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EMPLOYEE ABSENTEEISM IN ORGANIZATION

A
REPORT ON
CONTEMPORARY ISSUES IN MANAGEMENT
ON

“Employee Absenteeism in organization”

SUBMITTED TOWARDS PARTIAL FULFILLMENT OF TWO-YEAR


“MASTER OF BUSINESS ADMINISTRATION” DEGREE PROGRAMME
OF RAJASTHAN TECHNICAL UNIVERSITY
(2010-2012)

GYAYAK COLLEGE OF MANAGEMENT


BANSWARA (RAJ.)
(AFFILIATED TO RAJASTHAN TECHNICAL UNIVERSITY, KOTA)
“APPROVED BY AICTE”

GUIDED BY: SUBMITTED BY:

MISS MANALI JAIN HEMANGINI PUROHIT


(ASST. PROFESSOR) (MBA PART-1, SEM-2)

GUIDED BY: 1 SUBMITTED BY:

MISS MANALI JAIN HEMANGINI PUROHIT


(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

“DECLARATION”

This is to declare that I have carried out this project report work on contemporary
issues entitled….

“Employee Absenteeism in organization”


SUBMITTED TOWARDS PARTIAL FULFILLMENT OF TWO-YEAR
“MASTER OF BUSINESS ADMINISTRATION” DEGREE PROGRAMME OF
RAJASTHAN TECHNICAL UNIVERSITY (2010-2012)

The work is original, has not been copied from anywhere else and has not been
Submitted to any other University/Institute for an award of any degree/diploma or
Fellowship or other similar titles or prizes.

Place: Banswara Hemangini Purohit

Date: 15 May 2011 (MBA Part 1, Sem 2)

GUIDED BY: 2 SUBMITTED BY:

MISS MANALI JAIN HEMANGINI PUROHIT


(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

ACKNOWLEDGEMENT

“Acknowledgement is an art, one can write glib stanzas without meaning a word,
on the other hand one can make a simple expression of gratitude”

The project report work was made possible by the co-operation & help of several persons hence I
finds it difficult to adequately express our appreciation. I bow to the glory of almighty for
shoIring our blessings & rendering the strength to him for successful completion of this report
first of all I owe a heavy debt of gratitude chairman Mr. Virendra Shah & director

Shri Joraver Singh ji of “Gyayak college of management” to his encouragement &


unceasing inspiration through out the project work. And I am very thankful for the esteem guide/
academic advice of Internal guide Miss Manali jain for their gifted guidance,
encouragement & unceasing inspiration through out the project work. Beside a path finder for
her, his qualities like dedication, co-operation & way of working was constantly inspiring us to
keep the flame of research study burning till the generation passes. I extend their earnest feeling
for the keen interest & attention he graciously lavished upon this work. I shell ever remain
grateful & owe our regards to them for their masterly academic guidance. It was a great pleasure
for the student to undergo her project work.

I express our profound great fullness to Ms. Diptee Gour, Mr. Sonu Vasita & other members of
the institute/college for their guidance & support through out the project report work & providing
the material relevant to the study. Last but not the least I am thankful to all those people, who
have helped in the completion this study knowingly or unknowingly. I express my sincere thanks
to all friends for there valuable co-operation. Without which the present project report work &
presentation would not have been possible.

HEMANGINI PUROHIT

GUIDED BY: 3 SUBMITTED BY:

MISS MANALI JAIN HEMANGINI PUROHIT


(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

PREFACE

This report is the outcome of the internal project on contemporary issues during the
session 2010-2012 and has been produced for the partial fulfillment of the degree
of Masters of Business Administration from Gyayak College of Management
(affiliated to RTU, Kota)
The subject of project report entitled Employee Absenteeism in organization.
Absenteeism is a serious workplace problem and an expensive occurrence for
both employers and employees seemingly unpredictable in nature.Human resource is an
important part of any business and managing them is an important task. Following are
the issue which we discuss In this project work

– To discuss the issue of Employee Absenteeism “work exhaustion or burnout”.

– To explore the impact of burnout on employee absenteeism and turnover.

– To identify possible practical solutions to these problems.

It is often easier for the organizations to make arrangement to cover staffs, which are
going to be off for long periods. However, employees taking odd days off here and there
are more problematic, can have an immediate impact.

If remain unchecked, this type of absence can send out the wrong signals to colleagues
who, in some jobs, are likely to have to cover for those absent. If employers fail to take
action, a ‘buggins turn’ mentality may emerge. Frequent absence may have serious
repercussions where staff are employed in customer-facing roles or employed on
production lines. The impact of absence may be most directly felt and the need to
arrange cover at short notice may be paramount.

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

TABLE OF CONTENTS

Chapter : 1 Introduction 6
1.1 Concept of Absenteeism 7
1.2 Measurement of Absenteeism 10
1.3 Peculiar Features of Absenteeism 12
Chapter : 2 Causes and Effect of Absenteeism 13
2.1 Causes of Absenteeism 14
2.2 Analysis of Causes 17
2.3 Effect of Absenteeism on Industrial Progress 20
Chapter : 3 Absenteeism – Types & Their Control 21
3.1 Type of Absenteeism 23
1. Innocent Absenteeism 23
o Counseling Innocent Absenteeism 24
2. Culpable Absenteeism 26
o Corrective Action for Culpable Absenteeism 27

3.2 Guideline & Measures for Control Of Absenteeism 29

Chapter : 4 Conclusion 35

Chapter : 5 Recommendation & Suggestion 40

Bibliography ………. 42

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

CHAPTER :1
INTRODUCTION

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CHAPTER: 1
INTRODUCTION

1.1 CONCEPT OF ABSENTEEISM

What exactly is “Employee Absenteeism”?


• Employee Absenteeism can be defined as stress that leads to work exhaustion.

• Sadly, it is the most gifted and committed employees that tend to burn out first.

• Because of their high standards and tendency towards perfectionism, these employees
end up burning the candle at both ends.

• The result may be complete burnout.

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 : - Absenteeism is 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 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.

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

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.

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.

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

The causes of EA/burnout are many:

– Extended hours and crammed schedules

– Increased job insecurity

– Changes in company policy: e.g., increased performance demands; loss of incentive


programs
– Downsizing and similar workplace interventions, Excessive desire for personal
achievement

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, 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.
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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 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 find out
of absence rate method.

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

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

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).

APPROX ABSENTEEISM RATE

IN AN ORGANATION

1.8

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
jan feb mar apr may jun july aug sept oct nov dec

2009 2010

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

1.3 PECULIAR FEATURES OF ABSENTEEISM

On the basis of 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 day time.

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 also in harvest
season (Sept-Oct) when the rate goes as high as 40%.

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

CHAPTER : 2

CAUSES AND EFFECT OF


ABSENTEEISM

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

CHAPTER: 2
CAUSES AND EFFECT OF ABSENTEEISM

2.1 CAUSES OF ABSENTEEISM

Some facts about Absenteeism


Most employees miss work because of personal illness or illness involving a member of the
family.
Employees also miss work because of stress.
• The primary factor affecting an employee’s stress level is his/her perception of the
relationship with his/her supervisor or manager.
• Authoritarian management styles promote the highest rates of employee burnout and
absenteeism.
Absenteeism is costly to a company’s bottom-line.

The general cause of absenteeism may be summarized as below:-


1) MALADJUSTMENT WITH FACTORY

In factory the worker finds caught within factory walls, he is bewildered 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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EMPLOYEE ABSENTEEISM IN ORGANIZATION

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) UNHEALTHY 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 money lenders at
interest rate which are very high, which often cumulates to more than 11 – 12 times

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

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

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 themselves of ESI facility

11) MANEERIAL & ENVIRONMENTAL FACTOR

Authoritarian managers : The characteristics of an authoritarian manager:


– Poor listening skills and communication skills
– Tendency to set unreachable goals
– Personal inflexibility
– Tendency to blame others for problems
– Insist that things must always be done their way
– Tendency to micro-manage and be task-driven
– Sometimes yell, scream, and curse at employees
Work conditions:
– The relational climate of a job can affect employees’ willingness to show up to work.

– Negative relationships between employees and their supervisors can result in


absenteeism.
– Employees miss work as a form of “acting out”.

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

– But sometimes employees miss work because of unresolved conflict between each other.

– Interventions to reduce interpersonal work stress can help deter employee absenteeism
and burnout.
Lack of incentives:
– While many companies punish employees for missing work, few think of rewarding
those that show up faithfully.
– Incentives can boost motivation and reduce burnout.

– Examples of incentives that work:


• Being able to cash it unused sick days
• Bonuses for perfect attendance
• Certificates of achievement

No attendance policy:
Many companies do not have an explicit policy requiring employees to honor their commitment
to the job.
– An attendance policy allows a manager to intervene in cases where an employee is
frequently absent.
– An official policy allows managers to identify and refer to the EAP employees that may

have other problems e.g., alcoholism, domestic problems, etc.

2.2 ANALYSIS OF CAUSES

In general survey at an origination we found that approx ratio of case of absenteeism.


1) FAMILY ORIENTED & RESPONSIBILITES

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

2) HOUSING FACILITY

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

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

3) SOCIAL CEREMONIES

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

4) SICKNESS AND ACCIDENT

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

6) 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.

7) WELFARE FACILITES

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

8) 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.

Sign of Employee who causes with “Absenteeism”

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Burnout, Absenteeism, & Turnover


• All three factors affect each other and are affected by each other.

• Burnout has been identified as one of the principal causes of both absenteeism and
excessive turnover.
• Let’s therefore look at some of the psychological aspects of burnout.

From “enthusiastic” to “burnt-out”


• Stages of Career Burnout:

• Enthusiasm

• Stagnation

• Frustration

• Apathy

• Intervention/No Intervention

• Burnout

Physical signs of Burnout


• Fatigue and exhaustion

• Inability to shake off a cold

• Feeling run down

• Headaches

• GI disturbances

• Weight fluctuation

• Sleeplessness

• Shortness of breath

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Psychological signs of Burnout


• Working harder and feeling as if you are accomplishing less and less.

• Coming to work late and leaving early.

• Resentment – of clients, colleagues, management.

• Boredom, disenchantment, and a lack of enthusiasm.

• Feeling confused, disoriented, and out of place.

• Feeling guilty (because of underperformance).

• Experiencing a sense of futility and pointlessness.


Loss of temper; displacement of anger to others.

2.3 EFFECTS OF ABSENTEEISM ON INDUSTRIAL PROGRESS

It is quite evident from the above that absenteeism is a common feature of industrial
labour in India. It hinders industrial growth and its effect in two fold.

1) 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 the
employers and ultimately it adversely affects the production of industries.

2) LOSS TO WORKER

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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

Some facts about Turnover


• Zero percent turnover is neither realistic nor possible.

• Some turnover is actually desirable – new employees being fresh ideas and new energy.

• Excessive turnover can be very costly to a company. (The costs of turnover to be


discussed in next slide.)
• Turnover is often the result of burnout; some workplaces respond to this by demanding
even more from the few remaining employees, i.e., a vicious cycle.
• It is important to know how to attract and keep the right talent.

The high costs of Turnover


• The financial costs of hiring and training new employees vary from job to job and
company to company – but there is always a cost.
• Whatever the financial cost, excessive turnover often results in a waste of valuable
resources.
• Other costs are less tangible, and include:
– Customer service disruption
– Emotional costs including loss of morale
– Burnout/absenteeism among remaining employees
– Loss of experience and lack of continuity of service

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

CHAPTER : 3
ABSENTEEISM - TYPES & THEIR
CONTROL

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CHAPTER : 3

ABSENTEEISM - TYPES & THEIR CONTROL

Combating Absenteeism
• Change management style:
• Identify authoritarian managers
• Provide appropriate management training
• Change working conditions:
• Adopt policies and values that promote employee respect and professionalism
• Develop and promote an internal conflict resolution procedure
• Take employee complaints seriously – sometimes listening is enough.
• Work to create a “just” working climate.

• Provide incentives for attendance:

• Use an incentive program that is suited to your particular company – one size doesn’t fit
all.
• Allow employees to have input into the development of an incentive program.

• Develop an attendance policy:

3.1 TYPE OF ABSENTEEISM

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

1. INNOCENT ABSENTEEISM
2. CULPABLE ABSENTEEISM

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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.

COUNSELING 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:

1. Initial counseling(s)
2. Written counseling(s)
3. Reduction(s) of hours and/or job reclassification
4. Discharge

Initial Counseling

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.

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EMPLOYEE ABSENTEEISM IN ORGANIZATION

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 Counseling

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 fulfil 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.)
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Discharge

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.

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

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

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.

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.

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
counseling memorandum]

1. Initial Warning(s)
2. Written Warning(s)
3. Suspension(s)
4. Dismissel

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

Initial Warning “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.

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 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 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.

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
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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

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.

3.2 GUIDELINES & MEASURES FOR CONTROL OF ABSNTEEISM

Absenteeism is a disease that appears whenever a company fails to inoculate itself


through the use of 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 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?

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

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've 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.

Q. How much formal training have your supervisors received on absenteeism


containment and reduction?

If you find that your supervisors hesitate to provide meaningful answers to your
questions, then you're 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
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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

human resources skills?" If your answer is none or very little, your solution can't 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.

Following are the measures to control absenteeism:-

1) ADOPTION OF A WELL DEFINED RECRUITMENT PROCEDURE

The selection of employees on the basis of command, linguistic and family


consideration should be avoided. The management should look for aptitude and
ability in the prospective employees and should not easily yield or pressure of
personal likes and dislikes. Application blanks should invariably be used for a
preliminary selection and tools for interviews. The personal officer should play more
effective role as coordinator of information, provided that he has acquired job
knowledge in the function of selection. Employers should also take into account the
fact that selection should be for employee’s development, their reliance. They should
as far as possible rely on employment exchange.

2) PROVISION OF HEALTHFUL AND HYGENIC WORKING CONDITION

In India, where the climate is warm and most of the work involves manual labour, it is
essential that the workers should be provided with proper and healthy working
conditions. The facilities of drinking water, canteens, lavatories, rest rooms, lighting
and ventilation, need to be improved. Where any one of these facilities is not available,
it should be provided and all these help in keeping the employee cheerful and increase
productivity and the efficiency of operations throughout the plant.

3) PROVISION OF REASONABLE WAGES AND ALLOWANCE AND JOB


SECURITY TO WOTRKERS

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

The wages of an employee determine his as well as his family standard of living. This
single factor is important for him than other. The management should, therefore pay
reasonable wages and allowances, taking into account the capacity of the industry to
pay.

4) MOTIVATORS WELFARE AND SOCIAL MEASURES

The management should consider the needs of workers and offer them adequate and
cheap housing facilities, free of subsidized food, free medical and transport facilities,
free education facilities for their children and other monetary benefits. As for social
security is concern, the provision of Provident Fund, SBI facilities, Gratuity and
Pension, all those need to be improved.

5) LIBERAL GRANT OF LEAVE

The management’s strict attitude in granting leave and holidays even when the need for
them is genuine, tempts workers to go on E.S.I. leave for under this scheme, they can
have 56 days leaves in years on half pay. An effective way of dealing with absenteeism
is to liberalise leave rules.

6) IMPROVED COMMUNICATION AND PROMPT REDRESSAL OF


GRIEVANCES

Since a majority of the workers are illiterate or not highly educated bulletins and
written notices journals and booklets are not easily understood by them. Meetings and
concealing are called for written communication becomes meaningful only when
workers can readied understood them, too many notices should be avoided only the
essential ones should be put on the boards, which should be placed near the entrance
inside the canteen and in areas which are frequently visited by the workers so that they
are aware of the policies of the company and any sort changes being made.

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

7) SAFETY AND ACCIDENT PREVENTION

Safety at work can be maintained and accidents can be prevented if the management
tries to eliminate such personal factors as negligence, overconfidence, carelessness,
vanity, etc and such material factorizes unguarded machinery and explosives, defective
equipment and hand tools. Safe methods of operation should be taught. In addition
consistent and timely safely instruction, written instructions (manual) in the regional
language of the area should be given to the work force.

8) CORDIAL RELATIONS BETWEEN SUPERVISORS AND WORKERS

The supervisor should be recognise that industrial work is a groups task and cannot be
properly done unless discipline is enforced and maintained. Cordial relations between
the supervisors and these workers are therefore essential for without them, discipline
cannot be increased. One of the consequences of unhealthy relations between
supervisors and subordinates is absenteeism.

9) DEVELOPMENT OF WORKERS BY TRAINING

The system of worker’s education should be so designed as to take into account their
educational needs as individuals for their personal evaluation, as operatives for their
efficiency and advancement, as citizens for happy integrated life in the community, as
members of a trade union for the protection of their interests. The educational programs
according to their national commission on Labour should be to make a worker:-
I. A responsible, committed and disciplines operative.

II. Aware of his rights and obligations.

III. Lead a calm, clean and health life,based on a firm foundation.

IV. A responsible and alter citizen.

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

CHAPTER: 4
CONCLUSION

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

CHAPTER: 4
CONCLUSION

In the conclusion part we can say that employee absenteeism must be reduce properly and timely
through various practices or analysis in organization. Finding out the reason of being absent
through feed back and fulfilling the various types of needs must be done.

Human Resource Department of the organization must have ………


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

ii. To identify the causes of absenteeism.

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

From the following steps organization can measure & Analysis the Employee
Absenteeism .

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

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

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

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 workers 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 are used to present that data.

There are some limitations for measure & analysis which are as follows:-
a) As it was not possible to visit each department the true picture of working
condition could not be judged.

b) The workers were busy with their work therefore they could not give enough
time for the interview.

c) The personal biases of the respondents might have entered into their response.
d) Some of the respondents give no answer to the questions which may affect the
analysis.
e) Respondents were reluctant to disclose complete and correct information

Because of a small period of time only small sample had to be considered which
doesn’t actually reflect and accurate and intact picture

QUESTIONNAIRE

From the following questionnaire we can measure & Analysis the Employee
Absenteeism In an organization

Personal Information
Name ………………………………………………………………………..

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

Age…………………………. Sex………………………..……
Job status…………………………………………………………………….

1) For how many years you are working with The industries or organization ?
(a) 0-1 yr (b) 1-2 yr
(c) 2-5 yr (d) < 5 yr
2) How often you remain absent in a month?
(a) Nil (b) Once
(c)Twice (d) < Twice

3) According to you what is the main reason for employees absent?


(a) Health problem / domestic reasons (b) Stress
(c)Work dissatisfaction (d) Working environment

4) Your views regarding the present Absenteeism Policy of The industries or


organization ?
(a) Excellent (b) Good
(c) Fair (d) Don’t know

5) Are you clear about your work / job responsibilities?


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

6) Are you satisfied with your work?


(a) Well satisfied (b) Good
(c) Fair (d) Not satisfied

7) Your views regarding the working environment of The industries or


organization & work place?
(a) Excellent (b) Good

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

(c) Fair (d) Poor

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


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

9) Your superior’s behaviour towards your problems?


(a) Excellent (b) Good
(c) Fair (d) Poor
10) Your views regarding the facilities provided to you by The industries or
organization ?
(a) Excellent (b) Good
(c) Fair (d) Poor

Any suggestions / Comments


________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

CHEPTER : 5
RECOMMENDATIONS AND
SUGGESTIONS
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MISS MANALI JAIN HEMANGINI PUROHIT


(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

CHEPTER : 5
RECOMMENDATIONS AND 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:-

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’.
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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

5) MOTIVATORS WELFARE AND SOCIAL MEASURES-The management


should consider the needs of workers and offer them adequate and cheap housing
facilities, free of subsidized food, free medical and transport facilities, free
education facilities for their children and other monetary benefits. As for social
security is concern, the provision of Provident Fund, SBI facilities, Gratuity and
Pension, all those need to be improved.

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.

Suggestion: Some final thoughts…

• Stress management training is a crucial aspect of reducing employee burnout.

• Lunch-time de-stressing programs can help.

• It is important to be able to identify employees who are at risk – and encourage them to
seek help from the company’s EAP provider. Don’t lose another valuable employee to burnout.
• Estimate the cost to your company of absenteeism – and you will realize that early
intervention is cheaper.

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(MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION

Bibliography ……….
• Mamoria C.B. , Personnel Management,
• Aswathappa K., Human Resource Management
• Aswathappa K., Human Resource Management
• Basu K.S., New Dimensions of Personnel Management,
• Web Resource
www.hrm guide.com-HRM related articles
www.hrm guide.net-HRM
www.hr-topic.com
www.questia.com-current -articals,research study on hrm

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(MBA PART 1,SEM 2)