California State University, Northridge

Impact of Workplace Absenteeism on Employee Morale

A graduate project submitted in partial fulfillment of the requirements

For the degree of Master of Public Administration, Public Sector

Management and Leadership

By

Orlando Vargas

August 2018
The graduate project of Orlando Vargas is approved:

_________________________________________ ________________
Dr. Rhonda Franklin Date

_________________________________________ _________________
Dr. Mylon Winn Date

_________________________________________ _________________
Dr. Henrik Palasani-Minassians, Chair Date

California State University, Northridge

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 Table of Contents

Signature Page ii

Abstract iv

Section 1: Introduction 1

Research Aims 2

Section 2: Literature Review 3

Leadership Styles 3

Supervisor-Subordinate Relationship 5

Job Satisfaction 5

Organizational Commitment 7

Health/Personal Issues 8

Other Research Areas 13

Section 3: Research Methodology 15

Data Collection Methods and Analytical Methods 15

Ethical Considerations, Validity & Credibility 16

Section 4: Expected Contributions and Research Closure 17

References 18

iii
 Abstract

Impact of Workplace Absenteeism on Employee Morale

By

Orlando Vargas

Master of Public Administration, Public Sector Management and Leadership

The purpose of this research is to study the impact of workplace absenteeism on

employee morale. This has been done by examining the most common reasons for

workplace absenteeism. If we were to conduct further research, a qualitative research

design would be implemented. Interviews would be conducted with employees who are

affected by employee absenteeism. The results gathered will help us evaluate the overall

impact of workplace absenteeism on employee productivity and employee morale.

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 Introduction

The topic of choice for this research design is absenteeism within the public

sector. This topic is critical to examine because absenteeism in the workplace can

influence employee morale (Scott & Taylor, 2017). Absenteeism is an issue that can

affect not only the employee with bad attendance habits, but also fellow co-workers or

the entire organization (Sadri & Lewis, 1995). Many organizations take pride in their

mission statement. It is important to have employees follow the mission statement to

create a positive work environment and to increase employee morale (Blau, 1986).

However, what happens when employee morale decreases and employees begin to lose

faith in the organization? The organization begins to suffer in productivity and is often

unable to reach its goals (“Tackling absenteeism,” 2006).

This research design will focus on the issue of bad attendance habits and its effect

on employee morale. Bad attendance habits can be defined as a pattern of absences

within a certain period (“Tackling absenteeism,” 2006). There are different causes

resulting in low employee morale that can be attributed to the working conditions of an

organization (Cohen & Golan, 2007). We must find the answers to some of the most

troubling questions, such as What are the main causes of employee absenteeism? Does

absenteeism have a negative effect on the productivity of the employee or other

employees? What effect does absenteeism have on the organization? Is low employee

morale a result of employee absenteeism? This research design will attempt to prove that

employee absenteeism has a negative effect on employee morale.

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Research Aims

Overall, the purpose of the research is to examine the lasting effects from

absenteeism in the public sector and its correlation to employee morale and productivity.

There are many different factors that can cause bad attendance habits, such as health

issues, family or personal issues, lack of motivation, an increased workload, bad work

relationships, inefficient leadership styles, or an overall hostile work environment. It is

important to consider all possible reasons of absenteeism to find the most common

underlying issues. The research may be helpful in detecting the effects on employee

morale and productivity, which can provide solutions to protect against these threats.

The research will also attempt to measure employee morale based on the attitudes

toward employee absenteeism. It is often difficult to measure employee morale because

the perceptions and attitudes of individuals are ever changing. For the purpose of this

study, employee morale will be measured with the level of job satisfaction and

organization involvement of the employee. Other factors to consider when measuring

employee morale are tenure with the organization, age of the employee, and career goals.

The combination of these measures will help us determine if an employee is looking to

advance their career or if they are simply looking towards retirement. The amount of

years an employee has spent with an organization can also determine the loyalty of the

employee to the organization.

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 Literature Review

Employee absenteeism can be attributed to many different factors. The

information collected through the research demonstrates that there is not one simple

component, but rather a myriad of components that makes it difficult to prevent employee

absenteeism. Some of the recurring themes found in the research include leadership

styles and supervisor-subordinate relationship, level of job satisfaction and organizational

commitment from employees, and health and personal issues.

Leadership Styles

There are many determinants of absenteeism that are out of the control of

managers. However, leadership style is one of the determinants that managers can

control (Frooman, Mendelson, & Murphy, 2012). Leadership styles and the relationships

between supervisor and subordinate have also been found to have an influence on

absenteeism in the workplace (Dular & Markic, 2012). Tepper (2007) specifically

discusses the abusive leadership style that is reminiscent of bullying. This type of

behavior leads to a hostile work environment and a negative response from the

subordinate towards the supervisor and organization (Tepper, 2007). Similarly, the fear

of negative consequences for poorly performed work can also have an influence on

employee absenteeism (Dular & Markic, 2012). An employee who is not confident in the

performance of their own work may decide to not perform at all (Dular & Markic, 2012).

Transformational leadership has been found to affect productivity levels through

an innovative culture and organizational learning (Zhu, Chew, & Spangler, 2005).

Further studies have shown that transformational leadership has had either a negative

correlation or no correlation at all to absenteeism (Frooman et al., 2012). The

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transformational leadership style consists of qualities such as strong morals,

supportiveness, and providing motivation to employees (Frooman et al., 2012).

Transformational leaders hand over some of the responsibility to subordinates to

empower them and make them feel responsible and accountable (Frooman et al., 2012).

Research has demonstrated that employees experience more job satisfaction with

leaders who are supportive and encourage their subordinates to achieve more (Zhu et al.,

2005). The transformational leadership style is encompassed by these concepts, so this

type of leadership style leads to increased employee job satisfaction (Frooman et al.,

2012). This increased job satisfaction and positive environment at work encourages

employees to consistently come to work with a positive attitude while working with a

leader who is caring and supportive (Zhu et al., 2005).

The transactional leadership style involves several transactions between the leader

and subordinate, including rewards for the transactions rendered (Frooman et al., 2012).

These incentives are used to encourage employee performance but it is not always

successful because it does not give the employee any sense of responsibility nor does it

demonstrate supportiveness (Tepper, 2007). One form of a transactional leadership style

is passive avoidance. A passive avoidant leader is passive and un-attentive to the needs

of the subordinates (Frooman et al., 2012). The leader does not consider the opinions of

the subordinates during decision making and is solely concerned with advancing his or

her needs (Frooman et al., 2012). Therefore, the subordinates do not have a vision or

guide to follow, so their job interest decreases (Frooman et al., 2012). This can lead to

the development of Theory X employees (Sania, Kalpina, & Javed, 2015). This type of

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leadership style results in decreased employee job satisfaction, which can eventually turn

into higher levels of employee absenteeism (Frooman et al., 2012).

Supervisor-Subordinate Relationship

The relationship between employee and subordinate can determine an employee’s

motivation to go to work (Dular & Markic, 2012). Biron and Bamberger (2012) also

agree that having a strong support system at work can reduce employee absenteeism.

Employees who perceive their supervisor or manager to be less supportive often lack

focus at work, which affects employee morale and in turn affects employee absenteeism

(Biron & Bamberger, 2012). Maintaining a positive working relationship is essential to

keep employees motivated and focused while at work, while also encouraging employees

to come to work (Dular & Markic, 2012). Ko and Hur (2014) also agree that managerial

trustworthiness is vital to maintain employee morale and prevent employee absenteeism.

Using the social exchange theory, they discovered that traditional benefits are not

negatively associated to employee absenteeism (Ko & Hur, 2014).

Employee morale is also directly related to the communication relationship

between superior and subordinate (Baird & Bradley, 1978). The leadership style a leader

chooses to implement will determine how effective they are able to communicate

information to their subordinates (Dular & Markic, 2012). Effective communication is

needed between managers and subordinates to discuss and resolve any issues before they

get out of hand (Johnson & Indvik, 1997).

Job Satisfaction

As research proves, overall job dissatisfaction has consistently related to

employee turnover (Porter & Steers, 1973). Disgruntled employees who are not satisfied

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with their job will tend to gradually increase their levels of absenteeism and eventually

consider leaving the organization for a different position or organization (Porter & Steers,

1973). Cohen and Galan (2007) also examined the correlation between employee

absenteeism and employee turnover. Data results revealed that employees with higher

levels of absenteeism showed early predictors of future employee turnover (Cohen &

Golan, 2007). Furthermore, absenteeism and turnover are interrelated and are signs of an

employee’s withdrawal from work (Cohen & Golan, 2007).

A study conducted by Scott and Taylor (2017) examined previous research that

explored the relationship between job satisfaction and absenteeism. It was found that

employee morale is a very important aspect that needs to be maintained to retain

employees and improve employee attendance (Scott & Taylor, 2017). This is explained

further through Douglas McGregor’s Theory X (low employee morale) and Theory Y

(high employee morale) (Sania et al., 2015). A Theory Y employee can be defined as an

employee who is satisfied with the job, is creative, takes initiative, is committed to the

organization, and focuses on achieving organizational goals (Sania et al., 2015). On the

other hand, a Theory X employee can be defined as an employee who is dissatisfied with

the job, lacks motivation, and avoids responsibility (Sania et al., 2015). The attributes

pertaining to a Theory X employee can lead to employee complaints, employee

absenteeism, and employee turnover (Scott & Taylor, 2017).

Many organizations are now focused on customer service rather than profits

(Jerome & Kleiner, 1995). Maintaining positive relationships with clients and customers

is necessary to uphold the vision statement, mission statement, and goals of the

organization (Jerome & Kleiner, 1995). Sania et al. (2015) state that employee morale is

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as important as customer satisfaction. Therefore, the employees dealing with the

customers are vital to the success of the organization (Sania et al., 2015). Employees

must be satisfied with their job to perform their duties efficiently (Sania et al., 2015).

Jerome and Kleiner (1995) emphasize that organizations are now investing in people.

Trainings on employee morale and motivation continue to be an ongoing trend for

organizations (Jerome & Kleiner, 1995). Organizations are aware that motivated

employees provide effective services to the customers (Sania et al., 2015).

Another study by Baird and Bradley (1978) suggests that an employee’s job

satisfaction is influenced primarily by his or her perceptions of the quality of other

employees’ performances and, to a lesser degree, his or her perceptions of the quality of

his or her own performance. Employees tend to socialize with one another during and

after work hours, so a lot of information is readily shared between them. The disparity of

quantity and quality of work produced among the employees can have a trickling effect

(Baird & Bradley, 1978). These noticeable behaviors can influence motivation and

impact workplace absenteeism (Porter & Steers, 1973).

Organizational Commitment

Blau (1986) indicates that an employee’s level of involvement in the organization

is a strong predictor of tardiness and absenteeism. An employee who is involved in

committees, attends meetings, and is looking to advance the organization is less likely to

be tardy or absent on a consistent basis (Blau, 1986). This is consistent with Douglas

McGregor’s Theory Y employees (Sania et al., 2015). On the other hand, an employee

who does not demonstrate an interest in participating in activities or celebrations in the

organization demonstrates signs of separation between employee and organization, which

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can lead to frequent absences or tardiness (Blau, 1986). This is consistent with Douglas

McGregor’s Theory X employees (Sania et al., 2015).

Sadri and Lewis (1995) proclaim the three best ways to combat absenteeism in the

workplace is by changing the organizational environment, offering more incentives to the

employees, and self-management training. However, there is no best solution for

managing employee absenteeism (Sadri & Lewis, 1995). A manager must consider the

organizational environment, along with the characteristics of the employee, and choose

the most appropriate solution (Sadri & Lewis, 1995). In contrast, Frooman et al. (2012)

believe that the characteristics of the employee are irrelevant because the leadership style

of a leader is the most important characteristic to consider.

Health/Personal Issues

One of the reasons identified as a contributor to workplace absenteeism is the use

of alcohol. A study analyzing this affiliation found a significant relationship between

workplace absenteeism following a day of alcohol consumption (McFarlin & Fals-

Stewart, 2002). These results indicate that a person who drinks alcohol on a frequent

basis has a difficult time attending work (McFarlin & Fals-Stewart, 2002). Johnson and

Indvik (1997) agree with McFarlin & Fals-Stewart in that alcoholism can lead to

depression. The reason for this is because alcohol influences an individual’s impairment,

which can lead to deeper and more severe health issues that prevent them from going to

work (McFarlin & Fals-Stewart, 2002).

Johnson and Indvik (1997) focused their research on stress and depression in the

workplace. These two factors were found to contribute to 290 million work days lost per

year, which totals an annual national cost of 43.7 billion dollars per year (Johnson &

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Indvik, 1997). As noted, alcoholism can be a sign of depression (McFarlin & Fals-

Stewart, 2002). McFarlin and Fals-Stewart (2002) also found that increased alcoholism

leads to patterns of absenteeism that must be addressed before they become inevitable.

Some organizations offer employee assistance programs to its employees so that

employees who suffer from stress and depression or alcohol issues can seek professional

help. Stress and depression in the workplace usually lead to lower productivity and

higher absenteeism rates (Johnson & Indvik, 1997).

Individual life choices however are not the only contributors to absenteeism in the

workplace. For example, a study demonstrated that employees with high levels of

financial stress are more likely to experience higher levels of absenteeism (Kim,

Sorhaindo, & Garman, 2006). This type of stress is another health concern that results in

workplace absenteeism (Kim et al., 2006). Johnson and Indvik (1997) agree that

financial stress has a direct correlation to workplace absenteeism.

Work-family conflict is another concept that affects employee absenteeism. The

pressures from work and family situations cause an individual to mentally deteriorate,

which often leads to more absent days from work (Vignoli, Guglielmi, Bonfiglioli, &

Violante, 2016). Goff, Mount and Jamison (1990) also studied this area and found that

less family conflict was related to lower levels of absenteeism. Family conflict was

found to be a stressor that affects the overall health of an employee (Goff et al., 1990).

This information coincides with Johnson and Indvik’s data results, which demonstrates a

link between stressors and workplace absenteeism (Johnson & Indvik, 1997). An

employee who suffers from constant stress at home will not be able to concentrate at

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work (Vignoli et al., 2016). These increased levels of stress can result in higher levels of

workplace absenteeism (Goff et al., 1990).

Like McFarlin and Fals-Stewart (2002) study on alcoholism, another habit of

choice that has been attributed to absenteeism is smoking. Smokers also had a

significantly greater absenteeism rate than did non-smokers (Halpern, Shikiar, Rentz, &

Khan, 2001). Like alcohol consumption, smoking is an individual choice that can

influence a person’s body if an individual is not able to control their behavior (Halpern et

al., 2001). McFarlin and Fals-Stewart (2002) believe that alcohol consumption has

greater effects than smoking because alcohol is considered a depressant and the person

abusing the alcohol will not only suffer from health issues, but their state of mind and

work habits will also be affected. However, Halpern et al. (2001) argue that smoking can

also cause other health related issues. These health issues can be such a concern that they

lead to workplace absenteeism (Halpern et al., 2001).

Health concerns because of bad habits, age, climate change, or hereditary are

causes of workplace absenteeism that managers are unable to control. Lofland and Frick

(2006) conducted a study that revealed employees who have a higher level of access to

health care are more likely to miss work more frequently. The reason for this is because

having immediate access to health care gives an employee the opportunity to care for

their health more consistently, which is usually done within working hours (Lofland &

Frick, 2006). Regular check-ups and other follow up visits are not as common with those

lacking appropriate access to health care, so they will often report to work even when

they are not feeling well (Lofland & Frick, 2006).

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 The overall health of the employees is the main concern that some managers try

to tackle when dealing with workplace absenteeism, but this is sometimes out of their

control (“Tackling absenteeism,” 2006). Managers insist that by keeping employees

healthy and safe, employees are less likely to become chronic absentees (“Tackling

absenteeism,” 2006). This contradicts Lofland and Frick’s (2006) research because their

results revealed that it doesn’t really matter if an employee is healthy or unhealthy, but

access to health care is the main cause of workplace absenteeism when looking at

absenteeism from a health standpoint. The healthy employees must maintain their health

to go to work consistently, so they will still miss work to take care of their health,

depending on their access to proper health care (Lofland & Frick, 2006).

The relationship between strenuous work tasks and poor health has been studied

extensively. The emotional exhaustion of the job demands impacts employee

absenteeism (Vignoli et al., 2016). Not only do job stressors negatively impact an

employee’s health, but they also negatively impact their ability to show up to work

consistently (Vignoli et al., 2016). Calling out sick from work may be used by

employees as a coping mechanism to deal with the stressful job demands (Johnson &

Indvik, 1997). Many employees can feel burned out by the number of tasks or

assignments at work. Some employees would rather stay home and conserve some

energy before returning to these arduous work conditions. This is considered an

involuntary absence because it is not that the employee is unwilling to go to work, but

rather they are unable to go to work due to a health issue (Vignoli et al., 2016). Further

exploration into the emotional and stressful tasks recognizes that stress has an impact on

an employee’s attitude (Cho & Song, 2017). This type of attitude change can lead to a

11
decreased employee morale in an organization, which can lead to a lack of organizational

trust between the employees and higher rates of absenteeism (Cho & Song, 2017).

Another personal issue that can affect employee absenteeism is lack of child care.

Goff et al. (1990) examined the relationship between lack of child care and employee

absenteeism. The study attempted to prove that having a child care center at work would

reduce workplace absenteeism (Goff et al., 1990). However, the results failed to prove

the hypothesis that use of a child care center at work would reduce absenteeism of

employed parents (Goff et al., 1990). It was found that employees are more likely to stay

home from work if they don’t have proper child care at home so their children are taken

care of properly (Goff et al., 1990). On the other hand, a study conducted by James

Gerard Caillier (2016) focused on the effects of family-friendly programs and its

correlation to absenteeism and turnover in the public sector. Results showed that

employers who provided programs such as dependent care and elderly care to its

employees had a lower rate of employee absenteeism and turnover (Caillier, 2016).

Boise and Neal (1996) studied the aspect of child care along with the care of the

elderly. They found that employees caring for their children had a higher rate of

absenteeism than did employees caring for their parents (Boise & Neal, 1996). It was

also noted that employees are more comfortable leaving an elderly person at home under

the care of another person than leaving a child at home under the care of another person

(Boise & Neal, 1996). Goff et al. (1990) also found that parents were not comfortable

leaving their child under the care of a random person. The security and proper care of

their children was a top priority (Goff et al., 1990).

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 Researchers have suggested a remedy to resolve the inconvenience of having to

find a responsible person to care for a loved one is to offer alternate work schedules. A

study by Dalton and Mesch (1990) was conducted to determine the impact of flexible

schedules on absenteeism. Results indicated a reduction in employee absenteeism with

the implementation of a flexible work schedule (Dalton & Mesch, 1990). These results

show that working with an employee and offering a plausible solution to reduce

absenteeism can prove to be effective (Dalton & Mesch, 1990). However, Boise and

Neal (1996) state that flexible work schedules will not have an impact on workplace

absenteeism if the employee does not have appropriate child care/elderly care.

Other Research Areas

Absenteeism in the workplace is an issue that is not exclusive to the United

States. The article “Tackling absenteeism in the workplace” (2006) explores the cost of

work absenteeism to the economy in the United Kingdom and it was found that a total of

ten to twelve billion pounds annually can be attributed to employee absenteeism. One of

the reasons for this considerable cost is because employee absenteeism leads to a reduced

workforce (“Tackling absenteeism,” 2006). A reduced workforce can cause low

productivity, which means more overtime hours may be needed to accomplish the goals

of the organization (“Tackling absenteeism,” 2006). Sadri and Lewis (1995) would agree

that the goals of the organization are greatly impacted by high absenteeism rates.

Cohen and Golan (2007) conducted a study and they concluded that prior

absenteeism was a strong predictor of future absenteeism. Absenteeism is viewed by

many researchers as a behavior that can increase in occurrences unless it is stopped in its

early stages (Porter & Steers, 1973). Organizations must focus on understanding the

13
motives behind employee absenteeism to prevent future absences and to retain its

employees for as long as possible (Porter & Steers, 1973).

There have been many studies analyzing the possible causes of workplace

absenteeism. However, previous research findings have suggested that sampling errors,

inadequate scales, and the use of different measures of job satisfaction and absence are

the reasons for inconsistencies in previous empirical research that examined the

relationship between job satisfaction and absenteeism (Scott & Taylor, 2017). Therefore,

it is important to continue to research the gap between employee absenteeism and low

employee morale, as previous attempts to examine this relationship has not produced

effective results. If there is a direct correlation between these two variables, we may be

able to determine solutions to address the issue.

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 Research Methodology

This research will require a qualitative research design, as there is a need to

provide insight into the underlying issues of workplace absenteeism, as well as the

measurement of views and opinions of the employees affected by this issue. By

measuring the views and opinions of employees, we can determine if they possess a low

or high employee morale.

The use of in-depth interviews helps to further understand the opinions and

attitudes of employees on workplace absenteeism. The interviews will help us view the

reactions of the employees that are affected by employee absenteeism and the ways these

employees cope with absenteeism in the workplace. Interviews allow clarification and

probing to get more accurate results.

The data collected through interviews will need to be coded to establish patterns

observed. Charts will be created to represent the attitudes of the employees about

employee absenteeism and how it affects their own work productivity and employee

morale. The strategy used to obtain these data methods will be to conduct in person

interviews of an entire unit (Unit A) that assists another unit (Unit B) when they are short

on staff. Employee attendance reviews and district rosters will be combined to match

those units with high rates of employee absenteeism. The units will be selected based on

a unit that has a high rate of employee absenteeism. The purpose and intent behind the

research will be explained to them prior to conducting the interviews.

Data Collection Methods and Analytical Methods

The interviews will follow a structured questionnaire so we may have the

capability to compare answers in the same manner. There will be a mixture of close-

15
ended and open-ended questions. The purpose of the open-ended questions is to give the

interviewees an opportunity to expand on their answers. Probing will allow us to collect

more feedback we can use to compare results.

Data results will allow the opportunity to create charts that demonstrate patterns

of how employees react to absenteeism. The charts will be categorized to show those

who are negatively affected, positively affected, or no impact at all. We can then analyze

the lasting effects of this impact and possible behavior changes in the employees.

Ethical Considerations, Validity & Credibility

It is important to establish an honest relationship with the people participating in

the research. The offer for anonymity will be presented to the subjects prior to their

participation in the research. This will allow the subjects to express their feelings and

emotions more freely, which in turn will create less biased responses. There will be no

use of actual names about participants being interviewed.

The validity and credibility of the research will be determined by the level of

honesty of the participants. The answers provided may not always be the complete truth

because the participants want to avoid any repercussions for them or other people

involved. Therefore, it is important that participants feel comfortable in knowing that

their participation will not hold any negative repercussions.

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 Expected Contributions and Research Closure

The research conducted will provide results as to why certain employees have bad

attendance habits. The research will also provide results on how these actions affect the

employee morale within an organization in the public sector. It is expected that the

research will also contribute towards solutions to rectifying absenteeism in the workplace

and methods to maintain and improve employee morale. The research may be distributed

and shared via a published article. Researching and analyzing the cause and effect of

employee absenteeism on employee morale is important to understand in agencies within

the public sector because it affects productivity. Productivity in the workplace needs to

be maintained at a high standard to achieve the goals of the organization.

17
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