Mini Project

SUMMER TRAINING PROJECT REPORT

2012

A STUDY ON EMPLOYEE ABSENTEEISM

DEPARTMENT OF MANAGEMENT STUDIES

SRM UNIVERSITY

RAMAPURAM

CHENNAI

2

DECLARATION

I the undersigned solemnly declare that the report of the summer training work

on “A STUDY ON EMPLOYEE ABSENTEEISM”, is based on my own work

carried out during the course of my study under the supervision of

Mr. THAMILARASAN (Asst. Manager Training in SPB).

I assert that the statements made and conclusions drawn are an outcome of the

project work. I further declare that to the best of my knowledge and belief that the

project report does not contain any part of any work which has been submitted for the

award of any other degree/diploma/certificate in this University or any other

University.

P. Anne Cynthiya

3511120006

3

ACKNOWLEDGEMENT

I am extremely thankful to our Chairman, SRM University, for his invaluable

support. I wish to express my profound gratitude to my venerable Secretary and Pro

Vice Chancellor, SRM for their kind permission to undergo project work successfully.

I express my heartfelt thanks to our Dean and Vice Principal, Faculty of

Engineering and Technology, SRM University, Ramapuram Campus who provided

all facilities for carrying out this project.

I immensely thank our Head of the department as well as my project guide,

Dr. C. Sundar; M.B.A., M.Phil., Ph.D Asst.Prof (S.G) & Head, for his valuable

suggestions and guidance for the completion of project work.

I would also thank my Institution and my faculty members without whom this

project would have been a distant reality. I also extend my heartfelt thanks to my

family and well wishers.

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CONTENTS

CHAPTER NO PARTICULARS PAGE NO

1 Company Profile 7

2 Introduction 13

3 Aim of the project 15

4 Research Methodology 17

5 Data analysis &

Interpretation

20

6 Findings, Suggestion &

Conclusion

32

7 Appendix 35

List of tables

5

Table no Title Page no

1 Age wise calculation 22

2 Income wise

calculation

23

3 Experience level 24

4 Working condition 25

5 Relationship with

supervisor

26

6 Transport facility 27

7 Grievance handling 28

8 Welfare facility 29

9 Pay package 30

10 Decision making 31

11 Leave facility 32

6

CHAPTER 1

COMPANY PROFILE

7

Seshasayee Paper and Boards Limited (SPB), the flagship company belonging

to ‘ESVIN GROUP’, operates an integrated pulp, paper board Mill at Pallipalayam,

Erode – 638 007. Namakkal District. Tamil Nadu India.

SPB, incorporated in June 1960, was promoted by Seshasayee Brothers (Pvt)

Limited in association with a foreign collaborator M/s. Parsons & Whitemore, South

East Asia Inc., USA. After commencement of commercial production, having fulfilled

their performance guarantee obligations, the foreign collaborators withdrew in 1969.

Main promoters of the Company as on data are a group of companies belonging to the

ESVIN group headed by Mr. N. Gopalaratnam.

SPB Commenced commercial production in December 1963, on

commissioning a 20000 tons per annum integrated facility, comprising a Pulp Mill

and two Paper Machines (PM – 1 and PM – 2), capable of producing, writing,

printing, Kraft and poster varieties of paper.

The Plant capacity was expanded to 35000 tons per annum in 1967 – 78, by

modification of PM – 2 and addition of a third paper Machine (PM-3). The cost of the

expansion scheme, at Rs. 34 Millions, was part financed by All India Financial

Institutions (Rs. 32 Millions).

In the second stage of expansion, undertaken in 1976, capacity was enhanced

to 55000 tons per annum, through addition of a 60 tons per annum new Paper

Machine (PM – 4). Cost of the project including cost of a chemical Recovery Boiler

and other facilities for enhanced requirement or utilities, was estimated at Rs. 176

Millions. The same was part financed by term loans from Institutions and Banks to

the extent of Rs. 145 Millions and the balance out of internal generation.

SPB undertook various equipment balancing and modernization programmes,

since then, for improving its operating efficiency, captive power generation capacity,

etc., up to 1992 – 93.

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Expansion / Modernization

The company embarked on an Expansion / Modernization Project to enhance

its production capacity from 60000 tones per annum, to 1,15,000 tons per annum and

to upgrade some of the existing facilities, at an estimated cost of Rs. 1890 millions.

The said Expansion / Modernization Project completed in December 2000.

After successful trials, the Commercial Production out of the new Paper Machine

Commenced on July 1, 2000.

The current installed capacity of the Company stands at 1,15,000 tons per

annum.

Raw Materials

The company’s paper plant was originally designed for using bagasse, as the

primary raw material mixed with 20% bamboo fibre.

Bagasse was being obtained from nearby sugar mill on substitution basis using

oil fired boilers.

With sharp increase in oil prices in 1970 – 71, the Company shifted over to the

use of hardwood, at the time of its expansion undertaken in n1978. Raw material mix

underwent a substantial change, with bamboo and hardwood forming 60% and 40%

respectively, of its raw material consumption.

Soon Company started apprehending difficulties in procurement of bamboo. In

1981, it added one more digester, to increase the share of the hardwood in the furnish

mix to 80% and restricting bamboo use to only 20%. With the commissioning of more

wood based industries in Tamil Nadu, there was again an apprehension about

availability of hardwood.

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As a long – term strategy, the Company at this time decided on restructuring

use of bagasse which was seen to be the most reliable source of fibre for the entire

Industry.

In 1984, the Company promoted Ponni Sugars and Chemicals Limited, as the

captive source for bagasse supply. It added bagasse handling systems and modernized

PM-1 and PM-2, to shift over at the use of bagasse.

The furnish mix for the existing Paper Machines of the Company is 55%

bagasse and 45% hardwood. The Company has vast experience in handling bagasse

and is expected to be one of the major strong points its competitors in India, as the

Indian Paper Industry will continue to be bogged down by the problem of raw

material availability.

For the new Paper Machine, the furnish is imported. The waster paper and

imported pulp which are sourced from Far East countries, Europe and USA. A small

quantity is supplemented out of captive pulp production.

Export Performance

SPB’s exports are nearly 20% of its production and are a significant exporter

in the Indian Paper Industry. Due to its excellent export performance, SPB has been

awarded ‘Golden Export House’ status.

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Awards

SPB in receipt of various Awards awarded by Government of India,

Government of TamilNadu, and Industry Associations, etc. Some of the Awards

received by SPB in the past include:

Capacity Utilization Award

Energy Conservation Award

Environment Protection Award

Safety Award

Export Performance Award

Good Industrial Relations Award

TERI – Corporate Environmental Award

Environment Protection

The company attaches paramount importance to the conservation and

improvement of the environment. It is efforts to improve the environmental protection

measures, the company has installed:

Two Electro Statis Precipitators for its Boilers to control dust emissions

These facilities will ensure sustained compliance by the Company of the

pollution controls norms prescribed by the Pollution Control Authorities.

ISO 9001 / ISO 14001 Accredition

The Company’s quality systems continue to be covered by the “ISO 9001”

Accredition awarded by Det Norske Veritas, the Netherlands.

The Company has also been accredited with “ISO 14001” certification by Det

Norske Veritas, The Netherlands, for its Environmental Quality Systems.

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VARIETY OF PAPER

White printing paper

Blue wave paper

Cream wave paper

Offset printing paper

Colour printing paper

Duplicating paper

Map litho paper

Azure laid paper

Kraft paper

White poster paper

Colour poster paper

Pulp board

Duplex board

Cheque paper

Dyeline printing paper

Stamp base paper and

Litho printing paper are various types of paper manufactured in SPB Ltd.

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CHAPTER 2

INTRODUCTION

13

In a developing country like India, the key progress is done to increase the

productivity. The country cannot progress unless the man and work have good

relationship. The relationship has always attracted between scientists and novelists.

The major part of mans life is spent in doing work. Work is a social reality and social

expectation to which men seem to conform. It not only provides status to the

individual but also binds him to society.

Basically industry is a combination of 6 Ms namely, men, money, machine,

material, market and method. The first one is significant in the sense that it deals with

uncontrollable human emotions and sentiments.

Materials can be purchased at most competitive rates; machines many be

worked at their maximum speed but the output can be maximized only when the

employees work willingly. If we motivate the employees somehow, the output can be

raised still higher with the same type of materials and machines.

Peter F. Drucker says, the sources capable of enlargement can only be human

resources. Other resource can be utilized of worse utilized, but they can never have an

output greater than the sum of outputs.

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CHAPTER 3

AIM OF THE PROJECT

15

3.1 OBJECTIVES OF THE STUDY

1. To find out the employees absenteeism level towards their job in Seshasayee

Paper & Boards Limited for three major areas.

1. Related to work.

2. Related to work place.

3. Related to benefits availed.

2. To study about the employees interaction, relationship with his co-worker and

with supervisors in the work group.

3. To study the employees expectation and their motivation practice of the

management.

3.2 LIMITATIONS

The sample is selected from the staff of Seshasayee paper & Board Limited.

The satisfaction level of the employees of this organization may differ from those of

other. In paper industry the over all absenteeism of employees may differ from

company to company, from industry to industry. Hence the level of satisfaction of the

staff at Seshasayee paper & Boards Limited cannot be generalized to other industries.

Fear of the employer will have an effect on the results obtained. There are

chances of biased response on the part of the respondents, as the researcher is viewed

as the representative of the management.

The survey purely based on opinion of staff, which may be biased at

time

The factory functions in shift system so all shift workers did not take

part in the sample.

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CHAPTER 4

RESEARCH METHODOLOGY

17

Research methodology explains the various steps that tare generally adopted

by the research in studying research problem along with logic behind them.

4.1 RESEARCH DESIGN

The research design adopted for the study is descriptive design. The researcher

has to describe the present situation in order to know the job Satisfaction of the

employees in order to reduce the employee absenteeism. Hence descriptive research

study is used and includes survey and fact finding Enquirer. Descriptive research can

only report what has happened and what is happening.

4.2 SAMPLING DESIGN

4.2.1 Population

The population of the study includes 1550 employees in Seshasayee Paper &

Boards, Erode.

4.2.2 Sampling Technique

The sampling technique used for selecting sample elements is convenience

sampling.

4.2.3 Sample Size

The sample size of 50 employees of different sections in the organization

were interviewed.

4.2.4 Field work

The field work is the actual data collection process and the respondents are the

employees of the Seshasayee paper & Boards, Erode. The respondents were

met and told about the objectives of the study and data were collected through

questionnaire form.

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Data collection method

The collection of data is considered to be one of the important aspects in the

research methodology. There are two types of data that exists one is primary data and

the other is secondary data.

Primary data

Well structured questionnaire has been used for the collection of primary data

from the respondents. For the purpose of knowing the absenteeism of employees.

Secondary data

Secondary data has been collected from the company record, various

magazines, journal and various web sites.

4.2.5 Questionnaire Design

A well structured questionnaire was used for this study. The types of questions

used in the questionnaire were closed-ended, multiple-choice and Dichotomous

question,

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CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

20

The data collected are properly tabulated and summarized.

AGE WISE CLASSIFICATION

Age of the employee is an important demographic factor influencing job satisfaction.

TABLE NO. 5.1

AGE WISE CLASSIFICATION

Age No. of Respondents Percentage

20 to 30 10 20

30 to 40 10 20

40 to 50 15 30

>= 50 15 30

Total 50 100

Inference

From the above table, we infer that, out of 50 respondents, 20% of the

respondents are having age 20 to 30 years, 20% of the respondents are having age

between 30 to 40 years and 30% belong to 40 to 50 years of age. 30% of the

respondents are belonging to the age group of greater than 50 years.

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TABLE NO. 5.2.

INCOME WISE CLASSIFICATION

Man works to earn. Every employee in the organization will expect a

reasonable pay for the job done by him. This reasonable pay may help to increase the

job satisfaction to a certain extent.

Income No. of Respondents Percentage

7000 to 12000 7 14

12000 to 18000 20 40

18000 to 20000 20 40

Above 20000 3 6

Total 50 100

Inference

Table 5.2 shows that, out of 50 respondents, 14% of the respondents are

getting their salary between Rs. 7000 to 12000. 40% of the respondents are getting

their salary between Rs.12000-18000 and 40% of the respondents are getting their

salary between Rs.18000 to 20000 and 6% of the respondents are getting their salary

above 20000.

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TABLE NO. 5.3

EXPERIENCE WISE CLASSIFICATION

Experience is the major factor considered in the job. The experienced

Person may expect a reasonable salary for the work done.

Experience in Year No. of Respondents Percentage

Below 5 years 5 10

5 to 10 years 17 34

10 to 20 years 13 26

Above 20 years 15 30

Total 50 100

Inference

Table 5.3 shows that,

10% of the respondents have their experience below 5 years.

34% of the respondents have their experience between 5 and 10 years.

26% of the respondents have their experience between 10 and 20 years.

30% of the respondents have their experience above 20 years.

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WORKING CONDITION

The place at which the work is undertaken will give some psychological

satisfaction to the worker. This will indirectly motivate the worker towards his job

and as a result, they will be satisfied to work for the organization.

TABLE NO. 5.4

OPINION ABOUT WORKING CONDITION

Description No. of Respondents Percentage

Yes 20 40

No 30 60

Total 50 100

Inference

From the above table, we infer that

40% of the respondents have good opinion about the working condition.

60% of the respondents have bad opinion about the working condition.

.

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TABLE NO. 5.5

RELATIONSHIP WITH SUPERVISOR

Effectiveness of the organization basically depends upon the supervisors. They

should have considerations for the needs of the worker. This may increase the morale

and motivation of the worker to a great extent.

Description No. of Respondents Percentage

Average 17 34

good 30 60

Not good 3 6

Total 50 100

Inference

From the above table

34% of the respondents are Average with their supervisors.

60% of the respondents have good relationships with their supervisors.

6% of the respondents are not good with their supervisor.

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TABLE NO. 5.6

OPINION ABOUT TRANSPORT FACILITY

Description No. Of Respondents Percentage

Very Good 5 10

Good 15 30

Average 10 20

Poor 20 40

Total 50 100

Inference

From the above table, it is inferred that

10% of the respondents have very good opinion about promotional

opportunities in the organization.

30% of the respondents have good opinion about promotional

opportunities.

20% of the respondents have average opinion about promotional

opportunities.

40% of the respondents have poor opinion about promotional

opportunities.

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TABLE NO 5.7

GRIEVANCE HANDLING SYSTEM

Grievance is the factor, which has to be handled in a proper way to find proper

solution.

Description No. Of Respondents Percentage

Yes 15 30

No 35 70

Total 50 100

Inference

Table 5.6 shows that out of 50 respondents 30% of the respondents feel that

the grievance handling system existing in the organisation is good and 70% of the

respondents feel that their grievance are not solved immediately.

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WELFARE MEASURES

Welfare measures to the employees like providing uniform, quarters, medical

facilities, community halls, and schools also have an effect on the job satisfaction.

TABLE NO 5.8

AVAILABILITY OF WELFARE MEASURES

Description No. of Respondents Percentage

Good 3 6

Very good 2 4

Average 35 70

Bad 10 20

Total 50 100

Inference

Table 5.7 shows that

70% of the respondents are satisfied with average on welfare measures.

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TABLE NO 5.9

SATISFACTION LEVEL WITH PAY PACKAGE

Equitable compensation to the work done is a very essential for the employee

in order to make them involved and increase their contribution towards the work. This

study brings out the satisfaction level of compensation, which may be helpful to the

management to take further decision to increase employee’s involvement towards

their job.

Description No. of Respondents Percentage

Good 35 70

Satisfactory 10 20

Adequate 3 6

Not adequate 2 4

Total 50 100

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Inference

70% of the respondents are feeling good about their salary provided by the

organisation.

20% of the respondents are satisfied with their salary provided by the

organisation.

6% of the respondents are adequate with their salary provided by the

organization.

2% of the respondents feel that not adequate salary is not provided.

TABLE NO. 5.10

PARTICIPATION IN DECISION MAKING

Employee’s participation in decision making will increase employer –

employee relationships and the employee morale. It motivates the employees and

increases their integrity with the organization.

Description No .of Respondents Percentage

Yes 23 47

No 27 53

Total 50 100

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Inference

It is inferred from table No.5.17 that 53% of the respondents feel that they are

not participating in the decision making process in the organization and the table

denoted below reveals that 47% of the respondents feel that their decisions are being

considered and also implemented some times.

TABLE NO 5.11

AVAILABILITY OF LEAVE FACILITY

Leave facility are the essence of the employee. So the management has to

provide proper leave facility.

Description No .of Respondents Percentage

Yes 25 50

No 25 50

Total 50 100

Inference

From the above table, we infer that 50% of the respondents feel that the

management provides proper leave for the employee.

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CHAPTER 6

FINDINGS, SUGGESTIONS AND CONCLUSION

32

6.1 FINDINGS

The followings the findings that could enlighten the Seshasayee Paper &

Boards workers levels and quantity and quality of job satisfaction level in order to

reduce employee absenteeism.

From the analysis we found that 40% of the respondents are getting their

salary between Rs.12000-20000

The study reveals that 70% of the respondents are not satisfied with the

Grievance handling to workers.

From the analysis we found that 40% of the employees are not satisfied with

their transport facility.

While analyzing we found that 34% of the respondents have their experience

between 5 to 10 years.

The study reveals that 60% of the respondents do not have good opinion about

the working condition.

From the analysis we found that 60% of the respondents are having good

relationship with their supervisor.

The study reveals that 70% of the respondents are satisfied with their

incentives.

While analyzing equal percentage for leave facility provided in the company.

From the analysis we found that 70% of the respondents are satisfied with

welfare measures.

The study reveals that 53% of the respondents are not satisfied with their

participation on decision making.

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6.2 SUGGESTIONS

As employees are dissatisfied with the following factors, the management may

have to improve upon these factors. Nearly most of the respondents are not satisfied

with their salary package, transport, Grievance, welfare facility etc, therefore the

management has improved in these following areas in order to reduce the

absenteeism of employee.

6.3 CONCLUSION

Employee absenteeism has a direct bearing with the mental health of the

employee. When the job satisfaction in an organization is in higher level, it will

increase the production if company whereas when the job satisfaction is low it will

adversely affect the production of the company.

The study on employee’s absenteeism level revealed that employees were

dissatisfied on majority of factors. Suitable suggestions are provided to sort their

problems.

The findings and suggestions provided by this analysis will help to reduce the

employee’s absenteeism and motivate them to do suitably in their job.

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CHAPTER 7

APPENDIX

35

A STUDY ON EMPLOYEE ABSENTEEISM

1) Name (Optional) ………………………………………………………………

2) Age : a) 20-30 b) 30-40 c) 40-50 d) above 50

3) Marital Status : married unmarried

4) Monthly Income : a) 7000-12000 b) 12000-18000

c) 18000-20000 d) above 20000

5) Departments : a) engineering b) manufacturing

c) Service d) admin

6) Experience : a) below 5yrs b) 5-10yrs

c) 10-20yrs d) above 20yrs

7) Are you satisfied with the mode of transport?

a) Highly satisfied b) satisfied c) neutral d) dissatisfied

8) What is your opinion regarding the pay?

a) Highly satisfied b) satisfied c) neutral d) dissatisfied

9) What is your opinion regarding welfare facilities?

Very good good average bad

10) Are you satisfied with working condition?

Yes

No

If Yes, Reason………………………………………………………………………

If No, Reason ………………………………………………………………………

11) Are you satisfied towards grievance handling procedure?

Yes No

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12) How do you rate your relationship with your superior?

a) Average b) Good c) Very good

13) For what reason you take leave?

A) Sickness

B) Lack of interest in job

C) Poor working condition

D) Long working hours

E) Personal reason

14) Employee absence on personal reason?

a) Attending on family function

b) Visiting places

c) Domestic problem

d) Lack of co-ordination among colleagues

15) Employees are happy with the health and safety measures of the company?

a) Yes b) No

If No, in what way ………………………………………………………

16) Are you satisfied with the leave facility?

a) Yes b) No

17) Do you need any improvements in working condition?

a) Yes b) No

If Yes, in what way ………………………………………………………

18) Do you agree value of benefits offered to you?

a) Strongly agree b) agree c) no comments

19) Does company regularly exchange ideas with employee?

a) Yes b) No

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20) In your opinion, how absenteeism can be controlled?

a) Change in management style

b) Change in work condition

c) Incentive/ wage hike

d) Develop attendance policy

e) Better transportation facility

f) Individual attention

g) Encouragement and appreciation

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