A STUDY ON EMPLOYEE ABSENTEEISM WITH REFERENCE TO REFERENCE TO SOUTHERN RAILWAYS MADURAI DIVISION By A.KARTHIKA Roll No. 12MBA07 Reg. No. 9118126031009 A PROJECT REPORT FACULTY OF MANAGEMENT SCIENCES In partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION ANNA UNIVERSITY CHENNAI CHENNAI 600 025 SEPTEMBER 2013
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A STUDY ON EMPLOYEE ABSENTEEISM WITH REFERENCE TO REFERENCE TO
SOUTHERN RAILWAYS MADURAI DIVISION
By
A.KARTHIKA
Roll No. 12MBA07
Reg. No. 9118126031009
A PROJECT REPORT
FACULTY OF MANAGEMENT SCIENCES
In partial fulfillment for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY CHENNAI
CHENNAI 600 025
SEPTEMBER 2013
LIST OF CONTENTS
CHAPTER NO
TITLE PAGE NO
IIntroduction 1
Industry profile4
II Literature Review13
III
Objectives 15
Scope Of The Study 16
Need For The Study 17
Limitations 18
Research Methodology 19
IV Data Analysis And Interpretation 21
V
Findings 36
Suggestions 37
Conclusions 38
Bibliography 39
Appendix 40
BONAFIED CERTIFICATE
Certified that this report “A STUDY ON EMPLOYEE ABSENTEEISM AT SOUTHREN
RAILWAYS MADURAI DIVISION” is the bonafide work of A.KARTHIKA who carried out the
project work under my supervision. Certified further , that to the best of my knowledge the work
reported herein does not from part of any other project report or dissertation on the basis of
which a degree or award was on conferred on a earlier occasion on this or any other candidate.
PRICIPAL FACULTY GUIDE
OAA-MAVMM SCHOOL OF MANAGEMENT
INTERNAL EXAMINER EXTERNAL EXAMINER
DECLARATION
I affirm that the project work titled “STUDY ON EMPLOYEE ABSENTEEISM AT
SOUTHREN RAILWAYS MADURAI DIVISION “, being submitted in partial fulfillment for
the award of MBA is the original work carried out by me. It has not formed the part of any other
project work submitted for award of any degree, either in this or any other university.
A.KARTHIKA
I certify that the declaration made above by the candidate is true.
ACKNOWLEDGEMENT
I take this opportunity to express my sincere and heartfelt thanks to the management and staff of
our college for providing all possible guidance and support without which the project work
wouldn’t have been completed successfully in time.
I express my sincere thanks to Mr. S.PRABAHARAN for guiding me throughout this project
work.
I express my profound gratitude to J.CHANDRIKA JAYASHSKAR (DIVISIONAL PERSONAL
OFFICER) SOUTHERN RAILWAYS , MADURAI, who gave permission to carry out my
project in SOUTHERN RAILWAYS. I want to give my sincere thanks to his kind advice and
guidance that had made my project successful. Many of the sound advices have been well taken
by me and it is largely due to his patience that I was able to achieve my goals successfully.
Finally, I would like to express my heartfelt thanks to y beloved parents for their blessings, my
friend/classmates for their help and wishes for the successful completion of this project.
ABSTRACT
The topic of the project is “A STUDY ON EMPLOYEE ABSENTEEISM AT SOUTHREN
RAILWAYS MADURAI DIVISION ”.
The objectives of the study were to assess the employee absenteeism in SOUTHERN
RAILWAYS , MADURAI.
Simple Percentage Analysis, weighted average methods were used to analysis the data collected.
The descriptive research design is used for the study. Descriptive designs result in description of
the data, whether in words, pictures, charts, or tables, and whether things have one thing in
common they must provide descriptions of the variables in order to answer the questions. The
research was conducted among 50 employees.
The primary source of data was collected through interview schedule on a questionnaire; the
secondary data was collected referring personnel manual of the organization.
INTRODUCTION
Employee absenteeism is a costly yet poorly understood organizational
phenomenon (e.g. Johns and Nicholson, 1982; Martocchio and Harrison, 1993; Mowday, Porter
and Steers, 1982; Rhodes and Steers, 1990; Gellatly, 1995). The consequences of employee
absenteeism are widespread and consist of direct and indirect effects. For instance higher costs
are a result of absenteeism, which can be caused both directly as indirectly. Direct costs of
sickness absence to employers include statutory sick pay, expense of covering absence with
temporary staff and lost production. Indirect costs, such as low morale among staff covering for
those absent because of sickness and lower customer satisfaction, are difficult to measure, while
they also influence the overall levels of output (Leaker, 2008). Other effects associated with
absenteeism are disruption of the work flow and reduction in product quality (Klein, 1986).
Leaker (2008) estimated in 2008 for the Confederation of Business Industry that the United
Kingdom had approximately lost £19.2 billion in 2007 to direct and indirect costs of employee
absenteeism.
Employee Absenteeism is the absence of an employee from work. It’s a major
problem faced by almost all employees of today. Employee are absent from work and thus the
work suffers. Absenteeism of employees from work leads to back logs, piling of work and thus
work delay. Employee’s presence at work place during the scheduled time is highly essential for
the smooth running of the production process in particular and the organization in general.
Despite the significance of their presence, employees sometime fail to report at the work place
during the scheduled time which is known as “Absenteeism”.
“The non-attendance of employees for scheduled work, it distinguishes
absenteeism from other forms of non-attendance that are arranged in advanced and specifically
avoids judgments of legitimacy associated with absent events that are implied by as sick leave.”
Gibbons, 1966: Johns/1978: Jones, 1971.
“Absence occurs whenever a person chooses to allocate time to activities that competewith
scheduled work either to satisfy the waxing and warning of underlying motivational rhythms.”
French Man, 1984.
“Lack of an individual physical presence at given location and time when there is
a social expectation for him or her to be there.”
Martocchio & Harrison1993
“Absenteeism is temporary cessation of work, for no less than one whole working day,
on the initiative of the worker, when his presence is expected”.
J.D.Heckett
Labour Bureau, simla interpret “Absenteeism as the total of man shifts lost because of
absence as a percentage of the total number of man shifts scheduled to work it excludes
authorized vacation privilege leave, strike, lockout, lay-off or regularized over’s for the
computation of absenteeism rate, on the other hand annual survey of industries takes in to
account all the instances of workers absence with a view to ascertaining the costs of the time lost
as a percentage of a total labor cost.
A general definition of absenteeism includes time lost because of illness and accident and
time away from the job due of personal reasons whether authorized or unauthorized. Authorized
absence on leave with pay is also treated as absence.
Meaning
Absenteeism is a serious workplace problem and an expensive occurrence for both
employers and employees seemingly unpredictable in nature. A satisfactory level of
attendance by employees at work is necessary to allow the achievement of objectives and
targets by a department. Employee Absenteeism is the absence of an employee from work. It is a
major problem faced by almost all employers of today. Employees are absent from work and thus
the work suffers. Absenteeism of employees from work leads to back logs, piling of work and thus
work delay. Absenteeism is of two types -1.
Innocent absenteeism
Absenteeism is a serious workplace problem and an expensive occurrence for
both employers and employees seemingly unpredictable in nature. A satisfactory level of
attendance by employees at work is necessary to allow the achievement of objectives and targets
by a department
Absence from work can be expensive in both monetary and human
terms. The costs incurred when an employee is absent from work may include:
(i) Replacing the employee or requiring other staff to cover the absence;
(ii) Inability to provide services, or achieve section and departmental objectives;
(iii) Low morale and general dissatisfaction from other staff, particularly if the ab-
sence is perceived as unwarranted
Absence control can often be an important step in the process of reducing
business costs. Because of competitive pressures, companies can no longer afford to carry
unnecessary absence that they may have tolerated in the past. Therefore, many companies are
focusing on the issue of eliminating, or at least reducing, unnecessary levels of absence.
Absenteeism can be termed as an “illness” which may affect the internal structure
of the organization, thus causing harm to the production process. So there is a need to control the
situation, by taking a thorough and in-detail analysis to identify the critical reasons of
absenteeism which will help to create a proper Organizational Culture.
ORGANIZATIONAL PROFILE
SOUTHERN RAILWAY
. The South Indian Railway was originally created in the British colonial times as Great
Southern India Railway Co. founded in Britain in 1853 and registered in 1859. Its original
headquarters was in Tiruchirappalli (Trichy) and was registered as a company in London only in
1890. Southern Railway has its headquarters in Chennai and has the following six divisions:
Chennai, Madurai, Tiruchirappalli, Salem, Palakkad and Thiruvananthapuram. More than 500
million passengers travel on the network every year. This zone of the Indian Railways differs
from the other zones of India in that its revenue is derived from passengers and not from freight.
Southern Railway, in its present form, came into existence on 14th April 1951 through the
merger of the three state railways namely Madras and Southern Mahratta Railway, the South
Indian Railway, and the Mysore state railway.
Southern Railway's present network extends over a large area of India's Southern Peninsula,
covering the states of Tamilnadu, Kerala, Pondicherry,and a small portion of Andhra Pradesh.
Serving these naturally plentiful and culturally rich southern states, the SR extends from
Mangalore on the west coast and Kanniyakumari in the south to Renigunta in the North West and
Gudur in the North East.
Headquartered at Chennai, the Southern Railway comprises of the following six divisions.
Chennai
Madurai
Palghat
Trivandrum
Salem
Tiruchirapalli
Mission Statement
Protect and safeguard Railway passengers, passengers area and Railway property.
Ensure the safety, security and boost the confidence of the traveling public in the Indian
Railways.
Vision Statement
Indian railways shall provide efficient, affordable, customer focused and environmentally
sustainable integrated transportation solutions. If shall be a vehicle of inclusive growth, con-
necting regions, communities, ports and centers of industry, commerce, tourism and pilgrim-
age across the country. The reach and access of its services will be continuously expanded
and improved by its integrated team of committed, empowered and satisfied employees and
by use of cutting-edge technology.
MADURAI DIVISION
History of Madurai Division
History of division dates back to 1 September, 1875 when 154 kms of Railway track was laid
between Trichchirappalli and Madurai. The line was further extended up to Tuticorin in 1876.
From 1876 onwards, the Rail network was gradually extended to Rameshwaram, Sengottai,
Kollam, and Erode etc. Madurai Division of southern railway is largest division in southern rail-
way with 1355.78 route kms. It’s commenced its operations from 16 May, 1956 as full – fledged
division.
ORGANIZATION STRUCTURE:
SPECIFIC ITEMS FOR SOUTHERN RAILWAY IN RAILWAY BUDGET 2012-13
Surveys and feasibility studies for developing coaching terminals at Nemam and Kot-
tayam in Kerala.
Pre-feasibility study for development of Roypuram station in Tamil Nadu for which
many representations have been received.
Extension of MRTS from Velachery to St. Thomas Mount in Chennai to be commis-
sioned in 2013.
Setting up of 72 MW capacity windmill plants in the wind rich areas of Andhra Pradesh,
Karnataka, Kerala, Tamil Nadu and West Bengal.
Keeping in view the increased requirement of passenger coaches, a rail coach factory at
Palakkad with the support of Government of Keralais proposed to be set up.
Setting up of new Rail Neer Plants at Palur in Tamilnadu.
In Chennai area, it is proposed to run 18 additional services on Chennai Beach-Tam-
baram, Chennai Beach-Chengalpattu,Chennai Beach-Avadi,Chennai Beach–
Tiruttani,Chennai Beach – Gummidipundi/Sullurupetta and Chennai Beach– Velachery
sections.
ORGANIZATION CHART
MADURAI JUNCTION RAILWAY STATION
Madurai Railway Junction is one of the Major Railway Junction in South India and the
Head Quarters of Madurai railway division. It is well connected with all Major cities in India.
Madurai division is the second largest by revenue in Southern Railway. It is one of the A1
graded stations in the Southern Railway. (The railway stations which generate earning of
Rs.50Cr P/A will get A1 Grade). Madurai has two terminals
Koodal Nagar Railway Station (Goods Handling)
Madurai Railway Junction (Passenger Handling)
Koodal Nagar Railway Station
Koodal Nagar Railway station is mainly used for Madurai Junction's Goods handling pur-
pose. It has Rail sideware house and CONCOR for goods handling. A separate goods train going
to Tuglakabad (TKD) from Koodalnagar (KON).
TRAINS ORIGINATING FROM MADURAI JUNCTION:
Sl. No. DESTINATION TRAIN NAME
1 Chennai Egmore Pandian Express,vaigai Express, Koodal Nagar Express,
Mahal Super Fast Express Bi-Weekly
2 Chennai Central Chennai Central-Madurai AC Duronto Express
3 Hazrat Nizamudin Tamil Nadu Sampark Kranti Express