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A Dissertation Report
Submitted in partial fulfillment of the requirement for the
RISHIKESH
Declaration
I (Kakul Belwal) hereby declare that the work which is being presented in the Dissertation report
entitled MANAGING ABSENTEEISM AT WORK : A STUDY OF EMPLOYEES
WORKING SELECTED INDUSTIES AT SIDCUL HARIDWAR
for partial fulfillment of the requirement for the degree of Master in Business
Administration MBA, of Uttarakhand Technical University submitted in Omkarananda
Institute of Management and Technology (OIMT), Rishikesh is record of my original work and
was carried out under the guidance of Dr. Richa Ranjan, Professor, OIMT, Rishikesh.
Kakul Belwal
M.B.A (HR)
This is to certify that the above statement made by a candidate is correct to the best of my
knowledge.
I consider it my great privilege to have worked under the expert guidance of Dr. Richa
Ranjan, Professor, OIMT, her guidance, suggestions and constant encouragement saved me from
many pitfalls through the time of my preparing report. I also want to express my gratitude towards
I also express my thanks to all faculty and library member for their kind cooperation in
Kakul Belwal
OBJECTIVE OF THE STUDY
Absenteeism can defined as habitual absence from work, thought to reflect employee
demoralization or dissatisfaction. If not at least once, we all have been absent from work
for one reason or another. Some are absent more than others, but when it takes place on a
regular basis then absenteeism is a noticeable problem for that company.. Employee
absenteeism is a problem for almost all employers, not to mention a costly one at that. The
definition of absenteeism, its causes, its affects on productivity, and its costs in terms of
finances and administrative effectiveness are quite clear, the challenge is in taking
affirmative action to control it. People can be absent from work for a number or reasons,
some of them for a very good reason, but whatever the reason, absence is costly and
disruptive and needs to handled with skill, understanding and confidence. What causes
employees to skip work? "Reducing absenteeism is the ultimate goal for employers. To
achieve this, they need to approach the problem from a total health management
perspective. This means collecting quality data on the reasons behind absenteeism and
developing a co-ordinated programme to encourage good health in their workforce. With
this back ground , the present study has been taken up To know the problem of
Absenteeism & identifying the possible main causes of the same the other objectives
includes :
Providing management with various suggestions that may help in the successful
administration of attendance management & controlling/reducing absenteeism.
Human resource management is an interdisciplinary subject having endless scope for the
research over the time. In this small piece of work, an attempt has been made to assess
the demographic characteristics of he employees their level of satisfaction derived from
present organization and present job, various problems faced by them, effectiveness of
various organizational policies and important reasons o heir absenteeism. . The research
methodology included the followings:
RESEARCH DESIGN
The nature of this research report is both Descriptive & Exploratory. The study was
conducted through the use of Questionnaire method & Opinion survey method. These
questionnaires were distributed to the sample selected randomly from the employees
working in public and private sector firms located a SIDCUL Haridwar district o
Utrakhand Sate..
1- Primary method
In this method questionnaires were distributed among trained employees &
direct interview has been taken, to collect the data.
2- Secondary method
Under this method help of different books, journals & web sites was taken to gather the
information.
SAMPLING
The sampling is based on probability i.e. a sample size of 100 employees have been
selected randomly from different industry located at SIDCUL Haridwar to study the
problem of ABSENTEEISM. Probability sampling have been used as it is the only
sampling method that provides essentially unbiased estimates having measurable precision.
SAMPLE SIZE:
100 employees having history of absenteeism have been selected as sample size i.e.
the total sample size was 100 employees.
Data Analysis
After collection of data was systematically arranged , tabulated and appropriate analysis
was done. Univariate data analysis techniques was used to analyse the data.
Uses/Importance of Study
Help in define the cause of absenteeism.
Help to HR manager.
Help in decreasing the rate of absenteeism.
Help in measuring absenteeism rate.
Achieving efficiency in reducing the rate of absenteeism.
Planning for success.
Reevaluating the plans for reducing absenteeism rate.
ABSENTEEISM: ISSUES AND CHALLENGES
Meaning of Absenteeism:
Absenteeism is in fact, merely the Symptoms of a Disease & not, disease by themselves.
Absenteeism has been defined under the factories act as: the failure of worker to report for work
when they are scheduled to work. Employees who are away from work on recognized holidays,
vacations, approved leaves of absence, or leaves of absence allowed for under the collective
agreement provisions is not included.
Absenteeism has been defined differently by various eminent authors
Absenteeism is the total man shifts lost because of absence as a percentage of the total number of
man shifts scheduled to work.
- LABOR BUREAU
Absenteeism is the failure of a worker to report for work when he is scheduled to work.
- LABOR BUREAU (Govt. of India), Simla
Absenteeism could be further explained as-
unauthorized, unexplained, avoidable and willful absence from work
.the temporary cessation of work, for not less than one whole working day, on the initiative of
the worker, when his presence is expected
Thus, Absenteeism is the temporary cessation of work, for not less than one whole working day,
on the initiative of the worker, when his presence is expected. At last, it can be said that an
employee is to be considered as scheduled to work when the employer has work available for him
and the employee is aware of it and the employer has no reason to expect well in advance that the
employee will not be available for work at the specified time/day.
MEASURING CRITERIA
Measurement of Absenteeism is very important because it facilitates analysis, forecast the trends,
find out reasons & suggest remedial measures.
Absenteeism can be measured using following Formulae-
- By K.K. Vaid:
Adverse effects of absenteeism are too many on both the Industry & the Workers
ON INDUSTRY
Absenteeism in industry
Stops machine,
Disrupts processes,
Creates production,
Production losses,
ON WORKERS
Ill-effects of absenteeism on those who cause it are equally baneful. Effect of absenteeism on
workers-
Reduced earning;
Adds to indebtedness;
What are the reasons for high rates of Absenteeism and the increasing mandays lost? If the worker
is committed to his job, why does he stay away? Why is the labour force like a nuclear dump
waiting for a match to set it aflame?
Bhatia & Valecha in their study on Absenteeism in a large manufacturing plant conclude that
chronic absentees have greater indebtedness and are found more among those in the higher age
bracket having longer length of service, and in the unskilled and semi-skilled work force.
Problem of Absenteeism may be accounted to three factors-
ORGANIZATIONAL FACTORS;
ENVIRONMENTAL FACTORS;
PERSONAL FACTORS;
1) ORGANIZATIONAL FACTORS:
Organizational climate or culture plays a vital role in the behavioural pattern of the workers. Some
of the aspects on industrial absence are
Nature of the industry related somehow with absenteeism. It is found that absenteeism rate
is maximum in textile industries and minimum in oil industries.
Militancy of trade unions in certain industries account for higher rate of absenteeism.
2) ENVIRONMENTAL FACTORS:
The rate of absenteeism in Indian industry is estimated as 16.73% in one research study. Out of
this nearly 50% (viz. 7.85%) is accounted against environmental factors consist of-
Socio-Economic Factors;
Religion-Cultural Factors.
SOCIO-ECONOMIC FACTORS:-
Number of Dependents- each worker has to look after or support a large number of
dependents.
Sickness- above conditions cause frequent sickness either to the workers or his dependents
where his personal attention is needed & it results in absenteeism.
Maternity- it has been found in a research study that 25% (a major portion) of absence
accounted against maternity & sickness.
RELIGION-CULTURAL FACTORS:
India is basically an agrarian society. Industrial labor follows the harvest festivals
religiously.
Due to these reasons, the rate of absence is not the same throughout the year. It is high
during April-May & again in October-November.
3) PERSONAL FACTORS:
Personal factors are another set of reasons accounting for industrial absence. These may be sub-
divided into-
Biographical Aspects;
Psychological Aspects;
BIOGRAPHICAL ASPECTS:
Age- absenteeism is found high in young workers (<25 yrs) and old workers (>50 yrs).
Sex- female workers have shown more absenteeism than their male counterpart.
Skill- absenteeism is found more among unskilled & semi-skilled workers compared to
skilled workers, supervisors or better-educated workers.
Educational level
Marital status
PHYCHOLOGICAL ASPECTS:
These aspects include mental illness leading to symptoms like
Chronical absenteeism
workers force them to borrow heavily. Then they try to escape from the place in order
to avoid the moneylenders. This leads to absenteeism.
Accident proneness
So, the causes of absenteeism are many and include:
low morale
inadequate nutrition
transportation problems
stress
workload
The cost of absenteeism is greater than the direct payment of wages and benefits paid durance the
absence. Organizations must also consider the indirect cost of staffing, scheduling, re-training,
lost productivity, diminished moral, turnover, opportunity cost. The indirect costs often exceed the
direct cost of absenteeism.
Employers pay a high price for absenteeism, often more than they realize, in terms of both
financial and production losses and employee morale. Managers may view the tasks of finding a
substitute employee as a short-term inconvenience; however, absenteeism frequently has more
serious long-term effects.
Decrease in Productivity
Financial Costs
cost of self-insured income protection plans must be borne plus the wage costs of
replacement employees
Administrative Costs
TRENDS IN ABSENTEEISM
The higher the rate of pay and the greater the length of service of the employee, the fewer
the absences
Younger employees are absent more frequently than older employees but the latter are
absent for longer periods of time
The incidence of absenteeism is usually higher in the night shift than in the day shifts.managing
absenteeism and turnover. Most organizations approach to absenteeism ( point systems, no-fault
systems, reward systems) result in spotty, temporary improvements at best and are harmful at
worst. Many of these policies teach some employees how to play the system so they are always
just on this side of termination. Others, who were otherwise excellent employees, have been
terminated because policy dictated it. Productivity continues to suffer because there aren't enough
people to cover the work assignments.
There's no argument that high rates of absenteeism and turnover are the biggest problems that
American business faces today, worsened by lower unemployment rates. To make things even
more complicated, most companies greatly underestimate the cost of both their absenteeism and
turnover. Not only are the direct costs monumental but the indirect and hidden costs can be the
difference between profit and loss or being able to maintain the operating budget.
The solution to this problem is simple but revolutionary. It requires a dramatic paradigm shift.
Effective absenteeism results in a cultural change by requiring companies to reject old paradigms
and explore a new philosophy that says the way employees are managed may be a more significant
factor in controlling absenteeism and turnover rates than any policy that rewards or punishes it.
The very core of the new absenteeism philosophy is the concept that working is a crucial element
of self-esteem. Most employees don't miss work because they are lazy and don't want to come to
work. They find satisfaction in working. In reality, most absenteeism is a symptom of other
problem(s).
Contrary to most policies, which concentrate on just absenteeism, itself, with tougher penalties for
poor attendance or rewards for good attendance, this philosophy treats absenteeism as an indicator
of underlying problems that create absenteeism. These problems must be solved to improve
attendance which automatically improves quality, productivity and profit.
Program Benefits
It is extraordinarily difficult for managers to comprehend that their management style, working
conditions, employees' relationships with one another or personal problems could impact
negatively or positively on attendance. Yet, without a doubt, such factors play a major part in the
causes of absenteeism. Our figures show that up to 75% of all absenteeism is relationship-based.
Most managers are startled with the discoveries that come out of our program. They are surprised,
embarrassed and stunned at their discoveries of the real causes of absenteeism and how easy
absenteeism and turnover is to solve.
Absenteeism is a universal problem in Industry and is not peculiar to Indian industry. But the rate
of Absenteeism has been relatively higher in India. What are the reasons for high rates of
Absenteeism and the increasing man days lost? If the worker is committed to his job, why does he
stay away? Why is the labour force like a nuclear dump waiting for a match to set it aflame?
Absenteeism has always been a major problem in the Indian industry. An official of Bharat
Cooking Coal Ltds planning department points out that often as much as 40% of the labour force
stays away from work. Myers is of view that Absenteeism is encouraged owing to the lenient
policies of the management. Sickness & Social reasons are the usual excuses given for being
absent. BADLI system also contributes to the high rate of Absenteeism. Bhatia & Valecha in their
study on Absenteeism in a large manufacturing plant conclude that chronic absentees have greater
indebtedness and are found more among those in the higher age bracket having longer length of
service, and in the unskilled and semi-skilled work force.
Research studies conducted by Shri Ram Centre for Industrial Relation, Employers Federation of
India and the National Council reveal the following peculiarities of Absenteeism in India:
Over he past few decade it is seen ha Workers' responsibilities are multiplying at home and at
work. Studies have consistently found that implementing workplace policies that help workers
balance work and family responsibilities improves employee morale, reduces turnover, and
increases productivity. Absenteeism is a major barometer of employee morale, absenteeism
above 5% per week is very serious (3% is the standard goal of industry). Left unchecked, high
absenteeism usually develops into very serious business problems including morale issues and
high turnover. To reduce absenteeism, first check the percentage of employee absenteeism by
supervisor. Next you need to look at absenteeism a little more closely, in terms of the principal
reason given for it. Sometimes employees call in sick when they really do not want to go to work.
The answer to eliminate those types of absentees is to develop an effective program that strikes at
the core of the issues.
Empirical studies on work performance was carried out by various researcher. The work
performance of 286 individuals with a diagnosis of major depression and/or dysthymia, 193
healthy control subjects, and 93 individuals with a diagnosis of rheumatoid arthritis were
compared. Individuals were recruited through primary-care physicians and evaluated for
symptoms of depression. If such symptoms were detected, the physicians were notified.
Interpersonal interactions;
Time; and
Output tasks.
As patients' depressive symptoms improved, their work performance improved -- but not to the
level of the control groups.Managing physical job demands was significantly more difficult for
patients in the rheumatoid arthritis cohort.
A crucial feature of the study design was the comparison to both a "well" control group and a
physically challenged cohort with rheumatoid arthritis. Beyond absenteeism, it can be difficult to
ascertain exactly how depressive symptoms impact a patient's work. This study helps clarify this
association and, therefore, is an important contribution.
On a separate yet disturbing note, 44% of the depressive cohort entered the study on
pharmacologic treatment but with at least residual depressive symptoms, indicating suboptimal
treatment of their condition. On he basis o he study some o he suggestion were incorporated o
manage he absenteeism at work. His includes:
There can be more than meets the eye when it comes to absenteeism. Team members may stay
away due to uncaring supervisors or unsatisfactory working conditions. There are a number of
ways to address the problem to improve morale and the efficiency of the workplace. An absence
from the workplace refers to time a team member is not on the job during scheduled working
hours, except for a granted leave of absence or holiday time. Normally, the rate of absenteeism is
calculated by dividing the number of working days lost through absence in any given period by the
total number of available working days in that same period, as follows:
Absenteeism Rate = Number of lost working days due to absence /(Number of team members) x
(Number of Workdays) x 100.
For Example: a. Average number of employees in work force = 100 b. Number of available
workdays during period = 20 c. Total number of available workdays (a x b) = 2,000 d. Total
number lost days due to absences in the period= 93 e. Absenteeism percent:(d [divided by] c) x
100 = 4.65 percent
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). Left
unchecked, high absenteeism can rapidly develop into serious business problems including morale
issues and high turnover. 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. 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 mmebers stay home it can become unnecessary for
them to stay away. Any investigation into absenteeism needs to look at the real reasons for it.
Sometimes team members call in sick when they really do not want to go to work. They would not
call you up and say, Im not coming in today because my supervisor abuses me. Or, Im not
coming in today because my chair is uncomfortable. Or, Im 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.
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. 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 members
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
Most if not all of these causes can be prevented by taking a positive approach to things. By
showing the employees that you care, you can help lower absenteeism in the work place.
Dealing with employees absenteeism have become a challenging ask or he management as well as
or the employers. This can be divided in two categories . one or supervisors and managers and
other or he employees who frequently remains absent from heir job.
For Supervisors/Managers:
It is frequently asked by a manager that how he should deal with the fact that on any given day
10% of his employees are absent from work.. on the basis of personal opinion and various related
studies I can be concluded that the problem of employee absenteeism is a problem best resolved
by taking the following four positive interventions versus taking a negative or punitive approach.
Change Management Style: We are all aware of the fact that when employees call in ill, it does
not mean they are truly too physically ill to work. One reason, outside of illness, that employees
are absent is stress, and the number one reason employees are stressed has to do with their
relationship with their manager/supervisor.
Management styles that are too authoritarian tend to promote high levels of absenteeism among
employees. Authoritarian managers are managers who have poor listening skills, set unreachable
goals, have poor communication skills, and are inflexible. In other words, they yell too much,
blame others for problems, and make others feel that it must be their way or the "highway."
Authoritarian managers tend to produce high absenteeism rates. By identifying managers who use
an authoritarian style, and providing them with management training, you will be taking a positive
step not only toward reducing absenteeism, but also reducing turnover, job burnout, and employee
health problems such as backaches and headaches.
Change Working Conditions: The employees in your company probably work in a well-lighted
climate controlled building. The working conditions I am referring to relate to coworker
relationships. Not only does relationship stress occur between the employee and manager, but it
also exists between employees. Frequently I hear employees say they did not go to work because
they are fearful of or angry with another employee. These employees usually report they just could
not deal with "so and so" today, so they called in ill. Companies that adopted policies and values
that promote employee respect and professionalism, and promote an internal conflict resolution
procedure, are companies that reduce employee stress. A reduction in employee stress reduces
employee absenteeism.
Provide Incentives: Giving employees incentives for reduced absenteeism is not the same as
rewarding or giving employees bonuses for reduced absenteeism. An incentive provides an
employee with a boost to their motivation to avoid unnecessary absenteeism. It simply helps the
employee decide to go to work versus staying home and watching Jerry Springer.
The types of incentive programs used by companies are numerous. Some companies allow
employees to cash-in unused sick days at the end of every quarter, others give an employee two
hours of bonus pay for every month of perfect attendance; and still others provide employees with
a buffet lunch, a certificate of achievement, or even a scratch-off card concealing prizes. The type
of incentive program that your company uses should be one created especially for your company.
You can create an incentive program tailored to your unique company by allowing employees to
help you develop the incentive program. For example, your employees may not care about
receiving a $25.00 U.S. saving bond for perfect attendance, but they might respond very well to
being able to leave one hour early on Friday if they have perfect attendance all week.
The duration of the incentive program is also very important. Once again allow your employees to
help guide you to determine the length of time between incentives. Some companies find that they
can simply reward employees with perfect attendance once a year, while others decide once a
month is best, and still others decide once a week works best. The general rule of thumb is to
reward workers more frequently the younger they are and the more difficult the work is to
perform. Also, it is best to start with small incentives and work up to larger ones if necessary.
Develop an Attendance Policy: Every company should have an attendance policy. An attendance
policy allows a manager to intervene with an employee who is frequently absent. Besides stress as
a primary reason for employee absenteeism, other causes relate to alcoholism, domestic violence,
and family problems. If you confront an employee about his or her frequent absenteeism, and they
inform you it is due to personal problems, consider referring the employee to an Employee
Assistance Program (EAP).
If the employee's absenteeism relates to a medical problem or a family member with a medical
problem, you may have to consider allowing the employee to use the benefits allowed to them
under the American's with Disability Act (ADA) or the Family and Medical Leave Act (FMLA).
Early identification of these employees will get them back to work as fast as possible. Lastly,
make sure that you have an attorney review your attendance policy to make sure it does not violate
any State or Federal labor laws. By incorporating the above four strategies into your company you
will not only reduce absenteeism you will reduce employee burnout, turnover, poor morale, and
workplace negativism.
One of the most important steps you can take if you are frequently absent, is to keep your
employer informed. Employees who are frequently absent without good cause are generally absent
due to numerous frivolous reasons. Employees who are absent for good cause have legitimate
reasons, e.g. sickness or family member illness, and the employee needs time off to resolve their
personal problems. Most employers generally understand the need to be gone from work due to a
legitimate reason; therefore, it is important to communicate clearly and accurately so your
employer does not assume you are out for frivolous reasons.
As an employee are allowed to take up to take various paid and unpaid leave which may be taken
continuous or intermittently, thereby allowing the employee to work on a less than full-time
schedule. Authorized leave can be used for the care of a child after birth, adoption, or foster care
placement.
"Traditional methods of absenteeism control based only on disciplinary procedures have proven to
be ineffective."Discipline by itself does not identify or address the root causes of absenteeism.
Discipline programs might give the illusion of control. If absenteeism is to be controlled, the
physical and emotional needs of employees needs to be addressed. According to a 1985 study on
"Rates of Absence Among Nurses", it was determined that half of the absenteeism could be
controlled through attending to the physical and emotional needs of employees.
Only two to three percent of employees abuse sick leave. " The key is getting employees to view
sick time as insurance, to be used if needed, "according to Michael Markowich, M.D. The use of
disciplinary measures alone
is not an effective tool for lowering absenteeism rates. Rather than having the negative incentive
of discipline to decrease absenteeism, a workplace that promotes trusting and respectful
relationships among employees and puts flexibility and responsibility in the hands of the
employees with their decision making brings about a sense of a partnership with management on
the use of sick leave.
1.) Change management style. Authoritarian managers are associated with high absenteeism rates.
If managers do not practice in an authoritarian style of management, absenteeism may be
reduced, as well as a reduction in turnover, job burnout, and employee health problems.
2.) Reducing employee stress reduces absenteeism. Stressful relationships between employees
may be reduced by adopting policies and professionalism. Having an internal conflict resolution
process in place can also help in decreasing stress.
3.) Incentive programs can reduce absenteeism. Some examples of incentives include two hours
of bonus pay for every month of perfect attendance, a buffet lunch, or a gift certificate.
Source: Employer-Employee.com
Root Causes in Working Conditions
Workers who feel micro-managed or don't get along well with their supervisors tend to take more
sick leave according to a study done by Hallis, a recruitment consultant.
Workers who get along well with their supervisors use less sick time.
Workers who have a high degree of autonomy and work in small teams tend to be happiest
according to Professor Ian Hickie.
Workers who are less stimulated and unchallenged tend to use more sick days.
One company gives employees their birthday off as a paid holiday as a way of helping employees
feel appreciated and sick leave rates went down.
Source: "Back Off Boss: You're Making Me Feel Sick", Brigid Delaney , March 31, 2004
Source: Companies Combat Absenteeism, Creative Recruiting and Retention Strategies, Joan
Lloyd and Associates, March 20, 1988
-workers who stay at home when they are ill won't infect other employees or customers
(patients), which will decrease absenteeism and increase co-workers' productivity
-workers will recover more quickly if they stay at home when ill and will be more
productive when they return to work.
-fewer health care resources will be used if the employee population is healthier and has
fewer sick days overall, which in turn might lower employer's health care costs.
-worker retention will improve through improved health, job satisfaction, and mutual
loyalty.
The definition of absenteeism, its causes, its affects on productivity, and its costs in terms of
finances and administrative effectiveness are quite clear. What is not as clear is how to take
affirmative action to control absenteeism in such a way as not to create mistrust, costly
administration and systems avoidance (game players). Traditional methods of absenteeism
control based only on disciplinary procedures have proven to be ineffective. It is almost
impossible to create a fair disciplinary procedure because even well run disciplinary systems,
which treat similar actions in consistently similar ways, are usually seen as unfair. The reason
for this is discipline alone usually does not identify or address the root causes of absenteeism.
Every employee who takes time off in defiance of company regulations has reasons, right or
wrong, which justify to themselves the legitimacy of their actions. Unless a management
attendance program identifies and addresses the causes of employee absenteeism it will be
ineffective and unfair. Traditional disciplinary programs alone can, at best, give the illusion of
control. It is no secret that there are ways to beat even the best systems. The fear of discipline
often only increases the desire to avoid management systems.
2. communicating the attendance goals of the organization so employees can understand and
identify with them
3. dealing with cases of excessive absenteeism effectively and fairly so deterrence can occur
1. The greater the extent to which individuals identify their goals with the goals of the
organization and care what happens to it, the greater their motivation to be regular in
attendance.
2. The more people find their jobs meaningful to them, the greater their motivation to be
regular in attendance.
4. The more people like working for the organization the higher their motivation to attend
regularly. Recognition of good employee attendance helps improve attendance.
5. Employees will have a lower absence ratio if they feel free to discuss their on-the-job
problems with their immediate supervisor.
6. Employees with a low absence ratio have attitudes of confidence and "team" spirit.
7. Low absence ratio employees are found to be more satisfied with their opportunity for
promotion and upgrading.
Remedial measures could be taken for each causes of absenteeism. These remedies can be
classified as-
1) ORGANIZATIONAL REMEDIES:
Each organization is unique. Hence, suggestions based on certain broad assumptions are-
Carry out periodic collection of data on absenteeism & analyze them to find out the trend
of absenteeism ( trade wise, sex wise and age wise for further studies).
Find out
Introduce suggestion scheme and obtain employees view points for reducing absenteeism.
2) ENVIRONMENTAL REMEDIES:
3) PERSONAL REMEDIES:
Introduce both positive steps (incentive bonus for better attendance) & negative steps
(disciplinary actions like fine)
So managers must take critical look at their policies, corporate culture as absence policies are
often not used for the purposes they are intended. Before employers can determine the best
way to combat absenteeism, they must identify the organizational and individual factors that
contribute to the problem.
Among the most common potential problem areas employers need to explore are-
Job Satisfaction: Employees who like their job are more likely to come to work than those
who find work unstimulating.
Work Attitude: Some employees come to work no matter how sick they feel, while others
call in sick no matter how well they feel.
Thus, Absenteeism affects the organization from the multiple angles. It affects severely the
production process and the business. The effect of unauthorized absenteeism is more than the
other types of absenteeism.
However, it is difficult to completely avoid absenteeism, but it can be minimized & controlled
using various measures
Selecting the employees by testing them thoroughly regarding their aspirations value
system, responsibility and sensitiveness.
Providing welfare measures and fringe benefits balancing the need for the employees and
the ability of the organization.
Providing high wages and allowances based on the organizational financial position.
Providing leave facility based on the needs of the employees and organizational
requirement.
Counseling the worker about their career, income and expenditure habits and culture.
Free-flow of information, exchanging of ideas, problems etc. between subordinate and
superior.
Granting leave and financial assistance liberally in case of sickness of employee and his
family members.
Once you know the cause of absenteeism in the organization, it become easy to correct, or
minimize, the problem. It requires insight into the special dynamics present in your work place. It
will require two-way communication, as both the needs of the employees and of management must
be met if good attendance is to be achieved.
Attendance is not an expectation. It is a right of employers to have good attendance. Each and
every employee has a contractual obligation to attend work regularly. All levels of management
must believe in, be committed to, and communicate their expectations of good attendance. If a
specific number of sick days are considered acceptable per employee, at best that will be the
result. Employees will live up or down to expectations. Expectations must be clear to both
management and employees in order to bring absenteeism to the lowest. Attendance expectations
must be clearly communicated and followed.
References:
Expanded Sick Leave Would Yield Substantial Benefits to Businesses, Employers,
and FamiliesVicky Lovell, PH.D., Barbara Gault, Ph.D., and Heidi Hartmann Ph.D.,
IWPR Publication # B243, June 15, 2004
http://seiu1199wi.localsonline.org/docUploads/Sick%20Leave%20Research%20for
%20Web.doc
ANALYSIS OF SURVEY RESULTS
Marital Status
The analysis elaborates that the sample includes 76% married and 24%
unmarried respondents. It signifies that the sample has been dominated by the married
respondents who seems to be more absent from their job.
Table no 3.4
The analysis of the data indicates that the sample is dominated by the respondents who are
educated up to graduate and above as it was indicated by almost 39% respondents in the
sample. . The analysis indicates that the sample includes 27%, 26%, respondents respectively
educated upto matric and below, under graduation. It is also found that 8% respondent belogs
to those categories who are having professional degree to their credit.
The analysis suggests that the sample includes 56%, 31%, and 13%
respondents whose family size is less then 4 members, 4 to 6 member And more than 6
members respectively. Analysis clearly signifies that the sample is dominated by the
respondents whose family size is upto 4 members.
3.6 Monthly income
An attempt was made to classify respondents on the basis of their monthly income. For this
purpose, the respondents were classified in the following categories: One who have a monthly
income below Rs.5,000 per month. The other categories include, monthly income from Rs.5,000
to Rs.10,000, Rs.10,000 to Rs.15,000, and Rs.15000 and above per month. The information
regarding the monthly income wise classified respondents is presented in table no.4.6.
Table no table no.4.6 Monthly Income
sl.no description No. of respondents Percentage
1 Below Rs. 5000 35 35
2 Rs. 5000-10000 40 40
3 Rs.10000-15000 18 18
4 Above 15000 6 6
Total 100 100
The analysis projects that the sample includes 35%, 40%, 18%, and 6%
respondents respectively representing the group of respondents with monthly income, upto
Rs.5,000, Rs.5,000 to Rs.10,000, Rs 10000 to Rs 15000 and Rs 15001 and above. This
signifies that the absenteeism is dominated by those respondents who are having the
monthly income between Rs.5000 to Rs. 10000 PM.
The analysis indicates that sample is dominated by those respondents who belong to trading
industry as it account to 34% respondents in the sample. Manufacturing companies was
indicated by 31% respondents in the sample. 29% employees indicated that they belongs to
service industry and remaining 6% indicated that they belongs to other type of industry
3.8 Location/Residence
An attempt was made to isolate the respondents as per their location and resident where they are
living. The information in this repsect is presented below in the table no 3.8
Table no 3.8 Location/Residence
S.no. Description No. of respondents Percentage
1 Inside company 13 13
premises
2 Outside company 87 87
premises
Total 100 100
The data presented in the above table indicates that moe than 87% employees reside the outside
campus area. Only 13% employees reside inside the campus. It was found that employees those
who were residing outside the campus get absent more frequently.Reason may be the Conveyance
problem, so management must provide the conveyance to the employees who reside outside the
campus. This will to an extent help in controlling the absenteeism problem.
3.8 Classification as per Accommodation
An attempt was mde to classification the respondent on the basis of accomodation provided by
the company. The reponse thus received is presented in the table below
Table no 3.8 Classification as per Accommodation
S.no Description No. of respondents percentage
1 Yes 19 19
2 No 81 81
Total 100 100
The information presented in the above table indicates that only 19% employees has got
accomodation from the company . in comparison to this majority of them 81% does not get
accomodation in accomodation allowence from the company.
3.9 Absentees having side business
In the new global, competitive scenario where the old rules of the game have changed faster than
field hockey, the rules by which human resources have been looked after had to change, too.
Clearly only quality people can produce quality goods and services. To that end, programs catering
to the physical and mental well being of employees are getting institutionalized. That really is
myopic, considering that most people working in the corporate sector spend practically all of their
waking, conscious, productive and creative hours in their offices. However they engage
themselves in other side business in their lean and leisure time. Keeping this into consideration an
attmept was made to know from the employees whether they are engaged themselves in any side
business or fully dependent on the company itself. The information in this repsect is presented in
the following table no 3.9
Table no 3.9 Absentees having side business
s. no. Description No. o respondents Percentage
1 Yes 9 9
2 No 91 91
Total 100 100
the data presented in the above table and pie chart indicates that very few only 9% employees
indicated they were having side business. In comparison to this majority of them 91% revealed
that they were not having any side business and are fully dependent on their present job.
3.10 Job Satisfaction
An opportunity for better career growth, stagnation and lack of job enrichment at the present
organisation are also driving employees to new job avanues. Usually job dissatisfaction is
considered to be a root cause of absenteeism. Keeping this int consideration an attempt was made
to know from the employees whether they are satisfied with their present job or not. The
information in this repsect is presented below.
The information presented in the above table indicates that more than three fourth respondent in
the sample are satisfied with their present job as it was indicated by 82% respondents in the
sample. Only 18 indicated that they are not satisfied with their present job.
3.11 Satisfaction level regarding job environment
empirical evidences reveals that globalization leads to inequality. Since globalization emphasizes
efficiency. Advanced countries have had a head start over the other countries by at least three
centuries. The technological base of the countries is not only wide but highly sophisticated. With
the advent of information technology, the role of human resources has emerged as more important.
Specialized human skills will become the determining factor in the coming decades. Productive
activities are becoming knowledge intensive rather than resource intensive. This hase
changed th working environment to a great extent. Keeping this into consideration an attempt was
made to know employees satisfaction with regarding to their job environment. The information in
this respect is presented below.
Taable no 3.11 Satisfaction level regarding job environment
sl.no Description No. of respondents percentage
1 Highly satisfied 14 14
2 Satisfied to some 36 36
exent
3 So-so 11 11
4 dissatisfied 29 29
5 Highly dissatisfied 10 10
Total 100 100
the information presented in the abov table and pie chart reveals that majority of the repondent in
the sample are satisfied to some extent or not satisfied to as is combine together account to 76% in
the sample. Only 14 % indicated that they were highly satisfied with the present job environment.
The answer revealed that there was no apparent connection between the absenteeism & the job
environment.Here we are talking about the actual physical working conditions at work.heat,
light, air, conditioning etc.Many of workers who said they were satisfied with their job
environment, had poor attendance records. Many others who said they were unsatisfied; were
never absent.So, no doubt, this factor has a great bearing on absenteeism.
3.12 Awareness regarding leave rules
The management of attendance is an important aspect of supervision in the workplace. The
various research study reveals that the cost of absenteeism is greater than the direct payment of
wages and benefits paid durance the absence. Organizations must also consider the indirect cost
of staffing, scheduling, re-training, lost productivity, diminished moral, turnover, opportunity cost.
The indirect costs often exceed the direct cost of absenteeism. This can be reduced to some extent
if the employees are made aware about their importance and their leave rule and so on. Keeping
this into consideration an attempt was made to know the level of awareness regarding the leave
rule and other organisation procedure related to their leave. The information in this respect is
presented below.
Table no 3.12 Awareness regarding leave rules
the information pertaining to this reveals that majority of the employees were not aware abot the
rule and regulation of the organisation regarding leave as it was indicated by 79% respondents in
the sample. Only 21 % revealed that they were fully aware about the rule in this resepect . In the
answer to this question, there was a dramatic switch over. This gives the impression that there is a
partial awareness or unawareness among employees.So, there is a need to take various steps to
make employees aware of leave rules & procedure through various tools & introductory
programmes.
3.13 Relationship with colleagues
Building Positive Relationships Are Necessary Because We Are Dependent On Each other.
Building positive relationships is something we all want. We form bonds with all types of
different people from our boss and colleges, to our friends and family. Unfortunately many of us
have just gone about it the wrong way. But the good news are that we can change our behavior
and break our bad relationship habits. By improving your self esteem and learning good
interpersonal communication skills, you can change your relationship situation almost instantly.
Building trust in relationships can't be done before you build trust in yourself. So when you're
ready to treat yourself the as a well respected individual, the same kind of people will be drawn
to you.
Table no 3.13 Relationship with colleagues
sl.no Description No. of respondents percentage
1 Excellent 14 10
2 Good 44 29
3 Fair 65 43.
4 No so good 16 11
5 Bad 11 7
in information presented in the above table indicates that 82% of absentees enjoy a good
relationship with their colleagues. Though this factor plays a deciding role & has an impact on the
rate of absenteeism.
3.14 Feeling about company
What your customer thinks of you is not only important, it is everything. Image is also important
in dealing with the community in which you work, governmental agencies, lenders and so
on.Image is the way others (clients, employees, the community, competitors, etc.) perceive your
company and its products. And, it is the action you take to bring that about. It means using the old
adage of putting your best foot forward. Image must make sense and be believable and
accurate. It must be consistent in visual approach as well as in the way you handle
customers.Image can mean gaining a visual identification of your company by its customers such
as with a logo. However, it is not limited to this. Image is a part of everything you do including
written materials, the way you deal with customers and others, what people noticed about you,
etc.Establishing an image should be part of your marketing and human resource plan. Keeping
this factor into consideration an attempt was made to know the feling about the employees about
the image perceived by them about their present organisation. The information in this repect is
presented below
Table no 3.14 Feeling abut Company
s.no Description No. of respondents percentage
1 Excellent 25 25
2 Good 52 52
3 fair 23 23
Total 100 100
Here that identifiable thing called company image was questioned. The feeling of most of the
employees or absentees was excellent & good as it was indicted by 77 % respondent in the sample.
.
the information presented in the above table indicates the very alarming/shocking. Major portions
of about 74% employees were found unaware of these orders. This is a major backdrop and defect
on the part of management. Management must strictly work towards developing awareness among
employees regarding the Standing Orders.
Table no 3.16
Main causes of absenteeism
sl.no Description No. of respondents percentage
1 Sickness 31 31
2 Social &religious 23 23
cause
3 Job dissatisfaction 38 38
4 others 8 8
Total 100 100
The information presented in the above table reveals that Sickness, Accidents or Maternity:
factors accounted for about 31% of absenteeism among the employees of SIDCUL Haridwar area.
Social & Religious Causes: under these factors are clubbed such issues like visiting villages for
attending marriages and other social ceremonies, besides regular attendance at home town at the
time of religious festivals. Such factors were found causing as high as 23% of total absenteeism.
Absenteeism due to Job Dissatisfaction accounts 38% in the sample. Other causes: like visiting
villages for attending litigation, matters, rest, recreation & other causes was accounted for 8% of
absenteeism.
Table no 3.17
Person Responsible for Managing Absenteeism
the information presented in the above table indicates that in most of the organisation the
abseeinteeism is managed by middle and lower level management as it is indicated by 85 %
respondents in the sample. Only 15% respondents revealed that absenteeism is managed by top
level management in thieir organisation.
3.18 reduction of absenteeism , a key goal within the department plan
Unauthorized or unscheduled absenteeism is a problem for every organization or business. It
creates cost and productivity problems, puts an unfair burden on the majority of employees who
show up for work, ultimately hinders customer satisfaction, and drains the country's economy.
Experience shows that better attendance is synonymous with better quality, lower costs, and
greater productivity (Hazzard, 1990). "The keys to success with an attendance management
program are to develop a procedure/policy, which will work for your organization; the temporary
modified work agreement should be a living document; you need a good cultural fit of solutions,
whether it be a collaboration or education of stakeholders; invest the time to return employees to
work; and work with benefits providers or seek third party assistance."to manage these problem
managemen mus have a policy oreduce absenteeism. Reduction o abseeitism should be a key goal
within every department planning. Keeping these factors into consideration an attempt was made o
know from he employees whether reduction of absenteeism is a key goal within the department
plan or not. The information in his respect is presented below
Table No 3.18
Reduction of absenteeism , a key goal within the department plan
the information presented in the above table revels that 52 % employees are of the opinion that
concept of Reduction of absenteeism , a key goal within the department plan is not available in
thie organisation where as 39 % expresses their unawareness about the subject. Only 9% agree to
the statement. This indicates that company should focus more on building the awareness about the
topic so that all the employees be made aware about the various issues related to this.
3.19 Absence policy
Literature on absenteeism reveals Several recommendations for managing absenteeism.
Controlling absenteeism in the workplace begins with a sound absenteeism policy that is
incorporated into an employee handbook. The policy should define absenteeism and outline
consequences for those who break the rules or whose absences become unacceptably disruptive.
Table no 3.19
Existence o Absenteeism policy
The information presented in the above table indicates that more than one third employees in the
sample are of the opinion that their exist a absenteeism policuy in their organisation as it was
indicated by 35 % employees in the sample. 22% reveals that there is not any absenteeism policy
and it is handelled on case by case basis. On the other hand 43% employees does not know about
the any existance of absenteeism policy.
3.20 Process of handling absence
It is frequently asked by most of the manager that how he should deal with the fact that on any
given day a substantial number of his employees are absent from work. Empirical evidences and
various research studies reveals that the problem of employee absenteeism is a problem best
resolved by taking the following four positive interventions versus taking a negative or punitive
approach like Changing Management Style Changing Working Conditions, Provide Incentives
and Develop an Attendance Policy. Keeping his into consideration, an attempt was made to know
from he employees whether their organization is having he process to handling the absence.
Table no 3.20 Process of handling absence
s.no Description No. of respondents percentage
1 Yes 36 36
2 No 23 23
3 Dont know 41 41
Total 100 100
the information indicates that more than one third employees in the sample are of the opinion that
their exist a proper process absenteeism policy in their organisation as it was indicated by 36 %
employees in the sample 23% reveals that there is not any process absenteeism in comparison to
this 41 % employees does not know any thing about the process of handelling absenteeism.
the data presented in the above table indicates that more than one third employees in the sample
are of the opinion that their exist a proper record of absenteeism of every employees in their
organisation as it was indicated by 45 % employees in the sample. 25% reveals that there is not
any record of absenteeism . in comparison to this 30 % employees does not know any thing about
the existance of records absenteeism in their organisation
With respect to tardiness and absenteeism from work, the progressive discipline may be a
company policy of tolerating a maximum limit of absenteeism beyond. Keeping this factor into
consideration , an attempt was made to know from the employees whether there is any policy of
dismission in their organisation. The information in this respect is presented below
Table No 3.21 Awareness about dismissal policy
the data presented in the above table indicates that almost one third employees in the sample are
of the opinion that their exist a dismissal policy in their organisation as it was indicated by 32%
employees in the sample. in comparison to this 68 % employees does not know any thing about
the existance of dismissal policy in their organisation
3.23 Presence of training system regarding positive absence management
The growing absenteeism has become a challenge or most of he organization today. It is
extraordinarily difficult for managers to comprehend that their management style, working
conditions, employees' relationships with one another or personal problems could impact
negatively or positively on attendance. Empirical evidences indicates that most o he organization
is focusing on to design training system for positive absence management. The information in
this respect is presented below.
Table No 3.23
Presence of training system regarding positive absence management
s.no Description No. of respondents percentage
1 Yes 43 43
2 No 57 57
Total 100 100
the information indicates that more than one third employees in the sample are of the opinion that
their exist a training system regarding positive absence management in their organisation. In
comparison to this 57 % employees does not know any thing about the existance of training
system about positive absence management system in their organization
3.23 Who organize this training
There's no doubt that high rates of absenteeism and turnover are the biggest problems that most of
business organization faces today, worsened by lower unemployment rates. To make things even
more complicated, most companies greatly underestimate the cost of both their absenteeism and
turnover. Not only are the direct costs monumental but the indirect and hidden costs can be the
difference between profit and loss or being able to maintain the operating budget. Most
organizations approach to absenteeism by giving appropriate training to its employees at various
level. The training provide everything an employee need to determine the costs of absenteeism,
writing a policy, schedule implementation of each phase, train supervisors and managers and
monitor the programs success. Many of these policies teach some employees how to play the
system so they are always ready to cope with the changing system. Absenteeism Management
Program results in a culture change by requiring companies to reject old paradigms and explore a
new paradigm that will solve the problem of absenteeism. Keeping this into consideration, an
attempt was made to know from the employees that who is responsible to organize employees
training in their organization. The information in his respect is presented below.
Social & Religious Causes (30%) and Sickness, Accidents or Maternity (22%) has been
revealed as the main cause for Absenteeism by most of the employees. While other causes-
like visiting villages for attending litigation, matters, rest, recreation etc. was accounted for
absenteeism by a majority of (40%) employees.
Younger employees of less than 25yrs of age were found absent more frequently than older
employees but the latter are absent for longer periods of time
It was found that female employees get more frequently absent as compared to their male
counterpart.
Employees who live outside the campus were found frequently absent then local
employees. A majority of employees of about 66% who get absent were found to be from
outside the campus.
Their has been found no correlation between job dissatisfaction & absenteeism at various
industry across SIDCUL Haridwar as most of the absentees were fully satisfied with their
job & work environment.
CONCLUSION
No doubt Absenteeism is a universal problem in the industry & is not peculiar to Indian
industry. It has been observed that the phenomenon of Absenteeism does not exist only in
Indian industry; it is a universal fact. The difference is only in terms of magnitude. It as a
major barometer of employee morale, absenteeism above 5% per week is very serious (3% is
the standard goal of industry). Left unchecked, high absenteeism usually develops into very
serious business problems including morale issues and high turnover.
If absenteeism is to be controlled.- the physical and emotional needs of employees must be
addressed. Insight into the special dynamics present in work place & two-way
communication is required, as both the needs of the employees and of management must be
met if good attendance is to be achieved.
From the study conducted in dieren small and mediam scale firms, around state capital o
Uttrakhand ,it is concluded that the attendance management system is such good; the
facilities, work environment are best of its kind, that the rate of Absenteeism is almost
negligible.
Most of the management personal strongly believes in achieving organizational excellence
through Human Resources and follows People First approach. The success can largely be
attributed to the continuous fulfillment of all the corporate objectives, one of which seeks to
adopt an appropriate Human Resource Development policy. It has taken a number of steps
and measures, small or big, which together have contributed in evolving an integral Human
Resource Management approach. An in depth analysis of HR related problems like
Absenteeism and their causes, is done time to time to lay down appropriate policies, rules
and norms for the complete well being of its employees. It considers HR as the most valuable
resource and the company is committed to provide all possible facilities & opportunities to
keep the employees committed to attendance.
So, In order to develop willingness on the part of all employees to attend work regularly &
to assist them in motivating their co-workers the company is taking all possible steps.
RECOMMENDATIONS
No doubt there is absenteeism is a serious problem or most of the managers engaged in diren
sector industry around SIDCUL Haridwar. it is working hard towards bringing it to its lowest.
The Attendance Management System of this unit is really best and need to be applauded but it still
require a little bit of perfection in areas
Absence policies need to be critically looked upon as these are often not used for
the purposes they were intended.
Management must explore the most common potential problem areas like job
satisfaction, work attitude, company culture, and excessive rates of sick leaves.
Management must strictly work towards finding out the causes of worker
discontent & eliminate them.
Management must & need to look at absenteeism a little more closely, in terms of
the principal reason (sickness) for it.
The organization should make employees aware of & understand the loss by
absenteeism to them.
The organization should provide various health (physical & mental) schemes not
only for the employees but also for their family members.
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