“A STUDY ON ABSENTEEISM OF WORKMEN
IN MRF LTD. TIRUVOTTIYUR CHENNAI”
Submitted in partial fulfillment of the requirements
For the award of degree in
MASTER OF BUSINESS ADMINISTRATION
By
SHATHEESH L
Reg. No: 2941516
DEPARTMENT OF MANAGEMENT STUDIESSATHYABAMA UNIVERSITY
(Established under Section 3 of UGC Act 1956)JEPPIAAR NAGAR, RAJIV GANDHI ROAD
CHENNAI 600119
SATHYABAMA UNIVERSITY(Established Under section 3 of the UGC Act, 1956)
Accredited with B++ Grade by NAACJEPPIAAR NAGAR, CHENNAI - 600 119
DEPARTMENT OF MANAGEMENT STUDIES
BONAFIDE CERTIFICATE
This is to certify that this Project Report is the bonafide work of
SHATHEESH L Reg no:2941516 who carried out the project entitled “A STUDY
ON ABSENTEESIM OF WORKMEN IN MRF LTD TIRUVOTTIYUR
CHENNAI” under our supervision from January 2010 to March 2010.
Internal Guide External Guide
Mr. D. SENTHIL KUMAR (Name in Capital letters with signature)
Head of the Department
Ms.Vaishali C Mahajan MBA.,(Ph.D)
Submitted for Viva Voce Examination held on_________________
Internal Examiner External Examiner
2
DECLARATION
I SHATHEESH L hereby declare that the Project Report entitled “A
STUDY ON ABSENTEEISM OF WORKMEN IN MRF LTD TIRUVOTTIYUR
CHENNAI” is done by me under the guidance of Mr.D. SENTHIL KUMAR
MBA, Mcom,.(Ph.D) Lecturer, Sathyabama University, Chennai is
submitted in partial fulfillment of the requirements for the award of the
degree in MASTER OF BUSINESS ADMINISTRATION.
DATE:
PLACE: SIGNATURE OF THE CANDIDATE
3
ACKNOWLEDGEMENT
I would like to whole heartedly thank and express my sincere
gratitude to the Chancellor, Thiru. Dr JEPPIAAR, M.A.B.L., Ph.D., for his
constant encouragement in the development of this Project.
I also sincerely thank our Directors Thiru. Marie Johnson, B.E.,
M.B.A., Tmt. Mariazeena Johnson, B.E., M.B.A., for the constant
encouragement and stimulating atmosphere provided to me.
I also wish to thank the Vice Chancellor Dr.N.Manoharan M.E.,
Ph.D., and Ms.Vaishali C Mahajan MBA.,(Ph.D) Head of the
Department, for their valuable advice and support.
Most of all, I extent my sincere thanks to Mr. D. SENTHIL KUMAR
MBA, Mcom,.(Ph.D) Lecturer, MBA Department for their continuous
encouragement , guidance and support throughout the development of this
Project.
I also extend my sincere thanks to my family for their encouragement
and support.
SHATHEESH L
4
CHAPTER 1
INTRODUCTION
Absenteeism has been recognized as a vital issue affecting discipline and
production in the organized industry today. It is a major socio – psychological
problem in industries. Absenteeism in Indian industry is not a new phenomenon.
The Royal Commission of Labour reported, “High absenteeism prevails among
industrial labours mainly due to their rural orientation”. Absenteeism is a serious
problem for a management because it seriously involves heavy expenditure and
loss of production. The main objective of organization is to maximize profit by
maximum utilization of men, materials and money. When there is a problem of
absenteeism the three above said sources are not fairly utilized.
Absenteeism is one of the common factors, which affects both the
production, and the growth of the organization. No company can afford to allow
high incidence of absenteeism to eat up its hard earned corporate profits. In
general the absent rate indicates the relative cost to a given company because
production workers simply cannot produce as much annually when absent rates
are high as they can when absent rates are low. When the employees are away
from the work, it is difficult for the employer’s to maintain production schedule.
Reduction of absenteeism is beneficial not only to the industry but also to
the nation as a whole. The treatment of dismissal by the employer would never
ultimately help to reduce absenteeism
5
Labour force is an integral and important component of the wealth of
nations, as other factors like land, capital, and machine. Measured by what labour
contributes to output, productive capacity of human beings is now vastly larger
than all other forms of wealth taken together which has chiefly contributed to
economic growth of countries.
An employee is under an obligation not to absent himself from work
without good cause during the time at which he is required to be at work spot by
the terms of his contract of service. Absence creates many administrative
problems, resulting in dislocation of work. The contribution of labour towards
production is possible only when the individual comes to the work spot and delivers
his labour to somebody. Labour is inseparable from the labour himself. He sells his
labour in person. A labourer works to earn, to do so it is imperative on his part to
be present on the work spot everyday.
When the workers are absent from the work, it leads to loss in the man-
hours, which has direct influence on the production and productivity. This
underlines the importance of the need for workers to be present.
Absenteeism refers to the absence of an employee from work who is
scheduled to be at work. It refers to the loss of man – hours on account of the
absence of a percentage of workers scheduled to be at work.
Absenteeism plays an important role in the productivity of the
organization.
“More the Absenteeism, Less Would Be the Productivity”
6
Absenteeism affects
The Employer – Production/Profitability
The Employee – Earnings
The Nation – Economic condition
Though many studies have been conducted on absenteeism a clear
understanding is necessary to deal with the problem and to reduce absenteeism.
An industry, which has got a bad record of absenteeism, cannot claim to have
neither good industrial relations, nor high morale of work force.
7
1.1 INDUSTRY PROFILE
THE INDIAN TYRE INDUSTRY AN OVERVIEW
HIGHLIGHTS
The Tyre industry is Rs.9000 crore industry.
The fortune of this industry depends on the agricultural and industrial
performance of the economy, the transportation needs and the production of
vechicles.
While the tyre industry is mainly dominated by the organized sector, the
unorganized sector holds sway in bicycle tyres.
In the last five years (1994 – 95 to 1998 – 99), the industry managed to
achieve a compound annual growth of only 4.40 percent. However in the
last fiscal the industry registered a growth of 7 percent.
Natural rubber constitutes 25 percent of the total raw materials cost of the
years.
The ratio of natural rubber content to synthetic rubber content is 80:20 in
Indian tyres, whereas worldwide, the ratio of natural rubber to synthetic
rubber is 30:70.
SECTOR COMMENTS
Ever since the first Indian tyre company, Dunlop Rubber Company (India)
was incorporated in 1926, the tyre industry has grown rapidly and today it’s a
Rs.9000 crore industry. India has 2.61 lakh villages, connected by 6.23 lakh kms of
metalled roads and 9.81 lakh kms of unmetalled roads. These villages are linked to
small towns and cities. There is a daily traffic of over 4.12 lakh trucks, 1.27 lakh
buses, 7.23 lakh cars, and thousands of taxis, two – wheelers, three – wheelers,
8
tractors and animal drawn vehicles on Indian roads. There exists a vast potential
for the tyre industry in India.
MARKET PROFILE
While the tyre industry is mainly dominated by the organized sector, the
unorganized sector holds sway in bicycle tyres. The major players in the organized
tyre segment consist of MRF, Appollo tyres, Ceat and JK Industries, which account
for 63% of the organizes tyre market. The other key players include Modi Rubber,
Kesoram Industries and Good year India, with 11%, 7%, and 6% share
respectively. Dunlop, Falcon, Tyre corporation of India Limited (TCIL), TVS –
Srichakra, Metro Tyres and Balkrishna Tyres are some of the other players in the
industry. MRF, the largest tyre manufacturer in the country, has strong brand
equity. While it rules supreme in the industry, other players have created niche
markets of their own.
SECTOR SPECIFIES
The tyre industry is a major consumer of the domestic rubber production.
Natural rubber constitutes 80% of the material content in Indian tyres. Synthetic
rubber constitutes only 20% of the rubber content of a tyre in India. Worldwide, the
ratio of natural rubber is 30:70. Apart from natural and synthetic rubber, rubber
chemicals are also widely used in tyres.
Most of the RSS-4 grade natural rubber required by the Indian tyre industry
is domestically sourced, with only a marginal amount being imported. This is an
advantage for the industry, since natural rubber constitutes 25% of the total raw
material cost of the tyres.
9
The two types of synthetic rubber used in tyres are Poly Butadiene Rubber
(PBR) and Styrene Butadiene Rubber (SBR). The former is used in most of the
tyres, while the latter is mainly used in the radials for passenger cars. Synthetic
rubber accounts for 14% of the raw material cost. Unlike in the case of natural
rubber, India imports 60% of its synthetic rubber requirements.
Apart from rubber major raw materials are nylon tyre cord and carbon black.
The former is used to make the tyre strong and impart tenacity to it. The latter is
responsible for the colour of the tyre and also enhances the life span of the tyre.
Nylon tyre cord comprises 34%, while carbon black accounts for another 13% of
the raw material cost. In India, the carbon black is of the N660, N220 and N330
variety.
SECTOR TRENDS
Crossply tyres have been used in India for several decades. In these tyres,
the ply cords run across each other or diagonally to the outer surface of the tyre.
Rayon and Nylon tyre cords are used as the reinforcing medium. These tyres can
be retreaded twice during their lifetime and are hence preferred by Indian transport
operators who normally overload their trucks. A vehicle with the normal carrying
capacity of around 12 tonnes is usually loaded with double the capacity. Moreover,
one also has to contend with the bad suspensions and bad road conditions. No
wonder, 95% of the tyres used in India are cross plies.
Radial tyres have their cords running radially from bead at 90-degree angle
to the rim or along the outer surface of the tyre. The reinforcing mediums used in
these tyres are polyester, nylon, fiberglass and steel. Hence, these tyres are 20%
more expensive than the cross plies. But they have a longer life and provide lower
10
fuel consumption. The unhealthy condition of the Indian roads has resulted in radial
tyres accounting for only 5% of the tyre industry as against a global trend of 60%
with two – thirds of the capacity of all major tyre manufacturers being reserved for
radials; this is a real cause for concern.
CONCLUSION
The industry, already bogged by over capacity, is facing a severe threat of
dumping of cheap tyres by South Korea. Under the Bangkok agreement, signed
between India and South Korea in 1976, import of tyres from the latter into India
would attract a concessionary duty of 33% as against the normal tariff of 40%.
Two years ago, the industry estimated the growth in the passenger car
radial demand at 20% per annum. However, the auto recession has hit them badly.
But South Korea made a killing by dumping cheap car radial tyres and walked
away with 11% of the tyre market.
Another threat to the industry is the price of its raw materials, most of which
is petroleum by – products. Carbon, synthetic rubber and nylon tyre cord are
offshoots of petrochemicals. Thus, the future of the industry will swing with the
supply of crude oil. The biggest threat, however, is yet to fully materialize. It will be
from global major like Bridgestone and Michelin, which controls 36% of the global
tyre market. These players have set up their bases in Southeast Asia and the
slump of the market, is becoming then towards India. Bridgestone has tied up with
ACC for a 100% radial tyre unit and Michelin is also marketing its products through
retail outlets.
11
1.2 COMPANY PROFILE
MRF Ltd., India’s largest Tyre Company, is the 13 th largest tyre company
in the world and one of India’s world-class companies. MRF operates in six
manufacturing plants in India and has been awarded ISO 9002 quality
certification for all its manufacturing plants. The company caters to almost every
segment in the tyre market heavy – duty truck/bus tyres, light commercial
vehicle tyres, passenger car tyres, two wheeler tyres and ferm service tyres.
The company has continued in the same vein and has been posting
excellent results, not withstanding the winds of recession blowing across the
economy. Performance of the company has been commendable in light of the
fact that the user industry is facing a slowdown. The company has benefited
from better productivity and operational efficiency.
Once the first tyre factory was set up in the early sixties, there was no
looking back for the company. From Rs.100 crore turnover in 1979, it touched
Rs. 1,000-crore in 1993 to double at Rs. 2,000 crore in 1996, the golden jubilee
year.
MRF has emerged as the largest tyre manufacturer in India and 13 th
largest in the world with a built capacity of six million tyres from 6 factories. It
boasts of 68 sales centers, 2,500 distributors and exports to 65 countries.
12
MRF has also made its mark as the number one toy manufacturer in India
with 24 percent market share in the organized sector. The entire range of over
200 Funskool toys produced in collaboration with the US major, Hasbro Inc. has
also been arrayed in one section of the expo.
The company caters to a host of impressive clients. It has signed on to be
the sole supplier for auto giants like
General motors
Fiat
Ford
Opel
Daewoo
Hyundai
Maruti
Ashok Leyland
MRF Company has it today the country’s largest tyre manufacturer and
market leader. One of the largest rubber company both worldwide and in the
Indian sector. It is the only tyre company to straddle the subcontinent with giant
manufacturing facilities at Chennai, Arokkonam, Kottayam, Goa, Medak and
Pondicherry. MRF are the market leader in almost every segment:
Superlug – Country’s largest selling truck tyres
Zigma – Country’s largest selling radial car tyres
Legend – Country’s largest selling conventional car tyres
Nylogrip – Country’s largest selling two wheeler tyres
Shakti – Largest selling tractor tyres
13
Besides these MRF is the largest producer of procured retread and, it is
perhaps the largest in Asia today.
The company is also renowned for its exports, which have also been
witnessing positive growth. The company has recently entered the radial tyre
segment and has met with positive response. The performance of the company
could further improve with the revival of the auto industry. Thus MRF can be
expected to retain its position in this segment too.
MRF bagged many awards, like
Visvesvary Award for the Best Business house in South India.
The Harvard Business School Award for the Best Corporate
Performance
Six Quality Improvement Award instituted by B.F.Goodrich
Continue to be the 1st in “JD Power Rating” for the past 3 years.
The National Institution of Quality Assurance Award.
Readers of the A & M Magazine ranked MRF, as one of India’s most
admired marketing companies.
14
1.3 REVIEW OF LITERATURE
The EUROPEAN FOUNDATION for the Improvement of Living and
Working Conditions did a project study titled “Preventing Absenteeism at Work
Place” in the year 1997 for the whole of the 15 countries coming under the
European Union. One of the recommendations given by the study is:
Employers and workers can have a knowledge base to start preventive
and reintegrative activities at the work place. These activities should
Use a systematic and comprehensive approach.
Be based on the needs of the work force.
Aim at active employee participation.
Be applied across all workers in the company.
Another project titled “Ill Health and Work Place Absenteeism” focused on
the health related issues of absenteeism. In the main phase of the research,
detailed studies were made of different approaches to reducing absence
associated with ill health.
DEFINITIONS FOR ABSENTEEISM
Hackett defines absenteeism as “a temporary cessation of work for not
less than one whole day, on the initiative of workers, when his presence is
expected.
15
Technically it can be defined as a ratio of the number of production man –
days or shift lost to the total number of production man – days or shifts
scheduled to work.
According to the circular issued by the Labour Department, Government
of India, absenteeism rate refers to “the total man – shifts lost because of
absence as a percentage of the total man – shifts scheduled”.
An employee is to be considered scheduled to the work, when the
employee has available work and the employee is aware of it, and when the
employer has no reason to expect, well in advance, that the employee will not
be available for work at the specified time.
“Absenteeism is any failure of an employee to report for or to remain at
work as scheduled, regardless of reason”.
Labour Bureau of India defines absence as a failure of a worker to report
for work when he is aware that the employer has work available to him.
Absenteeism is the tendency of a worker to abstain from his scheduled
work. For the purpose of statistics, a worker is treated as absent when
He does not turn for work by obtaining prior permission.
He is on leave with pay (Full or Part)
The worker is on leave without pay even though the worker receives
social security benefits for sickness, maternity benefits etc.,
When the worker absconds from duty.
16
According to a circular issued by the Labour Department, Govt. of India,
absenteeism rate refers to “the total man- -shifts lost because of absence as a
percentage of the total man – shifts scheduled”.
For estimating the rate of absenteeism we require the number of persons
scheduled to work and the number actually present. A worker who reports for
any part of shift is to be considered as present.
An employee is to be considered scheduled to work, when the employee
has available work and the employee is aware of it, and when the employer has
no reason to expect, well in advance, that the employee will not be available for
work at the specified time.
Regularly scheduled holidays, ordered lay – offs, strikes and bandhs are
excluded while estimating absenteeism.
Rate of Absenteeism
Absence = (Number of daily absentees during a period) *100
(Number of employees)*(Number of working days)
CAUSES OF ABSENTEEISM
The rate of absenteeism is the highest on the last and the first working
days in the week and after the paydays. The enterprises with paid sick leave
have greater absences than their counterpart, manufacturing units have higher
rate of absence than the non – manufacturing ones, the shop have greater rate
17
of absences than the office rates, the night shift involves more absence than the
day – shifts, and the job satisfaction is also negatively related to absenteeism.
Rates of sickness absenteeism indicate a health rather than a morale
problem, it should be separately estimated. However whatever be the nature of
absenteeism it can upset production schedule badly, especially in line and group
production systems.
The causes of absenteeism can be categorized into three. It includes
In-plant causes
Personal causes
Community causes
In – plant Causes
In – plant causes of absenteeism include:
In – effective selection and placement procedures
Excessive fatigue
Over – staffing
Under – staffing
Irregular flow of production
In – effective use of skills
Poor supervision
In – adequate training programme
In – effective grievance procedure
18
Low morale
Poor employer – employee relations
Personal Causes
The personal causes of absenteeism are:
Illness of oneself or of one’s family
Seeking other employment
Household responsibilities
Child care
Recreation
Use of alcohol
Community or Social Causes
The community or social causes include:
Inadequate housing
Poor transportation
Marketing and shopping difficulties
Lack of social facilities such as hospital and credit
Seasonal factors such as cultivation season, marriage season,
amusement and religious festivals
19
CONTROLLING AND PREVENTING ABSENTEEISM
There are several measures to control and prevent absenteeism. The
most effective measures to control absenteeism relate to good records, careful
analysis, and good supervision. Efforts may be made to determine where
absenteeism takes place, when it takes place, who is involved and why he/she
is involved.
Other measures to control include effective placement, adequate training,
penalty for absence, and rewards for attendance, delegation of responsibility of
control to foreman, effective personal practices and improved working conditions
and obtaining union co – operation.
The work milieu is very important since a large part of the workers daily
life is spent there. The atmosphere obtaining in a plant therefore affects his
attitude to his work, and either persuades him to attend regularly or keeps him
away.
It has been indicated that a large part of absenteeism is caused by a
small part of work force that the same individuals are involved throughout their
work history rather than in a particular year, it indicates that the individuals with
positive attitudes have low absenteeism. Moreover life stress and illness have
positive relationship with absenteeism. These facts provide the basis to control
absenteeism effectively. In addition to this, inter – departmental contests and
awards, and time - offs for personal needs such as shopping have been found
effectiveness in preventing absenteeism.
20
CHAPTER 2
RESEARCH INFORMATION
2.1 OBJECTIVE
Primary Objective
The primary objective of the project is to study about absenteeism and
the rate of absenteeism prevailing in the industry. The study also includes the
attitude of the workers towards the company who belongs to chronic absentees.
Secondary Objective
To study the reasons for absenteeism.
To find the factors leading to absenteeism.
To find whether the workers are motivated by the introduction of new
schemes by the company.
To find measures to control absenteeism.
To find the relationship between absenteeism and the various factors
leading to absenteeism.
To receive suggestions from the workers for reducing absenteeism.
21
2.2 NEED FOR THE STUDY
Absenteeism is a common factor prevailing in the Indian industries. The
main objective of organization is to maximize profit by employing minimum number
of men, material and money. When there is a problem of absenteeism the above
said factors are not fairly utilized. So the need for reducing absenteeism is not only
the need for the company but also the need of the nation.
The study conducted in MRF, Tiruvottiyur is to find the reasons for the
absenteeism, the factors leading to absenteeism, to find whether the workers
are motivated after the introduction of the various schemes to reduce
absenteeism etc. The study is also conducted to analyze the relationship of
various factors with absenteeism.
Moreover to know the attitude of the workers towards the organization is
the most important one because in a factory like MRF, which employees more
than 1000 workers, the attitude is the basic factor that defines the worker’s
morale and rate of satisfaction.
22
2.3 SCOPE OF THE STUDY
Absenteeism is not a new problem in the Indian industries. It is a universal
fact. Absenteeism is one of the common factors, which affect both the production,
and the growth of the organization. So controlling and preventing absenteeism
become the aim of the whole nation.
Chronic absentees are persons who habitually stay away from their work.
Unauthorized absence will increase the workload of other workers. Moreover the
production will decrease and the company will be in a position to close the
business. This is not only the problem of the company alone; it will affect the
employer, the employee and the community as a whole.
23
2.4 LIMITATIONS
The study was conducted within a limited time period.
The sample size is limited to 150 from the population of 300.
Only the absentees who absented more than 20 days in the year 2003
and 2004 are taken as the population.
The data provided by the respondents may be false at times.
The researcher was asked to interview the workers in Tamil language.
Researcher is conducting the project for the first time.
24
2.5 RESEARCH METHODOLOGY
2.5.1 Research Design
Descriptive Research Design has been followed to conduct the
research study. The success of any formal research depends on its sound
research design. As the aim of this project is to identify the factors leading to
absenteeism and the relationship between various factors and absenteeism this
project is purely descriptive in nature.
2.5.2 Sampling Technique
Stratified Random Sampling is used for the study. Under stratified
sampling the population is divided into several sub – populations that are
individually more homogenous than the total population. Stratified sampling results
in more reliable and detailed information.
2.5.3 Population
MRF Tiruvottiyur has a total population of 1014. The workers who have
been absent for more than 20 days in the year 2003 and 2004 are selected for the
study. So the population for this particular research is 300. 50% of the population
(150) is selected for the study as the sample size.
25
2.5.4 Method of Data Collection
Both primary and secondary data collection have been taken for this
research study.
Primary Data:
The primary data are those, which are collected afresh and for the first time,
and thus happen to be original in character. The primary data is collected using a
well – designed questionnaire both in English and Tamil language. The primary
data is collected by direct interview with the workers. The questions included were:
Dichotomous questions
Open ended questions
Closed ended questions
Secondary Data:
Secondary data means data that are already available. The secondary data
is collected with the help of company records, company manual, internet etc.,
2.5.5 Statistical Tools
The statistical methods, which are used, for the research are:
Percentage analysis
Chi – square analysis
26
CHAPTER 3
ANALYSIS AND INTERPRETATION
Analysis and interpretation is the main part of a project study. The statistical
methods used for this particular study of absenteeism are:
Simple Percentage Analysis
In simple percentage analysis the number of respondents for each factor is
converted into percentage basis. So the percentage of each factor leading to
absenteeism can be known from the simple percentage analysis.
Statistical Analysis
statistical measure used in the context of sampling analysis for comparing a
variance to a theoretical variance. It is a non – parametric test. Chi – square is
used to show the dependency or to determine whether the two classifications are
independent.
27
3.1 CROSS TABULATION
GENERAL PROFILE OF ABSENTEES
Table No.3.1.1
DEPARTMENT
MARITAL STATUS
Total
AGE
TotalGrand TotalSingle Married
20 - 30 31 - 40 20 - 30 31 - 40 41 - 50 >50
Tyre Curing 1 - 1 - 7 5 12 24 25
Tyre Building 3 1 4 2 8 6 4 20 24
Tyre Finishing - - - - 2 1 7 10 10
General Leave Reserve
1 - 1 4 6 1 3 14 15
11D Banbury - - 1 11 - 2 14 14
Others 4 - 4 2 21 10 25 58 62
Grand Total 9 1 10 9 55 23 53 140 150
INTERPRETATION
In the Tyre Curing department, from a total of 25 absentees, 12 of the
absentees are from the age group above 50. In the Tyre Building department, from
a total of 24 absentees, 8 of the absentees are from the age group 31 – 40. From a
total of 10 absentees in the Tyre Finishing department, 7 of the absentees are from
the age group above 50. In the department General Leave Reserve, from a total of
15 absentees, 6 are from the age group 31 – 40. In 11D Banbury, 11 of the
absentees are from the age group 31 – 40 from the total of 14. The department
others include Band Building, House Keeping, Banner Cutter etc. From the total of
62 absentees, 25 are coming under the age group above 50 in the others category.
Finally from the 150 absentees 140 belongs to the married category.
28
GENERAL PROFILE OF ABSENTEES
Table No.3.1.2
EXPERIENCEINCOME
AGEGrand Total
20 - 30 31 - 40 41 – 50 >50
<5 yearsYes 1 - - - 1
No 7 1 - - 8
6 – 10 yearsYes 2 8 - - 10
No 8 26 - - 34
11 – 15 yearsYes - 5 4 - 9
No - 12 3 - 15
16 – 20 yearsYes - - 4 - 4
No - 3 6 2 11
>20 yearsYes - - 3 24 27
No - 1 3 27 31
Grand Total 18 56 23 53 150
INTERPRETATION
Among the absentees who are having more than 20 years experience 24
persons have some other source of income. 4 of the absentees who belong to 16 –
20 years experience have some other source of income. Among the absentees
who are having 11 – 15 years experience, 5 persons have some other source of
income. 8 absentees who are having 6 – 10 years experience have some other
source of income. Only 1 person who is having less than 5 years experience have
some other source of income. From the table it is clear that there is a direct
relationship between age and the number of persons who is having other source of
income. As the age increases, the number of persons who is having other source
of income also increases.
29
3.2 SIMPLE PERCENTAGE ANALYSIS
RATE OF ABSENTEEISM IN DEPARTMENTS
Table No. 3.2.1
DEPARTMENTNO. OF
RESPONDENTSPERCENTAGE
Tyre Curing 25 17.00
Tyre Building 24 16.00
Tyre Finishing 10 7.00
General Leave
Reserve15 10.00
11D Banbury 14 9.00
Others 62 41.00
Total 150 100.00
Figure No. 3.2.1
TC TB TF GLR 11D OTH0%
10%
20%
30%
40%
50%
17% 16%
7% 10% 9%
41%
Departments
Series1
INTERFERENCE
The department others include Band Building, House Keeping, Banner
Cutter, Homogenisation etc., 41% of the absentees are from the respective
departments. 17% from Tyre Curing, 16% from Tyre Building, 7% from Tyre
Finishing, 10% from GLR, and 9% from 11D Banbury.
30
EXPERIENCE RELATED WITH ABSENTEEISM
Table No. 3.2.2EXPERIENCE NO. OF
RESPONDENTS
PERCENTAGE
<5 Years 9 6.00
6 – 10 Years 44 29.30
11 – 15 Years 24 16.00
16 – 20 Years 15 10.00
More than 20 Years 58 38.60
Total 150 100.00
Figure No. 3.2.2
0%5%
10%15%20%25%30%35%40%
6%
29.30%
16%
10%
38.60%
Experience
<5 y 6 - 10 y 11 - 15 y 16 - 20 y >20 y
INTERFERENCE
The workers who are having experience more than 20 years is absenting
more. This shows their dissatisfaction in the job, or may be due to their health
problems. 29.3% of absentees belong to 6 – 10 years experience. 16% absentees
belong to 11 – 15 years’ experience. 10% belongs to 16 – 20 years’ experience
and only 6% belong to <5-year experience.
31
REASONS FOR ABSENTEEISM
Table No. 3.2.3REASONS NO. OF
RESPONDENTS
PERCENTAGE
Shift Timing 27 18.00
Working Condition 23 15.30
Work Load 50 33.30
Dissatisfaction With
Job
37 24.60
All The Above 13 8.60
Total 150 100.00
Figure No. 3.2.3
st wc wl dj all0%
5%
10%
15%
20%
25%
30%
35%
18.00%15.30%
33.30%
24.60%
8.60%
Reasons
INTERFERENCE
33.3% of the absenteeism is due to the workload in the company. 24.6% is
due to dissatisfaction with job, 18% is due to the shift timings, 15.3% is due to the
working condition and 8.6% is absenting because of all the reasons mentioned
above.
32
OPINION OF THE WORKERS REGARDING EFFECTIVE
MEASURES TO REDUCE ABSENTEEISM
Table No. 3.2.4
EFFECTIVE
MEASURES
NO. OF
RESPONDENTS
PERCENTAGE
Superior- worker
relationship
23 15.30
Shift schedule 39 26.00
Working condition 20 13.30
Wage policy 31 20.67
Leave rules 37 24.60
Total 150 100.00
Figure No. 3.2.4
SW15%
SS26%
WC13%
WP21%
LR25%
Effective measures
INTERFERENCE
26% of the absentees believe that re – arranging the shift schedule is the
most effective measure to reduce absenteeism. 25% of the absentees feel that
revising the leave rules is the effective measure. 21% thinks that changing the
wage policy is the best. 15% wants to improve the superior – worker relationship
and 13% wants to improve the working condition, health, safety and welfare
measures.
33
RATE OF PERSONAL PROBLEMS LEADING TO ABSENTEEISM
Table No. 3.2.5
PERSONAL
PROBLEMS
NO. OF
RESPONDENTS
PERCENTAGE
Health 49 32.60
Festivals & other
domestic functions
29 19.30
Indebtedness 11 7.30
Alcoholism 19 12.65
Family problems 42 28.00
Total 150 100.00
Figure No. 3.2.5
Hea Fes Ind Alc Fp0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%32.60%
19.30%
7.30%
12.60%
28.00%
Personal Problems
Series1
INTERFERENCE
From the chart it is clear that health is leading to more absenteeism than the
other factors. The percentage of absenteeism due to health is 33%. 28% of the
absenteeism is due to family problems. 19% of the absenteeism is due to festivals
and other domestic functions. 13% of workers is absenting because of alcoholism.
The rest 7% is absenting because of indebtedness.
34
RATE OF SATISFACTION OF MOTIVATION
Table No. 3.2.6
SATISFACTION WITH
SCHEMES
NO. OF
RESPONDENTS
PERCENTAGE
Strongly Agree 12 8.00
Agree 43 28.60
Neither Agree Nor
Disagree
19 12.60
Disagree 53 35.30
Strongly Disagree 23 15.30
Total 150 100.00
Figure No. 3.2.6
SA A NAD D SD0%
5%
10%
15%
20%
25%
30%
35%
40%
8.00%
28.60%
12.60%
35.30%
15.30%
Absenteeism Related With Motivation
INTERFERENCE
It is evident from the chart that 35.3% are not satisfied with the motivation
given by the company. 15.3% strongly agree that the schemes introduced by the
company are not enough to reduce absenteeism. 28.60% believes that the rate of
motivation is enough. 8% firmly believe in that.
35
NATURE OF JOB OF THE ABSENTEES
Table No. 3.2.7
NATURE NO. OF
RESPONDENTS
PERCENTAGE
Interesting 15 10.00
Adjustable 45 30.00
Risky 41 27.30
Boring 22 14.70
Frustrating 27 18.00
Total 150 100.00
Figure No. 3.2.7
Int10%
Adj30%
Ris27%
Bor15%
Fru18%
Nature of Job
Int Adj Ris Bor Fru
INTERFERENCE
About 30% of the workers are adjustable with the job, 27.3% is absenting
because of the risk involved in the job, and 18% of the workers are getting
frustrated with the job. 14.6% is workers are getting bored with the job. Only 10%
are interested in the work.
36
RATE OF SATISFACTION OF RELATIONSHIP WITH SUPERIORS
Table No. 3.2.8
RELATIONSHIP WITH
SUPERIORS
NO. OF
RESPONDENTSPERCENTAGE
Friendly with superior 50 33.30
Superior is
humanitarian36 24.00
Never talked with
superior7 4.70
Difference of opinion
with superior53 35.30
Afraid of superior 4 2.70
Total 150 100.00
Figure No. 3.2.8
F H NT DO A
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%33%
24%
5%
35%
3%
Relationship With Superiors
INTERFERENCE
About 35.3% of the absentees have some difference of opinion with the
superiors. 33.3% if friendly with superiors, 24% feel that their superior is
humanitarian, 4.7% said that they never talked with superior and the rest 2.7% is
afraid of their superior.
37
RATE OF SATISFACTION OF RELATIONSHIP WITH
CO – WORKERS
Table No. 3.2.9
RELATIONSHIP NO. OF
RESPONDENTS
PERCENTAGE
Highly Satisfied 26 17.30
Satisfied 95 63.30
No Opinion 15 10.00
Dissatisfied 10 6.70
Highly dissatisfied 4 2.70
Total 150 100.00
Figure No. 3.2.9
HS S NO D HD0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
17.30%
63.30%
10.00%6.70%
2.70%
Relationship With Co - Workers
INTERFERENCE
About 63.3% of the absentees are satisfied with the relationship with their co
– workers. 17.3% are highly satisfied. So the relationship with co – workers cannot
be said as a reason for absenteeism. 10% have no opinion about their relationship.
Only 6.7% is dissatisfied and 2.7% is highly dissatisfied with their relationship with
their co – workers.
38
PERCENTAGE OF AWARENESS AND UNAWARENESS
ABOUT SCHEMES
Table No. 3.2.10
AWARENESS ABOUT
SCHEMES
NO. OF
RESPONDENTSPERCENTAGE
Yes 59 39.30
No 91 60.70
Total 150 100.00
Figure No. 3.2.10
Yes No0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
39.30%
60.70%
Awareness About Schemes
Ser...
INTERFERENCE
From the chart it is clear that about 60.7% of the absentees are aware about
the schemes introduced by the company to reduce absenteeism. Only 39.9% is
aware about the schemes. So this is a reason for absenteeism.
39
3.3 FINDINGS
According to the objectives
The main reasons behind absenteeism are the dissatisfaction with job and
the workload of the workers. Apart from that health problems of the aged
workers also lead to high rate of absenteeism.
The main factors, which lead to absenteeism of the workers, include the low
rate of satisfaction towards motivation, and low rate of satisfaction towards
wages.
Even though the absentees are not fully motivated, a small part of the work
force is motivated for a better work after the introduction of the schemes.
There is a significant relationship with the factors leading to absenteeism
and absenteeism in most of the cases.
In Detail
Absenteeism is more in the departments like tyre curing, band building, tyre
building etc., which involves difficult task. Workload and working condition
may be the reason for absenteeism in these departments.
Percentage analysis according to age gave the result that 31 – 40 aged
workers are absenting more. This may be due to family responsibility and
other family problems.
40
It is clear that a major part of the absentees are married. This is due to
various personal problems, family problems, child care, other household
responsibilities etc.,
A large part of the absentees are coming from the near by localities, that is
from less than 3 kms. So the absenteeism is not due to distance. This shows
their low morale towards the company.
The most shocking fact is that the major groups of absentees are
experienced persons. This is because of the high rate of job security in the
company and may be because of health problems.
Other source of income is not a reason for absenteeism. Most of the
absentees depend only on the company for their living.
Awareness about leave rules and leave facilities is not the reason for
absenteeism. Most of the absentees are very much aware about the leave
rules and leave facilities.
The age group below 40 years is absenting because of workload and the age
group above 40 years are absenting because of their high dissatisfaction in
the job.
More than half percentage of the absentees is very much dissatisfied with
their wages.
Most of the workers feel that the company is not giving enough rewards for
their good performance. This will generate a psychologically negative attitude
from the workers towards the company.
41
Unawareness of the schemes introduced by the company can also be said
as a reason for absenting. Most of the workers are unaware of the schemes.
The workers are not satisfied with the motivation given by the company. The
company can introduce more useful schemes for reducing absenteeism.
Another main factor is the lack of good relationship with the superiors.
Majority of the workers have some difference of opinion with the superiors.
Relationship with the co – workers is not a reason for absenteeism. A major
portion is very much satisfied with the co – worker relationship.
The most appropriate suggestion given by the workers to reduce
absenteeism is to re – arrange the existing shift schedule.
42
3.4 SUGGESTIONS
One main suggestion to reduce absenteeism is allowing a normal rate of shift
exchange between the different shift workers. This will allow the worker to do
overtime and the other worker’s absence will not affect the organization.
Get-together of the workers in different shifts should be conducted once in two
months for at least 2 hours. This will help to increase the relationship and
mutual understanding among the different shift workers.
The rest interval or the lunch break is only a pause to the workers for a highly
motivated work for the next session. So after the lunch the worker should feel
fresh. Some entertainment like Television, music etc can relieve the strain of
the workers. Moreover at least some workers will try to keep up the timings
indirectly for the lunch break and to come back for work.
Increased rate of job security is one reason for absenteeism. So the
management should make an agreement with the union that a worker who
absents without any truthful reason for more than the limited days should be
suspended from the company. That worker’s photograph and the warning letter
given to him should be displayed on the notice board. This will create a fear of
the loss of job in the minds of the workers.
An officer should be appointed to enquire about the reasons for the
absenteeism of the workers and should provide counseling programmes for the
mentally depressed persons to reduce their personal problems.
Providing accommodation to the workers is another way to reduce
absenteeism. If charging very cheap rental, this can bring profit to the company
in the long run. Moreover the other advantages include:
43
Absenteeism due to distance can be reduced.
The workers will be motivated.
Superiors can identify the reason for absenteeism very easily.
Will improve the relationship between the workers.
Alcoholic relief programmes should be conducted to the workers who absents
due to alcoholism.
Incentives to the workers can be given by the middle of every month. This will
help to reduce the difficulty of the worker to face his colleagues without money
since because friend circle is very important for each and every person.
Moreover the other workers will be motivated to do more work and earn more
money.
Programmes should be conducted regarding, how to save money from even
from less wages. Once they start saving, the workers will not feel that they are
not getting enough wages.
Since the supervisor is the immediate leader to the workers keen interest should
be taken in appointing superiors. Superiors should deal with the workers in a
psychological manner to influence the workers.
Apart from all these improving the working condition, health, safety and welfare
measures are also important. Improving the superior - worker relationship is
another important factor.
Some group games and other entertaining programmes can be conducted for
the workers to make the job interesting.
44
Counseling can be given to the workers, who have some personal problems.
Management should help the workers when they are in need.
3.5 CONCLUSION
MRF is one of the India’s largest tyre manufacturers. Since manpower is
most important, the problem of absenteeism affects the organization in many ways.
The main reason that is the basis for absenteeism is the workers morale towards
the organization. The company should take necessary steps immediately to
increase the morale and satisfaction of the workers because workers form the
integral part of the organization.
The management should convince the workers about their importance in the
organization and the workers should feel that they belong to the MRF Family. The
study helped to identify the reasons for absenteeism and the satisfaction level of
the workers towards the various factors leading to absenteeism.
The management can take steps to reduce absenteeism by implementing
the suggestions and can take some more measures by considering the causes of
absenteeism. MRF can become the largest tyre manufacturers in the World if they
adopt necessary steps to reduce the problems in the factory.
45
REFERENCES
C.R.KOTHARI : Research Methodology
Methods and Techniques
WISHWA PRAKASAN
NEW DELHI
C.B.MAMORIA : Personnel Management
Himalaya Publishing House 1998
P.C. TRIPATHI : Personnel Management and Industrial
Relations
Sultan Chand & Sons
WAYNE.C.CASIO : Personnel Management
Website : www.mrftyres.com
www.google.com
46
APPENDIX
47
48
QUESTIONNAIRE
I. PERSONAL DETAILS :
1. Name (optional) :
2. Employee No :
3. Department :
Tyre Curing Tyre Building Tyre Finishing General Leave Reserve Others
4. Age
20 – 30 years 31 – 40 years 41 – 50 years Above 50 years
5. Marital Status :
Single Married
6. Distance from place of stay :
Less than 3 kms 4 – 6 kms 7 – 9 kms 10 – 12 kms More than 12 kms
7. Total experience in the company :
49
Less than 5 years 6 - 10 years 11 - 15 years 16 - 20 years More than 20 years
8. Do you have any other source of income? Yes No
9. Are you aware of the leave facilities and leave rules pertaining to you?
Yes No
10. If yes mention the leave facilities:
II. REASONS FOR ABSENTEEISM
11.What are the reasons for absenteeism?
Shift work Working condition Work load Job – dissatisfaction All the above
12.The nature of your job.
Interesting Adjustable Risky Boring Frustrating
III. PERSONAL PROBLEMS
50
13.Which of these personal problems is leading to more absenteeism?
Health Festivals and other functions Indebtedness Alcoholism Family problems
IV. WAGES
14.Are you satisfied with the present wages you are getting now?
Highly satisfied Satisfied No opinion Dissatisfied Highly dissatisfied
15.The company is not giving enough rewards according to your performance.
Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
V. MOTIVATION
16.Are you aware of the schemes introduced by the company to reduce absenteeism?
Yes No
17. If yes mention any two:
51
18.Do you agree that the schemes introduced are enough to reduce absenteeism?
Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
VI. RELATIONSHIP
19.How is your relationship with your superiors?
Friendly with superior Superior is humanitarian Never talked with superior Have some difference of opinion with superior Afraid of superior
20.Are you satisfied with the relationship with your co-workers?
Highly satisfied Satisfied No opinion Dissatisfied Highly dissatisfied
21.Are you satisfied with the rest intervals provided?
Yes No
22.Among these which one you feel the most prompt to reduce your absenteeism.
Improving the superior-worker relationship Re-arranging the existing shift schedule Improving the working condition, health, safety, welfare measures etc. Changing the existing leave rules Revising the wage policy
23. If you have any other suggestions please specify:
52
53