A STUDY ON EMPLOYEE ABSENTEEISM By SEEDS INTIMATE APPAREL INDIA PRIVATE LTD. A project report submitted to Andhra University in partial fulfillment for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION Submitted By VULLINGALA TRINADHA RAO Reg.no: 111225602145 Under the esteemed Guidance of Assistant Professor in Management Studies DEPARTMENT OF MANAGEMENT STUDIES NOBLE INSTITUTE OF SCIENCE AND TECHNOLOGY Affiliated to Andhra University, Visakhapatnam
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A STUDY ON EMPLOYEE ABSENTEEISM
By
SEEDS INTIMATE APPAREL INDIA PRIVATE LTD.
A project report submitted to Andhra University in partial fulfillment for the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted By
VULLINGALA TRINADHA RAO
Reg.no: 111225602145
Under the esteemed Guidance of
Assistant Professor in Management Studies
DEPARTMENT OF MANAGEMENT STUDIES
NOBLE INSTITUTE OF SCIENCE AND TECHNOLOGY
Affiliated to Andhra University, Visakhapatnam
(Approved by AICTE New Delhi, India)
Visakhapatnam.
(2011-2013)
(2008-10)
NOBLE INSTITUTE OF SCIENCE AND TECHNOLOGY
Affiliated to Andhra University,
Lankelapalem, Visakhapatnam
CERTIFICATE
This is to certify that the MAIN project report entitled “EMPLOYEE ABSENTEEISM” is being submitted by VULLINGALA TRINADHA RAO to NOBLE INSTITUTE OF SCIENCE AND TECHNOLOGY in partial fulfillment of the requirement for the Award of the Degree of Master of Business Administration. This work has been carried out by him under my guidance and supervision.
Mrs. G.V.S. SAILAJA. MBA, M.Phil. (PhD) Mr. U.V. CHANDRA SEKHAR ASSOCIATE PROFESSOR (Project guide)
Head of the department
AKNOWLEDGEMT
In this endeavor, i would like to express my deep sense of gratitude to all those who
helped me in carrying out this study and resenting this report successfully.
I feel immense pleasure and pride of bring part of NOBLE INSTITUTE OF SCIENCE
AND TECHNOLOGY, that has natured me to the present state and I feel a deep sense of
gratitude towards it. I would also wish to thank......................., Special officer who has
provided me the opportunity to do project and for the successful completion of my project.
I am very much indebted .................................Head of the department, M.B.A whose
cooperation has resulted in bringing out this work.
I express my thanks to............................... Assistant Professor & Project guide for
having encouraged me to under gone this project and his excellent guidance given to me in
completing project successfully.
I am very earnestly acknowledging my deep sense of gratitude, thankfulness to all
other professors...................................................., those have a constant source of help and
guidance to me i caring out this study and presenting this report successfully. I also wish to
thank all other members of SEEDS INTIMATE APPERAL PRIVATE LTD, who helped
me in completion of my project.
(V.TRINADHA RAO.)
DECLARATION
I hereby declare that this project report were entitled “EMPLOYEE ABSENTEEISM”
has been prepared by V.TRINADHA RAO in partial fulfillment of the requirement for
the award of the Degree of MASTER OF BUSINESS ADMINISTRATION. I further
declare that this project work is a result of my own effort and that it has not been submitted
to any other university for any degree or diploma.
Place:
Date: (V.TRINADHA RAO)
ABSTRACT
The project report entitle “A STUDY ON EMPLOYEE’S ABSENTEEISM IN
“SEEDS INTIMATE APPAREL INDIA PRIVATE LTD, ” is intended to determine the
employees condition, salary, Facilities, attendance program, training programme, motivation
techniques and promotions.
To achieve this defined objective structured questionnaire based on the preliminary
study made is prepared. The prepared questionnaire is used to get the direct responses from
the employees of SEEDS INTIMATE APPAREL INDIA PRIVATE LTD
The response given by the employees of SEEDS INTIMATE APPAREL INDIA
PRIVATE LTD analyzed and interpreted using different type of statistical tools used are
percentage analysis , weighted average method , chi square , correlation .
After analysis and interpretation it reveals the following points are important in
improving the working condition ,increasing the salary , transport facilities , introduction of
Clover, MAST, Brandot. and Brandix Group are planning to set up a manufacturing
operation in India in the name of “Seeds Intimate Apparel India Private Limited” (SIAIPL).
The operation will be located on Brandix India Apparel City Special Economic Zone in
Visakhapatnam, Andhra Pradesh and will manufacture Lingerie (Bra) Apparels.
When the company is operational at full capacity it will employ around 4000 people
and consists of a turnover of approximate US$ 70m.
In these company Total 92% Staff is women’s and remaining 8% are
Gents.These are supporting staff to Women’s.
Clover group of –China:
Founded in1956, Clover Group Is one of the leading manufactures of intimate
lingerie for numerous prestige brand labels throughout North America and Europe.
Our production complexes are located in china and Cambodia with workforce over
7,000.For the past half century; We aim to keep abreast with the industry
transcendence from being a basic functional requirement into a bodice
enhancement. Clover Group has always maintained its posture and embraced the
challenges ahead even facing the ever changing needs and behavior of customers.
MAST industries –USA:
Mast industries Is one of the World‘s largest contract manufacturers importers, and distributors of men’s, and children’s apparel with revenues of approximately $3.0 billion or approximately $5.0 to $7.5 billion at retail. Mast industries is the major suppliers to limited brands -- one of the World‘s largest multi –branded specialty retailers—as well as many other significant fashion brands.
Brandix Group –Srilanka:
Brandix Lanka Ltd is the largest exporter of apparel in Sri Lanka.As the holding company of the Brandix group of companies, it is engaged in developing, manufacturing and marketing end-to-end apparel solutions to global fashion superbrands.A peek into an exclusive portfolio reveals Victoria’s Secret, Gap,Next,Mark and Spencer , Liz Claiborne, Abercrombie and Fitch, amongst other excellent company.
PROJECT BACKGROUND:
As part of this growth strategy Seeds Intimate Apparel saw a huge potential in India
both in terms of the manufacturing capabilities to support its expected increase in turnover
with Victoria’s Secret, and other international brands.
There are also the possibilities of supplying the hugely expanding local market.
NATURE OF NEW BUSINESS UNIT:
Seeds Intimate Apparel have committed to taking a long-term lease of a 15 acre site within
the Brandix India Apparel City textile complex in Visakhapatnam.
A manufacturing facility of 175000square foot is planned to be erected, which will
predominantly manufacture lingerie. The construction of the unit will commence in
Q2 of 2009-2010 with operations coming on line in Q4 of 2009-2010.Initially the
business will employ around 1000 people from the local area,with plans to ultimately
expand this to between 3500 and 4000.Brief profiles of the directors of Seeds Intimate
Apparel India Private Limited are as follows:
MR.MOHAMED ASHROFF OMAR
Brandix Group Director (55):
He was appointed Chief Executive Officer (CEO) in 2004.He spearheaded
The Group’s first joint venture with Mast Industries, the first of sixteen business
operations that followed and several other strategic acquisitions within the apparel industry.
His entrepreneurial spirit and strategic of vertical integration has resulted in the success of
Brandix. A frequent spokesperson for the Apparel industry he is also the former Chairman of
the Sri Lanka Apparel Exporter’s Association and presently the chairman of the Joint
Apparel Association Forum (JAAF) the apex body of the apparel industry, primarily
involved in driving strategy for the industry and lobbying on its behalf. He is a Steering
Committee Member of the European Commission-Sri Lanka Joint Study and is also
responsible for negotiating with the European Union for added benefits for the apparel
industry in Sri Lanka. He also serves as a Non-Executive Member of the Board of John
Keels Hotels Limited.
MR. FEROZ OMAR-
Brandix Group Director (46)
His career began as Managing Executive of MKC Industries, which has the Group’s maiden
foray into the manufacture of knitted lingerie. As Brandix grew , logical integration required
a fabric processing mill , which he fulfilled by converting a Greenfield site into Brandix
Textiles a leader in fabric manufacturing today, with a customer base that spans the region.
In addition, he is currently responsible for Ocean Lanka and Quenby Lanka Prints,both of
which he helped form, and Brandix Finishing. Further, with a passion for community
development he drives Brandix’ Social Responsibly initiatives.
GERALD DAVE MICHEAL RANASINGHE –Director (47)
He has been appointed as Director of seeds Intimate Apparel India Private Limited
with effect from 9th July 2009. He has given leadership to Bodyline and Intimate Fashions
since their inception.Both Companies have grown to become two of the most successful Bra
manufacturers in the world. He was also responsible for MAS Investments, MAS Research
&Innovation and Commercial &Logistics. He has been closely involved in IT initiatives,
making a significant contribution to the development of IT infrastructure and services in the
MAS Group. He has held Board level positions at MAS Holdings, MAS Apparel, Bodyline,
Intimate Fashions, MAS Research &Innovations, MAS Intimates and MAS investments. He
is a Fellow member of the Chartered Institute of Management Accountants, UK. He has
received extensive executive education at Ashridge Management College, UK and the
National University of Singapore.
SALES AND MARKETING STRATEGY:
Victoria’s Secret is a major customer of the clover Group. Clover Group is one of the
leading manufacturers of intimate lingerie for numerous prestige brand labels throughout
North America and Europe. Our production complexes are located in China and Cambodia
with workforce over 7000. For the past half century, we aim to keep abreast with the industry
transcendence from being a basic functional requirement into a bodice enhancement. Clover
group has always maintained its posture and embraced the challenges ahead even facing the
ever-changing needs and behavior of our customers. Our goal is persistently enhancing
ourselves with the first-class reputation we have built up during our first 50 years well into
the coming 50 years and beyond.
The proposed project is to establish a world class manufacturing plant in
BCIAPLSEZ for production of Lingerie for the US and Euro markets.
FINANCIAL FEASIBILITY:
Investment:
The investment in the project is as follows:
INR in Lakhs
Land and Buildings 3498
Machinery and Equipment 2987
Working capital 1015
Total 7500
ORGANISATIONAL HIERARCHY
FACTORY LAYOUT:
BENEFITS:-
Employee provident fund: Employer and employee contribute are equal in provident fund which is 12%. It is deducted on
Basic+D.A+Cash value of food allowance @12% Crèche Facility:
Below 5Years children’s Ambulance facility:
Canteen facility with subsided food:
Medical facility:
Doctor visit 3days in a week, Nurse facility at first aid room
Marriage Bonus:Company will provide car due to marriage purpose, Money+Gift
Production incentives
Workmen compensation Maternity bonus
Transport facility: Nearly 25 Buses is there.
VALUES:
Integrity
Team work
Customer service
Learning & growth
Ownership &
Commitment
Business Analysis:
The proposed project is to establish a world-class manufacturing plant. This will achieve the
following objectives
Secure a low cost supply route for innovate products to our chosen market.
Reduce our dependency on third party sources.
Provide Groups with a balanced spread of risk both geographically and financially.
Manufacturing is to commence in Q4 2009-10 and will be at full capacity of 10m pcs
Lingerie per annum by year 5 this will provide Seeds Intimate Apparel with an annual
sales value of production of $70 million
CHAPTER-3
CONCEPT OF EMPLOYEE
ABSENTEEISM
CONCEPT OF EMPLOYEE ABSENTEEISM
Absenteeism is a habitual pattern of absence from a duty or obligation. An absence
refers to time an employee is not on the job during scheduled working hours, except for a
granted leave of absence, holiday, or vacation time. However, employee absenteeism is not
just an employee issue it is an organizational problem and therefore becomes everyone's
responsibility.
FRANCES DAVIES
Absenteeism can have an enormous effect on the productivity of an organization. The
average American worker takes six days sick leave a year, and although this is significantly
less than in places such as Europe it is still having a big impact on US staffing resources and
productivity. The loss of productivity due to short/long-term illness, disability is therefore
proving to be a major headache for companies. Effective absence management programs can
be the best remedy for reducing absenteeism.
“Every time an employee is absent from work there is a loss of productivity to the
organization,” explains Sharon Kaleta, President and CEO of the Disability Management
Employers Coalition (DMEC). “One person absent from work may not create a problem, but
several people absent for one or more days can have a significant financial impact to the
organization.
IMPACT OF ABSENTEEISM
There are many forms of absenteeism, ranging from short-term illness, long-term illness,
unauthorized absence and persistent lateness, to other authorized absences such as annual
leave, paternity leave, time off to care for dependents and compassionate leave. Other causes
might also include low morale, stress and poor working conditions, many of which are
preventable.
The effect absenteeism can have on a business can be wide-ranging, but particularly affects
those employees left to pick up the pieces. According to Wayne Wending, Senior Director of
Research at the International Foundation of Employee Benefit Plans. The workings of a
company have changed and employees are now much more interconnected than previously –
and, as a result, organizations are much more dependent on their employees.
“When someone is absent, the entire web of interaction among employees can be
disturbed in terms of workflows and the availability of information,” he explains. “Part of
that is overcome as more files are now open to people who can fill in and help with the tasks
that the individual may have been performing. However, there is a definite ‘ripple effect’
through the organization when someone is unexpectedly ill. The productivity of others is also
being impacted.”
WORKING WELL
There are many measures that an employer can take to help mitigate the rippling
effects of absenteeism on the workforce. Sometimes it really is the little things that make the
most difference. Allowing employees to visit doctors and dentists, health surveillance, health
education and stress management interventions are all good examples. “Once they are
measuring absence and then reducing it, they will find that a fitter workforce will perform
better and productivity will increase – giving them a competitive edge in any business
environment,” enthusesBawden.
One of the most effective ways to combat absenteeism, however, is to maintain a
happy working environment where people actually enjoy coming to work. “Have a
workplace that people love to come to work in and they feel they are doing something
meaningful,” Wending recommends.
Although not always preventable, absenteeism is something that can be mitigated to a
certain degree, and absence management programs can definitely help. Fostering a caring
working environment where workers are supported during any illness or disability can only
work in the favor of the company – and ensures that work isn’t something for employees to
be sick of.
Report Author: ANNE COUGHLAN
Senior Research Executive, IBEC Research and Information Service
IBEC ‘WORKPLACE ABSENCE SURVEY 2004
The report contains data from the IBEC ‘WORKPLACE ABSENCE SURVEY
2004,’ which was based on responses received from 557 private sector companies employing
147,000 employees.
Absence affects more than just the person who is absent.
The absent employees themselves and their dependents may have a reduced income
as a result of absence, besides incurring possible additional medical expenses. Employers are
affected by direct costs such as sick pay, overtime and staff replacement costs, plus the
indirect costs associated with the effects of absence on, for example, production and quality,
management time and the potential loss of customers. The co-workers of an absent employee
may have to work under increased pressure, in order to meet deadlines.
Many organizations appear to accept a certain level of absence i.e. where a proportion
of their employees are away on any particular day. The recent IBEC study found that over
half of the respondents did not consider they had a problem with absence. However, more
than four out of ten companies in the survey considered their absence levels to be a cause for
concern. As only a portion of absence days are subject to organization control – it is
important to determine what portion of employee absence is avoidable.
Employees can feel they have been treated unfairly when they perceive other
absent employees as ‘getting away with it’. Absence can also be a symptom of a more
serious underlying problem, such as bullying and/or harassment, communication breakdown,
stress, etc., which could, if not investigated, lead to significant costs to the organization, as
well as causing long-term damage to the employee.
A recent IBEC survey showed that personal problems were cited as a cause of
absence in a significant number of companies, for both males and females. Nowadays, apart
from sickness, employees can be absent from work for any one of a number of reasons,
either under statutory leave entitlement (such as – annual leave, maternity or adoptive leave,
parental leave), or under arrangements agreed at an individual company level (such as
compassionate or bereavement leave, study and/or exam leave, marriage leave, training,
etc.).
HOW TO DEAL WITH EMPLOYEE ABSENTEEISM
For Employees Who Are Absent
For Supervisors/Managers:
Recently, I was asked by a manager how he should deal with the fact that on any
given day 10% of his employees are absent from work. I informed the manager that the
problem of employee absenteeism is a problem best resolved by taking the following four
positive interventions versus taking a negative or punitive approach.
Change Working Conditions:
The employees in your company probably work in a well-lighted climate controlled
building. The working conditions I am referring to relate to coworker relationships. Not only
does relationship stress occur between the employee and manager, but it also exists between
employees. Frequently I hear employees say they did not go to work because they are fearful
of or angry with another employee. These employees usually report they just could not deal
with "so and so" today, so they called in ill. Companies that adopted policies and values that
promote employee respect and professionalism, and promote an internal conflict resolution
procedure, are companies that reduce employee stress. A reduction in employee stress reduces
employee absenteeism.
Provide Incentives:
Giving employees incentives for reduced absenteeism is not the same as rewarding
or giving employees bonuses for reduced absenteeism. An incentive provides an employee
with a boost to their motivation to avoid unnecessary absenteeism. It simply helps the
employee decide to go to work versus staying home and watching Jerry Springer.
The types of incentive programs used by companies are numerous. Some companies
allow employees to cash-in unused sick days at the end of every quarter, others give an
employee two hours of bonus pay for every month of perfect attendance; and still others
provide employees with a buffet lunch, a certificate of achievement, or even a scratch-off
card concealing prizes. The type of incentive program that your company uses should be one
created especially for your company. You can create an incentive program tailored to your
unique company by allowing employees to help you develop the incentive program.
The duration of the incentive program is also very important. Some companies find
that they can simply reward employees with perfect attendance once a year, while others
decide once a month is best, and still others decide once a week works best.
Develop an Attendance Policy:
Every company should have an attendance policy. An attendance policy allows a
manager to intervene with an employee who is frequently absent. Besides stress as a primary
reason for employee absenteeism, other causes relate to alcoholism, domestic violence, and
family problems. If you confront an employee about his or her frequent absenteeism, and they
inform you it is due to personal problems, consider referring the employee to an Employee
Assistance Program (EAP).
If the employee's absenteeism relates to a medical problem or a family member with a
medical problem, you may have to consider allowing the employee to use the benefits allowed
to them under the American's with Disability Act (ADA) or the Family and Medical Leave Act
(FMLA). Early identification of these employees will get them back to work as fast as
possible. Lastly, make sure that you have an attorney review your attendance policy to make
sure it does not violate any State or Federal labor laws. By incorporating the above four
strategies into your company you will not only reduce absenteeism you will reduce employee
burnout, turnover, poor morale, and workplace negativism.
For Employees Who Are Frequently Absent
One of the most important steps you can take if you are frequently absent is to keep
your employer informed. Employees who are frequently absent without good cause are
generally absent due to numerous frivolous reasons. Employees who are absent for good
cause have legitimate reasons, e.g. sickness or family member illness, and the employee
needs time off to resolve their personal problems. Most employers generally understand the
need to be gone from work due to a legitimate reason; therefore, it is important to
communicate clearly and accurately so your employer does not assume you are out for
frivolous reasons.
As an employee you are allowed to take up to 12 weeks of unpaid leave under the
federal Family and Medical Leave Act (FMLA). The 12 weeks of leave may be taken
continuous or intermittently, thereby allowing the employee to work on a less than full-time
schedule.
FMLA can be used for the care of a child after birth, adoption, or foster care placement.
FMLA is available to care for an immediate family member (spouse, child, and parent)
who has a serious health condition.
FMLA can be used for your own serious health concerns. It does not cover for the
common cold, flu, ear aches, upset stomach, common headache, or routine dental care.
In order to be covered by FMLA you must be considered an "eligible" employee. An eligible employee must have 12 months (1,250 hours) of employment, and your employer must employ 50 or more employees within 75 miles of the worksite. Employees must