Index: Employee Absenteeism

EMPLOYEE ABSENTEEISM
Index
CONTENTS PAGE NO.
CHAPTER 1 INTRODUCTION
CHAPTER 2 RESEARCH METHODOLOGY
CHAPTER 3 INDUSTRY PROFILE
CHAPTER 4 COMPANY PROFILE
CHAPTER 5 THEORETICAL FRAME WORK
CHAPTER 6 DATA ANALYSIS & INTERPRETATION
CHAPTER 7 FINDINGS & SUGGESTIONS
CHAPTER 8 CONCLUSION & BIBLIOGRAPHY
ANNEXURE QUESTIONNAIRE
Page 1
CHAPTER -1
INTRODUCTION
Page 2
INTRODUCTION
1.1 INTRODUCTION TO 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.
Absenteeism is of two types -
1. Innocent absenteeism - Is one in which the employee is absent from work due to genuine cause
or reason. It may be due to his illness or personal family problem or any other real reason
2. Culpable Absenteeism - is one in which a person is absent from work without any genuine
reason or cause. He may be pretending to be ill or just wanted a holiday and stay at home.
Many employees will, on occasions, need a few days off work because of illness, however, when
absences become more frequent or long term and reach an unacceptable level, action by
management is necessary. Absence from work can be expensive in both monetary and human
terms. The costs incurred when an employee is absent from work may include:
(i) Replacing the employee or requiring other staff to cover the absence;
(ii) Inability to provide services, or achieve section and departmental objectives;
(iii) Low morale and general dissatisfaction from other staff, particularly if the absence is
perceived as unwarranted
It refers to workers absence from their regular task when he is normally schedule to work. The
according to Webster’s dictionary
“Absenteeism is the practice or habit of being an absentee and an absentee is one who
habitually stays away from work.”
According to Labour Bureau of Shimla: - Absenteeism is the total man shifts lost because
of absence as percentage of total number of man shifts scheduled to work.
Page 3
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 authorised or unauthorised, wilful 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 also have a decidedly negative impact.
Such team members need individual attention from frontline 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 - really 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 entirely. In other words, if we deal with the real reasons team members
stay home it can become unnecessary for them 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.”
Or, “I’m not coming in today because my chair is uncomfortable.” Or, “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.
Page 4
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, maybe 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.
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.
So 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.
1.2 NEED FOR THE STUDY
The study aims at the causes of absenteeism of employees in Penfos Systems. At present,
organizations in India take real interest in controlling absenteeism. Measures to prevent strikes
and lockouts have received far and greater attention. One reason for this situation may be that
strikes and lockouts are more noisy and visible while absenteeism is silent and unnoticeable.
Page 5
The relevance of the study is that, now the company is facing a major issue of
high rate of absenteeism and hope that the study will reveal the reason for it and thereby the
organization can take effective measures for checking the absenteeism.
Scope of the study
The study focuses on identifying the causes of absenteeism. The scope of the study has been
extended to all the departments in this organization The survey of nature depends on employees
for their views.
To obtain the opinion of the employees, identifying the limitations and suggesting various
possible measures to control absenteeism in the organization to the extent possible.
1.3 OBJECTIVES OF THE STUDY
1. To find out the various cause for absenteeism

2. To study the various measures adopted by the organization
3. To provide suggestions in the form of solutions to reduce the rate of absenteeism
4. To identify the motivational factors that leads employees towards job.
5. To utilize the maximum efficiency of the employees
6. To the out the influence of other factors which are responsible for absenteeism
Page 6
CHAPTER- 2
RESEARCH METHODOLOGY
Page 7
RESEARCH METHODOLOGY
4.1 Research Design
“A research design is the arrangement of conditions for collection and analysis data in a manner to
combine relevance to the researcher purpose with economy in procedure”
It constitutes the blueprint for the collection, measurement and analysis of data. As such design
includes an outline of what the researcher will do form writing the hypothesis and its operational
implications to the final analysis of data.
As such the design includes an outline of what the researcher will do from writing the
hypothesis and its operational implications to the final analysis of data. More explicit, the decisions
happen to be in respect of:
What is the study about?
Why is the study being made?
Where will the study be carried out?
What type of data is required?
Where can the data found?
What periods of time will the study include?
What will be the sample design?
How will the data be analyzed?
In what style will the report be prepared?
What techniques of data collection will be used?
Page 8
The Research Design undertaken for the study is Descriptive one. A study, which wants to
portray the characteristics of a group or individuals or situation, is known as Descriptive study. It is
mostly qualitative in nature. The main objective of Descriptive study is to acquire knowledge.
4.2 Source of Data
Data are the raw materials in which marketing research works. The task of data collection begins after
research problem has been identified and research design is chalked out. Data collected are classified
into primary and secondary data.
 Primary data
In this study, the primary data is collected to understand the main reasons behind the absenteeism of
the employee. This is collected using a questionnaire specifically designed for the employees of all
levels.
 Secondary data
Secondary data were collected from the company’s annual publications, memorandums
of settlements, newspapers, journals, websites, and from library books
4.3 Sampling Methodology
Research work was conducted by taking a sample of 100. To study the problem clearly numbers of
employees from each department were selected on the basis of the size of the department as well as
nature of the work. Questionnaires were distributed to the employees individually and lot of efforts had
to be taken to collect the required data from the selected sample of employees representing the
population.
Page 9
The questions in the questionnaire are framed on the basis of the factors responsible for absenteeism
4.4 Description of statistical tools used
 Percentage method
Percentage Analysis
In this project Percentage method test was used. The percentage method is used to know the accurate
percentages of the data we took, it is easy to graph out through the percentages. The following are the
formula
No of Respondent
Percentage of Respondent = x 100
Total no. of Respondents
Weighted average method:
 Weighted average can be defined as an average whose component items are multiplied by
certain values (weights) and the aggregate of the products are divided by the total of
weights.
 One of the limitations of simple arithmetic mean is that it gives equal importance to all
the items of the distribution.
 In certain cases relative importance of all the items in the distribution is not the same.
Where the importance of the items varies.
Page 10
 It is essential to allocate weight applied but may vary in different cases. Thus weight age
is a number standing for the relative importance of the items.
LIMITATIONS OF THE STUDY
 Due to time constraints and busy schedules of the nurses it was difficult to interact with them
completely.
 The sample size was limited to 60
 The responses may be influenced by personal bias.
 Generally do not provide in-depth understanding of underlying issues, reasons or behavior
patterns.
 Incorrectly designed surveys may produce invalid and misleading results.
Page 11
CHAPTER 3
INDUSTRY PROFILE
Page 12
INDUSTRY PROFILE
Overview on India's Software Industry
According to statistics, country's software exports reached total revenues of Rs 46100 crores.
The shares of total Indian exports form 4.9 per cent in 1997 to 20.4 percent in 2002-03. It is
expected that the industry will generate a total employment of around four millions peoples,
which accounts for 7 per cent of India's total GDP as in the year 2008.
The year 1995-96 was a boom for the industry. The performance of the industry over the years is
as follows:
(In terms of US $ millions)
Domestic software Market490670920125017002450
Software Exports 73410851750265040006300
Indian Software Industry 122417552670390057008750
India's Software Exports:
Software exports has major share in India's total exports. As of the year 2004-05,
both software and services revenue grew by 32 percent to $ 22 billions and $ 28.5 billions in
2005-06.
According to NASSCOM, India's domestic market, grew by 24 per cent. Presently Indian
companies have concentrated on only two largest IT service markets. They are USA and the UK.
Even Canada, Japan, Germany and France represent huge growth potential in the industry.
Why India?
 Rapidly Improving infrastructure

 Large Talent Pool Availability
 Infrastructure High Quality Educat ional
Page 13
 Low Operaing Costs
 R&D Strengths
 Established Technology Clusters
 Government Incentive
Progress of IT Industry
(In terms of US $ billion)
Year2003-042004-052005-06*IT software and service exports9.212.015.2ITE-BPO

exports3.65.27.3Domestic market3.94.86.0Total16.722.028.5
*Estimated
Source: Ministry of Communications and IT.
1995-1996 - 1224 million US Dollars

1999- 2000 - 5700 million US Dollars
According to the NASSCOM- McKinsey report on the IT industry of India, the
projected revenue of the IT industry of India for the year 2008 is 87 billion US Dollars. The
projected exports or the year 2008, accord to this report, is 50 billion US Dollars.
Some of the important aspects of the NASSCOM- McKinsey report related to the size of India's
IT industry are -
 There is potential of 3.2 million people being employed in the IT industry of India by the
end of 2012.
 Contribution of software and services to the total GDP of India will be more than 7.5%.
 FDI (Foreign Direct Investment) of 10.5 billion US Dollars expected in the IT industry
by the end of 2011.
 45% of total exports from India will be from IT exports.
 225 billion US Dollars worth of market capitalization from ITshares.
Page 14
Softwares and services are exported to bout 195 companies from India. North America accounts
for 61% of the software exports from India.
The projections about the size of India's IT industry present a very optimistic picture. The
industry is expected to grow to double its current size by the year 2012. India's IT industry is
expected to grow at an annual average rate of 18% in the next five years. The industry is also
expected to cross the 100 billion US Dollar mark by 2011. One of the major areas of growth for
the IT industry of India is by tapping the potential in the domestic market. The IT industry of
India is largely dependant on the export market. Penetrating more into the domestic market
would create further opportunities of growth for the IT industry.
Adoption of new liberal policies in India has given birth immense opportunities to its industries.
Success story of India's Software Industry is a step in the same direction.
The Software Industry, which is a main component of the Information technology, has brought

tremendous success for the emerging economy.
India's young aged manpower is the key behind this success story. Presently there are more than
500 software firms in the country.
Worldwide IT Spending to Grow 5.3 Percent in 2010
Unseasonably Strong Hardware Sales in First Quarter Sets Up 2010 for Solid IT Spending
Growth Worldwide IT spending is forecast to reach $3.4 trillion in 2010, a 5.3 percent increase
from IT spending of $3.2 trillion in 2009, according to Gartner, Inc. The IT industry will
continue to show steady growth with IT spending in 2011 projected to surpass $3.5 trillion, a 4.2
percent increase from 2010.
"Following strong fourth quarter sales, an unseasonably robust hardware supply chain in the first
quarter of 2010, combined with continued improvement in the global economy, sets up 2010 for
solid IT spending growth," said Richard Gordon, research vice president at Gartner. "However,
it's important to note that nearly 4 percentage points of this growth will be the result of a
projected decline in the value of the dollar relative to last year. IT spending in exchange-rate-
adjusted dollars will still grow 1.6 percent this year, after declining 1.4 percent in 2009."
Worldwide computing hardware spending is forecast to reach $353 billion in 2010, a 5.7 percent
increase from 2009 (see Table 1). Robust consumer spending on mobile PCs will drive hardware
spending in 2010. Enterprise hardware spending will grow again in 2010, but it will remain
below its 2008 level through 2014. Spending on storage will enjoy the fastest growth in terms of
enterprise spending as the volume of enterprise data that needs to be stored continues to increase.
Near-term spending on servers will be concentrated on lower-end servers; longer-term, server
spending will be curtailed by virtualization, consolidation and, potentially, cloud computing.
Page 15
"Computing hardware suffered the steepest spending decline of the four major IT spending
category segments in 2009. However, it is now forecast to enjoy the joint strongest rebound in
2010," said George Shiffler, research director at Gartner. "Consumer PC spending will contribute
nearly 4 percentage points of hardware spending growth in 2010, powered by strong consumer
spending on mobile PCs. Additionally, professional PC spending will contribute just over 1
percentage point of spending growth in 2010 as organizations begin their migration to Windows
7 toward the end of the year."
Worldwide IT Spending Forecast (Billions of U.S. Dollars)
2009 2009 2010 2010

Spending Growth (%) Spending Growth (%)
Computing Hardware 333 -12.5 353 5.7
Software 221 -2.1 232 5.1
IT Services 777 -4.0 821 5.7
Telecom 1,892 -3.4 1,988 5.1
All IT 3,223 -4.5 3,394 5.3
Worldwide software spending is expected to total $232 billion in 2010, a 5.1 percent increase
from last year. Gartner analysts said the impact of the recession on the software industry was
tempered and not as dramatic as other IT markets. In 2010, the majority of enterprise software
markets will see positive growth.
The infrastructure market, which includes all the software to build, run and manage an
enterprise, is the largest segment in terms of revenue and the fastest-growing through the 2014.
The hottest software segments through 2014 include virtualization, security, data integration/data
quality and business intelligence. The applications market, which includes personal productivity
and packaged enterprise applications, has some of the fastest-growth segments. Web
conferencing, team collaboration and enterprise content management are forecast to have double-
digit compound annual growth rates (CAGR), in the face of growing competition surrounding
social networking and content.
Page 16
"Cost optimization, and the shifts in spending form mega suites to the automation of processes
will continue to benefit alternative software acquisition models as organizations will look for
ways to shift spending from capital expenditures to operating expenditures," said Joanne Correia,
managing vice president at Gartner. "Because of this, vendors offering software as a service
(SaaS), IT asset management, virtualization capabilities and that have a good open-source
strategy will continue to benefit. We also see mobile-device support or applications, as well as
cloud services driving new opportunities."
The worldwide IT services industry is forecast to have spending reach $821 billion in 2010, up
5.7 percent from 2009. The industry experienced some growth in reported outsourcing revenue at
the close of 2009, an encouraging sign for service providers, which Gartner analysts believe will
spread to consulting and system integration in 2010.
"We continue to see a long-term recession 'hangover' as a more-cautious mind-set continues as

the norm among a lot of buyers who keep looking for small, safe deals where cost take-out is a
key factor, said Kathryn Hale, research vice president at Gartner. "In the face of that ongoing
strong pressure to renegotiate contracts, and in the absence of equivalent pressure from
stockholders, we believe vendors will generally choose to maintain margins over revenue
growth."
Worldwide telecom spending is on pace to total close to $2 trillion in 2010, a 5.1 percent
increase from 2009. Between 2010 and 2014, the mobile device share of the telecom market is
expected to increase from 11 percent to 14 percent, while the service share drops from 80 percent
to 77 percent and the infrastructure share remains stable at 9 percent of the total market.
Worldwide enterprise network services spending is forecast to grow 2 percent in revenue in

2010, but Gartner analysts said this masks ongoing declines in Europe and many other mature
markets as well as an essentially flat North American market.
"Longer term, the global enterprise network services market is expected to grow modestly,
largely on the back of growth in Internet services, such as hosting," said Peter Kjeldsen, research
director at Gartner. "Ethernet services will also grow significantly, albeit at the expense of both
legacy services and multiprotocol label switching (MPLS)."
In India, the software boom started somewhere in the late 1990s. Most of the Indian software
companies at that moment offered only limited software services such as the banking and the
engineering software. The business software boom started with the emergence of Y2K problem,
when a large number of skilled personnel were required to fulfill the mammoth database-
correction demand in order to cope up with the advent of the new millennium
The profile of the Indian IT Services has been undergoing a change in the last few years, partly
as it moves up the value chain and partly as a response to the market dynamics. Ten years ago,
most US companies would not even consider outsourcing some of their IT projects to outside
vendors. Now, ten years later, a vast majority of US companies use the professional services of
Page 17
Indian Software engineers in some manner, through large, medium or small companies or
through individuals recruited directly.
The market competition is forcing organizations to cut down on costs of products. The
professional IT services on the other hand are becoming increasingly expensive. The offshore
software development model is today where onsite professional services were ten years ago.
There is a high chance (almost a mathematical certainty), that in less than ten years, the vast
majority of IT services (software development being just one of them) from developed countries,
will be, one, outsourced and two, outsourced to an offshore vendor.
Despite the global economic slowdown, the Indian IT software and services industry is
maintaining a steady pace of growth. Software development activity is not confined to a few
cities in India. Software development centers, such as Bangalore, Hyderabad, Mumbai, Pune,
Chennai, Calcutta, Delhi-Noida-Gurgaon, Vadodara, Bhubaneswar, Ahmedabad, Goa,
Chandigarh, Trivandrum are all developing quickly. All of these places have state-of-the-art
software facilities and the presence of a large number of overseas vendors. India’s most prized
resource is its readily available technical work force. India has the second largest English-
speaking scientific professionals in the world, second only to the U.S. It is estimated that India
has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which
train more than 67,785 computer software professionals every year. The enormous base of
skilled manpower is a major draw for global customers. India provides IT services at one-tenth
the price. No wonder more and more companies are basing their operations in India.
 India's IT industry caters to both domestic and export markets. Exports contribute around
75% of the total revenue of the IT industry in India. The IT industry can be broadly divided into
four segments –
Page 18
The industry is in an expansion mode right now, with dozens of new offshore IT services
vendors emerging everyday, the industry has a high probability of being subjected to the 80:20
rule in not too distant a future. In perhaps another ten years, 80 percent of all outsourced offshore
development work will be done by 20 percent of all vendors, a small number of high quality,
trusted vendors. Only a few select countries and only the most professional companies in those
countries, will emerge as winners. India will definitely be the country of choice for offshore
software development. We have the potential to become and remain the country of choice for all
software developments and IT enabled services, second only to the USA. The third choice could
be far distant.
India is among the three countries that have built supercomputers on their own. The other two
are USA and Japan. India is among six countries that launch satellites and do so even for
Germany and Belgium. India's INSAT is among the world's largest domestic satellite
communication systems. India has the third largest telecommunications network among the
emerging economies, and it is among the top ten networks of the world.
Page 19
To become a global leader in the IT industry and retain that position, we need to constantly keep
moving up the value chain, focusing on finished products and solutions, rather than purely on
skill sets and resumes. We need to be able to package our services as products, rather than
offering them as raw material. We need to be able to recognize and build up on our strengths and
work on our weaknesses.
The IT industry has emerged as one of the most important industries in the Indian economy
contributing significantly to the growth of the economy.
The IT industry of India got a major boost from the liberalization of the Indian economy. India's
software exports have grown at an annual average rate of more than 50% since 1991. The
structure of the IT industry is quite different from other industries in the Indian economy. The IT
industry of India is hugely dependant on skilled manpower. Primarily a knowledge based
industry, the IT industry of India has reordered significant success due to the huge availability of
skilled personnel in India.
Page 20
The industry structure in the IT sector has four major categories. These are -
 IT services
 IT enabled services
 Software products
 Hardware
 IT services
IT services
IT services constitute a major part of the IT industry of India. IT services include client, server
and web based services. Opportunities in the IT services sector exist in the areas of consulting
services, management services, internet services and application maintenance. The major users
of IT services are
 Government
 Banking
 Financial services
 Retail and distribution
 Manufacturing
The services which make extensive use of information andtelecommunication technologies

are categorized as IT enabled services. The IT enabled services is the most important contributor
to the growth of the IT industry of India. Some of the important services covered by the
ITES sectorin India are -
 Customer-interaction services including call-centers
 Back-office services
 Revenue accounting
 Data entry and data conversion
 HR services
 Transcription and translation services
 Content development and animation
 Remote education,
 Data search
 GIS
 Market research
 Network consultancy
Software products
Page 21
Software products are among the most highly exported products from India. The software
industry in India originated in the 1970s and grew at a significant pace in the last ten years.
Between 1996-1997 and 2002-2003, the Indian software industry grew more than five times
from 2630 crores to 13200 crores. During the same period software and service exports from
India grew by almost twelve times.
Hardware
The hardware sector of the It industry focuses on the manufacturing and assembling of computer
hardware. The consumption of computer hardware is high in the domestic market. Due to the rise
in the number of ITcompanies, sales of desktops, laptops, servers, routers, etc have been on the
rise in recent years. Many domestic and multi-national; companies have invested in the computer
hardware market in India.
Another categorization in the structure of India's IT industry is related to the market. There are
two major market classifications - the domestic market and the export market. The export
market, dominates the IT industry accounting for 75% of the revenue.
Challenges before Indian IT Industry
At present there are a number of challenges that are facing the information technology industry
of India. One of the major challenges for the Indian information technology industry was to keep
maintaining its excellent performance standards.
The experts are however of the opinion that there are certain things that need to be done
in order to make sure that India can maintain its status as one of the leading information
technology destinations of the world. The first step that needs to be taken is to create an
environment for innovation that could be carried for a long time.
The innovation needs to be done in three areas that are connected to the information
technology industry of India such as business models, ecosystems and knowledge. The
information technology sector of India also has to spread the range of its activities and also look
at the opportunities in other countries
. The improvement however, also needs to be qualitative rather than just being
quantitative. The skill level of the information technology professionals is one area that needs
improvement and presents a considerable amount of challenge before the Indian information
technology industry.
The Indian information technology industry also needs to co-ordinate with the academic
circles as well as other industries in India for better performance and improved productivity. The
experts are of the opinion that the business process outsourcing service providers in India need to
change their operations to a way that is more oriented to the knowledge process outsourcing. One
Page 22
of the most important crises facing the Indian information technology industry concerns the
human resources aspect. The problems with outsourcing in countries like the United States of
America are posing problems for the Indian information technology industry as well.
In the recent times a bill has been passed in the state of New Jersey that allows only the citizens
or legal non-Americans to be given contracts. This legislation has also affected some other states
like Missouri, Connecticut, Wisconsin and Maryland. These states are also supposed to be
considering these laws and their implementation. This is supposed to have an adverse effect on
the outsourcing that is the source upon which the information technology industry of India
thrives. The information technology professionals who aim at working in the country are also
likely to be hindered by the legislation as a significant amount of these professionals have been
going to work in the USA for a long time
Page 23
The size of India's IT industry has grown significantly over the years. The size of this sunshine
industry of India grew from 150 million US Dollars to 50 billion US Dollars between 1990-1991
and 2006-2007. The growth of the IT industry has been very high in the last few years. The size
of the Information Technology industry of India was 5.7 billion US Dollars in 1999-2000. After
the turn of the century the industry experienced exponential growth to reach the 50 billion mark
by 2006-2007.

Page 24
CHAPTER 4
COMPANY PROFILE
Page 25
COMPANY PROFILE
Welcome to Penfos Systems
Penfos Systems Pvt Ltd is an Offshore Software Development Company catering IT sector
across the globe. We mainly focus in developing custom, scalable & secure applications
leveraging outsourcing and offshore value advantage. We specialize in offering our services to
what we believe are high growth industries such as the financial services, insurance,
manufacturing, logistics, Tele communications and health care sectors.
Our Process
Our process starts by listening to the client with an understanding about their business
requirement to deliver quality products on time. Our strong dedicated and highly qualified
developing team delivers high standards to produce a complete and unique user friendly solution.
Research & Development
On successful completion of the Market Research, the case-study is given to the Research &
Development (R&D) division to conceptualize a cost-effective system that could potentially
solve the customer's needs in a manner that is better than the one adopted by the competitors.
Once the conceptual system is developed and tested in a hypothetical environment, the
development team takes control of it. The development team adopts best suitable software
development methodology to develop the proposed system and finally released with our
customer satisfaction. While developing software, our company out sources the non-core
activities to other companies who specialize in those activities. This accelerates the software
development process largely. We work on tie-ups to bring out a highly matured product in a
short period.
Inclusion at Penfos goes well beyond a focus on gender and race/ethnicity to also include sexual
orientation, disability, generations, cultures, military status, well-being, and flexibility. It’s really
about a focus on the whole person rather than a specific dimension, leading to an inclusive
Page 26
culture for all of our people. In turn, this provides us with a diverse workforce that possesses a
variety of skills necessary to solve our clients’ complex challenges. Our inclusive culture is a
source of opportunity, enrichment, and new thinking, and is why Penfos is a place where ALL
leaders thrive.
Why Penfos
Classify your customers along family structures, financial status, lifestyles and risk profiles.
We focus on strong process and customer centric approach Clear, prompt & focused
communication process High quality software.
We are committed to providing quality, security and privacy to all our customers and
development teams.
Our software development teams are flexible and can be resized and readjusted anytime upon
customer's request.Rich experience. Since 2002 Penfos offshore software Development
Company has successfully running with customer satisfaction.
Our strength and reputation has been built upon the fundamental belief that technology should
work in harmony with your business providing real and leveraged benefits throughout the entire
organization. Technology should support the business, assisting it wherever it can to improve,
streamline, manage, and optimize day-to-day business operations. Penfos Systems can make it
happen!
Services
Today, businesses demand global vision, an in-depth understanding of customers and suppliers,
demonstrated thought leadership and a consultative partnership approach to offer the highest
possible returns on IT investment. We help businesses achieve these ends. Working closely with
our customers as transformation partners, we deliver, implement and maintain innovative
software solutions across a number of technology platforms.
Page 27
Penfos Systems has proven expertise in the field of developing desktop applications. We develop
desktop applications custom suited for your requirements and are easy to use Inventory Control
solution to efficiently manage stock positions, item locations, etc. simultaneously at multiple
warehouses and sale sites Sophisticated advanced pricing to enable multi tier pricing Item
tracking systems to manage records item receipts and transfers Stock control software to control
production cycle, stock, order or supplier. Desktop solutions for the accounts such as general
ledger and accounts receivable functionality for our clients. Financial management reports to
Enhance Business process HR solution managing staffing information and payroll payments
Payroll and Personnel system with automated facilities to support the payroll and personnel
requirements of your business. Compact and easy to use ERP solutions that can be integrated
into the desktop application.
Our Specialized Services
 Professionally designed templates available to suit different application requirements.

 Fully Functional online stores or offline presentation.
 Dynamic content, spellbinding graphics, stylized layouts and embedded sounds have
transformed the very nature of website presentations.
 Flash based content creation for specific requirements with SCORM and AICC
compliance.
 Customized web based applications to fit business requirements.
 Flash communication server application supporting interactive multimedia applications

like live audio and video Collaborations, interactive flash applications.
 Flash based E-Commerce.
 UI Designing for commercial websites and applications.
 Action scripting and back end integration with remote applications.
Page 28
Our Vision
Transformation partners to global corporations.
Our Mission
Leveraging technology and processes to help customers attain their goals
Our Values
Drive business transformation for our clients, with a firm commitment towards customer
sovereignty, passion for excellence, continuous innovation, transparency and integrity, and
people orientation. At the same time, strive to maintain high standards of corporate social
responsibility.
Customer Sovereignty
Indeed, customers are the reason for our existence. We believe – and rightly so - that when
customers thrive, so do we. We will, therefore, make it our business to anticipate client needs,
and strive to meet and exceed their expectations by creating lasting value. Customer interest will
be the single most important influence on our decisions.
Passion for Excellence
Our burning desire to do better, constantly and consistently, translates into a passion for
excellence. We will strive to attain individual and organizational excellence through continuous
learning, industry best practices, lofty standards, new ideals, and a commitment to high levels of
productivity and performance.
Continuous Innovation
In a hyper-competitive world, innovation acts as a bridge between the current and future needs of
marketplace. We will continuously reengineer our processes and mindsets, while encouraging
Page 29
individual creativity and improvisation in all our actions. We will use ingenuity to create a `new
way’.
Transparency and Integrity
Impeccable ethical and moral standards form the cornerstone of our business. Integrity, honesty
and mutual trust will guide every decision we make, anchor every relationship we have.
People Orientation
Zensar believes in `Zensarians’ -- just as `Zensarians’ believe in Zensar. We will accord respect
and dignity to every employee. We will aim to attract, develop and retain the best talent, and
create an enabling environment where every committed and capable member of the organization
has ample opportunities for growth.
Social Responsibility
We shall conduct ourselves in a socially responsible manner. We will bear in mind that decisions
that are bad for the society, cannot be good for business. Moreover, we will add value to the
social environment, and proactively embrace our responsibilities as a good corporate citizen in
every country we operate.
Page 30
Our Technical Expertise
At Penfos Systems, we deal with the following technologies. Application/Web Development

 JAVA, J2EE, J2ME
 EJB, JDBC
 ASP.net, C#, VB.net
 PHP
 Visual Basic 6.0
Advanced Web 2.0

 AJAX
 Adobe FLEX Builder
 Silver Light
Web Designing
 CorelDraw
 Adobe Creative Suite
 Microsoft Expression Studio
 Macromedia
Enterprise Resource Planning

 CRM
 SCM
 SRM
 Oracle Apps 11i - Functional
 SAS
Page 31
 SAP
RDBMS
 DB2
 Oracle
 SQL Server
 Teradata
Application / Software Testing

 Win Runner
 Load Runner
 Performance Testing
 Silk Tools
 QTP & QC
 Java test tools
 Rational test tools
As the idea of personal choice and self direction picks up in the 21st century, aided by the power
of the internet and the increased acceptance of people having multiple kinds of work, the idea of
career is sifting from a closed set of achievements, like a chronological resume of past jobs, to a
defined sett of pursuits looking forward. In its broadest sense career refers to an individual's
work and life roles over their lifespan.
Our employees work at various sites including Fortune 500 clients, in which they are encouraged
to explore their potential, take responsibility for their contribution. At the same time, they are
team players, recognizing the value of their colleagues, and finding ways to inspire each other
and their customers.
Page 32
We understand our strength is our developing and Marketing teams. We are looking for
employees with very good communication and strong technical skills and Team work is central
to everything we do.Penfos Systems presently have vacancies for the following positions.
 TIL Developers
 Web Architects
 Java, J2EE, EJB
 JDBC - IBM Websphere
 CRM - Siebel
 Oracle Apps 11i (Technical)
 Programmer Analyst
 PeopleSoft: HRMS, Payroll
 RISC UNIX Administrator
 Network Management
 SAP Enterprise Suite integrator
Page 33
STRUCTURE OF HUMAN RESOURCE DEPARTMENT
General Manager
Recruitment Employee L&D Admin

relations
HR ER L&D Administ
HR- ER-
E
manager
Manage
manager
Manage
Manage rator
r
r r
Senior Senior Senior Senior

executive executive executive executive
Junior Junior Junior Junior

executive executive executive executive
Page 34
CHAPTER- 5
THEORETICAL FRAME WORK
Page 35
LITERATURE SURVEY AND THEORETICAL

BACKGROUND
DEFINITIONS OF ABSENTEEISM
i. Absents constitutes a single day of missed work(Martocchio & Jimeno 2003)
ii. Absence occurs whenever a person chooses to allocate time to activities that compete
with scheduled work either to satisfy the waxing and warning of underlying
motivational rhythms(Fichman 1984) or to maximise personal utility(Chelius 1981)
iii. An individuals lack of physical presence at a given location and time when there is a
social expectation for him or her to be there. (Martocchio & Harrison, 1993)
iv. Absenteeism refers to Non-attendance of employee for sheduled work( Gibson, 1966
john, 1978)
v. Absenteeism is defined as a failure of an employee to report to work when he or she is

sheduled to do so
TYPES OF ABSENTEEISM
There are two types of absenteeism, each of which requires a different type of approach.
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.
Page 36
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.
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's 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:
Initial counselling(s)
Written counselling(s)
Reduction(s) of hours and/or job reclassification
Discharge
Initial Counselling
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.
Page 37
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 or not 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.
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.
Reduction(s) of hours and 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.
Discharge
Only when all the previously noted needs and conditions have been met and everything has been
Page 38
done to accommodate the employee can termination be considered. An Arbitrator would

consider the following in ruling on an innocent absenteeism dismissal case.
Has the employee done everything possible to regain their health and return to work?
Has the employer provided every assistance possible? (i.e. counselling, support, time off.)
Has the employer informed the employee of the unworkable situation resulting from their
sickness?
Has the employer attempted to accommodate the employee by offering a more suitable position
(if available) or a reduction of hours?
Has enough time elapsed to allow for every possible chance of recovery?
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.
The absences must be shown to be clearly excessive.
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 counselling as appropriate, with no improvement
despite your positive efforts, disciplinary procedures may be appropriate.
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: [Utilizing counselling memorandum]
Page 39
Initial Warning(s)
Written Warning(s)
Suspension(s)
Discharge
Verbal Warning
Formally meet with the employee and explain that income

protection is to be used only when an employee is legitimately ill. Advise the employee that
his/her attendance record must improve and be maintained at an improved level or further
disciplinary action will result. Offer any counselling 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.
Written Warning
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 counselling 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 provide 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.
Page 40
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.
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 satisfactory
improvement, would be dismissed on the grounds of his/her unwillingness to correct his/her
absence record.
Page 41
THEORIES OF ABSENTEEISM
Absence behaviour is discussed in terms of theories on absences such as the notion of the
informal contract, perceived inequity, and withdrawal from stressful work situations, dynamic
conflict, social exchange, withdrawal, non-attendance, organizationally excused vs.
organizationally unexcused, involuntary vs. voluntary and lastly a four-category taxonomy.
Informal Contract
Gibsson (1966) attempted to explain some of the main features of absence
behaviour by means of the notion of an informal contract. The contract is viewed as being made
between the individual and the organisation. Gibsson (1966) was especially interested in absences
that were not long enough to activate formal legitimising (certification) procedures. He used the
concept of valence, referring to a person’s positive or negative relationships to a work situation
and pointed out that if the combined valences of a work situation are weak, it will be easier for
people to legitimise their absences to themselves.
Gibsson (1966) remarks that a plausible idea relating to the size of the
organisation influences absence rates; in larger organisations, since there is greater division of
labour, there is also more concealment of the contributions of individuals, thus permitting latitude
for absence from work. He also mentions the importance of the employee’s identification with
the organisation, as in the case of longer-service employees, and argues for the importance of the
“authenticity” of the work contract (Gibsson, 1966). In other words, the organisation should be
seen to offer a fair deal to the individual, whose feelings of obligation would thus be strengthened.
In this research Gibsson’s (1966) concept of valence, referring to an individual’s

positive and negative relationship toward a work situation has relevance, as the aim of this
Page 42
research is to determine whether work-related attitudes (Job Involvement and Organisational

Commitment) predict employee absenteeism. It is hypothesised that employees with low job
involvement and organizational commitment (negative relationship to the work situations) will
have higher levels of absenteeism.
Resolving Perceived Inequity
Adams (1965), Hill and Trist (1953) and Patchen (1960) have made
notable theoretical contributions towards the study of absenteeism. No recent literature has been
identified which has built on this perspective. Adams (1965) suggested that absences may be a
means of resolving perceived inequity; the probability of absence behaviour will increase with the
magnitude of inequity and if other means of reducing inequity are not available. Patchen (1960)
had tested this kind of hypothesis; producing evidence of a relationship between absences and
perceived fairness of pay, that is, employees’ feelings about how fairly they had been treated in
regard to their pay levels and promotions.
Withdrawal from the Stress of Work Situations
In their study on absence, Hill and Trist (1953; 1962) contributed a

theory of absence as being the withdrawal from the stress of work situations. Withdrawal is the
central explanatory concept; thus, individuals experiencing conflicts of satisfaction and
obligations tend to express them through labour turnover, accidents, and unsanctioned absences
(this is, absences without formal permission). In addition to the views of Hill and Trist (1962),
Hanisch and Hulin (1991) theorised that absenteeism and other withdrawal behaviours reflect
invisible attitudes such as job dissatisfaction, low level of organisational commitment, or an
intention to quit. According to this view, an employee who is absent from work is consciously or
unconsciously expressing negative attachment to the organisation.
Page 43
Dynamic Conflict
The ‘withdrawal’ explanation offered by Hill and Trist (1962) had
some subsequent influence on theoretical discussions by Ås (1962) and Knox (1961). Gadourek
(1965) described the latter as ‘dynamic conflict’ theories. The conflict is located within the
individual, and whether a person stays or withdraws is the result of a complex in incentives and
stresses.
Social Exchange
Chadwick-Jones(1982) presented a case for the theory of
absenteeism that is social, not individual in emphasis. As a first step Chadwick-Jones (1982)
assumed the interdependency of members of work organisations. It seems obvious that
individuals do have some mutual obligations to peers, subordinates, and superiors (as well as
other relationships outside the work situation). In this context the rights and duties of individuals
are both subject to, and representative of, a set of rules about activities in the work situation. What
individuals do is therefore likely to be in answer to, on behalf of, in defence of, as well as
achieving a compromise with the rules of the group.
The second assumption made by Chadwick-Jones (1982), is that under the

employment contract, some form of social exchange is taking place between employers and
employees. Whatever they exchange in this situation – whether it be their time, effort, or skill or
money, security, congenial friends, or anything else- it will be only what is possible for
employees in the organisation. Exchanges may be conceived as between individuals and work
groups, or between work groups and management, but it would not be realistic to conceive of the
exchange between ‘the individual’ and ‘the organisation’ while disregarding the social conditions
and rules.
Chadwick-Jones think of social exchange between employees
and employers as developing in, or as revealed by, a pattern of behaviour in the work situation
that includes absences with all the other factors that constitute the contract, formal and informal,
between employers and employees. Formal factors include pay, hours, disciplinary rules, job
duties, and promotion lines. Informal ones include supervisory styles, peer group relations, and –
Page 44
salient to their analysis – absence from work. Chadwick-Jones (1982) however, do point out that
absences may not enter into the exchange at all, insofar as some employees or employee groups,
especially those with higher status – supervisors in factories, managers in banks – are absent very
little or hardly at all. It is quite possible, however, that managers possess greater control over the
allocation of their working time and may take periods of ‘time out’ that are not recorded.
Withdrawal
According to Chadwick-Jones (1982), absence from work, where work is

defined by the employee’s presence at a particular location (office or workshop) for a fixed period
each day, can be interpreted as an individual act of choice between alternative activities; as
withdrawal or escape from surveillance; as individual or group resistance to an inflexible system.
Thus, absence may also be viewed as a stratagem in inter-group relations, as a defensive or
aggressive act in inter-group conflict (Chadwick-Jones et al., 1982). For the purpose of this
research this theory has relevance, as the reasons for absence behaviour could be related to a
choice of alternative activities instead of attending work.
Non-attendance
Another definition of absenteeism refers to the non-attendance of
employees for scheduled work (Gibons, 1966; Johns, 1978; Jones, 1971). The definition
distinguishes absenteeism from other forms of non-attendance that are arranged in advanced (e.g.
vacations) and specifically avoids judgements of legitimacy associated with absent events that are
implied by as sick leave. This definitional emphasis seeks to focus on the key organisational
consequences of unscheduled non-attendance – instability in the supply of labour to the
organisation resulting in the disruption of scheduled work processes and the loss of under
utilisation of productive capacity (Allen, 1981; Jones, 1971, Nicholson, 1977). For this research
this definition will be applicable, as the researcher will not take into account absences due to
Page 45
vacation leave and sick leave taken over more than three days.
Organisationally excused vs. organisationally unexcused

In terms of distinguishing among types of absence, one simple distinction
that previous studies (Blau, 1985; Cheloha & Farr, 1980; Firzgibbons & Moch, 1980) made is
between organisationally excused versus organisationally unexcused absences. Based on these
studies, it seems that organisations operationalise excused absence to include (within defined
limits) categories such as personal sickness, jury duty, religious holidays, funeral leave, and
transportation problems. However, as Johns and Nicholson (1982) noted, absence behaviour can
have a variety of meanings for individuals. This research will focus on the organisationally
unexcused type of absenteeism.
Involuntary vs. voluntary

March and Simon (1958) on the other hand, distinguished between
two basic types of absences: involuntary (e.g. certified sickness, funeral attendance) and voluntary
(e.g. vocation, uncertified sickness). Voluntary absences are under the direct control of the
employee and are frequently utilised for personal aims. Conversely, involuntary absences are
beyond the employee’s immediate control. Hence, voluntary rather than involuntary absences
from work may reflect job dissatisfaction and lack of commitment to the organization.
A four-category taxonomy
Blau and Boal (1987) presented a four-category taxonomy describing the
meanings of absence. These categories are medical, career enhancing, normative and calculative.
In the medical category , absence is viewed as a response to various infrequent and uncontrollable
events (illness, injury, fatigue, and family demands). If such an absence (medical) occurred, it
probably would be operationalised as a sporadically occurring excused absence (Blau & Boal,
1987). In the career-enhancing category , absence is depicted as a mechanism that gives the
employee a further choice to pursue task- and career-related goals.
Page 46
For the normative category , absence is viewed less as a motivated behaviour and
more as a habitual response to the norms of the work group (organisation) regarding absence
(Blau & Boal, 1987). As such, this type of absence probably would operationalise as a
consistently occurring excused absence. More importantly, rather than absenteeism appearing as
a random walk, as with the medical category, definite patterns will emerge. Thus, for this group,
it would be expected not only to predict frequency, but also when absenteeism will happen.
Finally the calculative absence is viewed as a coin of exchange (Blau and Boal,
1987; Johns & Nicholson, 1982) in either fulfilling or modifying the implicit social contract
between the employee and employer, and as a time allocation strategy for enhancing non-work
outcomes. This type of absence would be operationalised in terms of the employee using a
certain number of excused and unexcused absences permitted by the organisation, depending on
how much the employee felt he or she should modify the implicit social contract. It could be
predicted that an extremely apathetic employee (low job involvement and organisational
commitment) would take full advantage by using both kinds of absence. Thus, the absolute
frequency and total number of days absent should be greatest for workers who are the most
apathetic.
EFFECTS OF ABSENTEEISM
Following are the drawbacks of excessive absenteeism
1.ON INDUSTRY
Absenteeism in industry stops machines, disrupts processes, creates production bottle-necks,

hampers smooth flow or continuity of work, upsets production targets, result in production
losses, increases direct overhead costs , increase work load of the inexperienced , less
experienced or sub standard workers as substitutes, this in turn creating problems of recruitment ,
training, job adjustments, morale and attitudes of the employees.
ON WORKERS
1. Absenteeism reduces workers earnings and adds to his indebtedness, decrease his
purchasing power. Makes it difficult for him to meet necessities of life, leading to
Page 47
personal problems, and in many cases loss of employment and resultant disaster for his
dependents.
2. It affects both quantity and quality of production. If more number of workers are absent
the total output is affected. If alternative arrangement is made by employing casual
workers who do not posses adequate experience the quality of goods produced is
affected.
3. It affects the efficiency of workers. The workers who joins after a long period of absence
would normally be much less efficient.
4. It affects the discipline of the workers adversely. The worker who is attending to his work
irregularly may not care much about the discipline.
Peculiar Features of absenteeism

On the basis of micro studies undertaken in different parts of the country, certain observations
may be made.
a. The rate of absenteeism is the lowest on pay day, it increases considerably on the days
following the payments of wages and bonus.
b. Absenteeism is generally high among workers below 15 years of age and those above
40.The younger employees are not regular and punctual, presumably because of the
employment of a large number of newcomers among the younger age groups.While the
older people are not able to withstand the strenuous nature of the work.
c. The rate of absenteeism varies from department to department within a unit. As the size
of the group increases, the rate of absenteeism goes up. This difference in the rate of
absenteeism is believed to be due to the peculiar style and practices of management, the
composition of the laboue force and the culture of the organization.
d. The percentage of absenteeism is generally higher in the day shifts.
e. The percentege of abasenteeism is much higher in coal ans mining industries than in
organized industries.
f. Absenteeism in India is seasonal in character.
g. It is the highest during March-April-may, when a land has to be prepared for monsoon
saving, and also in the harvest season, when the rate goes as high as 40 percent.
Page 48
CHAPTER- 6
DATA ANALYSIS
&
Page 49
INTERPRETATION
1. Age
Parameters No: of Respondents Percentage

20-30 9 15
30-40 18 30
40-50 18 30
More than 50 15 25
Total 60 100
Page 50
INFERENCE
It has been inferred that 30% of the employees who participated in the survey are of age
group between 30-40 , 30% again come under the category between 40-50 age group and
the rest of them belong to more than 50 (25%) and 20-30(15%) types.
2. SEX
Male 42 70
Female 18 30
Total 60 100
Page 51
INFERENCE
It has been inferred that 70% of the employees participated in the survey are male and the
remaining come under the female category.
3. MARITAL STATUS

Single 9 15
Married 42 70
Divorced 3 5
Separated 0 0
Widow(er) 6 10
Total 60 100
Page 52
INFERENCE
It has been inferred that 70% of the employees who participated in the survey are married
and 15% of respondents are bachelors. Rest of them are categorized under the category of
widow and divorce cases.
4 Employee able to communicate their feelings for others

Always 6 10
Very often 15 25
Often 20 33.33
Rarely 10 16.67
Never 9 15
Total 60 100
Page 53
INFERENCE
It has been inferred that 33% of employees have an opinion that they can communicate
their feelings to others often, 25% feels it very often. Also we can infer that 17% of the
employees’ rate it as rarely and 15% of them never had any such feelings, but 10% of them
feel always free enough to communicate with others.
5. Employees - forthright, frank and willingness to stand up for his rights.

Always 12 20
Frequently 27 45
Occasionally 13 21.67
Rarely 5 8.33
Never 3 5
Total 60 100
Page 54
INFERENCE
It has been inferred that 45% of respondents frequently stand up for their rights, 21%
stands for it occasionally. Also we can infer that 20% of the employees always stand up
for their rights and 8% of them are rare, but 5% of them ignore such views.
6. Employee satisfaction at work

Highly Satisfied 4 6.67
Satisfied 12 20
Neutral 23 38.33
Dissatisfied 18 30
Highly Dissatisfied 3 5
Total 60 100
Page 55
INFERENCE
It has been inferred that 38% of employees have neutral opinion on job satisfaction, 30%
are dissatisfied. Also we can infer that 20% of the employees are satisfied and 7% of them
are highly satisfied, but 5% of them experience high level of dissatisfaction.
7. Stress part of work life for employees.

Strongly Agree 10 16.67
Agree 30 50
Neutral 14 23.33
Disagree 5 8.33
Strongly Disagree 1 1.67
Total 60 100
Page 56
INFERENCE
It has been inferred that 50% of respondents agree that stress is part of their work life,
23% of them view it to be neutral. Also we can infer that, 16% of the employees strongly
agree and 8% of them disagree but 2% of them strongly disagree.
8. Work is heavy and tiresome.

Strongly Agree 16 26.67
Agree 26 43.33
Neutral 12 20
Disagree 5 8.33
Total 60 100
Page 57
INFERENCE
It has been inferred that, 43.33% feel that their work is heavy and tiresome and 26.67%
strongly agree that their work is heavy or tiresome, 20% of their view is neutral,8%
disagree and 2% strongly disagree.
9. Loneliness while working with others
parameters No: of Respondents Percentage

always 7 11.67
Frequently 23 38.33
Sometimes 19 31.67
Rarely 9 15
Never 2 3.33
Total 60 100
Page 58
INFERENCE
It has been inferred that 38% of respondents frequently feel lonesome while working with
others, 32% feel it sometimes and also we can infer that 15% of them feel it rarely,
12%always and 3% never felt so.
10. Boredom in their routine work

Strongly Agree 9 15
Agree 23 38.33
Neutral 16 26.67
Disagree 10 16.67
Total 60 100
Page 59
INFERENCE
It has been inferred that 38% of respondents agree that they feel bored when engaged in
their routine work, 27% of their view is neutral and also we can infer that 17% disagree,
15%strongly agree and 3% strongly disagree.
11. Satisfaction with the existing working conditions

Highly Satisfied 2 3.33
Satisfied 21 35
Neutral 21 35
Dissatisfied 10 16.67
Highly Dissatisfied 6 10
Total 60 100
Page 60
INFERENCE
It has been inferred that 35% of respondents are satisfied with the existing working
condition, 35% seems to be neutral. Also we can infer that 17% are dissatisfied and 10%
are highly dissatisfied. Only 3% are highly satisfied employees.
12 Time for personal activities

Always 6 10
Frequently 18 30
Sometimes 11 18.33
Rarely 12 20
Never 13 21.67
Total 60 100
Page 61
INFERENCE
It has been inferred that 30% of respondents frequently get time to do things that are
really important for them, 22% don’t agree with this. Also we can infer that 20% who
agree are rare cases and 18% only sometimes. 10% have enough time to deviate for their
personal activities.
13. Satisfied with the welfare measures
Parameter No: of Respondents Percentage

Highly Satisfied 3 5
Satisfied 15 25
Neutral 13 21.67
Dissatisfied 24 40
Highly Dissatisfied 5 8.33
Total 60 100
Page 62
INFERENCE
It has been inferred that 40% of respondents are dissatisfied with the welfare measures
adopted by the company, 25% are satisfied and also we can infer that 22% seems to be
neutral, 8% are highly dissatisfied and 5% are highly satisfied.
14. Health problems leading to absenteeism?

Very Often 3 5
Sometimes 18 30
Rarely 31 51.67
No 8 13.33
Total 60 100
Page 63
INFERENCE
It has been inferred that 52% of respondent have the opinion that sickness makes them
absent from work rarely, 30% says from time to time and also we can infer that 22% says
sickness alone does not make them absent from work. 5% very often are absent due to
health problems.
15 Impact of political or social engagement force them to be absent from work

Very Often 3 5
Sometimes 16 26.67
Rarely 17 28.33
No 24 40
Total 60 100
Page 64
INFERENCE
It has been inferred that 40% of respondents have an opinion that the political or social
engagement force did not make them absent from work, 28% feel it to be rare and also we
can infer that 27% are satisfied and 5% very often keep themselves absent due to political
or social engagements.
16. Habit of alcohol consumption makes them absent

Often 2 3.33
Very Often 6 10
Sometimes 21 35
Rarely 9 15
No 22 36.67
Total 60 100
Page 65
INFERENCE
It has been inferred that 37% of respondents have an opinion that the habit of alcoholism
did not make them absent from work. 35% says sometimes they are absent for work and
also we can infer that 15 % come under rare cases, 10% are very often and 3% are often
absent from work due to this bad habit.
17. Helping hand from the colleagues

Yes 6 10
No 36 60
To Some Extent 18 30
Total 60 100
Page 66
INFERENCE
It has been inferred that 60% of respondents have an opinion that their colleagues did not
help them in case of personal problems, 30% says to some extent they had received some
help and also we can infer that 10% agree that their colleagues help them in case of any
personal problems.
18. Any occupational hazards which prompt the employees to take leave
Yes 8 13.33
No 52 86.67
Total 60 100
Page 67
INFERENCE
It has been inferred that 87% of respondents have an opinion that they are not afraid of
any occupational hazards which prompts them to take leave, 13% show some kind of fear
towards occupational hazards which prompt them to take leave.
Page 68
CHAPTER- 7
FINDINGS & SUGGESTIONS
Page 69
7.1 FINDINGS
 On analysing the response it is found that, 35% of the employees are dissatisfied
with their work.
 50% of the employees have an opinion that stress is part of their work life.
 43% agree and 27% strongly agree that their work is heavy. From this, it can be
interpreted that the employees are having a hectic work schedule.
 A total of 70% of the employees feel lonely while working with others.
 39% of workers feel bored in their routine work.
 42% don’t have time for their personal activities.
 40% of the workers are not satisfied with the welfare measures adopted by the
company.
 Health problems seem to be one of the causes of absenteeism for the work.
 It is also found that 35% of the employees are satisfied with working condition.
 It has been found that 40% of the respondents have an opinion that politics have no
impact on the employee absenteeism.
 60% of the employees feel that their colleagues did not help them in case of personal
problems.
Page 70
7.2 SUGGESTIONS
 The management must intervene in the day to day activities of the employees. They
should provide full-fledged support, guidance and encouragement.
 The management must provide training programme to the employees at a frequent

basis. This will help them to enhance their skill and improve their existing
performance. The management must further, scrutinize the response of the
employees after the implementation of the training programme.
 Overloaded workaholic atmosphere must be avoided, as it may create a lot of stress-

related problems.
 Employees must be encouraged for their creativity and innovative outlook towards
their job assigned.
 Welfare measures of the employees should be improved so as to make the employees

feel more satisfied and contended. A satisfied employee will be more committed to
the organization.
 Medi-claim policies, weekly or monthly medical checkups etc should be provided to

the employees’ in order to make them physically fit for the job.
 The employees should either be provided with transportation facility or housing

facility so that they would have ample time for recreation in substitute for the time
they spend in traveling.
 The management should take necessary action to strengthen the relationship

between the employees.
Page 71
CHAPTER- 8
CONCLUSION
&
BIBLIOGRAPHY
Page 72
7.3 CONCLUSION
Penfos Systems. being one of the reputed electronic meter manufacturing companies in India is
also a victim of absenteeism, as one of the curse their organization is facing at present. The study
tries to reveal the factors influencing the absenteeism of employees with some suggestions which
will be of immense aid for the employees as well as the organization to reduce the absenteeism
level. I earnestly desire that, the study might bring some descend in the number of absentees in
the organization, if taken into consideration practically.
To conclude, employees’ dissatisfaction towards job & welfare measures, hectic

work schedule, stress, health problems are some of the major causes of absenteeism. This can be
reduced by the management by implementing various employee satisfactory changes in the
organization. People are the major assets of any organization and taking care of their welfare and
satisfaction is their duty as a whole apart from earning profit. As work environment is becoming
more challenging and complex, the management must also see through it that, it is capable of
managing and bringing in changes at the same pace so as to survive in this competitive scenario.
Page 73
BIBLIOGRAPHY
K.ASWATHAPPA, Human resource and Personnel Management, Tata Mc Graw Hilll, 2003.
REDDY P.N and GULSHAN S.S, Principles Business Organizational Management, Eurasia
Publishing House 1990.
http://www.unilecindia.com/
http://www.tau.ac.il
http://etd.unisa.ac.za/ETD-db
www.trainingspotting.com/
Page 74
ANNEXURE
Page 75
NAME : …………………………………………………………………………
1. Age
20-30 30-40 40-50 More Than
2. Sex :
Male Female
3. Marital status
Single Married Divorced Separated
Living together Widow(er)
4. I am able to communicate my feelings to others?
Always Very often often Rarely
Never
5. I am forthright, frank and willing to stand up for my rights
Always Frequently Occasionally
Rarely Never
6. How satisfied I am with my works?
Highly Satisfied Satisfied Neutral Dissatisfied
Highly Dissatisfied
7. Stress is a part of my work life
Strongly agree Agree Neutral
Disagree Strongly Disagree
8. Do you feel your work is heavy or tiresome?
Page 76
9. Do you feel lonesome while working with others?
Always Frequently Sometimes Rarely Never
10. Do you feel boredom in your routine work?
11. Are you satisfied with the existing working condition?
Highly Dissatisfied
12. Do you have time to do things that are really important for you?
Always Frequently Sometimes Rarely Never
13. Are you satisfied with the welfare measures adopted by the company?
Highly Dissatisfied
14. Does sickness makes you absent from work?
Very often sometimes very seldom No
15. Does any of the political or social engagement force make you absent from work?
Very often sometimes very seldom No
16. Does the habit of alcoholism make you absent from work?
Often Very often Sometimes Very seldom No
17. Do your colleagues help in case of personal problem?
Yes No To some extent
18. Are you afraid of any occupational hazards which prompt you to take leave?
Yes No
19. How do you take your eligible leave?
With prior sanction without prior sanction
Page 77
20. Do you take leave for any other reason, specify?
Page 78

Index: Employee Absenteeism

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Index: Employee Absenteeism

Uploaded by

Copyright:

Available Formats

EMPLOYEE ABSENTEEISM

CONTENTS PAGE NO.

CHAPTER 2 RESEARCH METHODOLOGY

CHAPTER 3 INDUSTRY PROFILE

CHAPTER 4 COMPANY PROFILE

CHAPTER 5 THEORETICAL FRAME WORK

CHAPTER 6 DATA ANALYSIS & INTERPRETATION

CHAPTER 7 FINDINGS & SUGGESTIONS

CHAPTER 8 CONCLUSION & BIBLIOGRAPHY

1.1 INTRODUCTION TO THE STUDY

Absenteeism is of two types -

(ii) Inability to provide services, or achieve section and departmental objectives;

Why is your present absenteeism policy ineffective?

What are the real causes for absences?

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

1.2 NEED FOR THE STUDY

Scope of the study

1.3 OBJECTIVES OF THE STUDY

1. To find out the various cause for absenteeism

4.1 Research Design

What is the study about?

Why is the study being made?

Where will the study be carried out?

What type of data is required?

Where can the data found?

What periods of time will the study include?

What will be the sample design?

How will the data be analyzed?

In what style will the report be prepared?

What techniques of data collection will be used?

4.2 Source of Data

of settlements, newspapers, journals, websites, and from library books

4.3 Sampling Methodology

4.4 Description of statistical tools used

Weighted average method:

LIMITATIONS OF THE STUDY

(In terms of US $ millions)

Domestic software Market490670920125017002450

Software Exports 73410851750265040006300

Indian Software Industry 122417552670390057008750

India's Software Exports:

 Rapidly Improving infrastructure

 Infrastructure High Quality Educat ional

 Low Operaing Costs

 Established Technology Clusters

Year2003-042004-052005-06*IT software and service exports9.212.015.2ITE-BPO

1995-1996 - 1224 million US Dollars

The Software Industry, which is a main component of the Information technology, has brought

Worldwide IT Spending to Grow 5.3 Percent in 2010

Worldwide IT Spending Forecast (Billions of U.S. Dollars)

2009 2009 2010 2010

Computing Hardware 333 -12.5 353 5.7

Software 221 -2.1 232 5.1

IT Services 777 -4.0 821 5.7

Telecom 1,892 -3.4 1,988 5.1

All IT 3,223 -4.5 3,394 5.3

"We continue to see a long-term recession 'hangover' as a more-cautious mind-set continues as

Worldwide enterprise network services spending is forecast to grow 2 percent in revenue in

The services which make extensive use of information andtelecommunication technologies

Challenges before Indian IT Industry

Welcome to Penfos Systems

Research & Development

Our Specialized Services