The article consists of objectives, limitations,
company profile, research methodology, findings, suggestions, and conclusions. The
information needed for the research has been gathered from primary and secondary
data. The response given by the workers of the company is analyzed and interpreted

18
using different types of statistical tools, which are percentage analysis, Chi square,
weighted average method. This article throws light to increase the productivity and
increase growth of an organization. The sample size of the article is 100 from the
population of 156. The questionnaire method as survey is used as a tool for collecting
the primary data. The researcher according to the objective of the study has designed
the questionnaire. Percentage analysis, Chi-square and weighted average are used as
tools for data analysis.

4.Trends and seasonality in Absenteeism - Ernest B. Akyeampong

In this paper the author focus on that at which time period the employees are more absent. In
the paper he said that illness-related, absences are highly seasonal, reaching a peak during the
winter months (December to February) and a trough during the summer (June to August). The
high incidence in winter is likely related to the prevalence of communicable diseases at that
time, especially colds and influenza. The low incidence during the summer may be partly
because many employees take their vacation during these months. Because of survey design,
those who fall ill during vacation will likely report “vacation” rather than “sickness or
disability” as the main reason for being away from work. Compared with the annual average,
part-week absences are roughly 30% more prevalent in the winter months and almost 20% less
so during the summer months. Seasonality is much less evident in full-week absences.

5.A National Portrait of Chronic Absenteeism in the Early Grades - Maria José Romero
and Young-Sun Lee

In this paper, he focused onthe following points:

(i) How widespread is the Problem of Early Absenteeism?

(ii) Does Family Incomes Impact Early Absenteeism?

(iii) What is the Impact of Early Absenteeism on Academic Achievement?

6.Absenteeism, Health Insurance, and Business Cycle - Morten Nordberg and Knut
Roed

In this he wants to evaluate how the economic environment affects worker absenteeism
and he also isolate the causal effects of business cycle developments on work-

19
resumption prospects for ongoing absence spells, by conditioning on the state of the
business cycle at the moment of entry into sickness absence.

The author finds that

1. That business cycle improvements yield lower work-resumption rates for persons who
are absent, and higher relapse rates for persons who have already resumed work.

2. That absence sometimes represents a health investment, in the sense that longer
absence now reduces the subsequent relapse propensity.

3. That the work-resumption rate increases when sickness benefits are exhausted, but that
work-resumptions at this point tend to be short-lived.

CONCEPT OF ABSENTEEISM

The habitual non-presence of an employee at his or her job. Possible causes of


absenteeism include job dissatisfaction, ongoing personal issues and chronic medical
problems. Regardless of cause, a worker with a pattern of being absent may put his
reputation and his employed status at risk. However, some forms of absence from work
are legally protected and cannot be grounds for termination.

In India, two agencies collect and compile data on absenteeism.

c. Labor Bureau, Shimla


d. Annual Survey of Industries, Kolkata.

According to Labour Bureau of Shimla: Absenteeism is defined as the total man


shifts lost because of absence as percentage of total number of man shifts scheduled to
work.

In other words, it signifies the absence of an employee from work when he is scheduled
to be at work. Any employee may stay away from work if he has taken leave to which
he is entitled or on ground of sickness or some accident or without any previous
20
sanction of leave. Thus, absence may be authorized or unauthorized, willful or caused
by circumstances beyond one’s control.

Maybe even worse than absenteeism, it is obvious that people such as malingerers and
those unwilling to play their part in the workplace can have a decidedly negative
impact.

Such team members need individual attention from front line supervisors and
management.

Indeed, as prevention is better than cure, where such a problem occurs, it is always
important to review recruitment procedures to identify how such individuals came to be
employed in the first place.

For any business owner or manager, to cure excessive absenteeism, it is essential to find
and then eliminate the causes of discontent among team members.

If they find their supervisor or job unpleasant, - unpleasant - they look for legitimate
excuses to stay home and find them with things such as upset stomachs or splitting
headaches.

Any effective absentee control program has to locate the causes of discontent and
modify those causes or eliminate them. In other words, if we deal with the real reasons
team members stay home it can become unnecessary for t hem to stay away.

Any investigation into absenteeism needs to look at the real reasons for it.

Sometimes team members call in sick when they really do not want to go to work. They
would not call you up and say, “I’m not coming in today because my supervisor abuses
me.”

Alternatively, “I’m not coming in today because my chair is uncomfortable.”


Alternatively, “I’m not coming in today because the bathrooms are so filthy; it makes
me sick to walk into them.”

There are a few essential questions to consider at the outset if you want to make a
measurable improvement to your absenteeism figures.

21
Why is your present absenteeism policy ineffective?

Where and when is excessive absenteeism occurring? In many cases, under – trained
supervisors could be a contributing factor.

What are the real causes for absences?

It is commonly expected that low pay, poor benefits and high workloads will be the
major causes.

However, in numerous employee surveys absenteeism generally has been identified as a


symptom of low job satisfaction, sub-standard working conditions and consistent
negative and unfair treatment received by first -line supervisors.

How much formal training have your supervisors received on absenteeism containment
and reduction? If your answer is none or very little, may be you have found the
solution.

As with every other element within your organization, you cannot ask a person to do a
job, he or she has never been trained to do.

Many human resources specialists have found that repetitive, boring jobs coupled with
uncaring supervisors and/or physically unpleasant workplaces are likely to lead workers
to make up excuses for not coming to work.

If your team members perceive that your company is indifferent to their needs, they are
less likely to be motivated, or even to clock on at all.

One way to determine the causes of absenteeism is to question your supervisors about
excessive absenteeism, including what causes it and how to reduce it.

Of course, if your supervisors have made no efforts to get to know the team members in
their respective departments, they may not be able to provide reasons.

However, just the act of questioning may get the ball rolling and signal to your
supervisors that their involvement is important.

22
Once a manager finds the real reasons for absenteeism there is another important step.
Through open communication, you need to change the team member’s way of reacting
and responding to discontent.

Other problems will no doubt arise in the future. If the way of responding has not been
reviewed, then the same cycle is likely to start all over again.

Therefore, often absenteeism problems can be sheeted back to the supervisor level and
to unsatisfactory working conditions. Without improvement in these areas, you can
expect your high rate of absenteeism to continue.

MEASUREMENT OF ABSENTEEISM

For calculating the rate of absenteeism, we require the number of people scheduled to
work and number of people actually present. Absenteeism can be finding out of absence
rate method.

Absence Rate = No.of man days lost × 100

No.of man-days planned to work

ForExample:

a) Average number of employees in work force: 100

b) Number of available workdays during period: 20

c) Total number of available workdays (a x b): 2,000

d) Total number of lost days due to absences during the period: 93

e) Absenteeism percent (d [divided by] c) x 100: 4.65%

Since absenteeism is a major barometer of employee morale, absenteeism above 5


Percent has to be considered as very serious (across most industries 3 percent is
considered standard)

23
PECULIAR FEATURES OF ABSENTEEISM

Based on studies undertaken certain observations may be made:

a) The rate of absenteeism is lowest on payday; it increases considerably on the days following
the payment of wages and bonus. The level of absenteeism is comparatively high immediately
after payday. When worker either feel like having a good time or in some other cases return
home to their villages family and after a holiday, has also been found to be higher than that on
normal days.

b) Absenteeism is generally high workers below 25 years of age and those above 40. “The
younger employees are not regular and punctual”. Presumably because of the employment of a
large no. of new comers among the younger age groups, while the older people are not able to
withstand the strenuous nature of the work.

c) The percentage of absenteeism is higher in the night shift than in the day shift. This is so
because workers in the night shift experience great discomfort and Uneasiness in the course of
their work than they do during daytime.

d) Absenteeism in India is seasonal in character. It is the highest during March-April-May,


when land has to be prepared for monsoon, sowing and in harvest season (Sept-Oct) when the
rate goes as high as 40%.

CAUSES OF ABSENTEEISM

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

The general cause of absenteeism may be summarized as be

24
Fig i - Causes of Absenteeism

1) MALADJUSTMENT WITH FACTORY

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

2) SOCIAL AND RELIGIOUS CEREMONIES

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

Workers also experience housing difficulties. Around 95% of housing occupied by


industrial workers in India is unsatisfactory for healthful habitations. This leads to loss
the interest in work.

4) INDUSTRIAL FATIGUE

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

5) UNHEALTY WORKING CONDITION

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

6) ABSENCE OF ADEQUATE WELFARE ACTIVITIES

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

7) ALCOHOLISM

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

8) INDEBTNESS

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

9) IMPROPER & UNREALISTIC PERSONNEL POLICIES

26
Due to favoritism and nepotism, which are in the industry the workers generally
become frustrated. This also results in low efficiency, low productivity, unfavorable
relationship between employee and supervisor, which in turn leads to long period of
absenteeism.

10) INADEQUATE LEAVE FACILITIES

Negligence on part of the employee to provide leave facility compel the worker to fall
back on ESI leave. They are entitled to 50 days leave on half on pay. Instead of going
without pay the worker, avail them of ESI facility.

EFFECTS OF ABSENTEEISM ON INDUSTRIAL PROGRESS

It is quite evident that absenteeism is a common feature of industrial Labour in India. It


hinders industrial growth and its effect in two fold.

Fig ii – Effects of Absenteeism on Industrial Profile

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1) LOSS TO WORKER

Firstly, due to the habit of being absenting frequently worker’s income is reduced to a large
extent. It is because there is a general principle of “no work – no pay”. Thus, the time lost in
terms of absenteeism is a loss of income to workers.

2) LOSS TO EMPLOYERS

On other hand, the employer has to suffer a greater loss due to absentees. It disturbs the
efficiency and discipline of industries consequently, industrial production is reduced. In order
to meet the emergency and strikes, an additional Labour force is also maintain by the industries.
On certain occasions, those workers are employed who present themselves at factory gates.
During strikes, they are adjusted in place of absent workers. Their adjustment brings serious
complications because such workers do not generally prove themselves up to work. Higher
absenteeism is an evil both for workers and for the employers and ultimately it adversely affects
the production of industries.

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ANALYSIS OF CAUSES

Fig iii – Analysis of Causes

1) FAMILY ORIENTED & RESPONSIBILITES

It was observed that about 40% case absenteeism is family oriented and more
responsibilities of employees. It increases in harvesting season.

2) SOCIAL CEREMONIES

In 20 % cases, it was found that social and religious functions divert worker from work.

3) HOUSING FACILITY

In about 30% cases, the workers remain absent because there is no housing facilities
and the workers stay alone and great distance from factory.

4) SICKNESS AND ACCIDENT

29
In 20% case the workers remain absent due to ill health and disease and in 15% cases
workers remain absent due to accident.

5) TRANSPORTATION

Most of the employees have to travel long distance to reach the work place. Most of the
workers are not satisfied with transport facilities.

6) WELFARE FACILITES

In 13% cases, the employees are not satisfied with welfare facilities.

7) WORKING CONDITIONS

In 21% cases, the workers feel that there is not good working condition, because they
work in standing position, which causes to remain absence for relaxation.

8) MANAGEMENT SYSTEM

Near about 34%, people are dissatisfied with management system because they feel that
their work is not being recognized and promotions are biased.

ABSENTEEISM - TYPES & THEIR CONTROL

There are two types of absenteeism, each ofwhich requires a different type of approach.

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Fig iv – Types of Absenteeism

1. INNOCENT ABSENTEEISM

Innocent absenteeism refers to employees who are absent for reasons beyond their
control; like sickness and injury. Innocent absenteeism is not culpable which means that
it is blameless. In a Labour relations context this means that it cannot be remedied or
treated by disciplinary measures.

2. CULPABLE ABSENTEEISM

Culpable absenteeism refers to employees who are absent without authorization for
reasons which are within their control. For instance, an employee who is on sick leave
even though he/she is not sick, and it can be proven that the employee was not sick, is
guilty of culpable absenteeism. To be culpable is to be blameworthy. In a Labour
relations context this means that progressive discipline can be applied. For the large
majority of employees, absenteeism is legitimate, innocent absenteeism, which occurs
infrequently. Procedures for disciplinary action apply only to culpable absenteeism.
Many organizations take the view that through the process of individual absentee
counseling and treatment, the majority of employees will overcome their problems and
return to an acceptable level of regular attendance.

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COUNSELLING INNOCENT ABSENTEEISM

Innocent absenteeism is not blameworthy and therefore disciplinary action is not


justified. It is obviously unfair to punish someone for conduct, which is beyond his/her
control. Absenteeism, no matter what the cause, imposes losses on the employer who is
also not at fault. The damage suffered by the employer must be weighed against the
employee's right to be sick. There is a point at which the employer is right to expect the
employee to attend regularly and fulfill the employment contract will outweigh the
employee's right to be sick. At such a point, the termination of the employee may be
justified, as will be discussed.

The procedure an employer may take for innocent absenteeism is as follows:

1. Initial counseling 2. Written counseling

3. Reduction of hours and/or job reclassification 4. Discharge

Fig v - Counselling Innocent Absenteeism

1. Initial Counselling

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Presuming you have communicated attendance expectations generally and have already
identified an employee as a problem, you will have met with him or her as part of your
attendance program and you should now continue to monitor the effect of these efforts
on his or her attendance.

If the absences are intermittent, meet with the employee each time he/she returns to
work. If absence is prolonged, keep in touch with the employee regularly and stay
updated on the status of his/her condition. (Indicate your willingness to assist.)You may
require the employee to provide you with regular medical assessments. This will enable
you to judge whether there is any likelihood of the employee providing regular
attendance in future. Regular medical assessments will also give you an idea of what
steps the employee is taking to seek medical or other assistance. Formal meetings in
which verbal warnings are given should be given as appropriate and documented. If no
improvement occurs written warning may be necessary.

2. Written Counselling

If the absences persist, you should meet with the employee formally and provide
him/her with a letter of concern. If the absenteeism still continues to persist then the
employee should be given a second letter of concern during another formal meeting.
This letter would be stronger worded in that it would warn the employee that unless
attendance improves, termination may be necessary.

3. Reduction of Hours or Job Reclassification

In between the first and second letters the employee may be given the option to reduce,
his/her hours to better fit his/her personal circumstances. This option must be
voluntarily accepted by the employee and cannot be offered as an ultimatum, as a
reduction in hours is a reduction in pay and therefore can be looked upon as discipline.
If the nature of the illness or injury is such that the employee is unable to fulfill the
requirements of his/her job, but could for example benefit from modified work, counsel
the employee to bid on jobs of such type if they become available. (N.B. It is
inadvisable to "build" a job around an employee's incapacitates particularly in a
unionized environment. The onus should be on the employee to apply for an existing
position within his/her capabilities.)

4. Discharge
33
Only when all the previously noted needs and conditions have been met and everything
has been done to accommodate the employee can termination be considered. An
Arbitrator would consider the following in ruling on an innocent absenteeism dismissal
case.

a) Has the employee done everything possible to regain their health and return to work?

b) Has the employer provided every assistance possible? (i.e. counseling, support, time
off.)

c) Has the employer informed the employee of the unworkable situation? Resulting
from their sickness?

d) Has the employer attempted to accommodate the employee by offering a more


suitable position (if available) or a reduction of hours?

e) Has enough time elapsed to allow for every possible chance of recovery?

f) Has the employer treated the employee prejudicially in any way? As is evident, a
great deal of time and effort must elapse before dismissal can take place.

These points would be used to substantiate or disprove the following two-fold test.

1. The absences must be shown to be clearly excessive.

2. It must be proven that the employee will be unable to attend work on a regular basis
in the future.

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM

As already, indicated, culpable absenteeism consists of absences, where it can be


demonstrated that the employee is not actually ill and is able to improve his/her
attendance. Presuming you have communicated attendance expectations generally, have
identified the employee as a problem, have met with him/her as part of your attendance
program, made your concerns on his specific absenteeism known and have offered
counseling as appropriate, with no improvement despite your positive efforts,
disciplinary procedures may be appropriate.
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The procedures for corrective/progressive discipline for culpable absenteeism are
generally the same as for other progressive discipline problems. The discipline should
not be prejudicial in any way. The general procedure is as follows:

1. Initial Warning(s)

2. Written Warning(s)

3. Suspension(s)

4. Discharge

Fig vi – Corrective Action For Culpable Absenteeism

1. Verbal Warning

Formally 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 attendance
record must improve and be maintained at an improved level or further disciplinary
action will result. Offer any counseling or guidance as is appropriate. Give further
verbal warnings as required. Review the employee's income protection records at
regular intervals. Where a marked improvement has been shown, commend the
employee. Where there is no improvement a written warning should be issued.

2. Written Warning

35
Interview the employee again. Show him/her the statistics and point out that there has
been no noticeable (or sufficient) improvement. Listen to the employee to see if there is
a valid reason and offer any assistance you can. If no satisfactory explanation is given,
advise the employee that he/she will be given a written warning. Be specific in your
discussion with him/her and in the counseling memorandum as to the type of action to
be taken and when it will be taken if the record does not improve. As soon as possible
after this meeting provides the employee personally with the written warning and place
a copy of his/her, file. The written warning should identify any noticeable pattern If the
amount and/or pattern continues, the next step in progressive discipline may be a
second, stronger written warning. Your decision to provide a second written warning as
an alternative to proceeding to a higher level of discipline (i.e. suspension) will depend
on a number of factors. Such factors are the severity of the problem, the credibility of
the employee's explanations, the employee's general work performance and length of
service.

3. Suspension (only after consultation with the appropriate superiors)

If the problem of culpable absenteeism persists, following the next interview period and
immediately following an absence, the employee should be interviewed and 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 explanation, the employee's
general work performance and length of service. Subsequent suspensions are optional
depending on the above condition.

4. Dismissal (only after consultation with the appropriate superiors)

Dismissals should only be considered when all of the above conditions and procedures
have been met. The employee, upon displaying no sat is factory improvement, would be
dismissed on the grounds of his/her unwillingness to correct his/her absence record.

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GUIDELINES & MEASURES FOR CONTROL OF ABSNTEEISM

Absenteeism is a disease that appears whenever a company fails to inoculate itself with sound
management practices. To cure excessive absenteeism, one has to know the exact causes and
then examine the available, workable and proven solutions to apply against those causes. To
embark upon a successful absenteeism reduction program, you need to make sure you have
some basic information and facts about absenteeism in your company. Consider the following
four questions, which should help you further focus your ideas and put a plan into action.

Q. Why is your present absenteeism policy ineffective?

Absenteeism policies vary in effectiveness. Most ineffective policies I have reviewed have a
common denominator: They allow "excused" absences, whereas those that do work are "no
fault" policies.

Q. Where and when is excessive absenteeism occurring?

Numerous studies have concluded that under trained supervisors is one of the main causes of
absenteeism. Therefore, any company experiencing absenteeism of greater than 3 percent
should consider supervisors as a potential contributor to the problem. Given that this may be the
case, you first should check the percentage of employee absenteeism by supervisor to see if it is
concentrated around one or two supervisors. If it is, you have begun to uncover the obvious--
undertrained supervisors. If, however, your research reveals that the rate of absenteeism is
almost equally distributed throughout your factory, you will need to investigate other possible
causes.

Q. What are the real causes for absences?

People-oriented companies are very sensitive to employee opinions. They often engage in
formal mini-studies to solicit anonymous employee opinions on topics of mutual interest. These
confidential worker surveys commonly ask for employee opinion regarding higher-than-normal
absenteeism.

In other words, employees revealed that repetitive, boring jobs coupled with uncaring
supervisors and/or physically unpleasant workplaces led them to make up excuses for not
coming to work, such as claiming to be sick. One way to determine the causes of absenteeism is
to question your supervisors about their employees' excessive absenteeism, including what
causes it and how to reduce it.

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Q. How much formal training has your supervisors received on absenteeism Containment
and reduction?

If you find that your supervisors hesitate to provide meaningful answers to your questions, then
you are on the right track toward a solution. Ask yourself, "How much formal training have I
given my supervisors in the areas of absenteeism reduction and human resources skills?" If
your answer is, none or very little, your solution cannot be far behind. The fact of the matter is,
you cannot ask a person to do a job he or she has never been trained to do.

MEASURES TO CONTROL ABSENTEEISM

Fig – vii Measures to Control Absenteeism

1. Provision of proper working conditions

Unhealthy working conditions are the main cause of absenteeism. The workers feel
fatigued after a short period of work if there is insanitation, noise, dust, dampness, etc.
There should be proper facilities at work like a provision of drinking water; canteen,
rest places, lavatories etc. so that workers do not feel fatigued at work place.

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2. Proper selection procedure

Absenteeism may also occur if there is improper selection, training and recruitment.
When the workers are not well suited for the jobs then they will try to absent
themselves. The wages should be aptitude training, intelligence tests for finding out the
suitability of people/employees for the jobs when they are being selected.

3. Reasonable wage rates

The wage rates should be fixed in view of the requirements of workers. The wages
should be sufficient for workers in order to maintain a reasonable standard of living.

4. Proper grievance settlement:

There should be a proper grievance settlement mechanism for the workers. Sometimes
there is a feeling among workers that their difficulties are not properly looked into and
out of frustration they start absenting from duty. When there is grievance settlement
machinery then the causes of discontentment among workers can be removed at the
earliest.

5. Prevention of accidents

There should be a provision for proper safety measures in the factory. There is a direct
relationship between absenteeism and accidents. The workers should be educated for
proper utilization of machines and precautions to be taken on the occurrences of some
accident.

6. Liberal grant of leave

The strict attitude of management in granting leave may also lead to absenteeism. When
there are pressing needs for leave and management is not responsive then workers will
remain absent. So management should be liberal in granting leave when workers have
genuine reasons for availing leave.

7. Cordial relations at work

The strained relations between supervisors and workers may also prompt absenteeism.
The supervisors should have co-operative attitude towards workers. They should

39
motivate workers for improving their performance and should not indulge in frequent
criticism of work force working under them.

8. Maintaining discipline

There should be well-defined rules and regulations for achieving work requirements.
There should be well-laid leave rules and these should be properly followed if some
workers are in the habit of coming late or frequently absent other employees may be
encouraged to violate such rules and regulations.

THE BRADFORD FACTOR & ABSENTEEISM

Bradford Factor is a Human Resources tool used by many organizations to measure and
identify areas of absenteeism. The theory is that short, frequent and unplanned absences
are more disruptive than longer absences.

It is based on the fact that it is normally easier to arrange to cover for staffs who are
going to be off for long periods, and which are more likely to be suffering from a
genuine illness.

However, employees taking odd unplanned days off here and there actually cause more
disruption to the business. If this pattern is repeated regularly, the employee will have a
high Bradford Factor score; which may raise questions about how genuine the illness
actually is.

The formula for the Bradford Factor is:

E x E x D = Bradford Factor Score

Where E is the number of episodes of absence and D is the total number of days absent
in a rolling 52-week period.

So, for employees with a total of 10 days absence in one year, the Bradford Factor score
can vary enormously, depending on the number of episodes of absence involved.

For example:

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One absence episode of 10 days is 10 points (i.e. 1 x 1 x 10)

Five absence episodes of two days each is 250 points (i.e. 5 x 5 x 10)

Ten absence episodes of one day each is 1,000 points (i.e. 10 x 10 x 10)

How do organizations use the Bradford Factor?

There are no set rules for using the Bradford Factor; it is down to each organization to
determine the ways in which it uses the score.

However, used effectively, the Bradford Factor can reduce absenteeism dramatically,
serving as a deterrent and a method for tackling persistent absenteeism.

Studies have shown that by educating staff about the Bradford Factor, and then showing
them their score on a regular basis, absenteeism can be reduced by over 20%. This is
largely down to staff understanding that taking the odd day off here and there will
quickly multiply their Bradford Factor score. The Bradford Factor places a value on the
absence, which an employee can clearly see. Where the absence is not necessary, this
can serve to deter absenteeism.

When this is used in conjunction with a points system, the Bradford Factor can be
effectively utilized, to deter unnecessary absenteeism.

For example:

The Bradford Factor can be utilized by creating “triggers” whereby certain actions are
taken when an employee’s Bradford score reaches a certain point. For example, the UK
Prison Service has used the following triggers:

51 points – verbal warning.

201 points – written warning

401 points – final warning

601 points – dismissal

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Setting these triggers is entirely dependent on the organization using the Bradford
Factor. It is usually advisable to use the Bradford Factor as one of a number of absence
policies. However, setting these triggers and making staff aware of them, in addition to
taking action, resulted in the Prison Service reducing absenteeism by 18%.

By implementing mandatory procedures for tackling absenteeism across an


organization led by the Bradford Factor, an organization can remove the potential for
differences across teams and management and remove the difficulties and reluctance
that line managers often face when having to discipline a close staff member.

The Bradford Factor can provide organizations with a two-pronged method for tackling
absence: proactively deterring absence in the first place and utilizing a set procedure to
identify and tackle persistent absenteeism.

Implementing the Bradford Factor

Calculating the Bradford Factor for one member of staff over a given period is not a
difficult proposition. However, calculating the Bradford Factor over a rolling 52-week
period, across multiple teams and locations and considering different types of absence
is a very difficult task.

As a result of the exponential nature of the formula {E x E x D}, even the slightest
mistakes in calculation can result in a wide variance of an employee’s Bradford Factor
score.

For example:

For an employee who has had 10 days off in a year in total, on two separate occasions:

2 X 2 X 10 = 40 {which does not trigger a warning – fewer than 50}

However, if their absence is either not recorded correctly, or is calculated wrong by just
one day:

3 X 3 X 10= 90 {which does trigger a warning – over 50}

You can see that their score is more than double, despite the small mistake. Getting the
formula the wrong way round can have even more significant results:

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10 X 10 X 2 = 200 {which would trigger disciplinary proceedings – over 200}

CHAPTER-V
COMPANY PROFILE

43
Tecumseh Products Company
Corporate Policy
1.0 INTRODUCTION:
Tecumseh Products Company is committed to the strictest standards of ethics and
accountability. It seeks to conduct its affairs with the highest integrity according to the
requirements of law and Tecumseh’s Code of Conduct for All Directors, Officers, and
Employees (the “Code of Conduct”) and its Code of Ethics for Financial Managers (the
“Code of Ethics”). Both Codes are published on the Company’s internet website at
www.tecumseh.com. While Tecumseh has set guidelines in place to ensure the highest
standards of conduct, unethical business practices may occur. Tecumseh will not tolerate
any such wrongdoing by its employees, customers or vendors while conducting business
with Tecumseh.

The greatest deterrent to unethical business practices is the probability that such
wrongdoing will be reported and investigated vigorously, that those who are
responsible for it will, in appropriate cases, be punished and that the matter will be
promptly remedied. This Policy is therefore intended as a clear and unequivocal
statement that, whenever and wherever any such wrongdoing by Tecumseh employees,
or by any of its customers or suppliers, is identified by or reported to Tecumseh, it will
be swiftly and thoroughly investigated and rectified, and that Tecumseh will make
every effort to ensure that wrongdoing is prevented in the future.

This Ethics Reporting Policy is intended to supplement the Code of Conduct and the
Code of Ethics. When feasible, employees and members of the public should discuss
their concerns with Tecumseh management. However, Tecumseh recognizes that there
are occasions when concerns are so serious that one may not feel comfortable going
directly to Tecumseh management but would be more confident raising concerns in a
more confidential way. This Ethics Reporting Policy and the Tecumseh Integrity Help
Line are designed to facilitate confidential reporting.

2.0 SCOPE OF POLICY:

This policy is designed to allow employees or external business associates to raise high
level concerns or to provide information, which the individual believes, indicates
wrongdoing. This policy aims to:
44
 Encourage an individual to feel confident in raising serious concerns and to
question and act upon concerns about unethical behavior or wrongdoing;
 Provide avenues for an individual to raise those concerns and receive
appropriate feedback on any action taken;
• Ensure that an individual receives a response to his or her concerns and is
aware of how to pursue them if the response is not satisfactory; and
• Reassure an individual that her or she will be protected from possible reprisals
or victimization for making any disclosure in good faith and in the reasonable
belief that it tends to show wrongdoing.

This Policy is not to be used as an avenue to address issues that fall under other
grievance, complaint, harassment, and discipline procedures. This Policy is intended to
cover concerns regarding potential violations of the Code of Conduct or the Code of
Ethics and any of the following (whether or not also covered by the Code of Conduct
or the Code of Ethics):
• Financial malpractice or impropriety and fraud;
• Failure to comply with regulatory requirements;
• Dangers to health and safety or the environment;
• Criminal activity;
• Improper conduct or unethical behavior; and/or
• Attempts to conceal any of the above.

Tecumseh employees are likely to be in the best position to learn about and report
unethical behavior. Tecumseh expects the fullest cooperation of all its employees in
securing the highest ethical standards. That means that, where employees of Tecumseh
are aware of or seriously suspect wrongdoing within the Company, Tecumseh expects
employees to report such wrongdoing, or the serious suspicion of it. Where employees

fail reasonably to report wrongdoing, they become themselves complicit in that


unethical behavior, which could result in disciplinary actions.
3.0 SAFEGUARDS:
Tecumseh recognizes that the decision to report a concern can be a difficult one to make.
Any reporting system will be of little value if those who should report fear that, as the
result of making reports, they may experience recriminations, victimization, harassment,
or detrimental actions. Therefore, Tecumseh will not tolerate any harassment or
45
victimization and will take appropriate action to protect those who raise questions or
concerns as long as the disclosure is made in good faith and in the reasonable belief that it
tends to show wrongdoing.

Tecumseh will treat all disclosures in a confidential and sensitive manner. Tecumseh will
make every effort to maintain, subject to any legal constraints, the confidentiality of the
individual who reports wrongdoing, so long as it does not hinder any investigation.
However, the investigation process may reveal the source of the information, and the
individual making the disclosure may need to provide a statement as part of the evidence
gathering procedure.

This policy encourages individuals to put their name to any disclosures they make.
Concerns expressed anonymously are much less powerful, but they will be considered at
the discretion of Tecumseh. In exercising this discretion, Tecumseh will evaluate:
• The seriousness of the issues raised;
• The credibility of the concern; and

• The likelihood of confirming the allegations satisfactorily.


If an individual makes an allegation in good faith, which is not confirmed by the
investigation, no action will be taken against that individual. Of course, if an
individual makes an allegation frivolously, maliciously or for personal gain,
appropriate disciplinary action may be taken against the individual concerned.

4.0 PROCEDURES FOR MAKING A DISCLOSURE:


Tecumseh encourages the resolution of issues at the local level whenever possible.
It is an expected good practice, when you are comfortable with it and think it appropriate
under the circumstances, to raise concerns first with your supervisor. If this is
uncomfortable or inappropriate, another option is to discuss the situation with another
member of management at your facility or within your organization. This depends,
however, on the seriousness and sensitivity of the issues involved and who is suspected of
the wrongdoing. If this avenue is inappropriate, then you should contact the Internal Audit
Department via e-mail at internal.audit@tecumseh.com or the Tecumseh Integrity Help
Line at the numbers listed below.

46
Tecumseh accepts that employees need to be reassured of the utmost anonymity and also
provides a third party global ethics hotline to report unethical behavior. (Tecumseh

Integrity Help Line) This toll-free hotline service is provided by Global Compliance
Services. Global Compliance Services is a leader in providing ethics and compliance
hotline services for over 20 years. The toll free Global Compliance Services hotline
numbers for each country are listed below.

Tecumseh encourages employees to raise concerns when they arise rather than waiting for
proof. The earlier the concern is reported, the easier it is to take action. Although you are
not expected to prove the truth of an allegation, you will need to demonstrate to the person
contacted that there are reasonable grounds for your concern. Concerns may be raised
verbally, by e-mail, or in writing. Those who wish to make an e-mail or written report are
invited to use the following format:
• The background and history of the concern (giving relevant dates);
• The reason why you are particularly concerned about the situation; and
• The extent to which you have personally witnessed or experienced the
problem (provide documented evidence where possible but do not attempt
to conduct a formal investigation).

Written reports should be sent to:


Internal Audit Department
Attn: Director Internal Audit
100 East Patterson St.
Tecumseh, MI, U.S.A. 49286
Internal Audit will respond to reported concerns. The information will be reviewed, and a
decision will be made as to how best to proceed with the investigation. Normally, the
decision will be made by two or more other individuals (e.g., Human Resources and
Internal Audit) depending on the type of concern reported (e.g., discrimination, fraud,
kickbacks, etc.). The decision may be:

47
• To investigate the matter internally;
• To refer the matter to the police; or
• To call for an independent inquiry.
In order to protect the individuals and those accused of misdeeds, initial inquiries will be
made to decide whether an investigation is appropriate and, if so, what form it should take. If
the matter is investigated internally, the designated decision-maker will also consider:
• Who should undertake the investigation;
• The procedures to be followed; and
• The scope of the concluding report.

Some concerns may be resolved by agreed action without the need for investigation. If
urgent action is required, it will be taken before an investigation is conducted.
All investigations will be conducted as sensitively and quickly as possible. Upon completion
of the investigation, the concerned individual will be provided feedback as to the action
taken, if any. If no action is to be taken, the individual concerned will be informed of the
reason for this and allowed the opportunity to remake the disclosure to the Audit Committee
Chairman. The Audit Committee Chairman will consider all the information presented, the
procedures that were followed and the reasons for not taking any further action. The Audit
Committee Chairman will determine if no further action is required or if further investigation
is needed.

The person or persons against whom a disclosure is made will be told of it and the
evidence supporting it and will be allowed to comment before any investigation is
concluded or further action commenced.
A report of all disclosures and any subsequent actions taken will be made by the
designated person, who will retain such reports for a specified period of time. In all
cases, a report of the outcomes of any investigation will be made to the Audit
Committee, in detail where the issue falls within its purview, and in summary in other cases,
as means of allowing the Committee to monitor the effectiveness of the process and
procedures.

Information:

48
Internal Audit Department: E-Mail – Internal.audit@tecumseh.com

Tecumseh Integrity Help Line for USA - Phone – 800-381-2116

International Dialing Instructions:

Make sure you have an outside line (if using a public phone, make sure it can be used to
make international calls).

STEP 1: Enter the AT&T Direct Access Number for the country you’re calling from.
These numbers change occasionally. To ensure that you have the most
up to date international access numbers log onto www.att.com/traveler
to obtain the most current numbers.
Brazil - 0-800-888-8288
Canada - 1-800-225-5288
Czech Republic 00-42-000-101
France - 0-800-99-0011
India 000-117
Italy - 800-172-444
Mexico - 01-800-288-2872
Thailand 001-800-110-090

STEP 2: When you hear the English-language voice prompt or series of tone prompts, enter
the toll-free hotline number.
These numbers are as follows:
Brazil - 888-548-7808
Canada - 800-381-2116
Czech Republic 800-376-0609
France - 888-240-0621
India 800-376-0969
Italy -
Mexico - 888-583-5484
Thailand 888-575-9535
STEP 3: The call will be connected to Global Compliance Service’s hotline specialist. If you
do not speak English, or prefer to have an interpreter assist you in speaking with Global
Compliance Service’s hotline specialist, immediately inform the specialist which language
you speak. The specialist will then begin conferencing in an interpreter. As this happens, you
will hear music, please remain on the line. You will then hear a recorded message in your
language to confirm that an interpreter will come on line shortly. An interpreter will then join

49
your conversation and assist you and the specialist in completing the call.

50
CHAPTER -VI
DATA ANALYSIS
&
INTERPRETATION

51
1Q. For how many years you are working with TECUMSEH INDIA PVT

LTD?
1. WORKING YEARS WITH TECUMSEH INDIA PVT
LTD
OPTION <1 year 2 years 3 years >5 years TOTAL
RESPONSE 2 7 13 28 50
% 4 14 26 56 100

Interpretation – It can be clearly, seen that 56% of the employees at TECUMSEH


INDIA PVT LTD are working for more than 5years which whereas 26% are working
for more than 3yrs.

2Q. Does your job match with your qualification?

52
2. JOB MATCH TO YOUR QUALIFICATION
OPTION Yes No TOTAL
RESPONSE 2 7 50
% 4 14 100

Interpretation – It can be observed that 56% of employee’s qualification matches to


their job profile and remaining 44% employee’s qualification does not match to their
job profile.

3Q. Which Cadre do you belong to?

3. CADRE

53
OPTION TOTAL

Executive Junior Non-


Executive Executive
RESPONSE 1 2 47 50
% 2 4 94 100

Interpretation – It can be clearly, seen in the chart that 94% of employees belongs to
non-executive cadre whereas; remaining 6% of employees comes under executive and
junior executive cadre.

4Q. What is your Monthly Income ranges between?

4.MONTHLY INCOME
OPTION <10000 10000- 15000- >20000 TOTAL

54
15000 20000
RESPONSE 30 10 8 2 50
% 60 20 16 4 100

Interpretation – It can be observed that 60% of employees are getting their income
less than 10000 whereas 20% of employees income is between 10000-15000, 16% of
employees income ranges between 15000-20000 and 4% employees get income more
than 20000 this difference in income of employees may be due to their cadre and
experience in the TECUMSEH INDIA PVT LTD.

5Q. Do you have any option of job rotation?

5.JOB ROTATION
OPTION Yes No TOTAL
RESPONSE 17 33 50
% 34 66 100

55
Interpretation – It can be clearly, seen that 66% of employees do not have any
option of job rotation whereas, 34% of employees have the option of job rotation it
may be due to the process to which employees belong.

6Q. Which shift do you find more difficult to work?

6.EMPLOYEES OPINION ON SHIFT


OPTION Night Afternoo Morning TOTAL

n
RESPONSE 34 14 2 50
% 68 28 4 100

56
Interpretation – It can be observed that 68% of employees find nightshift as difficult
as morning and afternoon that may due to some health issue or personal reason behind
it. 28% of employees find afternoon shift as difficult and 4% find morning shift as
difficult because they have to start early in the morning.

7Q. Is it possible for you to get leave whenever you require?

7. PERMISSION TO GET A LEAVE


OPTION Always Often Someti Never TOTAL

mes
RESPONSE 23 18 8 1 50

57
% 46 36 16 2 100

Interpretation – It can be observed that 46%, employees can get leave always but if
the company has workload it might grant leave sometimes due to work pressure. 36%,
employees get leave often. 16%, of time leave is granted sometimes and 2% of time
leave is not granted which is rare condition it may be because of some important
meeting or project.

8Q. How often you remain absent in a month?

8. ABSENTEES IN A MONTH
OPTION Nil Once Twice >Twice TOTAL
RESPONSE 47 2 1 0 50
% 94 4 2 0 100

58
Interpretation –It can be seen that 94% of the employees do not remain absent. 4%
of employees take leave once in a month and 2% of employees take leave twice in a
month.

9Q. Which of the following do you avail often?

9. TYPES OF LEAVE
OPTION Casual Privilege Medical All TOTAL
RESPONSE 42 5 2 1 50
% 84 10 4 2 100

59
Interpretation – It can be observed that 84% of employees take a casual leave that is
provided to every employee by the company according to company norms. 10%
employees sometimes go for privilege leave 4% employees takes medical leave
whenever required and remaining 2% of employees go for all kinds of leave.

10Q. According to you what are the main reasons for employees absent?

10. REASON FOR BEING ABSENT


OPTION Stress Illness Work Work TOTAL

Event Dissatisfactio
n
RESPONSE 1 41 2 1 50
% 2 92 4 2 100

60
Interpretation –According to 92% employees, personal problem/illness is the reason
for being absent. 2% think that stress can also be the reason. 4% of employees think
that work environment can be a reason and remaining 2% of employees are
dissatisfied with their work.

11Q. The process of applying leave through your supervisor is time consuming?

11.TIME CONSUMING PROCESS


OPTION Highly Agree Neutral Disagre Highly TOTAL

Agree e Disagre
e
RESPONSE 3 11 4 25 7 50
% 6 22 8 50 14 100

61
Interpretation – It can be clearly, seen that 50% of employees disagree about the
time consumption while taking the leave whereas 22% of employees say that the
process is really time consuming. 18% of employees highly disagree about it.
Whereas 8% of employees are Neutral to their opinion.

12Q. Employees level of awareness regarding their absent from their work?

12.LEVEL OF AWARENESS
OPTION Strongly Agree Neutral Disagree Strongly TOTAL

Agree Disagree

RESPONSE 3 31 6 8 2 50

62
% 6 62 12 16 4 100

Interpretation – It can be observed that 62% of employees agree that they have the
awareness regarding their absent from their work. Whereas 16% of employees
disagree with it and 4% of employees strongly disagree about the awareness regarding
their absent.

13Q. Your views regarding present Absenteeism Policy of TECUMSEH INDIA


PVT LTD?

13.ABSENTEEISM POLICY
OPTION Excellent G
RESPONSE 7
% 14

63
Interpretation - It can be clearly, seen that 74% employees rate the present
absenteeism policy as good whereas 14% rate it as excellent. 8% of employees think
that the policy is fair enough and remaining 4% of employees think that the policy is
poor.

14Q. Are you clear about your work / job responsibilities?

14. CLARITY REGARDING WORK


OPTION Well Good Fairly Don’t TOTAL

Clear Clear Know


RESPONSE 45 3 1 1 50
% 90 6 2 2 100

64
Interpretation - It can be observed that 90% of the employees at TECUMSEH
INDIA PVT LTD are clear regarding their work responsibilities. 6% of employees
think that it’s good. 2% of employees have fair clarity about the work whereas
remaining 2% of employees don’t know whether they are clear or not about the work.

15Q. Are you satisfied with your work?

15. WORK SATISFACTION


OPTION Satisfied Good Fair Not TOTAL

Satisfied
RESPONSE 41 4 3 2 50
% 82 8 6 4 100

65
Interpretation - It is observed that 82% of the employees are fully satisfied with their
work whereas 8% employees think their work as good, 4% employees are not
satisfied with their work.

16Q. Do you work overtime or extra time beyond working time?

16. EXTRA TIME BEYOND WORKING TIME


OPTION Yes No TOTAL
RESPONSE 30 20 50
% 60 40 100

66
Interpretation – It is clearly, seen that 60% of employees work overtime it may be
due to workload or to earn extra money as overtime salary. 40% of employees don’t
prefer for overtime may be due to some personal issues.

17Q. If yes, how many hours on average you work beyond working time?

17. NUMBER OF EXTRA HOURS OF WORKING


OPTION 1 hr 2 hrs 3 hrs  more TOTAL

RESPONSE 26 10 8 3 50
% 58 20 16 6 100

67
Interpretation – It can be observed that 58% of employees work extra only for an
hour if workload is more whereas 6% of employees work more than 3hours because
they work as overtime for an extra pay. Whereas 20% of employees work extra
2hours to windup the target given to them.

18Q.Does your colleague help in work related problems?

18. COLLEAGUES HELP IN WORK


OPTION Yes No TOTAL
RESPONSE 36 11 50
% 78 22 100

68
Interpretation – It is clearly, seen that 78% of employees help their colleague during
the work problems. 22% of employees will not help in work. may be due to the
relation issues among them.

19Q. Are you being recognized for excelling in your job?

19. RECOGNIZED IN YOUR JOB


OPTION Always Often Sometime Never TOTAL

s
RESPONSE 17 23 9 2 50
% 34 46 18 4 100

69
Interpretation – It can be observed that 46% of employees agree that they are
recognized when they excel in their job remaining 18% of employees says that they
are recognized sometimes, 34% of employees say they are always appreciated and
recognized for their work whereas, 4% of employees are never recognized for their
work. .

20Q. Your relations with your superiors?

20. RELATIONS WITH SUPERIORS


OPTION Good Excellent Fair Poor TOTAL
RESPONSE 38 11 1 0 50
% 76 22 2 0 100

70
Interpretation - 76% employees have good relations with the superiors whereas 22%
have excellent relations with the superiors. As we can see in the chart that 0% can
clearly say that, the company is really doing a good job in human relations.

21Q. Yours superiors behaviour towards your problem?

21. SUPERIORS BEHAVIOUR


OPTION Excellent Good Fair Poor TOTAL
RESPONSE 21 28 1 0 50
% 42 56 2 0 100

71
Interpretation - 42% employees think that their superior’s behaviour toward their
problems is excellent & 56% employees consider it as good. By the above chart
details and employees opinion, we can say that the superiors are working well at their
job by solving work related issues and helping their subordinates in their job.

22Q. Yours views regarding facilities provided TECUMSEH INDIA PVT LTD?

22. FACILITIES PROVIDED BY TECUMSEH INDIA PVT LTD


OPTION Excellent Good Fair Poor TOTAL
RESPONSE 5 43 2 0 50
% 10 86 4 0 100

Interpretation – 86% employees consider that facilities provided to them are good
whereas 10% consider them as excellent. By observing, the opinion of employees it

72
can be interpreted, that the employees are happy with the facilities provided to them
by TECUMSEH INDIA PVT LTD.

23Q. What is your opinion regarding allowances given by the company?

23. OPINION ABOUT ALLOWANCES


OPTION Highly Satisf Neut Dissatis Highl TOTAL

Satisfied ied ral fied y


Dissa
tisfie
d
RESPONSE 7 35 7 1 0 50
% 14 70 14 2 0 100

73
Interpretation – 70% of employees are satisfied with their allowances. 14% of
employees are highly satisfied whereas 14% of employees are Neutral towards their
opinion.

24Q. Views regarding working environment of TECUMSEH INDIA PVT LTD?

24. WORKING ENVIRONMENT


OPTION Excellent Good Fair Poor TOTAL
RESPONSE 7 41 2 0 50
% 14 82 4 0 100

74
Interpretation – It can be clearly, seen that 82% employees feel that the working
environment at TECUMSEH INDIA PVT LTD is good & 14% feel it as excellent. It
can be observed that company is trying to keep its working environment good to
maintain a healthy relation with employees.

25Q. Do you need any improvements in the working conditions?

25. IMPROVEMENT IN WORKING CONDITION


OPTION Yes No TOTAL
RESPONSE 15 35 50
% 30 70 100

75
Interpretation – It can be clearly, seen that 70% of employees do not agree to have
changes in their working conditions whereas 30% of employees agree to have some
changes in working condition to improve the standards of the company.

76
CHAPTER-VII
FINDINGS AND CONCLUSION,

FINDINGS

The purpose of our study was to find out the factors that influence employees absent to
work.as well; this study helps the management to overcome the problems of absenteeism
among employee.
In addition, we also take the responsibility of in given awareness to each employee on the
future impact on the attitude of those who prefer not to attend the work and take easily this

77
kind of attitude. From these of scenario we referring to aim and objectives to make of this
study and the main objectives can be summarizing as follow:
i) To study the factor that effect of employee absenteeism
ii) To measures what kind of gender that is most critically in absenteeism issues.
iii) To give suggestions and solutions for further improvement towards absenteeism
Our results provided some support for the questionnaire that we have arisen during
conducting the research. Firstly, the factor that effect of employee absenteeism is family,
friends, co-workers and we has ultimate responsibility for managing absenteeism. Based on
our second objectives we had concluded that both female and male are equally contribute to
absenteeism issues. This is because our result shoes that gender are not brings any change to
the absenteeism.
It provides an overview of the research study, summarize the research findings through the
discussion of a study on facture of employee absenteeism, HERITAGE FOODS IND LTD.
the function on this chapter is to summarize the findings of study in form of conclusion, to
recommend or apply, to interpret the question, to suggest extension and integrate. The point
raised in the introduction chapter must be responded to in conclusion chapter. The researcher
should provide the conclusion of the analysis and suggestions will be discussed details in this
chapter.

CONCLUSION

Finding and analysis reveals the following conclusion

1) Almost 56% of the employees at TECUMSEH INDIA PVT LTD are working for
more than 5 years whereas 36% are working for more than 3 yrs.

2) Almost 94% of the employees do not remain absent.

78
3) According to 92% employees, personal problem is the reason for being absent. 2%
think that stress can also be the reason.

4) Almost 74% employees rate the present absenteeism policy as good whereas 15% rate
it as excellent.

5) Almost 91% of the employees at TECUMSEH INDIA PVT LTD are clear regarding
their work responsibilities.

6) 82% of the employees are fully satisfied with their work whereas 8% employees think
their work as good.

7) 76 % employees have good relations with the superiors whereas 22% have excellent
relations with the superiors.

8) 42% employees think that their superior’s behavior towards their problems is excellent
& 56% employees consider it as good.

9) 62% employees think that they are recognized for their work.

10) 21% employees think that there should some improvement in working condition for
better progress and to improve the standards of TECUMSEH INDIA PVT LTD.

79
CHAPTER-VIII
SUGGESTIONS

SUGGESTIONS

Absenteeism is a serious problem for management because it involves heavy additional


expenses. The management should take the following measures to reduce the rate of
absenteeism:-

80
1) Provide Incentives- An incentive provides an employee with a boost to their
motivation and avoid unnecessary absenteeism. Incentives like two hours of bonus pay
for every month of perfect attendance can improve a lot.

2) Employee Assistance Program- If you confront an employee about his or her


frequent absenteeism and you find out that it is due to personal problems refer them to
EAP.

3) Sickness Reporting – Tell employees that they must phone in as early as possible to
advise why they are unable to make it to work and when they expect to return.

4) Return to Work Interview- When an employee returns to work then ensure that they
have a “return to work interview”.

5) Bradford factor can also be used to identify and cure excessive absenteeism. In the
end to conclude this report I would like to specify that the project allotted to me on
ABSENTEEISM was of immense help to me in understanding the working environment
of an organization, thereby providing a firsthand practical experience. Again, like to
thank the people of TECUMSEH INDIA PVT LTD.Who helped me in accomplishing
this project and boosting my morale by appreciating and recognizing my efforts.

BIBLIOGRAPHY
Books
Ashwathappa.K. “Human Resource and Personal Management”, 4thEdition by McGraw-Hill
co.

81
Cooper, Donald R., Schindler, Pamela S. “Business Research Methods” by the McGraw-Hill
co.
P.Subbarao.“Essentials of Human Resource Management and Industrial Relations”.
C.B Mamoria,“Dynamics of Industrial Relation” (2008).
Journals
Paul M Muchinsky – (1977) “Employee absenteeism” journal of vocational Behavior vol10 pg316-
340
Rick D. Hacket– (1998) “Work attitudes and employee absenteeism” journal of occupational
and organizational psychology vol 62 issue 3 pg 235-248
S.Vijayalatha and Dr. G.Brindha – (2014)“A Study on Employee Absenteeism” international
journal of advance and innovative research vol1
Ernest B. Akyeampong-(2007)“Trends and seasonality in Absenteeism”. journal on
perspective on labour and income vol8 pg 6
Mariajosé Romero and Young-Sun Lee – (2007) “A National Portrait of Chronic
Absenteeism in the Early Grades”.
Morten Nordberg and Knut Roed–(2003) “Absenteeism, Health Insurance andBusiness
Cycles”.
Web Sites:
www.TECUMSEH INDIA PVT LTD.com
www.hrglossories.com,
www.hr-guide.com
www.phoenixmailservices.com

QUESTIONNAIRE

Personal Information
Name (Optional) ……………………………………………………………
Age …………………………. Sex ………………………..……

82
1) Age of the worker
(a) Below 20 years (b) 21-25 yrs
(c) 25-30yrs (d) Above 30 yrs

2)Gender of the worker


(a)Male (b) Female

3) Experience of the worker

(a) Less than 1 year (b) 1 – 2 years (c) above 2 years

4)Workers opinion about the job


(a) Heavy work load (b) Poor working climate
(c) Long hours of work (d) Non flexibility

5) Do you have any option of job rotation?

(a)Yes (b) No

6) Which shift do you find more difficult to work?

(a) Morning (b) Afternoon (c) Nightshift

7) Is it possible for you to get leave whenever you require?


(a)Always (b) Often
(c) Sometimes (d) Never

8) How often you remain absent in a month?


(a) Nil (b) Once
(c)Twice (d) < Twice

9) Which of the following do you avail often?


(a)Medical Leave (b) Casual Leave
(c) Privilege Leave (d) All

10) According to you what is the main reason for employees absent?
(a) Health problem / domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment
(e) Others (Please Specify).....................................................

11) The process of applying leave through your supervisor is time consuming?
(a) Highly Agree (b) Agree (c) Neutral
(d) Disagree (e) Highly Disagree

12) Employees level of awareness regarding their absent from their work
(a)Strongly agree (b) Agree (c) Neutral

83
(d) Disagree (e) strongly Disagree

13) Does the employee have met with any accident while doing the work?
(a) Yes (b) No

14) Are you clear about your work / job responsibility?


(a) Well clear (b) Good
(c) Fairly clear (d) don’t know

15) Workers reason for leave


(a) Sickness (b) Poor working conditions
(c) hectic schedule (d) Lack of interest in job

16) Do you work overtime or extra time beyond working time?


(a)Yes (b) No

17) If yes, how many hours on average you work beyond working time?
(a) 1hour (b) 2hours
(c) 3hours (d) > 3hours

18) Does your colleague help in work related problems?


(a)Yes (b) No

19) Are you being recognized for excelling in your job?


(a)Always (b) Often
(c) Sometimes (d) Never

20) How are your relations with your superiors / co-workers?


(a) Excellent (b) Good
(c) Fair (d) Poor

21) Your superior’s behaviour towards your problems?


(a) Excellent (b) Good
(c) Fair (d) Poor

22) Your views regarding the facilities provided to you by TECUMSEH INDIA
PVT LTD?
(a) Excellent (b) Good
(c) Fair (d) Poor

23) What is your opinion regarding allowances given by the company?


(a) Highly Satisfied (b) Satisfied (c) Neutral
(d) Dissatisfied (e) Highly Dissatisfied

24) Your views regarding the working environment of TECUMSEH INDIA PVT
LTD & work place?
(a) Excellent (b) Good
(c) Fair (d) Poor

84
25) Do you need any improvements in the working conditions?
(a) Yes (b) No

85

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