Bachelor of Business Administration

INTRODUCTION

Absenteeism is one of the factors which counteract a company’s objectives.

It is an aged old ailment suffered by every industrial establishment small or big
private or government. It is said that standard of living in a country is adjudged and
measured by economic growth and the latter in turn depends upon a stable work
force. Absenteeism is a factor which hampers the industry’s production throughout
the year.

The problem of absenteeism assumes in a developing country like India

because the workforce of the production units are drawn from a different socio-
cultural and religious background, the adoption of which to a western method of
production invariably brings problem to the workforce and industrial
establishments concerned. Therefore in the following pages an attempt is made to
study the measures and evaluate the reason of absenteeism of the workers of the
Kerala Balers Private Limited, Alappuzha. The questionnaire survey was carried
out among employees of the organisation.This study was aimed at understanding
the factors influencing the employees absenteeism and find out the trends and also
put for suggestion.

In this study I have made a humble but a sincere attempt to analyze the
various causes of labour absenteeism and the impact it has on the industry. The
findings and suggestions of the study are based on the facts and figures arrived
through the study and are presented in a more straight forward manner and with
almost sincerity.

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OBJECTIVES OF THE STUDY

The objectives of the study are:-

 To study the present rate of labour absenteeism in the Kerala Balers Private
limited.

 To find out the causes both personal and organizational for absenteeism.

 To find out the effects of absenteeism on the organization’s performance.

 To find out the measures taken by the company to control absenteeism.

 To recommend certain remedies to minimize the rate of absenteeism.

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SIGNIFICANCE OF THE STUDY

A study on labour absenteeism is very significant for proper decision

making in the management of business. It helps us to understand the extent to
which job absenteeism affects the smooth functioning of a business concern. Also
it helps to take timely measures to control absenteeism for maximization of
production. The study brings out the reason for the absenteeism of workers and
through corrective methods management of business can be made more efficient to
achieve better goals.

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SCOPE OF THE STUDY

In the modern complicated business world management is a vital factor

determining the prosperity of business. Labour is the most live factor of
production. It plays a crucial role in judging the level of output. The sincerity and
dedication of workers increases production. Similarly, the apathy and absenteeism
of workers can make a push back in business activities. A study on labour
absenteeism has much scope in these aspects. The study enables us to initiate
actions to make workers more alert and thereby ensures their sincere participation
in production.

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RESEARCH METHODOLOGY

Research:

Research in common parlance refers to search for knowledge. One can also
define research as a scientific and systematic search for pertinent information on a
specific topic. This advanced learner’s dictionary of current English lays down the
meaning of research as a “careful investigation or inquiry especially through search
for new facts in any branch of knowledge”. Some people consider research as a
movement from the known to the unknown. It is actually a voyage of discovery.

The above description of the types of research brings to light fact that
there are two basic approaches to research, viz.quantitative approach and
qualitative approach. The former involves the generation of data in quantitative
form which can subjected to rigorous quantitative analysis is a formal and rigid
fashion. This approach can be further sub classified in to intranasal experimental
and simulation approaches to research. Experimental approach is characterized by
much greater control over the research environment and in this case some variable
are manipulated to observe their effect on other variables. Simulation approach
involves the construction information’s and data can be generated. This permits an

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observation of the dynamic behaviors of a system for its subsystem under

controlled conditions. Simulation approach can also be useful in building model
for understanding future conditions.

TYPES OF RESEARCH

The basic types of research are as follows:-

 Descriptive Research
It includes the survey and fact finding enquiries of different kinds. Its
major purpose is description of state of affairs.

 Analytical Research
The researcher has to use facts or information already available and
analyze these to make a critical evaluation.

 Applied Research
It aims at finding a solution for an immediate problem facing a
society or an industrial/business organization

 Fundamental Research
It is mainly concerned with generalization and with formulation of a
theory.

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 Quantitative Research
It is based on the measurement of quantity or amount. It is applicable to
phenomena that can be expressed in terms of quantity.

 Qualitative Research
It is concerned with quantitative phenomenon, i.e. phenomena
relating to or involving quality or kind.

 Conceptual Research
It is related to some abstract ideas of theory. It is used to develop new
concept or to reinterpret existing ones.

 Empirical Research
It lies on experience or observation alone, often without due regard for
system and theory.

TYPES OF DATA AND DATA COLLECTION METHODS

Data

The methodology used for research studies involves the collection data is
defined as the fact presented to the researcher from the studies environment. It may
be primary or secondary data.

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Primary Data

The primary data is the data which collected from the respondents personally
and for the time. This is basically first hand data. Answer questions and return it. A
questionnaire consists of a number of questions printed or type in a definite order
in a form or set of forms.

Secondary Data

Any data gathered for some purpose are called secondary data. The
secondary data may be external or form within the firm. Some of the sources are
company profiles and internet, etc.

Secondary data can be collected through publish and unpublished sources.

Methods of collecting Primary data:

 Observation Method:
This is the most commonly used method especially in studies relating
to behavioral sciences. This method is independent of respondent’s willingness to
respond and thus less demanding respondent’s active co-operation as in the case of
interview method or questionnaire.

 Interview method:
The interview method of collecting data involves oral-verbal
stimuli and reply in terms of oral-verbal responses. It can be used through:

 Personal interview

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 Telephone interview

 Questionnaire method:
In this method a questionnaire is sent to a person concerned
along with a request to as secondary data. There are several ways of collecting
the appropriate data. The task of data collection begins after a research problem
has been defined and research design choked out. While deciding about the
method of collection need for the study, the researcher should keep in mind 2
types of data viz, primary and secondary data.

Sampling
Population’ refers to all those people with the characteristics which the
researcher wants to study within the researcher wants to study within the contract
of a particular research problem. For e.g.: All students in a college, all employees
in an organization.

A sample is a portion of people drawn from average population having the

characteristics of the population. It will be a representative of a population only if
it has some basic characteristics of a population from which it is drawn. A sample
is a part of the population under study in order to make influences about the
whole population

Different Sampling Techniques:

Various methods of sampling can be grouped under two major heads:

 Random Sampling
 Non-Random Sampling

 Random Sampling:

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It is based on probability for selecting of items. There each item

has its own chance of being selected.

Important Random Sampling Methods:

 Simple Random Sampling
A simple random sample is a sample selected from a population in
such a way that every member has equal chance of being selected.

 Stratified sampling
If the field of enquiry is not homogenous and contains variety of
items this method is adopted. The samples are divided in to strata’s, are
homogenous.

 Systematic Sampling
Used in cases where complete list of population is available. Under this
method, the items in the population are included in intervals of magnitude ‘K’.

 Cluster Sampling
Consist forming suitable clusters of units and surveying all the units
in sample of cluster selected.

 Non-Random Sampling:
There is no basis or probability of selecting sample.

Important Non-Random Sampling methods are:

 Judgment Sampling

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Here the investigator exercises his direction in selecting the items

that are involved that are to be included. Here the selection of items
entirely depends upon the judgment of investigator and no principle is
followed.

 Convenience Sampling
A convenience sample is obtained by selecting a convenient
population unit.

 Quota Sampling
Only definite quotas of person in different social classes, different
age groups, different region etc selected for interview.

Methodology used in this study

The research methodology is a systematic way to solve a research

problem. It may be understood as a science of studying how research step is done.
In this the researcher makes an attempt to explain the methodology of study-how it
had been conducted. At most care must be exercised while collecting data because

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data constitute foundation on which the superstructure of statistical analysis is

built.

Methodology involves collecting primary data and secondary data:

 Primary Data:

The main primary data used for this study are collected by means of:

 Interviews :
Appointments were fixed with managerial staff and interviews were
conducted.

 Questionnaire
The questionnaire was prepared for the workmen sample.
Questionnaires were issued to the employees in service department.

 Secondary Data:
Secondary data are the data collected from the publications of
journals. The main source of secondary data collections includes company history,
websites and other documents of the company.

Sampling:

Sampling method is used in this project is simple random sampling and

the sample size was 50.

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Tools used in the study:

The mathematical tool used in this study is simple percentage analysis

and pie diagrams are used for the graphical representation of the collected data.

LIMITATIONS OF THE STUDY

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The researcher found difficult to explain the aim of study to the respondent
because the respondent had a suspicious idea on the study. Some of the
respondents thought the researcher as management representative. The researcher
found it difficult to convince the respondents that it is a part of curriculum of the
researcher.

Since the area of the study topic ‘LABOUR ABSENTEEISM’ is vast ‘the
study was limited to certain important aspects of labour absenteeism of the
company. The main reason for this is the fault of the workers who are careless and
have the least commitment towards their work.

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INDUSTRY PROFILE

COIR INDUSTRY IN INDIA

The coir industry is one of the most ancient, traditional industries in

Kerala. Extending from the southernmost to the extreme north of Kerala, the
industry is deep – rooted in the economic, social and political field, especially in
the costal belt of Kerala. Nearly 15 lakhs of people and their family members are
directly depended upon the industry and the cost of labor is going by day by day, it
meets with its own difficulties, through still earns a good percentage of foreign
currency each year.

Coir is the fibre extracted from the husk of coconut. Coir industries are of the
largest cottage industries in India. Its history goes back to 1859.It also during this
year that a Spanish born American established the first coir factory in India. His
name was James Darrough. It must have been due to prosperity of the industry in
India, which he foresaw led him to establish such a factory.

During that period, coir was mostly used in ships, cables feeders and
rigging. Later on coir began to be used to building. Since coir is produced from
coconut husks, people started investing in the industry, mainly in the southern part
of the country, which was due to the abundance of coconut trees and adequate
facilities for natural retting. As a result of this, Kerala had a major part to play a
role in coir industry which is the largest manufacturer of coir products in India.

Until 1940’s the coir industry was in a progressive stage. But since then the
coir and coir products have shown a downward tendency. The main reasons for

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this being the increase in manufacturing cost and absence of workers. Workers left
their jobs and started producing coir by themselves at a very small scale rate. All

these led to the declining of coir industry. But due to the importance of such an
industry, many measures were taken to co-ordinate the efforts of the primary
producers of coir and coir products. Government assistance in this field has also
encouraged many people to enter the industry.

The coir industry of India had now become as internationally compatible

one. The basic reason for this is that coir products cannot be produced by every
country. Adequate raw materials have to be available for this purpose. Secondly,
the increasing global awareness .Coir being an environment friendly product has
found its market in many European countries. Many states have contributed for the
growth of coir industry in India, such as Kerala, Tamilnadu, Karnataka, Andhra
Pradesh, West Bengal, Orissa, Goa, Maharashtra, Pondicherry and Tripura are all
producers of coir and products in the coir industry. Therefore success of coir
industry in India mainly vests with coir producers in Kerala.

Coir industry occupies a unique place among the rural traditional cottage
industries in India. The state of Kerala also known as the ‘land of coconuts’ is the
largest producer of coir in India. It accounts for more than 75% of total production.
The preparation of coir is a lengthy process. The coconut husk is immersed in
water for rubberizing about a month. Later the softest husk is boated to separate the
fibre from the husk. This is then woven into coir. Coir foam rubberized coir is used
to make mattresses and pillow covers. These have gained popularity due to their

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softness and durability. The jewellery made out of coir is fascinating because of its
intricate and delicate designs.

The economy of the state is based on agriculture and marine products.

Some traditional industries is based on coir and coir products, marine products,
handloom, d different types of handicraft etc.Coir industry enjoys the status as the
largest cottage industry weaving sector.

The coir industry has been classified into four sectors viz.:

1) The husk rattling and fiber extraction sector.

2) The yarn – spinning sector.
3) The product’s manufacturing sector.
4) The exports sector.

Coir fiber is extracted from both green/dry husks as well as wetted husks.
The wet process of extraction of fiber is predominant in Kerala and the dry process
in the states of Tamilnadu, Karnataka and Andrapradesh. Fibre is used for spinning
yarn, which is used as the real material by the manufacturing sector. Coir yarn and
other products have good market both at home and abroad. This agro-based
industry provides substance to around 2.8 lakhs females in the costal belt of the
state.

As aforesaid, four lakh persons are directly employed in the industry. This
highlights the necessity for concentrated efforts to keep the industry going. Despite
the various setbacks faced by it an account of competition from products of over
countries, including natural and synthetics. Most of the workers live poverty line
and transferring them from this sector to another to ameliorate their living

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conditions is practically impossible in our labor surplus economy. Keeping them in

their own sphere to the extent possible seems to be the only solution.

COIR INDUSTRY IN KERALA

The coir industry is considered to be traditional cottage industry whose

earliest history is totalizing to Kerala. Extending from the south most to the
extreme north Kerala the industry is deep rooted in economic, social and political
and political field, especially in the costal belt of Kerala. Nearly 15 lakhs of people
and their family members are directly depended upon the industry and cost of
labour is going up day by day, it meets with its own difficulties, through still earn a
good percentage of foreign currency each year. Kerala had a major part to play a
role in coir products in India.

The significance of coir industry in Alleppey is due to a variety of factors.

The main factors are the presence of more backwaters, alone is not enough, but it
has to be replenished at regular. Intervals by fresh water, so as to wash away the
contaminated water by selling of green husks. The significance of coir industry in
alleppey is due to a variety of factors. The main factor is the presence of mere
backwaters, alone is not enough, but it has to be replenished at regular.

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Such sources are abundant in the district and these are favorable factors,
which have helped the growth of coir industry in Kerala. This availability of
coconut from low land on either sides of lakes and even from the higher land
accessible by good roads and canals, the presence of lakes and lagoons at regular
distance and above all the presence of hard working and industrious people who
carry on this industry were accountable to the advancement of coir industry in
alleppey.

Alappuzha is the major production centre of coir and coir products in the
state. There are about four thousand production units including a few big factories
for coir in the district. There are present 15 mechanized looms too. Attempts are
being made for the revival and revitalization of the industry through co operative
societies. There are 41 co-operative societies in the coir sector .there is a central
coir marketing society for the export of the produce of primary societies. Based on
the coir capital, Alappuzha, coir fed is the apex federation of 600 odd coir co-
operatives. A string of Regional offices and national network of over 100
showrooms ensures that for the lovers of things natural and beautiful, coir products
are within the reach. And it’s fair pricing policy has made it even more so.

In Kerala, Alleppey was main center of investment. This was mainly due to
transport facility for raw materials and finished products. The water linkage
between Alleppey town and yarn producing centers and the port facility for
shipment of finished products to various countries abroad accelerated the growth of
coir industry in Alleppey. In fact it has been rightly called the Venice of the east
due to this reason. Until 1940’s the coir industry was in progressive stage. But
since then the coir and coir products have shown a download tendency. The main

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reasons for this being the increase in manufacturing cost and absence of workers.
Workers left their jobs and started producing coir by themselves at a very small
scale rate. All these led to the declining of coir industry.

But due to the importance of such an industry, many measures were taken to
co-ordinate the efforts of the primary producers of coir and coir products.
Government assistance to this field has also encouraged many people to enter the
industry. Simple and elegant, the beautifully crafted coir products of Kerala give
an aesthetic touch to any home or office. Crafted by the women of the picturesque
coir villages of the land of coconuts, the innovative range of products including
mats, rugs ,walls hangings, carpets, door pieces, bags, hammocks, ceiling/floor
furnishing,beds,cushions,little show pieces, blinds.

The coir industry of India had now become as international compatible

one .The basic reason for this is that coir products cannot be produced by every
country. Adequate raw materials have to be available for this purpose. Second is
the increasing global awareness. Coir being an environmental friendly product has
found its market in many European countries .Many states have contributed for the
growth of coir industry in India such as Kerala, Tamil Nadu, Karnataka, Andhra
Pradesh, West Bengal, Orissa, Goa, Maharashtra, Pondicherry and Tripura are all
producers of coir and products in the coir industry in India mainly vests in the
hands of coir producers in Kerala.

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COMPANY PROFILE

History of Kerala Balers (p) ltd

Kerala Balers (p) ltd, a member of Karan group

companies is acclaimed as one of the leading exporters of coir and coir products in
India. The parent company, the Karan group comprising of three companies:

William good acre and sons India (p) Ltd (since 1862)

Alleppey Company (since 1927)

Kerala Balers (p) Ltd (since 1948)

They have been in the coir business for more than a century and form
a group of private sector companies. Backed with more than a century long

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tradition, Karan Group is widely recognized as the indisputable leaders in the

natural floor covering industry starting as coir yarn spinners in late 1800’s they
presently own the largest integrated factory in Asia for weaving natural fibre floor
coverings. Factories are equipped with the latest yarn preparation and dyeing
equipment imported automated shaft / jacquard looms finishing equipment
supported by the industries finest weaving talents. Karan group is the pioneer in
Asia for the manufacture of vinyl backed coir mats/ rolls.

KERALA BALERS (P) LTD

Kerala Balers (p) ltd was incorporated in the year 1948 for the
manufacturing and selling of coir and allied products. The registered office of the
Kerala Balers (P) ltd is situated in Thumboly by the side of NH 47
inAlappuzha.The Kerala Balers (P) Ltd is the member of the Travancore chamber
of commerce Alleppey. The coir yarn Balers Association – Cochin, The coir cochin
Association –London, federation of Indian export organization-New Delhi and
Indian Standards Institution-New Delhi. Kerala Balers is ISO 9001; 2000 certified.

COMPANY DETAILS

Company Name: Kerala Balers (p) Ltd

Address: Kerala Balers (p) Ltd

Thumboly

Alappuzha

Years of Establishment: 1948

Constitution: private company

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Associate firms: William good acre and sons India (p) Ltd

Alleppey Company

Situation: Ambalapuzha Taluk, Alappuzha District

Name of possession: Free hold

Area: About 25 acres

Activity: Manufactures and export of mats, matting’s, jute, rubberized coir

matting’s, sisal, and rubber backed edged mats etc.

Business status: Two star Export House

Major Buying countries- USA, Uk & Canada.

Factories at

 Alleppey
 Paravur (quilon)
 Palluruthi (cochin)
 Pollachi (Tamilnadu)

Fully owned units

 Madurai coir – Palluruthy (cochin)

 Floor company – Paravur (quilon)
 Cocoplast – (Alleppey)
 Pollachi – Tamilnadu

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Board of Directors

 Smt.Subhadra Ravi Karunakaran (chair person)

 Shri.Ashok venugopal (MD)
 Shri.P.k kurian
 Shri.N.Venugopal
 Shri.Vivek.Venugopal
 Shri.A.Nair

Management of the organization is vested with the board of directors

consisting of 6 members. The Board of directors shall meet at least once in 3
months.

Working capital

The working capital of the Kerala Balers mainly consists of the share
capital

Authorized capital – Rs 7, 50,000

Issued – Rs 620000

Subscribed and paid up – Rs 6, 20,000

Market share

The market share of Kerala Balers Pvt.Ltd is 10 %.

Competitors

DC mills, NC john, Palm fibre.

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Trade union

All the disputes in Kerala balers (P) Ltd are settled through the
discussion between management and trade unions. The recognized trade unions are
CITU and AITUC.

Awards owned by the company

They have own the reward for the highest exporter of coir yarn
during the year 1998 -1999 and also the award for growth in export of coir
products during the year 1999-2000.

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Product profile

Backed with more than a century long tradition, Karan group widely
recognized as the indisputable leader in the natural floor covering industry.
Starting as coir yarn spinners in late 1800’s we presently own the largest integrated
factory in Asia for weaving natural fibre floor coverings. Our factories are
equipped with the latest yarn preparation and dyeing equipment, imported
automatic shaft /jacquard looms and finishing equipment, supported by the
industries finest weaving talents. We are the pioneers in Asia for industries finest
weaving talents. We are the pioneers in Asia for the manufacture of vinyl backed
coir mats trolls. Addition of the fully automatic latex backing and flocking
machines during 2001, once again, demonstrates our leadership position in
technology up gradation with the natural floor covering industry. Our continuing
commitment to design and product development is evident by the extended in-
house design studio which is supported by inputs from the leading home furnishing
designers worldwide.

Imperial Mats

 Thick heavy-duty coir mats up to 38 mm (1.5”) thick

 Dense hand tufted pile – ideal for printed designs
 Inlaid versions available for enhanced definition

Velour mats

 Available in a range of pile heights- to fit every need and budget

 Thick coir pile – unmatched scraping and moisture absorption

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 Printed versions available at great value prices – ideal for promotions

Budgeted coco mats

 Rod mats : utility brush mats ideal for low /medium traffic areas
 Corridor mats: thin mats, with elegant woven motifs-suitable for indoors
 Elegant woven motifs in a thin construction- ideal for indoors

Power loom coco mats

 Woven on imported German looms for uniform, dense weave

 All four sides finished with latex glued edges – extra durable and slip
resistant
 Available in a range of unique textures and weaves.
 Can be cut or dir punched to any desired shape – ideal for shaped mats
 Also available in roll form –ideal for custom – entrance mat /commercial
applications
 Large in – house production capacity – helps fulfill promotional orders

Coir Broad loom and rugs

 Highly durable and pleasantly resilient – suitable for kitchens/entry

ways/stairs/halls and other medium /high traffic areas
 Most textural of all natural fiber floor coverings-providers an elegant surface
for modern as well as contemporary furniture
 Tight, uniform machine –woven quality for straighter wefts and better
durability.

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Sisal broad loom and rugs

 One of the most hard weaving of all natural fibers

 Smooth surface with a characteristics natural sheen offers a sophisticated
look
 Sisal /jute blends available with hard weaving sisal on surface and jute for
inner chains.

Jute – broad loom rugs

 Hard wearing, smooth and soft under foot –ideal choice for living and
sleeping areas
 Clean, casual understated style natural enhancement to any décor.
 Wide range of weaves/textures/colors available in both hand-woven and
machine – woven qualities

Printed jute area rugs

 Wide range of popular traditional/contemporary design themes

 Advanced dye recipe offers excellent fastness properties
 A great casual look is achieved by applying layers of stencil colours on a
hand woven jute rug.

Sea grass

 One of the versatile floor coverings

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 Hard, durable surface with classic natural look ideal for medium/high traffic
areas
 Almost impermeable fibre is naturally stain resistant

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DEPARTMENTAL PROFILE

The departmentation of the officer in Kerala Balers is made on fundamental

basis. They give greater importance in case of arranging departments. The shape,
size and number of department in Kerala Balers (P) Ltd are depend upon the size
of the business operations such as other similar organizations are doing regarding
departmentation.

The important departments in Kerala Balers (P) Ltd as follows;

 Personnel department
 Production department
 Marketing department
 Finance department
 Quality control Department

Personnel department

Personnel department is an important department of the officer

performing a number of functions recruitment, training, placement, and
development of staff, job description, and job evaluation, merit ratings – its
devices, method and enter in to contracts for employees.

The Kerala Balers (P) Ltd is providing employment to number of

persons. It has about 27 permanent office staffs that work under salary system and

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about 155 employees, who work under values sections. It is appreciable that all the
staff members are dedicated to their work.

Functions of Personnel Department:

 Manpower planning:
Man power planning is one of the requirements of hands in a
projected production program, on the existing types of and categories of machines
in different departments. The workman of the Kerala Balers can be classified as
follows: Permanent, temporary, trainees, etc.In Kerala Balers, 27 permanent
Offices staff that various sections. It is appreciable that all the staff members are
dedicated to their work.

Every employee has one punch cum identity card. Attendance is recorded
through punching system. There is a unique code number for each employee by
which each of them is identified. The personnel department keeps the bio data of
each employee, which is a confidential record, is also kept in the department.

 Recruitment
Direct recruitment has been adopted to fill the vacancies. ITI holders and
coir board trainees are usually taken. Youngsters at the age of 18-25 are generally
taken and give training in skilled jobs in the different department of the company.

 Training

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Kerala Balers give training in skilled jobs in the different department of

the company. They also give training for safety and health measures. Proper
training is given to the selected employees.

 Employee placement
First of all there is an identification of vacancies preference is
given to the employees inside the company.

 Promotion
Promotion of employees is at the direction of management. The
basis for promotion will be seniority, suitability of the post, efficiency, skills,
conduct etc of the workmen.

 Performance Appraisal
Performance appraisal and high ranked performance of employees
are awarded sometimes with promotions and other times with increase in
increments given to them.

 Employees remuneration

a) Salary – The salary system followed by Kerala Balers in payment of wage is

piece rate system and time rate system. In production, piece rate system is
employed and employees very well accept it. In the mechanical works, the time
rate is used to pay wages, wage slips are using for payment of wages. Daily wage
workers are paid weekly and staff is paid monthly.

Employees are also provided extra amount for the overtime work done by them.
The percentage bonus is given as 29.8% bonus and allowance is given once in a
year.

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b) Employee State Insurance (ESI) – All the employees of Kerala Balers

are eligible for ESI benefits. The percentage of ESI is 1.75% of salary as employee
contribution and 3.75% as employee’s contribution.

c) Provident Fund – Both the employee and employees contribution for PF

is 12 % of their earning per month.

d) Leave – For 160 working days in a year,8 paid leaves are given to the
workers.

Production department

The production department deals with various activities of production of

finished products; it provides relevant data for production planning and budgeting
and performs miscellaneous clerical functions to production quality control,
product documentation, material handling, control of stocks etc.

Kerala Balers (P) Ltd has 5 production units:

o Cocoplast
o Coco flock
o Floor coll
o Bailing
o Dye House

 Cocoplast – Cocoplast was established in the year 1992 by the parent

company. Kerala Balers (P) Ltd with an aim to create fully automated
manufacturing facility for vinyl backed coir mats and rolls. The objective of
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setting up this facility was to cater high quality conscious foreign customers
a quality vinyl backed coir mats and matting’s which would live up to their
expectations with world class quality.

 Coco flock – coco flock is one of the finishing production units of Kerala
Balers. The flocking machine is imported from Germany. The machine
capacity is depending upon the size of the mat

Floor co II – floor co II is manufacturing power loom mats and mattings.This

unit is fully automated. Floor co II has 20 weaving machines and 2 cops
winding machines.

The types of looms are:

 Jacquard loom
 Computer loom
 Shaft loom
 Brush mat loom
The H.O.D is factory manager; two supervisors assist the financial manager
in his work.

Raw materials are:

Coir yarns

Jute yarns

Sisal

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Polypropylene

 Bailing – The Kerala Balers started their business with coir yarn bales
exporting. Bailing processes include receipt of coir yarn, incoming
inspection, weighing, bailing, labeling, final inspections and despatch.

 Dye house – In the dye house coir, jute and sisal yarns are dyeing in to
different shades. Dyeing or bleaching manufacturing processes includes
receipt of materials, incoming inspection, dyeing or bleaching and drying
after bleaching or drying.

Marketing department

Kerala Balers focuses on exporting even though they have a domestic

market for the products. They places orders by participating in international
exhibition, which held in Frankfurt, Germany. The representatives are sending to
Germany with the sample of their products.

The company exports its products to: USA, UK, France, Italy, Germany,
Pakistan, Netherlands, Mexico, Spain, Denmark, Portugal, Lebanon, Canada,
Japan, etc. It also has a domestic market, Delhi and Mumbai; the orders are send
by courier or by flight. The company gives advertisement in coir news magazines.

The whole salers of the company make bulk purchase. The Bacova Guild Ltd
(USA), Boston, Ware house, Trading Company (USA) and International Trading
Company are the whole salers.

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The company mainly produces about fifteen products. The company has many
competitors. It faces competition from India as well as Srilanka and some other
foreign countries.

The assistant manager assists the manager in marketing functions. A production

executive and three office assistants work under the assistant manager.

Important buyers of Kerala Balers (P) Ltd are:

 BACOVA GUILD LTD

 MEDICI 888
 BOSTOV WAREHOUSE TRADING CORP
 HABITAT

Kerala Balers direct exporting to

 Wal-Mart stores
 Smith & Hawken
 Arget stores

Kerala Balers purchase the raw materials needed for processing is obtained
from India as well as in foreign countries.

A raw material like coir is produced from India. Raw materials like sisal,
machine spun, jute, etc are imported from Thailand, Bangladesh, etc.

Finance Department

Finance is the lifeblood of every business. Financial management is an

internal part of overall management. It is not a totally independent area. Finance

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department is responsible for all financial activities done by the organizations and
the finance management controls all the activities of financial department.

Financial department is concerned with all the receipts and payments of

coir products. The main policy of the department is to concentrate revenue and
dealing in payment. They keep a different account for keeping different
transactions.

Finance department is headed with chief accountant then followed by

assistant account officer, three computer assistants and 2 clerks. A main function
of finance department is that to maintain sufficient fund for the smooth and
efficient flow of the organization. The company collects funds by way of shares,
long term fund as well as short term.

Important functions of finance department:

 Creating and maintaining books of accounts

 Keeping of records
 Calculation of salary of staffs
 Preparation of various contract accounts
 Calculation of commission, stock valuation etc
 Analysis of companies with other companies
 Calculation of advanced tax, preparation of income tax,VAT,etc
 Preparation of P&L accounts, balance sheet
 Preparation of vouchers, journals and ledgers

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 Preparation of budget such as cash and sales budget etc.

Quality control Department

Quality control department is the process of checking the quality of both raw
materials and products with predetermined standards of quality.

The quality policy of Kerala Balers (P) Ltd as follows:

“We are committed to enhance customer satisfaction through reviewing and

improving our performance. We remain committed to excellence in all spheres of
our activities”.

In order to implement the quality policy, the quality objectives are

established as follows:

 Reduce wastage
 Reduce internal failures
 Reduce incoming failures
 Timely delivery
 Better productivity

It is insured that quality and objectives are understood, implemented

and maintained by all personnel in the organization.

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Product profile

Backed with more than a century long tradition, Karan group widely
recognized as the indisputable leader in the natural floor covering industry.
Starting as coir yarn spinners in late 1800’s we presently own the largest integrated
factory in Asia for weaving natural fibre floor coverings. Our factories are
equipped with the latest yarn preparation and dyeing equipment, imported
automatic shaft /jacquard looms and finishing equipment, supported by the
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industries finest weaving talents. We are the pioneers in Asia for industries finest
weaving talents. We are the pioneers in Asia for the manufacture of vinyl backed
coir mats trolls. Addition of the fully automatic latex backing and flocking
machines during 2001, once again, demonstrates our leadership position in
technology up gradation with the natural floor covering industry. Our continuing
commitment to design and product development is evident by the extended in-
house design studio which is supported by inputs from the leading home furnishing
designers worldwide.

Imperial Mats

 Thick heavy-duty coir mats up to 38 mm (1.5”) thick

 Dense hand tufted pile – ideal for printed designs
 Inlaid versions available for enhanced definition

Velour mats

 Available in a range of pile heights- to fit every need and budget

 Thick coir pile – unmatched scraping and moisture absorption
 Printed versions available at great value prices – ideal for promotions

Budgeted coco mats

 Rod mats : utility brush mats ideal for low /medium traffic areas
 Corridor mats: thin mats, with elegant woven motifs-suitable for indoors
 Elegant woven motifs in a thin construction- ideal for indoors

Power loom coco mats

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 Woven on imported German looms for uniform, dense weave

 All four sides finished with latex glued edges – extra durable and slip
resistant
 Available in a range of unique textures and weaves.
 Can be cut or dir punched to any desired shape – ideal for shaped mats
 Also available in roll form –ideal for custom – entrance mat /commercial
applications
 Large in – house production capacity – helps fulfill promotional orders

Coir Broad loom and rugs

 Highly durable and pleasantly resilient – suitable for kitchens/entry

ways/stairs/halls and other medium /high traffic areas
 Most textural of all natural fiber floor coverings-providers an elegant surface
for modern as well as contemporary furniture
 Tight, uniform machine –woven quality for straighter wefts and better
durability.

Sisal broad loom and rugs

 One of the most hard weaving of all natural fibers

 Smooth surface with a characteristics natural sheen offers a sophisticated
look
 Sisal /jute blends available with hard weaving sisal on surface and jute for
inner chains.

Jute – broad loom rugs

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 Hard wearing, smooth and soft under foot –ideal choice for living and
sleeping areas
 Clean, casual understated style natural enhancement to any décor.
 Wide range of weaves/textures/colors available in both hand-woven and
machine – woven qualities

Printed jute area rugs

 Wide range of popular traditional/contemporary design themes

 Advanced dye recipe offers excellent fastness properties
 A great casual look is achieved by applying layers of stencil colours on a
hand woven jute rug.

Sea grass

 One of the versatile floor coverings

 Hard, durable surface with classic natural look ideal for medium/high traffic
areas
 Almost impermeable fibre is naturally stain resistant

ABSENTEEISM:
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Absenteeism the title given to a condition that exists when a person

fails to come to work when properly scheduled to work. In other words it signifies
the absence of an employee from work when he is scheduled to be at work. It is
unauthorized explained avoidable and willful absence from work. According to the
‘Labour’ Bureau, simla absenteeism is “the total man shifts lost because of
absences at a percentage of the total number of man shift scheduled to work”.
According to the Webster’s dictionary, absenteeism is the practice or habit of being
an ‘absentee’ and ‘absentee’ is one who habitually stays away.

An employee is to be considered scheduled to work when the

employee has work available and the employee is aware of it, and when the
employer has no reason to expect, well in advance, that the employee will not be
available for work at the specialized time. Any employee may stay away from
work if he has taken leave, to which he is entitled, or on the ground of sickness or
some accident, or without any previous sanction of leave. Thus, absence may be
authorized or unauthorized willful or caused by circumstances beyond one’s
control.

Magnitude of Absenteeism

It has been observed that the phenomena of absenteeism doesn’t only

exist in Indian industry is a universal truth. The difference is only in terms of
magnitude. The rate of absenteeism varies from 7% to nearly 30%. In some
occupations it has been risked to the abnormal level of 40% in some seasons. The
extent of absenteeism may differ from industry to industry, place to place and
occupation. It may also differ according to the make up of the work force.
Absenteeism may be extensive in a particular department of an industry or a
concern.
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There have been many systematic studies of absenteeism in western

industrialized countries. For example it has been observed that absenteeism among
the younger workmen is extensive on Mondays after the weekend, particularly
among unmarried men, who after a late night on Sunday find it difficult to get up
and come on time and concentrate on work and it is the lowest on pay day.

In USA it has been observed that curiously enough that the extent of
absenteeism is greater among youngsters than among the older employees greater
among women than men. Young men are generally found to be absent for a variety
of reasons, including restless and a sense of irresponsibility. In some cases
absenteeism of particular workers is due to reasons connected with the job of
worker for example he may be absent because he doesn’t like his job for some
reason or because he has unsatisfactory relations with his supervisor or with other
employee. Absenteeism may also be due to real sickness real or fringed.

Absenteeism in Indian industry is not a new phenomenon. The Royal

commission on Labour reported that high absenteeism prevails among industrial
labour mainly due to their rule orientation since then a number of individual
researcher have investigated the problem and have pointed out that absent gated in
our industries varies from 10 percent to 15 percent its incidence is high in
plantations and in Northern India than in South India.

FEATURES OF ABSENTEEISM

Peculiar features of Absenteeism:

1. Absenteeism is a universal phenomenon. The rate of absenteeism varies

from month to month, shift to shift and day on the basic of micro studies
undertaken in different parts of the country certain observation may be

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made the rate of absenteeism is the lowest o pay day. It increases

considerably on the days following the payment of wages and bonus. The
incidence of absenteeism, both before and after a holiday, has also been
found to be higher than that of normal days.

2. Absenteeism is generally higher among the workers below 25 years of

age and those above the 40. The young employees are not regular and
punctual.

3. The rate of absenteeism varies from department to department within a

unit

4. The percentage of absenteeism is generally higher in the night shifts than

in day shifts. This is of because workers in the night shift experience
greater discomfort and uneasiness the course of their work than they do
during day-time.

5. The percentage of absenteeism is much higher in coal and mica mining

industries than in organized industries. The high percentage of
absenteeism is due to the engagement of labours in the fields, marriages
and festivals.

6. 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 the harvest season the rate goes as high as 40%.

Reason for Absenteeism

The phenomenon of absenteeism has been explained in various places.

According to one line of thought, absenteeism is due to lack of commitment on the

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part of the work force. Clark keer and his associates are of the opinion that since
the degree of commitment varies with the degree of a country’s industrial growth
or maturity, absenteeism is inversely related to industrial development.

The royal commission on labour observed that high absenteeism

among Indian labour is due to its rural orientation and its frequent urge for rural
exodus. According to Acharya in modern industry establishments except perhaps
in very small ones the individual personality is more or less irretrievably
submerged in the general mass through the sheer incidence of being thrown
together with other individuals for a certain purpose during a good bit of each
day’s life. The individual has no elbowroom & is hammered into a set pattern,
while the human spirit clamors for open spaces and unfettered all so that if many
kicks its legs about for a change.

The attitude and practice of the management also contribute to

absenteeism various empirical studies on the micro level in India have been
undertaken to find out the cause which have contributed to a high percentage of
absenteeism. A few are quoted below.

SITRA’S Publication refers to the following causes.

1. Unsuitable working conditions.

2. Unfavorable mental attitude arising out of boredom, discontent with
wages resentment against supervisors.
3. Lack of provision for general welfare.
4. Inadequate medical facilities for minor injuries.
5. Increased distance between management and workers.

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Sinha Analysis is classified in to 3 heads:

1. In plant causes.
2. Personal causes.

3. Community and social causes.

In a study undertaken on behalf of the national productivity council of

Bhutani arrived at these causes.

1. 5% to 7% on account of genuine personal sickness.

2. 5% to 7% on account of genuine family sickness.
3. 1% to 2% on account of bonafide relaxation needed because of overtime
work.
4. 5% due to bonafide emergences.
5. 5% due to social exigencies.
6. 5% on account of distance from factories.
7. 15% to 20% on account of earning higher wages inside.
8. 5% to 7% because of disharmony with foreman.
9. 15% to 20% on account of drinkness.

The general causes may be grouped into three categories:

1. Organizational factors,
2. Environmental factors &
3. Personal factors.

Organizational factors

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There are various organizational factors which causes work alienation

resulting into absenteeism. The following organizational factors have been found
responsible for absenteeism.

1. In some industries where work is monotonous, the rate

of absenteeism is high.
2. Leniency towards absenteeism causes high rate of absenteeism.
3. Some organizations resort to badly system of employment by appointing
temporary / casual workers. This leads to high absenteeism in these
organizations.
4. Militant attitudes of traditions also cause high absenteeism, as workers
become frustrated because of these attitudes.

Environmental factors

Various environmental factors of the country particularly all socio-

economic factors and religious cultural factors are responsible for high rate of
absenteeism in the following ways.

I. Socio-Economic factors
Following socio-economic factors are responsible for absenteeism

1. Due to migratory nature of labour force workers don’t develop emotional

belongingness with their work places hence their high absence.
2. Workers generally live in unhygienic and pool economic conditions
because of these condition they lack commitment their work, which
causes absence.

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3. Workers generally have more number of dependent children coupled

with unhygienic living conditions to face the problem if sickness quite
frequently which result into absenteeism.

II. Religious and Cultural factors

Indian population consists of multi religious and cultural groups with
each group having its own religious festival customs and traditions. These
festivals take considerable time to celebrate. It has been observed that during
these festivals absenteeism rate is quite high because of these festivals
workers tend to remain absent from the workplace

Personal factors

The more frequent personal causes are as follows

a) Unskilled and young workers have higher rate of absence because of

their personal problems.
b) Woman workers are more prone to absenteeism because of their personal
and family problems.
c) Workers who are alcoholic and drug addict show higher tendency of
absenteeism.
d) Indebtedness of workers causes absenteeism.
e) Some workers tend to be chronicle absence either because of their
personality factors or because of their other problems.

Measures to control absenteeism

Absenteeism is a serious problem for management because it involves

heavy additional expenses. Employees don’t ask for leave of absence in advance or

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origin notice during their absence as to how they would be away. The management
is generally uncertain about the probable duration of an employee’s absence and
cannot take appropriate measures to fill the gap.

The Labour Investigation Committee 1946 of the opinion that proper

conditions of work in the factory, adequate wages, protection from accidents and
sickness and facilities for obtaining leave for rest and recreation constitute the most
effective means of absenteeism.

The Encyclopedia of social suggests the following measures to reduce

the rate of absenteeism:

1. The personal management should encourage notification, especially in

case of sickness when the duration of absence is likely to be long.
2. In case of personal and family circumstances like illness of children in
the case of married women employee, which make absences unavoidable,
leave should be granted liberally.
3. To reduce unavoidable absence due to sickness and industrial accidents,
programs like industrial hygiene and safety should be strengthened.
4. Regularity in attendance can be encouraged to social to extent by the
offer of a bonus and other peculiarly inducements.
5. Absenteeism is probably a natural human reaction to be routine modern
factory life. There are maladjustments between man’s instincts and
desires and the regular working habit that are imposed upon him. This
labour can be relaxed or modified by grant of leave with pay, by shifting
or redistributing scheduled hours, by having employee living nearer to
the places of work and by adjusting the physical conditions of the plant
especially noise and ventilation. It should be noted, no single measure

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can effective in controlling absenteeism but a skillful combination of

various measures would be definitely lead to the desired results.

The following are some of the measure to control absenteeism:

i) Adoption of well defined recruitment procedure

The selection of employees on the basis of commercial, linguistic

and family consideration should be discourage or avoided. The
management should be apt and show ability in the perspective
employees and should not easily yield to pressure on personnel likes
and dislike. Application blanks should invariably be used for a
preliminary selection and tools for interviews. The personnel officer
should pay a more effective role as a coordinator of information,
provided that ha has acquired job knowledge in the function of
selection. Employees also take into account the fact that selections
should be for employee’s development, their reliance, therefore on
intermediaries for the recruitment of employees should be entirely
done away with. They should as far as possible relies on employment
exchange.

ii) Provision for healthful and hygienic working conditions.

In India where climate is warm most of the work involves manual

labour. It is essential that workers should be provided with proper and
healthy working conditions. The facilities of drinking water, canteens,
restrooms, lighting and ventilation need to be improved.

iii) Provision for reasonable wages and allowances and job security for
workers.

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Some of the wages of employees determine his as well as his

family’s standard of living. This single factor is important for him
than any other. The management should therefore pay reasonable
wages and allowances taking into account the capacity of the industry
to pay. The level of wages prevailing in different units of the same
industry in the same area in neighboring areas the productivity of
labour and general effect of rising wages in neighboring industries.
The allowances that may be paid to worker should include old age
allowance length of service allowance position allowance, special job
allowance, good attendance allowance, transportation allowance, good
attendance allowance, transportation allowance and housing
allowance so that the work may have and know security of
employment.

iv) Motivation of workers welfare and social measures.

The management should recognize the needs of worker and offer

those adequate and cheap housing facilities, free or subsidized food,
free medical aid and transportation facilities, and free educational
facilities for their children and other monetary and non-monetary
benefits. Their genius difficulties should be recognized by the
management and it should try to help them in this regard. As far social
security measures such as the provision of provident fund, ESI
facilities gratuity and pension all these need to be improved so that
workers may have a service of belonging.

v) Liberal grant of leave.

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The management’s strict attitude in granting leave and holidays

even when the need for them is genuine, tempts workers to go on ESI
leave for under this scheme they can have 56days in a year on half pay
is an effective way of dealing with absenteeism is to liberalize leave
rules.

vi) Improved communication and prompt redressal of grievances.

Since a majority of the workers are illiterate they do not

understand bulletins and written notices, journals and booklets.
Therefore timely illustration and instructions meetings and counseling
are called for written communication becomes meaningful only when
workers can read and understanding. As for grievance settlement the
management should recognize that a delayed grievance may become a
complicated case. A procedure for fair and prompt redressal of
grievances is therefore essential.

vii) 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, over confidence, carelessness, vanity etc… and such
material factors as unguarded machinery and explosives, defective
equipment and hand tools. Job satisfaction and cordial relations
between the workers and the employers would help to eliminate most
of the personal factors.

viii) Cordial Relation between Supervisors and workers.

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The supervisor should recognize that industrial work is a

group task and cannot be properly done unless discipline is enforced
and maintained. The problem of industrial discipline become serious
when the end is not accepted as necessary or desirable, when there is
no common aim between the disciplines and the disciplined, and
discipline then becomes a more frustration of the human purpose,
shunts the development of the human personality and embitters
human relations for it is then a denial of freedom to the individual
cordial relation between the supervisor and the workers are therefore
essential for without them, discipline cannot be maintained and
productivity cannot be increased.

ix) Development of worker’s Education.

The system of worker’s education should be so designed as to

take into account there educational needs as individuals for there
personal evaluation, as per activities for their efficiency and
advancement as citizens for the protection of their interests.

Other Measures

a) There should be clear and definite rules and regulation on authorized and
unauthorized leave.
b) The rule and regulation relating to attendance must be explained to
workers.
c) A plover record of each worker attendance should be Nintendo on a
special daily attendance clad.

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d) Supervision should not be regarded as “another worker” and should be

given definite authority to take action in all cases of absenteeism.

TYPES OF ABSENTEEISM

There are 4 types of absenteeism, they are:

 Authorized absenteeism
 Unauthorized absenteeism
 Caused by circumstances beyond ones control
 Willful absenteeism

Authorized absenteeism:

If an employee is absent himself from work by taking permission from

his superiors and applying for leave such absenteeism is called authorized
absenteeism.

Unauthorized absenteeism:

If an employee is about himself from work without informing or taking

permission and without applying for leave such absenteeism is called unauthorized
absenteeism.

Caused by circumstances beyond ones control:

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Employee is absent himself from duty owing to the circumstances beyond

his control, which takes involvement in accident or sickness, thus the absenteeism
is called absenteeism caused by circumstances beyond ones control.

Willful absenteeism:

As an employee is absent himself from duty wilfuly.Such absenteeism is

called willful absenteeism.

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