EMPLOYEE ABSENTEEISM IN ORGANIZATION A REPORT ON CONTEMPORARY ISSUES IN MANAGEMENT ON “Employee Absenteeism in organization” SUBMITTED TOWARDS PARTIAL FULFILLMENT OF TWO-YEAR “MASTER OF BUSINESS ADMINISTRATION” DEGREE PROGRAMME OF RAJASTHAN TECHNICAL UNIVERSITY (2010-2012) GYAYAK COLLEGE OF MANAGEMENT BANSWARA (RAJ.) GUIDED BY: 1 SUBMITTED BY: MISS MANALI JAIN HEMANGINI PUROHIT (MBA PART 1,SEM 2)
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EMPLOYEE ABSENTEEISM IN ORGANIZATION
A
REPORT ON
CONTEMPORARY ISSUES IN MANAGEMENT
ON
“Employee Absenteeism in organization”
SUBMITTED TOWARDS PARTIAL FULFILLMENT OF TWO-YEAR
“MASTER OF BUSINESS ADMINISTRATION” DEGREE PROGRAMME
OF RAJASTHAN TECHNICAL UNIVERSITY
(2010-2012)
GYAYAK COLLEGE OF MANAGEMENTBANSWARA (RAJ.)
(AFFILIATED TO RAJASTHAN TECHNICAL UNIVERSITY, KOTA)“APPROVED BY AICTE”
GUIDED BY: SUBMITTED BY:
MISS MANALI JAIN HEMANGINI PUROHIT(ASST. PROFESSOR) (MBA PART-1, SEM-2)
GUIDED BY: 1 SUBMITTED BY:
MISS MANALI JAIN HEMANGINI PUROHIT (MBA PART 1,SEM 2)
EMPLOYEE ABSENTEEISM IN ORGANIZATION
“DECLARATION”
This is to declare that I have carried out this project report work on contemporary
issues entitled….
“Employee Absenteeism in organization”
SUBMITTED TOWARDS PARTIAL FULFILLMENT OF TWO-YEAR
“MASTER OF BUSINESS ADMINISTRATION” DEGREE PROGRAMME OF
RAJASTHAN TECHNICAL UNIVERSITY (2010-2012)
The work is original, has not been copied from anywhere else and has not been
Submitted to any other University/Institute for an award of any degree/diploma or
Fellowship or other similar titles or prizes.
Place: Banswara Hemangini Purohit
Date: 15 May 2011 (MBA Part 1, Sem 2)
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EMPLOYEE ABSENTEEISM IN ORGANIZATION
ACKNOWLEDGEMENT
“Acknowledgement is an art, one can write glib stanzas without meaning a word, on the other hand one can make a simple expression of gratitude”
The project report work was made possible by the co-operation & help of several persons hence I
finds it difficult to adequately express our appreciation. I bow to the glory of almighty for
shoIring our blessings & rendering the strength to him for successful completion of this report
first of all I owe a heavy debt of gratitude chairman Mr. Virendra Shah & director
Shri Joraver Singh ji of “Gyayak college of management” to his encouragement &
unceasing inspiration through out the project work. And I am very thankful for the esteem guide/
academic advice of Internal guide Miss Manali jain for their gifted guidance,
encouragement & unceasing inspiration through out the project work. Beside a path finder for
her, his qualities like dedication, co-operation & way of working was constantly inspiring us to
keep the flame of research study burning till the generation passes. I extend their earnest feeling
for the keen interest & attention he graciously lavished upon this work. I shell ever remain
grateful & owe our regards to them for their masterly academic guidance. It was a great pleasure
for the student to undergo her project work.
I express our profound great fullness to Ms. Diptee Gour, Mr. Sonu Vasita & other members of
the institute/college for their guidance & support through out the project report work & providing
the material relevant to the study. Last but not the least I am thankful to all those people, who
have helped in the completion this study knowingly or unknowingly. I express my sincere thanks
to all friends for there valuable co-operation. Without which the present project report work &
presentation would not have been possible.
HEMANGINI PUROHIT
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EMPLOYEE ABSENTEEISM IN ORGANIZATION
PREFACE
This report is the outcome of the internal project on contemporary issues during the
session 2010-2012 and has been produced for the partial fulfillment of the degree
of Masters of Business Administration from Gyayak College of Management
(affiliated to RTU, Kota)
The subject of project report entitled Employee Absenteeism in organization.
Absenteeism is a serious workplace problem and an expensive occurrence for
both employers and employees seemingly unpredictable in nature.Human resource is an
important part of any business and managing them is an important task. Following are
the issue which we discuss In this project work
– To discuss the issue of Employee Absenteeism “work exhaustion or burnout”.
– To explore the impact of burnout on employee absenteeism and turnover.
– To identify possible practical solutions to these problems.
It is often easier for the organizations to make arrangement to cover staffs, which are
going to be off for long periods. However, employees taking odd days off here and there
are more problematic, can have an immediate impact.
If remain unchecked, this type of absence can send out the wrong signals to colleagues
who, in some jobs, are likely to have to cover for those absent. If employers fail to take
action, a ‘buggins turn’ mentality may emerge. Frequent absence may have serious
repercussions where staff are employed in customer-facing roles or employed on
production lines. The impact of absence may be most directly felt and the need to
arrange cover at short notice may be paramount.
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TABLE OF CONTENTS
Chapter : 1 Introduction 6
1.1 Concept of Absenteeism 7
1.2 Measurement of Absenteeism 10
1.3 Peculiar Features of Absenteeism 12
Chapter : 2 Causes and Effect of Absenteeism 13
2.1 Causes of Absenteeism 14
2.2 Analysis of Causes 17
2.3 Effect of Absenteeism on Industrial Progress 20
Chapter : 3 Absenteeism – Types & Their Control 21
3.1 Type of Absenteeism 23
1. Innocent Absenteeism 23
o Counseling Innocent Absenteeism 24
2. Culpable Absenteeism 26
o Corrective Action for Culpable Absenteeism 27
3.2 Guideline & Measures for Control Of Absenteeism 29
Chapter : 4 Conclusion 35
Chapter : 5 Recommendation & Suggestion 40
Bibliography ………. 42
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CHAPTER :1
INTRODUCTION
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CHAPTER: 1
INTRODUCTION
1.1 CONCEPT OF ABSENTEEISM
What exactly is “Employee Absenteeism”?
• Employee Absenteeism can be defined as stress that leads to work exhaustion.
• Sadly, it is the most gifted and committed employees that tend to burn out first.
• Because of their high standards and tendency towards perfectionism, these employees
end up burning the candle at both ends.
• The result may be complete burnout.
It refers to workers absence from their regular task when he is normally schedule to
work. The according to Webster’s dictionary
“Absenteeism is the practice or habit of being an absentee and an absentee is one
who habitually stays away from work.”
According to Labour Bureau : - Absenteeism is the total man shifts lost because
of absence as percentage of total number of man shifts scheduled to work.
In other words, it signifies the absence of an employee from work when he is
scheduled to be at work. Any employee may stay away from work if he has taken leave
to which he is entitled or on ground of sickness or some accident or without any
previous sanction of leave. Thus absence may be authorised or unauthorised, wilful or
caused by circumstances beyond one’s control.
Maybe even worse than absenteeism, it is obvious that people such as
malingerers and those unwilling to play their part in the workplace can also have a
decidedly negative impact.
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Such team members need individual attention from frontline supervisors and
management. Indeed, as prevention is better than cure, where such a problem occurs, it
is always important to review recruitment procedures to identify how such individuals
came to be employed in the first place.
For any business owner or manager, to cure excessive absenteeism, it is essential
to find and then eliminate the causes of discontent among team members.
If they find their supervisor or job unpleasant - really unpleasant - they look for
legitimate excuses to stay home and find them with things such as upset stomachs or
splitting headaches.
Any effective absentee control program has to locate the causes of discontent and
modify those causes or eliminate them entirely. In other words, if we deal with the real
reasons team members stay home it can become unnecessary for them to stay away.
Sometimes team members call in sick when they really do not want to go to
work. They would not call you up and say, “I’m not coming in today because my
supervisor abuses me.”
Or, “I’m not coming in today because my chair is uncomfortable.” Or, “I’m not
coming in today because the bathrooms are so filthy, it makes me sick to walk into
them.”
There are a few essential questions to consider at the outset if you want to make
a measurable improvement to your absenteeism figures.
Why is your present absenteeism policy ineffective?
Where and when is excessive absenteeism occurring? In many cases, under-
trained supervisors could be a contributing factor.
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The causes of EA/burnout are many:
– Extended hours and crammed schedules
– Increased job insecurity
– Changes in company policy: e.g., increased performance demands; loss of incentive
programs
– Downsizing and similar workplace interventions, Excessive desire for personal
achievement
It is commonly expected that low pay, poor benefits and high workloads will be the
major causes.
However, in numerous employee surveys absenteeism generally has been
identified as a symptom of low job satisfaction, sub-standard working conditions and
consistent negative and unfair treatment received by first-line supervisors.
How much formal training have your supervisors received on absenteeism
containment and reduction? If your answer is none or very little, maybe you have
found the solution.
As with every other element within your organization, you cannot ask a person to
do a job he or she has never been trained to do.
Many human resources specialists have found that repetitive, boring jobs coupled
with uncaring supervisors and/or physically unpleasant workplaces are likely to lead
workers to make up excuses for not coming to work.
If your team members perceive that your company is indifferent to their needs,
they are less likely to be motivated, or even to clock on at all.
One way to determine the causes of absenteeism is to question your supervisors
about excessive absenteeism, including what causes it and how to reduce it.
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Of course, if your supervisors have made no efforts to get to know the team
members in their respective departments, they may not be able to provide reasons.
However, just the act of questioning may get the ball rolling and signal to your
supervisors that their involvement is important.
Once a manager finds the real reasons for absenteeism there is another important
step. Through open communication, you need to change the team member’s way of
reacting and responding to discontent.
Other problems will no doubt arise in the future. If the way of responding has not
been reviewed, then the same cycle is likely to start all over again.
So often absenteeism problems can be sheeted back to the supervisor level and to
unsatisfactory working conditions. Without improvement in these areas, you can
expect your high rate of absenteeism to continue.
1.2 MEASUREMENT OF ABSENTEEISM
For calculating the rate of absenteeism we require the number of people
scheduled to work and number of people actually present. Absenteeism can be find out
of absence rate method.
For Example:
a) Average number of employees in work force : 100
b) Number of available workdays during period : 20
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d) Total number of lost days due to absences during the period : 93
e) Absenteeism percent (d [divided by] c) x 100 : 4.65%
Since absenteeism is a major barometer of employee morale, absenteeism above 5
percent has to be considered as very serious (across most industries 3 percent is
considered standard).
APPROX ABSENTEEISM RATE
IN AN ORGANATION
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1.3 PECULIAR FEATURES OF ABSENTEEISM
On the basis of studies undertaken certain observations may be made:
a) The rate of absenteeism is lowest on payday; it increases considerably on the days
following the payment of wages and bonus. The level of absenteeism is
comparatively high immediately after payday. When worker either feel like having
a good time or in some other cases return home to their villages family and after a
holiday, has also been found to be higher than that on normal days.
b) Absenteeism is generally high workers below 25 years of age and those above 40.
“The younger employees are not regular and punctual”. Presumably because of the
employment of a large no. of new comers among the younger age groups, while
the older people are not able to withstand the strenuous nature of the work.
c) The percentage of absenteeism is higher in the night shift than in the day shift.
This is so because workers in the night shift experience great discomfort and
uneasiness in the course of their work than they do during day time.
d) Absenteeism in India is seasonal in character. It is the highest during March-April-
May, when land has to be prepared for monsoon, sowing and also in harvest
season (Sept-Oct) when the rate goes as high as 40%.
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CHAPTER : 2
CAUSES AND EFFECT OF ABSENTEEISM
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CHAPTER: 2
CAUSES AND EFFECT OF ABSENTEEISM
2.1 CAUSES OF ABSENTEEISM
Some facts about Absenteeism
Most employees miss work because of personal illness or illness involving a member of the
family.
Employees also miss work because of stress.
• The primary factor affecting an employee’s stress level is his/her perception of the
relationship with his/her supervisor or manager.
• Authoritarian management styles promote the highest rates of employee burnout and
absenteeism.
Absenteeism is costly to a company’s bottom-line.
The general cause of absenteeism may be summarized as below:-
1) MALADJUSTMENT WITH FACTORY
In factory the worker finds caught within factory walls, he is bewildered by heavy
traffic, by strangers speaking different and subjected to strict discipline and is ordered
by complete strangers to do things which he cannot understand. As a result he is under
constant strain, which cause him serious distress and impairs his efficiency. All these
factors tend to persuade him to maintain his contacts with village.
2) SOCIAL AND RELIGIOUS CEREMONIES
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Social and religious ceremonies divert workers from workers to social activities. In
large number of cases incidence of absenteeism due to religious ceremonies is more
than due to any other reason.
3) HOUSING CONDITIONS
Workers also experience housing difficulties. Around 95% of housing occupied by
industrial workers in India is unsatisfactory for healthful habitations. This leads to loss
the interest in work.
4) INDUSTRIAL FATIGUE
Low wages compel a worker to seek some part time job to earn some side income. This
often result inconstant fatigue, which compels to remain absent for next day.
5) UNHEALTHY WORKING CONDITION
Irritating and intolerable working conditions exist in a factory. Heat, moisture, noise,
vibration, bad lighting, dust fumes and overcrowding all these affect the workers health
causing him to remain absent from work a long time.
6) ABSENCE OF ADEQUATE WELFARE ACTIVITIES
High rate absenteeism is also due to lack of adequate welfare facilities Welfare
activities include clean drinking water, canteen, room shelter, rest rooms, washing and
bathing facilities, first aid appliances etc.
7) ALCOHOLISM
Some of the habitual drunkards spend whole of their salary during first week of each
month for drinking purpose. Therefore 2 or 3 weeks after getting their salary absent
themselves from their work.
8) INDEBTNESS
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All those workers who undergo financial hardships usually borrow money lenders at
interest rate which are very high, which often cumulates to more than 11 – 12 times
their actual salaries. To avoid the moneylenders they usually absent themselves from
work because they are unable to return the money in stipulated time.
9) IMPROPER & UNREALISTIC PERSONNEL POLICIES
Due to favoritism and nepotism which are in the industry the workers generally become
frustrated. This also results in low efficiency, low productivity, unfavorable
relationship between employee and supervisor, which in turn leads to long period of
absenteeism.
10) INADEQUATE LEAVE FACILITIES
Negligence on part of the employee to provide leave facility compel the worker to fall
back on ESI leave. They are entitled to 50 days leave on half on pay. Instead of going
without pay the worker avail themselves of ESI facility
11) MANEERIAL & ENVIRONMENTAL FACTOR
Authoritarian managers : The characteristics of an authoritarian manager:
– Poor listening skills and communication skills
– Tendency to set unreachable goals
– Personal inflexibility
– Tendency to blame others for problems
– Insist that things must always be done their way
– Tendency to micro-manage and be task-driven
– Sometimes yell, scream, and curse at employees
Work conditions:
– The relational climate of a job can affect employees’ willingness to show up to work.
– Negative relationships between employees and their supervisors can result in
absenteeism.
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– Employees miss work as a form of “acting out”.
– But sometimes employees miss work because of unresolved conflict between each other.
– Interventions to reduce interpersonal work stress can help deter employee absenteeism
and burnout.
Lack of incentives:
– While many companies punish employees for missing work, few think of rewarding
those that show up faithfully.
– Incentives can boost motivation and reduce burnout.
– Examples of incentives that work:
• Being able to cash it unused sick days
• Bonuses for perfect attendance
• Certificates of achievement
No attendance policy:
Many companies do not have an explicit policy requiring employees to honor their commitment
to the job.
– An attendance policy allows a manager to intervene in cases where an employee is
frequently absent.
– An official policy allows managers to identify and refer to the EAP employees that may
have other problems e.g., alcoholism, domestic problems, etc.
2.2 ANALYSIS OF CAUSES
In general survey at an origination we found that approx ratio of case of absenteeism.
1) FAMILY ORIENTED & RESPONSIBILITES
It was observed that about 40% case absenteeism is family oriented and more
responsibilities of workers. It increases in harvesting season.
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In about 30% cases, the workers remain absent because there is no housing facilities
and the workers stay alone and great distance from factory.
3) SOCIAL CEREMONIES
In 20 % cases it was found that social and religious functions divert worker from work.
4) SICKNESS AND ACCIDENT
In 20% case the workers remain absent due to ill health and disease and in 15% cases
workers remain absent due to accident.
5) TRANSPORTATION
Most of the workers have to travel long distance to reach the work place. Most of the
workers are not satisfied with transport facilities.
6) MANAGEMENT SYSTEM
Near about 34% people are dissatisfied with management system because they feel that
their work is not being recognized and promotions are biased.
7) WELFARE FACILITES
In 13% cases, the workers are not satisfied with welfare facilities.
8) WORKING CONDITIONS
In 21% cases, the workers feel that there is not good working condition, because they
work in standing position which causes to remain absence for relaxation.
Sign of Employee who causes with “Absenteeism”
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Burnout, Absenteeism, & Turnover
• All three factors affect each other and are affected by each other.
• Burnout has been identified as one of the principal causes of both absenteeism and
excessive turnover.
• Let’s therefore look at some of the psychological aspects of burnout.
From “enthusiastic” to “burnt-out”
• Stages of Career Burnout:
• Enthusiasm
• Stagnation
• Frustration
• Apathy
• Intervention/No Intervention
• Burnout
Physical signs of Burnout
• Fatigue and exhaustion
• Inability to shake off a cold
• Feeling run down
• Headaches
• GI disturbances
• Weight fluctuation
• Sleeplessness
• Shortness of breath
Psychological signs of Burnout
• Working harder and feeling as if you are accomplishing less and less.GUIDED BY: 19 SUBMITTED BY:
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• Coming to work late and leaving early.
• Resentment – of clients, colleagues, management.
• Boredom, disenchantment, and a lack of enthusiasm.
• Feeling confused, disoriented, and out of place.
• Feeling guilty (because of underperformance).
• Experiencing a sense of futility and pointlessness.
Loss of temper; displacement of anger to others.
2.3 EFFECTS OF ABSENTEEISM ON INDUSTRIAL PROGRESS
It is quite evident from the above that absenteeism is a common feature of industrial
labour in India. It hinders industrial growth and its effect in two fold.
1) LOSS TO EMPLOYERS
On other hand, the employer has to suffer a greater loss due to absentees. It disturbs the
efficiency and discipline of industries consequently, industrial production is reduced. In
order to meet the emergency and strikes, an additional labour force is also maintain by
the industries. On certain occasions, those workers are employed who present
themselves at factory gates. During strikes they are adjusted in place of absent workers.
Their adjustment brings serious complications because such workers do not generally
prove themselves up to work. Higher absenteeism is an evil both for workers and the
employers and ultimately it adversely affects the production of industries.
2) LOSS TO WORKER
Firstly due to the habit of being absenting frequently worker’s income is reduced to a
large extent. It is because there is a general principle of “no work – no pay”. Thus the
time lost in terms of absenteeism is a loss of income to workers
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Some facts about Turnover
• Zero percent turnover is neither realistic nor possible.
• Some turnover is actually desirable – new employees being fresh ideas and new energy.
• Excessive turnover can be very costly to a company. (The costs of turnover to be
discussed in next slide.)
• Turnover is often the result of burnout; some workplaces respond to this by demanding
even more from the few remaining employees, i.e., a vicious cycle.
• It is important to know how to attract and keep the right talent.
The high costs of Turnover
• The financial costs of hiring and training new employees vary from job to job and
company to company – but there is always a cost.
• Whatever the financial cost, excessive turnover often results in a waste of valuable
resources.
• Other costs are less tangible, and include:
– Customer service disruption
– Emotional costs including loss of morale
– Burnout/absenteeism among remaining employees
– Loss of experience and lack of continuity of service
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CHAPTER : 3
ABSENTEEISM - TYPES & THEIR CONTROL
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CHAPTER : 3
ABSENTEEISM - TYPES & THEIR CONTROL
Combating Absenteeism
• Change management style:
• Identify authoritarian managers
• Provide appropriate management training
• Change working conditions:
• Adopt policies and values that promote employee respect and professionalism
• Develop and promote an internal conflict resolution procedure
• Take employee complaints seriously – sometimes listening is enough.
• Work to create a “just” working climate.
• Provide incentives for attendance:
• Use an incentive program that is suited to your particular company – one size doesn’t fit
all.
• Allow employees to have input into the development of an incentive program.
• Develop an attendance policy:
3.1 TYPE OF ABSENTEEISM
There are two types of absenteeism, each of which requires a different type of