A study on procedures for handling absenteeism conducted at kalyani global engineering private limited, mysore

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A study on procedures for handling absenteeism conducted at kalyani global engineering private limited, mysore

A study on procedures for handling absenteeism conducted at kalyani global engineering private limited, mysore

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  • 1. Procedures for Handling Absenteeism TITLE OF THE PROJECT: A study on “Procedures for handling Absenteeism” with special reference to Kalyani Global Engineering Private Ltd., Mysore. INTRODUCTION: In the production process Human Resources plays a crucial role. This is because of its capacity to control and coordinate the other two resources namely material, money. The another unique feature of the man power is that it is the only live component. Hence the presence or the absence of work force makes a significant difference in the production process. Another interesting point absenteeism is identified only where there is a demand for unskilled work which demands for physical efforts. Here it should be noted that in the developed countries industrial absenteeism is not that severe problem to say. It is because of the mechanization, automation of the operations while in the third world countries like India absenteeism is a serious issue always drags the attention of management. Absenteeism is the failure of the employee to report for work when they are scheduled to work. A worker is considered as scheduled to work when the employer has work available for him and the worker is aware of it. Absenteeism is undesirable because of its cost and operating problems it causes. Due to absenteeism facilities may be under– utilized and productivity may drop because of reduced out-put. There also may be increased hike in costs for replacements, substandard productions, the need for more help from supervisors and increased inspection costs partial absenteeism in that employees report late to work. Absenteeism in Indian Industry is not a new phenomenon. High absenteeism prevails among industrial labour mainly due to their rural orientation since then, a number of individual researchers have investigated the problem and have pointed out that absenteeism in our industry varies from 7 to 30percent. Hence, the researcher carried out a STUDY on procedures for handling absenteeism to know the seventy of the issue the industry selected for the STUDY is Kalyani Global Engineering Private Limited, Mysore. H.R. Institute Of Higher Education, Hassan 1
  • 2. Procedures for Handling Absenteeism OBJECTIVES OF THE STUDY:  To have exposure to the functioning of major department’s.  To know more about Auto Component Industry.  To understand the working of the plant.  To identify the reasons for absenteeism.  To study the employees absenteeism.  To identify steps required to decrease the absenteeism.  To study, the employees working conditions.  To suggest appropriate suggestions which would help HR department at KGE. To improve the current absenteeism.  To identify factors that motivates the employees, which minimize absenteeism. H.R. Institute Of Higher Education, Hassan 2
  • 3. Procedures for Handling Absenteeism SCOPE OF THE STUDY: The organization is situated in Mysore city. The company gets technical know how for assembling brakes from Meritor HVS USA, one of the leading industries in auto component industry in the global market. This company belongs to Kalyani Group and head office is situated at Pune. The company has turnover of Rs.120 crores and is targeting to reach Rs.180 crores. The development of any organization depends on the regularity of employees. The study is conducted to know the various levels and reasons for absence of employees in an organization. By looking it, one can adopt corrective measures to decrease irregularities in the organization, leads to organizational growth. Naturally organization has to look in to these aspects and need to find suitable remedial measures so that qualitative and quantitative progress can be achieved. In this present study employees absenteeism is analysed in depth. H.R. Institute Of Higher Education, Hassan 3
  • 4. Procedures for Handling Absenteeism PROBLEM STATEMENT: Important characteristics of Indian workers are that, they are in the habit of abstaining from work compared to workers of other countries. The rate of absenteeism ranges from 4.3% to 44.8%. It also varies with the seasons in the year, the highest being during May, June of every year (48% May 1993). The main reasons for absenteeism are sickness, accidents or maternity. These factors accounted for about 1.1% to 6.6%. Social and religious causes as high as 1.7% to 14.2%. Other causes like visiting villages for attending litigation, rest, and recreation account for 0.1% to 17.5% of total absenteeism. Absenteeism is directly effects on the progress of the country and as such the company’s are facing a downward trend due to recession and all that are involved in the process are to be looked in to. So I have selected this work at Kalyani Global Engineering Private Limited., Mysore to identify the level of absenteeism and to facilitate the company to move in this direction and find some progressive results. Naturally organization has to look in to these aspects and need to find suitable remedial measures so that qualitative and quantitative progress can be achieved. In this present study employees absenteeism is analysed in depth. H.R. Institute Of Higher Education, Hassan 4
  • 5. Procedures for Handling Absenteeism RESEARCH METHODOLOGY: EMPLOYEES PERCEPTION TOWARDS ABSENTEEISM: 1. Design: Personal interaction. Questionnaire. 2. Observation: Personal observation. Indirect observation. SAMPLING DESIGN: Sampling is the process of obtaining information about an entire population by examining only a part of it. Sampling plan calls for three decisions. a) Sampling unit b) Sampling size c) Sampling procedure The design to be adopted for the study will be based on convenient sampling. The population for the study will consist of employees in the KGE Sector from different cities. Sampling unit: “KGE” is taken as sampling unit. Sampling size: 50 employees are taken as sample size. Sampling procedure: For the study, respondents were selected on the basis of random sampling. H.R. Institute Of Higher Education, Hassan 5
  • 6. Procedures for Handling Absenteeism Type of the study: The study is a descriptive study. It is based on data collected through structured questionnaire from the respondents. Sources of data: The study requires both primary and secondary data. Primary data:  Questionnaires  Personal interviews  Indirect observation Secondary data:  Library and research works  Internet, web portals and blogs  Books. Secondary data will be used to analyze the primary data in the light of real world situation. Analysis of data: The collected primary data will be analyzed with the help of statistical tools and techniques. Data presentation tools used: Primary data was collected through the questionnaire by distributing questionnaires; questionnaire with both close ended and open ended questions have been used as sample respondents. On the basis of the tables, the facts are presented in the form of various charts. H.R. Institute Of Higher Education, Hassan 6
  • 7. Procedures for Handling Absenteeism LIMITATIONS OF THE STUDY:  The first limitation of the study is that it is undertaken for academic purpose only.  It could not go deep in to the topic because of time constraints.  The study confined to Kalyani Global Engineering Private Limited, Mysore only.  The study will be mainly concerned with the opinion and perceptions of the respondents. It is not a scientific study therefore no empirical evidence can be detected.  Since some information’s were confidential it was not possible to add them in the report. H.R. Institute Of Higher Education, Hassan 7
  • 8. Procedures for Handling Absenteeism INDUSTRY PROFILE: 2.1 Introduction: Brakes are devices whose function it is to slow down and to stop the automobile. They 88are mandatory for the safe operation of vehicles. When a vehicle is in motion, it has kinetic energy or energy derived from this motion. In order for the vehicles to slow down, this energy must be decreased. This is accomplished by transforming it into another form. In the case of brakes, this form is heat. In short, brakes transform the kinetic energy of the vehicles into heat energy, thus slowing its speed and if enough is transferred, bringing it to a stop. Brakes have been refined and improved ever since their invention. The increases in traveling speeds as well as the growing weights of cars have made this improvement essential. The faster a vehicle goes and the heavier it is, the harder it is to stop. An effective braking system is needed to accomplish this task. 2.1.1 How Brakes Work: Brakes operate by converting the kinetic energy (motion) of an automobile into heat energy. How effectively this is achieved depends on the type of braking system. There are two main types of brakes that have been used in cars. These are disc brakes and drum brakes. Disc brakes operate in a similar fashion to that of a bicycle. It involves pushing a block against a spinning wheel. This contact causes friction, which changes kinetic energy into heat energy. Drum brakes have their blocks located in the inside of a drum like the disc in disc brakes, the drum in drum brakes are attached to the wheels. When the brake pedal is pressed the curved brake shoes are pushed outward so that they make contract with the rotating drum. Not only are their different types of brakes, but there are various systems that operate these brakes. These include mechanical, hydraulic, and power brake system. H.R. Institute Of Higher Education, Hassan 8
  • 9. Procedures for Handling Absenteeism 2.1.2 Strong Demand: The Indian auto component sector is expected to grow at a healthy clip of above 20% in the coming years on the back of a strong demand from both the domestic and international markets. This has already been evident from the industry’s performance over the last two years when it crossed 20% growth rates. Domestically, the number of vehicles manufactured in India has risen dramatically to 8.5 million units in 2004-05 from 2.4 million units in 1993-94. In the past, the industry was severely hamstrung by its over dependence on the domestic automobile sector and its swings and cyclicality. However, this has changed quite dramatically in the recent past and the future growth is pagged largely on exports. While on one hand this takes care of the oscillating fortunes of the Indian auto sector, on the other hand, it diversifies risk, which promotes stability and ensures better growth and margins for companies. The automobile industry was also aided by some positive, proactive policy decisions by government. In 2002, the automobile policy opened the automobile sector to 100 percent Foreign Direct Investment (FDI) and also removed the minimum capital investment norms for new entrants. Besides, the abolition of licensing and removal of quantitative restrictions helped the industry restructure and absorb new technology. The market for automotive components can be divided into three categories largely based on the identity of the buyer – the Original Equipment Manufacturers (OEM or the vehicle manufacturer), replacement (vehicle owners buying parts for maintenance and repair) and exports (Foreign Vehicle Manufacturers and International Tier-1 Suppliers). The principal drivers of demand for the automotive components industry from the OEM segment (in number terms) have been from passenger cars and commercial vehicles. Where exports as an attractive option really come to the fore is the huge outsourcing opportunity available for efficient Indian players. In the last two years, the Indian auto component industry has established itself among International Original Equipment Manufacturers (OEMs). India’s strengths derive largely from the easy availability of technically skilled manpower, low wages, superior quality and process orientation in comparison to the other low-cost options such as China and Thailand. H.R. Institute Of Higher Education, Hassan 9
  • 10. Procedures for Handling Absenteeism In fact, the Automotive Components Manufacturers Association (ACMA) along with McKinsey has pegged domestic demand for components at $20-25 billion in 2015 from $1.4 billion in 2004-05. This would take the overall industry size to $40-45 billion by 2015 in India. H.R. Institute Of Higher Education, Hassan 10
  • 11. Procedures for Handling Absenteeism 2.2 COMPANY PROFILE: 2.2.1 Background and inception of the company: Kalyani Global Engineering Pvt. Ltd Company was set up at Hootagalli Industrial Area of Hunsur Road Mysore in the year 2003 at the request of Automotive Axles Limited and Meritor HVS (India) Limited to take over the assembly of S cam brakes that use asbestos liners. The joint venture partner of Automotive Axles Ltd, viz., Arvin Meritor Inc., USA, has expressed concern over the use of asbestos liners, in view of legal situation in the USA. Details of the Company: Name of the Company : Kalyani Global Engineering Private Ltd. Establishment Year : 2003 Reg. Office and works : Hootagalli Industrial Area of Hunsur Road Mysore - 570018 Board of Directors : S.R. Swamy S.B. Kanade S.S. Hattarki Auditor : Prashanth V. Deo Bankers : State Bank of India HDFC Bank H.R. Institute Of Higher Education, Hassan 11
  • 12. Procedures for Handling Absenteeism 2.2.2 Nature Of The Business Kalyani Global Engineering manufacturers Air Brakes for the following Industrial customers: • Rear and front brakes to Ashok Leyland for Heavy and light commercial vehicles. • Cam brakes front and rear brakes to Telco for heavy commercial vehicles. • Dia rear brakes to VFJ (Vehicle Factory Jabalpur). 2.2.3 VISION, MISSION AND QUALITY POLICY: Vision: To be a world class Tier – I organization through total employee involvement by, • Exceeding business plan objectives. • Providing value to customer through innovative solutions, product quality exceptional services. • Continual improvement of quality management system. Mission: The major objectives are the end points toward which the activities of the enterprise are directed. Customer Satisfaction: Supply state of the art product/service to customers that meet their expectations for quality, technology, delivery and responsiveness. Quality Policy: To build quality as a competitive edge as viewed by customer. Human Resource Development: To establish development oriented human resource system and practice through training to achieve total employee involvement. H.R. Institute Of Higher Education, Hassan 12
  • 13. Procedures for Handling Absenteeism Competition: To out perform competitors strategy by enhancing customer loyalty with differentiated product, superior services and competitive pricing. Financial Performance: Exceed our financial and growth objectives through aggressive implementation our business plan. Environment, Health and Safety: Establish and implement suitable environment health and safety related practices system to fulfill social obligation. 2.2.4 PRODUCT/SERVICE PROFILE: All vehicles need a brake system, therefore it has been present in the automobile since it invention. However, the technology of the components and the design of the brake system have evolved throughout the years. In the brake technology came in 1918 with the invention of four wheel hydraulic brake systems by Malcolm Laughed. It is interesting to note that Laughed was a member of the Lockheed family, a company known better for producing airplanes. The hydraulic brake system replaced the mechanical brake system that was in use at this time. Another development in braking systems came with anti-lock or anti-skid braking with conventional braking systems. When the brakes are applied with enough pressure, the wheels will lock up. This result in a loss of steering effectiveness which may cause a loss of control with anti-lock braking, the wheels do not lock up, allowing the driver to continue steering. Anti-lock brakes are not a new technology. They had been used in large aircraft since the 1950’s and the British had used them in race car in the 1960’s. The product is produced based on the specifications given by the customers. Superior products are produced due to superior technology. Backed by certificates such as ISO 9001:2000, known for its quality and its durability. H.R. Institute Of Higher Education, Hassan 13
  • 14. Procedures for Handling Absenteeism Major products are: • Air brake manufacture for commercial vehicles in the country. Customers: The main customers for Kalyani Global Engineering are as follows:  Ashok Leyland Limited: Currently Company is selling 15.5 dia Rear and front brakes to Ashok Leyland.  Telco-Jamshedpur and Pune: Currently Company is selling 410 S cam brakes front and rear brakes to Telco- Jamshedpur and Pune.  Vehicle Factory – Jabalpur (Army vehicle): Currently Company is selling 15.5 dia Rear brakes to VFJ 2.2.5 Area of operation: KGE operates in national market. Its national customers are:  Ashok Leyland Limited: Hosur 1 and Hosur 2 Plant  Telco: Jamshedpur and Pune  Vehicle Factory (army vehicle): Jabalpur 2.2.6 Ownership pattern: KGE is not only a sole-trading company but also it is a private company. It is not a ownership pattern. KGE has a joint venture with Automotive Axles Ltd. (AAL). H.R. Institute Of Higher Education, Hassan 14
  • 15. Procedures for Handling Absenteeism 2.2.7 Competitors information: The major competitors are M/S Brakes India Limited. The company manufactures brake for all major truck manufacturers in India. In the national market, Brakes India has its customers M/S Ashok Leyland, Telco Jamshedpur. Market Shares: Customers Company Market Share Ashok Leyland KGE 40% Brakes India Ltd. 60% Telco – Jamshedpur KGE 40% Brakes India Ltd. 60% Vehicle Factory, Jabalpur KGE 100% (Source: Company Information) 2.2.8 Infrastructure facilities: Location: The unit is located at plot No. 34 and 35 (p), Hootagalli Industrial Area Mysore – 570018 is well connected by road and rail. Technology: The technology for manufacture and assembly of brakes gas been provided by Meritor Heavy Vehicle systems (India) Limited, and Automotive Axles Limited, Mysore. Power: The company got sanction for 80KVA and connected load of 76 KW from KPTCL. The peak level requirement of power for the unit is 80KVA. Hence the power available to the firm is sufficient for the current level of activity. In addition to this, the company is having captive generation plants with aggregate capacity of 62.5 KVA. There is a proposal of procuring captive generation set of 180 KVA (1 No.) in order to cope up with the future level of activity. H.R. Institute Of Higher Education, Hassan 15
  • 16. Procedures for Handling Absenteeism Water: The water requirement of the company is 30,000 Liters per day for domestic and other utilities. The company has obtained sanction of water line from Karnataka Industrial Area Development Board. Concern for Environment Aspects: The company’s manufacturing and assembling process is not hazardous in nature. For discharge of smoke and for dust extraction the necessary stacks has been erected as per requirements. This has already been approved by Karnataka Pollution Board. Transport: The necessary transport arrangement has been made for transport of raw-materials and finished goods with the reputed transport agency. 2.2.9 Future growth and prospects: The unit is presently manufacturing liners of Asbestor make-up, the usage of which is not only legal, but even the manufacture of such liners is legal. Until such time the legal situation in India is changed mandating non-asbestos liners. This unit would carry on the business in the proposed form. Should the legal situation in India changes, the business will be taken back by Automotive Axles Limited and Meritor HVS (India) Limited. 2.2.10 ACHIEVEMENTS / AWARDS: The products of the company have been certified as per ISO Standards. The company is putting efforts to develop new models, through its Research and Development Wing. They are also aiming to provide better service to customers. Work flow model: The work flow model gives the brief idea of how the raw-material comes into organization, how it is converted into finished goods and how the final products are packed. The work flow model is shown in the figure. H.R. Institute Of Higher Education, Hassan 16
  • 17. Procedures for Handling Absenteeism  The first step in work flow model is receiving orders from the customers an. d marketing department receives the order.  In second step it under goes the production planning control there they decides the production method. Here they will prepare the production plan, schedule and material requirements. They will place an indent to purchasing department to purchase required material.  After deciding the planning method then they will decide the bill of material.  After billing it may under go the placing of indent of sub contract method.  After placing they will place the goods into inward stores.  Then they will send the goods to quality control department for checking of quality and quantity they produced.  After inspection then they will send the goods in to the main stores.  Production planning centre decides the assembling of the material according to the order placed.  Finally they will delivered the ordered goods to the ultimate customers. H.R. Institute Of Higher Education, Hassan 17
  • 18. Procedures for Handling Absenteeism H.R. Institute Of Higher Education, Hassan 18
  • 19. Procedures for Handling Absenteeism 2.2.11 SWOT ANALYSIS: A scan of the internal and external environment is an important part of the strategic planning process. The SWOT analysis provide information that are helpful in matching the firms resources and capabilities to the competitive. Environment in which it operates. As such, it is instrumental in strategy formulation and selection. STRENGTH: Strength is a resource skill or an added advantage in competence with the competitors and the needs of the market.  Exclusive access to high-grade natural resources.  Favorable access to distribution network.  Can provide a wide range of value added products to the customers.  Single largest integrated brakes manufacture in India.  Good reputation among customers. WEAKNESS: A weakness is a limitation in resources, skills and capabilities that seriously impedes effective performance of the business of the organization.  A slow down in the commercial vehicle industry would impact KTMS profitability.  KTMS depends totally on OEM’S customers. OEM’S cost for the product internal cost is relatively less expensive due to their depreciated assets used in manufacture of similar comparable products.  They cannot meet the customer demand due to already overloaded production facility. OPPORTUNITIES: An opportunity is a favorable situation in the firms environment.  KTMS has got opportunities to export its product.  Growing commercial vehicle segment due to improved infrastructural facilities available in Indian market. H.R. Institute Of Higher Education, Hassan 19
  • 20. Procedures for Handling Absenteeism THREATS: A threat is a major unfavorable situation in the firm’s environment. It is a key impediment to the firm’s current and desired future position.  Stiff competition from the competitors brakes India Ltd.  Increasing price of raw-materials, Ex: Steel  Increased trade barriers. H.R. Institute Of Higher Education, Hassan 20
  • 21. Procedures for Handling Absenteeism REVIEW OF LITERATURE: 3.1 Human Resource Management Introduction: Human resources is one of the most valuable and unique assets of an organization. Human resources management means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements with a view to contribute to the goals of the organization, individual and the society. • The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. • HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement. • Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. • The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. • HRM approach seeks to ensure a fit between the management of an organization's employees, and the overall strategic direction of the company (Miller, 1989). • The basic premise of HRM is that humans are not machines, they are the assets in the organization, therefore we need to have an interdisciplinary examination of people in the workplace. • HRM is a humanistic concept. • Human resources help in transforming the lifeless factors of production into useful products. H.R. Institute Of Higher Education, Hassan 21
  • 22. Procedures for Handling Absenteeism • They are capable of enlargement ie capable of producing an output that is greater than the sum of inputs. • Once they get inspired, even ordinary people can deliver extraordinary results. • They can help organization achieve results quickly, efficiently and effectively. Definition: According to Leon C. Megginson, the term human resources can be thought of as “the total knowledge, skills, creative abilities, talents and aptitudes of an organization’s workforce, as well as the value, attitudes and beliefs of the individuals involved.” 3.2 History of human resource management: There is a vast difference between modern HRM and the personnel management that was prevalent decades ago. By the end of twentieth century, the managerial philosophy that has defined the personnel function has undergone radical changes. The human resource approach has gained prominence in the recent times.  Scientific Management Approach In the early 1900s, most business owners and managers believed that if employees were to be effectively managed, they had to be constantly supervised and forced to work. All employees were considered to be equal in terms of productivity; when they failed to achieve the set targets they were disciplined or fired. The scientific management approach challenged these beliefs and suggested that managers adopt a scientific and objective approach to determine how work could be designed and carried out most efficiently. Fredrick Taylor, who is widely considered to be the father of scientific management, focused on the study of motions that were required for each job, the tools used, and the time needed to accomplish each task.  Human Relations Approach: The Hawthorne studies, conducted during the 1930s and 1940s, forced organizations to shift their attention from the scientific management approach to the human relations approach. The results of these studies suggested that employee H.R. Institute Of Higher Education, Hassan 22
  • 23. Procedures for Handling Absenteeism productivity was affected not only by the way the job was designed and the economic rewards but also by certain social and psychological factors. The growing strength of unions was also a major factor responsible for the shift to the concept of human relations.  Human Resources Approach: Organizations have now adopted the human resources approach, which treats the organizational goals and employee needs as being mutual and compatible, and which can be pursued in unison. The human resources approach is based on a number of principles, some of which are:  Employees are assets to an organization.  Policies, programs and practices must cater to the needs of employees and should help them in their work and also in their personal development.  It is necessary to create and maintain a conducive work environment, to encourage the employees to develop and harness their knowledge and skills for the benefit of the organization. HR policies and practices should be in alignment with the goal of balancing individual and organizational needs. This can be achieved through a mutual process where the organization and the employees help each other to achieve their goals. H.R. Institute Of Higher Education, Hassan 23
  • 24. Procedures for Handling Absenteeism H.R. Institute Of Higher Education, Hassan 24
  • 25. Procedures for Handling Absenteeism 3.3 Importance Of Human Resources Management Human resources plays a crucial role in the development process of modern economics. Arthur Lewis observed, “there are great differences in development between countries which seem to have roughly equal resources, so it is necessary to enquire into the difference in human behavior.” It is often felt that though the exploitation of natural resources, availability of physical and financial resources and international aid play prominent roles in the growth of modern economies, none of these factors is more significant than efficient and committed manpower. It is infact said that all development comes from the human mind.  Human Resources in the Nation’s Well-being A nation with abundance of physical resources will not benefit itself unless human resources make use of them. Infact, human resources with right attitude are solely responsible for making use of national resources and for the transformation of traditional economies into the modern industrial and knowledge economies.  Man vis-a-vis Machine Most of the problems in organizational sections are human and social rather than physical, technical or economic. No industry can be rendered efficient so long as the basic fact remains unrecognized that it is principally human. It is not a mass of machines and technical processes but a body of men.  Personnel Management and General Management Management of an organization in modern economies is not only complex and sophisticated but it is also vital influencing the economic growth of a country. One of the fundamental tasks of management is to manage human resources in the service of the economic objectives of the enterprise. Successful management depends not solely, but significantly upon the ability to predict and control human behavior H.R. Institute Of Higher Education, Hassan 25
  • 26. Procedures for Handling Absenteeism  Human Resources System is a Central Sub-system Human resources system in an organization is not only a unique sub-system but a principal and central sub-system and it operates upon and controls all other sub-systems. “personnel management is a major pervasive sub-system of all organizations.”  Social Significance Proper management of personnel enhances their dignity by satisfying their social needs. This is done by: i) Maintaining a balance between the jobs available and the jobseekers according to the qualifications and needs; ii) Providing suitable and most productive employment, which might bring them psychological satisfaction; iii) Making maximum utilization of the resources in an effective manner and paying the employee a reasonable compensation in proportion to the contribution made by him; iv) Eliminating waste or improper use of human resources, through conservation of their normal energy and health and v) By helping people make their own decisions that are in their interests.  Professional Significance By providing a healthy working environment, it promotes team work in the employees. This is done by i) Maintaining the dignity of the employee as a ‘human-being’; ii) Providing maximum opportunities for personal development; iii) Providing healthy relationship between different work groups so that work is effectively performed; iv) Improving the employees’ working skill and capacity; v) Correcting the errors of wrong postings and proper reallocation work. H.R. Institute Of Higher Education, Hassan 26
  • 27. Procedures for Handling Absenteeism  Significance for Individual Enterprise It can help the organization in accomplishing its goals by: i) Creating right attitude among the employees through effective motivation; ii) Utilizing effectively the available human resources and iii) Securing willing co-operation of the employees for achieving goals of the enterprise and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and self-actualisation. 3.4 Role Of Human Resources Manager Human Resources Manager plays a vital role in the modern organization. He plays various strategic roles at different levels in the organization. The roles of the HR Manager include roles of conscience, of a counselor, a mediator, a company spokesman, a problem solver and a change agent.  The Conscience Role: The conscience role is that of a humanitarian who reminds the management of its morals and obligations to its employees.  The Counsellor: Employees who are dissatisfied with the present job approach the personnel manager for counselling. In addition, employees facing various problems like marital, health, children education / marriage, mental, physical and career also approach the personnel managers. The Personnel Manager counsels and consults the employees and offers suggestions to solve / overcome the problems of the employees.  The Mediator: As a mediator, the personnel manager plays the role of a peace-maker. He settles the disputes between employees and the management. He acts as a liaison and communication link between both of them.  The Spokesman: He is a frequent spokesman for or representative of the company. H.R. Institute Of Higher Education, Hassan 27
  • 28. Procedures for Handling Absenteeism  The Problem-solver: He acts as a problem solver with respect to the issues that involve human resources management and overall long range organizational planning.  The Change Agent: He acts as a change agent and introduces changes in various existing programmes. 3.5 Functions Of Human Resource Management Every manager must get things done through people. Individual goals and aspirations have to be in alignment with organizational goals for the successful handling of a business. An effective manager should be able to utilize human and non-human resources to bring about this alignment and eventually achieve these goals. A manager’s handling of the human assets reflects his managerial capabilities. Managing people is one of the biggest challenges for any manager, for the following reasons:  Individuals differ from each other in terms of their values, attitudes, beliefs and culture. This leads to a very complex situation in an organizational context.  The stimulating and motivational factors might not be the same for all the employees. It is important to understand the individual needs of these employees and cater to these needs.  The expectations of employees of today are much greater when compared to the employees of yesteryears. They know they are valuable assets and demand to be treated as such. HRM functions can be broadly classified in to two categories:  Managerial functions  Operative functions H.R. Institute Of Higher Education, Hassan 28
  • 29. Procedures for Handling Absenteeism o Managerial Functions: Managerial functions of the human resource department are planning, organizing, staffing, directing and controlling.  Planning: Planning involves formulating the future course of action. It includes determining in advance the personnel programs and changes required that would contribute to the achievement of organizational goals. It involves planning of human resources, requirements, recruitment, selection, training etc.  Organizing: Organizing involves establishing an intentional structure of roles for people in an organization. Structural considerations such as the chain of command, division of labor, and assignment of responsibility are part of the organizing function.  Staffing: This is the process of obtaining and maintaining capable and competent personnel in various positions at all levels. It broadly encompasses manpower planning, recruitment, selection, placement, induction and orientation, transfer.  Directing: It is the process of directing all the available resources towards the common organizational goals. It also involves coordination between different departments to ensure maximum utilization of all resources including human resources.  Controlling: The measurement and rectification of activities to ensure that events conform to plans is known as controlling. This function measures performance against goals and plans, and helps in the accomplishment of plans. H.R. Institute Of Higher Education, Hassan 29
  • 30. Procedures for Handling Absenteeism o Operative Functions The operative functions of HRM are related to specific activities of HRM, viz., employment, development, compensation and employee relations.  Employment: Employment is the first operative function of HRM. This involves procuring and employing individuals with suitable knowledge, skills, experience and aptitude necessary to perform various jobs. It includes functions such as job analysis, human resource planning, recruitment, selection, placement, and induction. Job analysis To ensure the satisfactory performance of an employee, his skills, abilities and motivates to perform a job must match the requirements of the job. It is the process of studying and collecting information pertaining to the operations and responsibilities of a specific job. It involves:  Preparing job description, job specification, job requirements and employee specification so that the HR manager can determine the nature, levels and quantum of human resources required.  Providing the guides, plans, and basis for job design and redesign. It also forms the basis for all operative functions of HRM. Human Resource Planning Human resource planning involves forecasting the human resource requirements of an organization and the future supply of human resources, and making suitable adjustments between these two in correlation with organizational plans.  Estimating the present and future manpower requirements on the basis of long range plans and organizational objectives.  Taking measures to mould, change and develop the existing employees to enable them meet the future organizational requirements. H.R. Institute Of Higher Education, Hassan 30
  • 31. Procedures for Handling Absenteeism  Developing action plans to attract and acquire valuable human resources from the market. Human Resource Development HRD is the process of training and developing employees to improve and update their knowledge and skills, so as to help them perform their jobs better. The process also includes developing the attitudes, beliefs and values of the employees to match the organizational needs. HRD includes performance appraisal, training, management development, and career planning and development. Performance Appraisal: This is the process of evaluating the performance of an employee on the job and developing a plan for improvement. This includes an assessment of the strengths and weaknesses of the employee, and drawing up a development plan in consultation with him to prepare him for future tasks and responsibilities in the organization. Performance appraisal includes: • Designing a performance appraisal system that suits the organizational needs and culture; • Developing suitable methods to ensure that the system works successfully; • Training all the employees in conducting appraisals; • Implementing the system effectively and maintaining records; • Obtaining feedback on its effectiveness and making timely and necessary changes. Training: Training is the systematic development of the knowledge, skills and attitudes required to perform a given task or job successfully, in an individual. It includes: H.R. Institute Of Higher Education, Hassan 31
  • 32. Procedures for Handling Absenteeism  Identifying the training needs of the individuals, keeping in view the organizational needs.  Designing suitable training programs to eliminate the gaps in knowledge, skill or attitude.  Conducting training programs, or providing support to other departments in conducting training.  Evaluating the effectiveness of the training programs and making necessary changes. Management Development: It is the concept of developing the employees of an organization to meet future changes and challenges. It includes forecasting the human resource demands of an organization and gearing up to meet these demands. Career Planning and Development: It refers to identifying one’s career goals and formulating plans of reaching them through various means like education, work experience etc. Compensation: It includes all the extrinsic rewards that an employee receives during and after the course of his job, for his contributions to the organization. The principles of compensation payment are that it has to be adequate, equitable and fair to the employees. Compensation encompasses base salary, incentives, bonus and benefits and is based on job evaluation. H.R. Institute Of Higher Education, Hassan 32
  • 33. Procedures for Handling Absenteeism 3.6 Job evaluation: It is a systematic determination of the value of each job in relation to other jobs in the organization, in the industry and in the market. It involves;  Identifying / designing suitable job evaluation techniques.  Evaluating various jobs. a) Wage and Salary Administration: The process of formulating and operating a suitable wage and salary program is known as wage and salary administration. It includes:  Conducting wage and salary survey in the market and in the industry.  Determining wage and salary rates on the basis of various factors like law, equity, fairness and performance.  Implementing wage and salary administration programs.  Evaluating the effectiveness of these programs. b) Incentives: Incentives are the rewards an employee earns in addition to regular wages or salary based on the performance of the individual, the team or the organization. c) Bonus: Bonus is primarily a share in the surplus and is directly related to the organization’s performance. d) Fringe benefits: Fringe benefits are those monetary and non-monetary benefits given to employees during their employment. Some of the fringe benefits include:  Housing facilities. H.R. Institute Of Higher Education, Hassan 33
  • 34. Procedures for Handling Absenteeism  Canteen facilities.  Conveyance facilities.  Educational facilities for employees and their children.  Credit facilities.  Medical and welfare facilities.  Legal aid. Employee Relations: It deals with the employees in the organizational context, as a social group that contributes to the organization. It includes  Increasing employee productivity.  Keeping the employees satisfied and motivated.  Developing team building, team management and leadership skills in employees.  Designing and implementing a fast and suitable grievance management system.  Supporting employees by counseling and developing them into complete individuals and responsible citizens.  Enhancing the quality of work life and personal life of the employees. H.R. Institute Of Higher Education, Hassan 34
  • 35. Procedures for Handling Absenteeism H.R. Institute Of Higher Education, Hassan 35
  • 36. Procedures for Handling Absenteeism 3.7 Human Resource Development The term human resources refers to the knowledge, skills, creative abilities, talents, aptitude, values and beliefs of an organization’s workforce. The more important aspects of human resources are aptitude, values, attitudes and beliefs. Features Of Human Resource Development  Human Resource Development is a systematic and planned approach for the development of individuals in order to achieve organizational, group and individual goals.  Human Resource Development is a continuous process for the development of technical, managerial, behavioural and conceptual skills and knowledge.  Human Resource Development develops the skills and knowledge not only at the individual level, but also at dyadic level, group level and organizational level.  Human Resource Development is multi-disciplinary. It draws inputs from Engineering, Technology, Psychology, Anthropology, Management Commerce, Economics, Medicine etc.  Human Resource Development is embodied with techniques and processes. HRD techniques include performance appraisal, training, management development, career planning and development, organization development, counselling, social and religious programmes, employee involvement / workers participation, quality circles etc.  Human Resource Development is essential not only for manufacturing and service industry but also for information technology industry. H.R. Institute Of Higher Education, Hassan 36
  • 37. Procedures for Handling Absenteeism 3.8 Scope Of Human Resource Development Human resources management deals with procurement, development, compensation, maintenance and utilisation of human resources. HRD deals with development of human resources for efficient utilisation of these resources in order to achieve the individual, group and organizational goals.  Recruiting the employees within the dimensions and possibilities for developing human resources.  Selecting those employees having potentialities for development to meet the present and future organizational needs.  Analysing, appraising and developing performance of employees as individuals, members of a group and organizations with a view to develop them by identifying the gaps in skills and knowledge.  Help the employees to learn from their superiors through performance consultations, performance counselling and performance interviews.  Train all the employees in acquiring new technical skills and knowledge.  Develop the employees in managerial and behavioural skills and knowledge.  Planning for succession and develop the employees.  Changing the employee’s behaviour through organization development.  Employee learning through group dynamics, intra and inter team interaction.  Learning through social and religious interactions and programmes.  Learning through job rotation, job enrichment and empowerment.  Learning through quality circles and the schemes of workers’ participation in the management. 3.9 Need For Human Resource Development  Changes in Economic Policies  Changing Job Requirements  Need for Multi-skilled Human Resources  Organizational Viability and Transformation Resources  Technological Advances H.R. Institute Of Higher Education, Hassan 37
  • 38. Procedures for Handling Absenteeism  Organizational complexity  Human Relations 3.10 Human Resource Development Objectives  To prepare the employee to meet the present and changing future job requirements.  To prevent employee obsolescence.  To develop creative abilities and talents.  To prepare employees for higher level jobs.  To impart new entrants with basic HRD skills and knowledge.  To develop the potentialities of people for the next level job.  To aid total quality management.  To promote individual and collective morale, a sense of responsibility, co- operative attitudes and good relationships.  To broaden the minds of senior managers by providing them with opportunities for an interchange of experiences within and outside.  To ensure smooth and efficient working of the organization.  To provide comprehensive framework for HRD.  To enhance organizational capabilities. 3.11 Human Resource Development Functions  Performance Appraisal  Employee Training  Executive Development  Career Planning and Development  Succession Planning and Development  Organization Change and Organization Development  Involvement in Social and Religious Organizations  Involvement in Quality Circles  Involvement in Workers’ Participation in Management H.R. Institute Of Higher Education, Hassan 38
  • 39. Procedures for Handling Absenteeism 3.12 Techniques Of Human Resources Development  Performance Appraisal  Potential Appraisal  Career Planning  Career Development  Employee Training  Executive Development  Organizational Change  Organizational Development  Social and Cultural Programmes  Workers’ Participation in Management  Quality Circles  Employee Counselling  Team work  Role Analysis  Communication Policies and Practices  Monetary Rewards  Non-monetary Rewards  Employee Benefits and  Grievance Mechanism  Role Analysis: The HRD manager should design the wider roles rather than mere jobs based on the organization’s present and future needs. The HRD manager should also take into consideration the internal and external environmental factors.  Human Resources Planning: H.R. Institute Of Higher Education, Hassan 39
  • 40. Procedures for Handling Absenteeism The HRD manager, based on the role analyses, should plan for the human resources which would meet not only the future organisational requirements but also capable of being developed. H.R. Institute Of Higher Education, Hassan 40
  • 41. Procedures for Handling Absenteeism  Recruitment: It is the process of searching for prospective employees and stimulating them to apply for jobs in an organization.  Selection: It is the process of ascertaining the qualifications, experiences, skills, knowledge etc. of an applicant with a view to appraising his / her suitability to a job.  Placement: It is the process of assigning the selected candidate with the most suitable job. It is matching of employee specifications with job requirements.  Induction and Orientation: Induction and Orientation are the techniques by which a new employee is rehabilitated in the changed surroundings and introduced to the practices, policies, purposes and people etc. of the organization.  Performance Appraisal: It is the systematic evaluation of individuals with respect to their performance on the job and their potential for development.  Training: Training is a systematic process by which employees learn skills, knowledge, abilities or attitudes to further organisational and personal goals.  Management Development: It is the process of designing and conducting suitable executive development programmes so as to develop managerial and human relations skill of employees. H.R. Institute Of Higher Education, Hassan 41
  • 42. Procedures for Handling Absenteeism  Career Planning and Development: It is the planning of one’s career and implementation of career plans by means of education, training, job search and acquisition of work experiences. It includes internal and external mobility. Internal Mobility: It includes vertical and horizontal movement of an employee within an organization. It consists of transfer, promotion, and demotion.  Organization Development: Organization development is an organization wide, planned effort, managed from the top, with a goal of increasing organizational performance through planned interventions.  Compensation: It is the process of providing equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures etc.  Social and Cultural Programmes: Social and Cultural programmes enable the employees to interact closely with each other, open-up their cognitions, share the strengths etc. The HRD, manager, should arrange for social and cultural programmes and enable the employees to learn from each other.  Workers’ Participation in Management: Workers’ participation in management enables both the management’s and workers’ representatives to share and exchange their ideas and view points in the process of joint decision-making. H.R. Institute Of Higher Education, Hassan 42
  • 43. Procedures for Handling Absenteeism  Quality Circles: Quality Circle is a self-governing group of workers with or without their supervisors who voluntarily meet regularly to identify, analyse and solve problems of their work field.  Employee Counselling: The process of employee counselling about his job and organizational related activities helps him to acquire additional skills, knowledge and abilities from his counsellor-mostly his supervisor. Therefore, the HRD manager should arrange for frequent employee counselling.  Team Work: Teamwork requires a joint effort of the members to plan, make decisions, implement them, evaluate them and correct them. This process enables the members to learn from each other and make the others’ strength their own.  Communication Policies: The free-flow of upward communication policies encourage and motivate the subordinates to share their new ideas, experiences and other work related issues with their supervisors. The supervisors in turn learn them.  Grievance Mechanism: Prompt settlement of employee grievances leads to job satisfaction and satisfied employees are encouraged to enrich their resources with a view to enhance their contributions to the organization. As such, the HRD manager should help the top management to design an efficient grievance handling mechanism.  The other functions of HRD manager include:  To develop a human resources philosophy for the entire organization and get the top management committed to it openly and consistently. H.R. Institute Of Higher Education, Hassan 43
  • 44. Procedures for Handling Absenteeism  To influence personnel policies by providing the necessary inputs to the personnel department / top management.  To plan and design new HRD methods.  To monitor effectively the implementation of various HRD methods.  To conduct human process research, organizational health surveys and renewal of exercises periodically.  To work with unions and associations and inspire them. 3.13 Future Of HRM • Size of workforce • Composition of work force • Employee expectations • Changes in technology • Life style changes • Environmental challenges • Personnel function in future • Changes in 21st century impacting HRM 3.14 Core roles in Human Resource Management The core roles of human resource management are grouped below into four categories. The titles of the clusters are tentative, and are open for comment. • Planning and organizing for work, people and HRM. • Strategic perspective • Organisation design • Change management • Corporate Wellness management • People acquisition and development • Staffing the organisation H.R. Institute Of Higher Education, Hassan 44
  • 45. Procedures for Handling Absenteeism • Training & development • Career Management • Performance Management • Industrial relations • Administration of policies, programmes and practices • Compensation management • Information management • Administrative management • Financial management 3.15 Specialist Personnel Functions • Recruitment - advertising for new employees and liaising with employment agencies. • Selection - determining the best candidates from those who apply, arranging interviews, tests, references. • Promotion - running similar selection procedures to determine progression within the organization. • Pay - a minor or major role in pay negotiation, determination and administration. • Performance assessment • Coordinating staff appraisal and counselling systems to evaluate individual employee performance. • Grading structures - as a basis for pay or development, comparing the relative difficulty and importance of functions. H.R. Institute Of Higher Education, Hassan 45
  • 46. Procedures for Handling Absenteeism • Training and development coordinating or delivering programmes to fit people for the roles required by the organisation now and in the future. • Welfare - providing or liaising with specialists in a staff care or counselling role for people with personal or domestic problems affecting their work. • Communication - providing an internal information service, perhaps in the form of staff newspapers or magazines, handouts, booklets, videos. • Employee Relations - handling disputes, grievances and industrial action, often dealing with unions or staff representatives. • Dismissal - on an individual basis as a result of failure to meet requirements or as part of a redundancy, downsizing or closure exercise, perhaps involving large numbers of people. • Personnel administration - record-keeping and monitoring of legislative requirements related to equal opportunities and possibly pensions and tax. Thus the main concept of HRM is to treat the human beings as assets of the organization rather than treating them as machines. 3.16 Process Of HRM: Human Resource Management is viewed as a process of sequence of operations and activities. HRM process starts with the objectives of an organization. The first operative function or activity in the HRM process is the employment. Employment process consists various sub-processes like job design and analysis, human resource planning, recruitment, selection, placement and induction. Human resource development aspect consists of various sub processes like performance appraisal, training and development, career planning and development, promotion, transfer and demotion, absenteeism and labour turnover, organizational change and development. H.R. Institute Of Higher Education, Hassan 46
  • 47. Procedures for Handling Absenteeism 3.17 Objectives Of HRM Objectives are pre-determined goals to which individual or group activity in an organization is directed. Objectives of personnel management are influenced by social objectives, organizational objectives, functional objectives and individual objectives. • To help the organization reach its goals. • To employ the skills and abilities of the work force efficiently. • To provide the organization with well trained and well motivated employees. • To increase to the fullest the employees job satisfaction and self actualization. • To develop and maintain a quality of work life. • To communicate HR policies to all employees. • To be ethically and socially responsive to the needs of society H.R. Institute Of Higher Education, Hassan 47
  • 48. Procedures for Handling Absenteeism H.R. Institute Of Higher Education, Hassan 48
  • 49. Procedures for Handling Absenteeism 3.18 Introduction: Absenteeism has been variously defined by different authorities according to Webster’s dictionary “Absenteeism” is the practice or habit of being an “Absentee” and an absentee is one who habitually starts away the absentee of an employee from work when he is scheduled to be at work. It is unauthorized, unexplained, avoidable and willful absence from work. A worker who reports for any part of a shift is to be considered present. An employee is to be considered scheduled to work when the employer has work available 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 specialized time. Any employee may stay away from work. If he has taken leave to which he is entitled, or on the ground of sickness or some accident or with out any previous sanction of leave. The extent of absenteeism may differ from industry to industry, place to place and occupation to occupation. It may also differ according to the make-up of the work force. Absenteeism may be extensive in a particular department of an industry or a concern. The absenteeism in Indian industry is not a new phenomenon. The Royal commission on labour reported that, “High absenteeism prevails among industrial labour mainly due to their rural orientation.” Absenteeism is a serious problem for a management because it involves heavy additional expenses. Industrial employees do not usually ask for leave of absence in advance or even give notice during their absence as to how long they would be away. The management is generally uncertain about the probable duration of an employee’s absence and not take appropriate measures to fill the gap. 3.18.1 Definitions on Absenteeism: “The time lost in industrial establishment by the avoidable or unavoidable absence of employees.” Encyclopedia of Social Science “Total man – shifts lost because of absences as a percentage to the total number of man – shifts schedules.” Webster’s Dictionary H.R. Institute Of Higher Education, Hassan 49
  • 50. Procedures for Handling Absenteeism It means an individual workmen remaining absent without any information or intimation. If any individual or employee remains absent frequently he is a habitual absentee. Absenteeism can also be defined as “it is the problem of employees taking short terms, unauthorized leave from work, or it can be defined as habitual failure to appear for work.” Definition: According to Webster’s Dictionary, “absenteeism is the practice or habit of being an ‘absence’ and an absentee is one who habitually stays away”. 3.18.2 Types of Absenteeism: i) Authorised Absenteeism ii) Unauthorised Absenteeism iii) Wilful Absenteeism iv) Absenteeism Caused by circumstances beyond one’s control i) Authorised Absenteeism: If an employee absents himself from work by taking permission from his superior and applying for leave, such absenteeism is called authorized absenteeism. ii) Unauthorized Absenteeism: If an employee absents himself from work without informing or taking permission and without applying for leave, such absenteeism is called unauthorized absenteeism. iii) Wilful Absenteeism: If an employee absents himself from duty wilfully, such absenteeism is called willful absenteeism. H.R. Institute Of Higher Education, Hassan 50
  • 51. Procedures for Handling Absenteeism iv) Absenteeism Caused by Circumstances beyond one’s Control: If an employee absents himself from duty owing to the circumstances beyond his control like involvement in accidents or sudden sickness, such absenteeism is called absenteeism caused by circumstances beyond one’s control. 3.18.3 Causes of Absenteeism:  Maladjustment with the Working Conditions: If the working conditions of the company are poor, the workers cannot adjust themselves with the company’s working conditions. Then they prefer to stay away from the company.  Social and Religious Ceremonies: Social and religious functions divert the worker’s attention from the work.  Unsatisfactory Housing: Unsatisfactory housing conditions at the work place.  Industrial Fatigue: The industrial fatigue compels workers to remain outside the work place.  Unhealthy Working Conditions: The poor and intolerable working conditions in the factories irritates the workers. Excess heat, noise, either too much or too low lighting, poor ventilation, dust, smoke etc. cause poor health of the workers. These factors cause the workers to be absent.  Poor Welfare Conditions: Though a number of legislations concerning welfare facilities are enacted, many organizations fail to provide welfare facilities. This is either due to the poor financial position of the companies or due to the exploitative attitude of the employer. The poor welfare facilities include poor sanitation, washing, bathing, first-aid appliances, ambulance, rest rooms, drinking water, canteen, shelter, crèches etc. The dissatisfied workers with these facilities prefer to be away from the work place. H.R. Institute Of Higher Education, Hassan 51
  • 52. Procedures for Handling Absenteeism  Alcoholism: Workers mostly prefer to spend money on the consumption of liquor and enjoyment after getting the wages. Therefore, the rate of absenteeism is more during the first week of every month.  Indebtness: The low level wages and unplanned expenditure of the workers force them to borrow heavily. The research studies indicate that the workers borrow more than 10 times of their net pay. Consequently, workers fail to repay the money. Then they try to escape from the place in order to avoid the moneylenders. This leads to absenteeism.  Maladjustment with the Job Demands: The fast changing technology demands higher level skills from the workers. Some workers fail to meet these demands due to their lower level education and / or absence of training.  Unsound Personnel Policies: The improper and unrealistic personnel policies result in employee dissatisfaction. The dissatisfied employee in turn prefers to be away from the work.  Inadequate Leave Facilities: The inadequate leave facilities provided by the employer forces him to depend on E.S.I. leave which allows the workers to be away from the work for 56 days in a year on half pay.  Low Level of Wages: Wages in some organizations are very poor and they are quite inadequate to meet the basic needs of the employees. Therefore, employees go for other employment during their busy seasons and earn more money. Further, some employees take up part-time jobs. Thus, the employees resort to moonlighting and absent themselves from work. H.R. Institute Of Higher Education, Hassan 52
  • 53. Procedures for Handling Absenteeism 3.18.4 Types of Absenteeism: Innocent Absenteeism: Innocent Absenteeism refers to employees who are absent for reason beyond their control like sickness and injury innocent absenteeism is not culpable which means that is blame less in a labour relations context this means that it cannot be remedied or treated by disciplinary measures. Culpable Absenteeism: Culpable Absenteeism refers to employees who are absent with out authorization for reasons which are with their control. Instance, an employee who is sick leave even though he / she is not sick, and it can be proven that the employee was not sick, is guilty of culpable absenteeism to be culpable is to be blame worthy. In a labour relations context this means that progressive discipline can be applied. For the large majority of employees absenteeism which occurs infrequently procedures for disciplinary action apply only to culpable absenteeism. Many organizations take the view that through the process of individual absence counselling and treatment the majority of employees will overcome their problems and return to an acceptable of regular attendance. Categories of Absenteeism: K.N. Valid classifies chronic absentees into five categories viz., Entrepreneurs: This class of absentees consider that their jobs are very small for their total interest and personal goals. They engage themselves in other social and economic activities to fulfill their goals.  The Status Seekers: This type of absentees enjoy or perceive a higher ascribed social status and are keen on maintaining it. H.R. Institute Of Higher Education, Hassan 53
  • 54. Procedures for Handling Absenteeism  The Epicureans: This class of absentees do not like to take up the jobs which demand initiative, responsibility, discipline and discomfort. They wish to have money, power, status but are unwilling to work for their achievement.  Family-oriented: This type of absentees are often identified with the family activities.  The Sick and Old: This category of absentees are mostly unhealthy, with a weak constitution or old people. 3.18.5 Reasons for absenteeism:  Personal Problems: This may be due to financial problems, family problems, sickness of parents, etc.  Sickness / ill health of the employee: Sickness or ill health of the workman may be due to professional hazards like inhaling of dusts, frequent usage of Greece, coolant (oil), intake of welding smokes, etc.  Unsuitable working conditions: Working in different shifts that to in night shifts. Working in night shifts is working against nature. Heavy weight lifting, heavy weight movement, unhealthy working condition, industrial fatigue, absence of adequate welfare facilities, inadequate leaves, etc.  Social factors: Cricket match, natural calamities, heavy down pour, flood, epidemic, man indulging in bad habits like horse race, betting on cricket matches, involving oneself in online lottery, etc. H.R. Institute Of Higher Education, Hassan 54
  • 55. Procedures for Handling Absenteeism 3.18.6 Illefects Of ABSENTEEISM: i] Company’s Angle  Loss of production.  Increase in cost of production.  Unable to meet customer’s requirement on time.  Loss of credibility with the customer.  Hampering growth of industry. ii] Workmen’s Angle:  Loss of pay.  Shortage of attendance.  Losing rapport in he department.  To meet both ends starts borrowing loan from others which is an additional monetary commitment.  Unable to pay interest on the borrowed loan.  To avoid meeting money lender workmen gets further absent from the work place.  Additional loss of pay.  Heavy monetary commitment and  Frustration. Iii] Both angles:  Facing disciplinary action.  Mental torture.  Punishment. H.R. Institute Of Higher Education, Hassan 55
  • 56. Procedures for Handling Absenteeism 3.18.7 Punishment Permissible Under Standing Order / Service Rules  Warning.  Fine.  Stoppage of increment / withholding promotion with cumulative effect.  Demotion.  Removal from service which does not disqualify for future employment.  Dismissal.  Any other punishment which meets ends of justice. Measures to Minimise Absenteeism: Absenteeism affects the organization from multiple angles. It severely affects the production process and the business process.  Selecting the employees by testing them thoroughly regarding their aspirations, value systems, responsibility and sensitiveness.  Adopting a humanistic approach in dealing with the personal problems of employees.  Following a proactive approach in identifying and redressing employee grievances.  Providing hygienic working conditions.  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.  Improving the communication network, particularly the upward communication.  Providing leave facility based on the needs of the employees and organizational requirement.  Providing safety and health measures.  Providing cordial human relations and industrial relations  Educating the workers.  Counselling the workers about their career, income and expenditure, habits and Culture. H.R. Institute Of Higher Education, Hassan 56
  • 57. Procedures for Handling Absenteeism ANALYSIS AND INTERPRETATION 1. Does an absenteeism policy exist? Table : Particulars Frequency Percentage Yes 45 90 No 05 10 Total 50 100 Chart: Interpretation: This chart shows the percentage of the absenteeism policy exist in an organization. Out of 50 respondents, 90% of the employees says that absenteeism policy is existed in the organization, and 10% of the employees says no for this. H.R. Institute Of Higher Education, Hassan 57
  • 58. Procedures for Handling Absenteeism 2. Does the policies include rules and responsible of staff? Table: Particulars Frequency Percentage Yes 40 80 No 10 20 Total 50 100 Chart: Interpretation: This chart shows the percentage of the absenteeism policy includes rules and responsible of staff. Out of 50 respondents, 80% of the employees says yes, and 20% of the employees says no for this. H.R. Institute Of Higher Education, Hassan 58
  • 59. Procedures for Handling Absenteeism 3. Is absenteeism recorded by your Manager / Team leader / Supervisor? Table: Particulars Frequency Percentage Yes 50 100 No 00 00 Total 50 100 Chart: Interpretation: This chart shows the percentage of absenteeism recorded by Manager / Team Leader / Supervisor. Out of 50 respondents, 100% of the employees says that absenteeism is recorded by Manager / Team Leader/ Supervisor in an organization. H.R. Institute Of Higher Education, Hassan 59
  • 60. Procedures for Handling Absenteeism 4. Is a standard form used to record absenteeism starting the reason, length of time and condition? Table : Particulars Frequency Percentage Yes 43 86 No 07 14 Total 50 100 Chart: Interpretation: This chart shows the percentage of a standard form used to record absenteeism stating the reason, length of time and condition. Out of 50 respondents, 86% of the employees says that a standard form used to record absenteeism stating the reason, length of time and condition, and 14% of the employees says no for this. 5. Does your Manager / Team leader seek doctor certificate for being absent on sickness? H.R. Institute Of Higher Education, Hassan 60
  • 61. Procedures for Handling Absenteeism Table: Particulars Frequency Percentage Yes 42 84 No 08 16 Total 50 100 Chart: Interpretation: This chart shows the percentage of Manager / Team Leader seek doctor certificate for being absent on sickness given by an employee. Out of 50 respondents, 84% of the employees says yes to this, and 16% of the employees says no to this. 6. Are leaves granted freely to all the employees? Table: Particulars Frequency Percentage H.R. Institute Of Higher Education, Hassan 61
  • 62. Procedures for Handling Absenteeism Yes 35 70 No 15 30 Total 50 100 Chart: Interpretation: This chart shows the percentage of leaves granted freely to all the employees in an organization. Out of 50 respondents, 70% of the employees says that leaves are granted freely to all the employees, and 30% of the employees says that leaves are not granted freely to all the employees. 7. Does your organization encourage Adhoc leaves? Table: Particulars Frequency Percentage H.R. Institute Of Higher Education, Hassan 62
  • 63. Procedures for Handling Absenteeism Yes 20 40 No 30 60 Total 50 100 Chart: Interpretation: This chart shows the percentage of Adhoc leaves encouraged by an organization. Out of 50 respondents, 40% of the employees says that Adhoc leaves are encouraged, and 60% of the employees says Adhoc leaves are not encouraged. 8. Does your organisation punish for taking leaves without intimation? Table : Particulars Frequency Percentage H.R. Institute Of Higher Education, Hassan 63
  • 64. Procedures for Handling Absenteeism Yes 45 90 No 05 10 Total 50 100 Chart: Interpretation: This chart shows the percentage of organization punish for taking leaves with out intimation. Out of 50 respondents, 90% of the employees says yes to this, and 10% of the employees says no to this. 9. Does employees get long leaves if they have come from far states / places? Table: Particulars Frequency Percentage H.R. Institute Of Higher Education, Hassan 64
  • 65. Procedures for Handling Absenteeism Yes 20 40 No 30 60 Total 50 100 Chart: Interpretation: This chart shows the percentage of employees get long leaves, if they have come from far states / places. Out of 50 respondents, 40% of the employees says that they get long leaves if they have come from far states / places, and 60% of the employees says that they couldn’t get long leaves if they have come from far states / places. 10. Are you satisfied with the working environment in the organization? Table: Particulars Frequency Percentage Yes 29 58 H.R. Institute Of Higher Education, Hassan 65
  • 66. Procedures for Handling Absenteeism No 21 42 Total 50 100 Chart: Interpretation: This chart shows the percentage of employees are satisfied with the working environment in the organization. Out of 50 respondents, 58% of the employees are satisfied with the working environment in the organization, and 42% of the employees are not satisfied with the working environment in the organization. 11. Do you work in shifts? Table : Particulars Frequency Percentage Yes 39 78 No 11 22 H.R. Institute Of Higher Education, Hassan 66
  • 67. Procedures for Handling Absenteeism Total 50 100 Chart: Interpretation: This chart shows the percentage of employees work in shifts. Out of 50 respondents, 78% of the employees work in shifts, and 22% of the employees says no to this. 12. Do you think working in odd shifts leads for absenteeism? Table: Particulars Frequency Percentage Yes 40 80 No 10 20 H.R. Institute Of Higher Education, Hassan 67
  • 68. Procedures for Handling Absenteeism Total 50 100 Chart: Interpretation: This chart shows the percentage of employees thinks that working in odd shifts leads for absenteeism. Out of 50 respondents, 80% of the employees says yes to this , and 20% of the employees says no to this. 13. Do you think shift rotation on a continual basis leads for high absenteeism? Table: Particulars Frequency Percentage Yes 47 94 No 03 06 H.R. Institute Of Higher Education, Hassan 68
  • 69. Procedures for Handling Absenteeism Total 50 100 Chart: Interpretation: This chart shows the percentage of employees thinks that shift rotation on a continual basis leads for high absenteeism. Out of 50 respondents, 94% of the employees says yes to this, and 6% of the employees says no to this. 14. Do you think bad working condition leads for absenteeism? Table : Particulars Frequency Percentage Yes 42 84 No 08 16 Total 50 100 H.R. Institute Of Higher Education, Hassan 69
  • 70. Procedures for Handling Absenteeism Chart: Interpretation: This chart shows the percentage of employees think that bad working condition leads for absenteeism. Out of 50 respondents, 84% of the employees says that bad working condition leads for absenteeism, and 16% of the employees says no to this. 15. Do you think the amounts of leaves granted are less? Table: Particulars Frequency Percentage Yes 48 96 No 02 04 H.R. Institute Of Higher Education, Hassan 70
  • 71. Procedures for Handling Absenteeism Total 50 100 Chart: Interpretation: This chart shows the percentage of employees thinks that the amount of leaves granted are less. Out of 50 respondents, 96% of the employees says yes to this, and 4% of the employees says no to this. 16. Do you think separate holidays /leaves must be given for educational purposes? Table : Particulars Frequency Percentage Yes 34 68 No 16 32 H.R. Institute Of Higher Education, Hassan 71
  • 72. Procedures for Handling Absenteeism Total 50 100 Chart: Interpretation: This chart shows the percentage of employees thinks that separate holidays / leaves must be given for educational purposes. Out of 50 respondents, 68% of the employees says yes to this, and 32% of the employees says no to this. 17. Do you think “unpaid leaves” or “loss of pay” policy is harsh on employees? Table: Particulars Frequency Percentage Yes 49 98 No 01 02 Total 50 100 H.R. Institute Of Higher Education, Hassan 72
  • 73. Procedures for Handling Absenteeism Chart: Interpretation: This chart shows the percentage of employees thinks “Unpaid Leaves” or “Loss of Pay” policy is harsh on employees. Out of 50 respondents, 98% of the employees says yes to this, and 2% of the employees says no to this. 18. Are you happy with the absenteeism management policy? Table: Particulars Frequency Percentage Yes 30 60 No 20 40 H.R. Institute Of Higher Education, Hassan 73
  • 74. Procedures for Handling Absenteeism Total 50 100 Chart: Interpretation: This chart shows the percentage of employees is happy with the absenteeism management policy. Out of 50 respondents, 60% of the employees are happy with the absenteeism management policy, and 40% of the employees are not happy with the absenteeism management policy. 19. Does your organisation have good policy to deal with absenting cases? Table. Particulars Frequency Percentage Yes 31 62 No 19 38 H.R. Institute Of Higher Education, Hassan 74
  • 75. Procedures for Handling Absenteeism Total 50 100 Chart Interpretation: This chart shows the percentage of employees feels that organization is having a good policy to deal with absenting cases. Out of 50 respondents, 62% of the employees says that organization is having a good policy to deal with absenting cases, and 38% of the employees says that organization is not having a good policy to deal with absenting cases. FINDINGS: • The research on absenteeism policy suggest that a strong policy for absenteeism exists in this organization. • Rules and responsibilities of employees are clearly stated in absenteeism policy. H.R. Institute Of Higher Education, Hassan 75
  • 76. Procedures for Handling Absenteeism • Employees absenteeism is recorded by team leader or manager or supervisor in an organization stating the reason, length of time and condition. • Manager / Team Leader should seek doctor certificate for being absent on sickness. • Casual / paid leaves awarded for an employee in the organization. • Leaves are granted freely to all the employees. • Employees are satisfied with the working environment in the organization. • Organization should provide / give separate holidays / leaves for educational purposes. • Employees are happy with the strong absenteeism management policy. • Organization is having a good management policy to deal with absenting cases. H.R. Institute Of Higher Education, Hassan 76
  • 77. Procedures for Handling Absenteeism SUGGESTIONS • Employees stress level must be assessed properly this helps to avoid absenteeism. • A strong management policy should be adopted. This helps to avoid absenteeism. • Changing working hours helps to avoid absenteeism. • Rotate shifts / shift rotation helps to avoid absenteeism. • Provide proper training to the employees. • Creating good environmental condition in the organization. • Good relationship between the manager, supervisor and the employees. • Organization should provide long leaves to the employees those who have come from far states / places. • Arrangement of trips, function at work etc. • Health and safety benefits has to be provided. H.R. Institute Of Higher Education, Hassan 77
  • 78. Procedures for Handling Absenteeism Conclusion Absenteeism is not a new phenomenon. From those days, when there was no technological advancement, till today it is found. However, it is confined to a few groups of people or few areas, with the high automated or computerized operations it is not found. While in the establishment where the production process is done on traditional machinery it is more. Similarly, where the work is based on skill, absenteeism is less, where as with the work which does not require any skills only seeks physical effort absenteeism more. As Kalyani Global Engineering Private Limited is not that hi-tech industry, where majority of work is mechanical. Absenteeism is found among the workmen in K.G.E. therefore residing at very farer places from the industry on an average most of them are staying 9.2km away from the industry. So everyday they have to spend a maximum of 3 hours in travelling. This causes fatigue, further leads to loss of interest on the work. This is the most common influencing factor for their absenteeism. So that employees have to help themselves to remain as absentee. They have to adjust themselves to the job requirement. In the city like Mysore housing is not that problematic, it can be arranged easily by the worker himself, so it is not that fair to ask the management for transport arrangement in this situation. It is for the employee to shift towards the industry as near as possible to be regular. From the management side a constant observation should be there those who are regularly absent, should be counselled, recounselled if necessary. These absentees due to monotonous work should be trained and upgrade, incentives; job rotation also helps to reduce absenteeism. H.R. Institute Of Higher Education, Hassan 78
  • 79. Procedures for Handling Absenteeism Basically a worker is not problem, but when he is suffering with a problem he becomes absentee. If the management and the worker himself together work out for a solution and solve the problem then only absenteeism can be controlled. To control habitual absenteeism the company has taken following measures: • The Company is having a best practice of annual medical check up for all the workmen at free of cost, in a well-known hospital of the city. As soon as the medical report is received by the company, the report will be sent to another doctor for his comments and further guidance. Based on the comments of the second doctor the workman will be advised accordingly. By this measure absenteeism due to sickness can be avoided. • To provide safety working environment company is providing safety shoes, a prongs, hand glouse, safety goggles, ear plug etc,. free of cost. This facility will reduce the accident at work place and in turn reduces absenteeism due to accident at work place. • Though company is paying good salary when compared to other industries in the region, it has got other best practices of paying salary advance, festival advance. It has also provided a facility of getting domestic items and food items at a reasonable rate through its consumer co-operative society. Because of this financial commitment facility will reduce absenteeism to a certain extent. • To motivate workmen to attend the work on all working days company has introduced monthly attendance incentive scheme which will be in the form of cash. Apart from it annual attendance reward scheme is also their to motivate workmen. H.R. Institute Of Higher Education, Hassan 79
  • 80. Procedures for Handling Absenteeism • To avoid absenteeism company has introduced mutual shift change system. Ie; in case, a workmen is not able to attend duties in his regular shift because, of family problems, he can attend the duties in a different shifts by taking mutual shift change with his co- workmen. • Company has also made provision for half-day working where one can attend work in the second half if he is unable to attend duties in the first half. This also reduces absenteeism. • To motivate workmen to attend duties and to avoid applying leave company has introduced a scheme called “Leave Encashment”. This facilitates workmen to encash the “Earned H.R. Institute Of Higher Education, Hassan 80
  • 81. Procedures for Handling Absenteeism Bibliography  P.SUBBA RAO, Personnel and Human Resource Management, Himalaya Publications, Third Edition, 1-18, 114-118, 195-198, 346-350.  V S P Rao, Human Resource Management, Excel Books, Second Edition, 2-5, 11, 269-272. H.R. Institute Of Higher Education, Hassan 81
  • 82. Procedures for Handling Absenteeism ANNEXURE PROCEDURES FOR HANDLING ABSENTEEISM I NAVYA.N. Student of Harnahalli Ramaswamy Institute of Higher Education, Hassan. I request you to fill up this questionnaire, which will be purely used for academic purpose and performation provided by you will kept confidential. Your cooperation in this regard will be highly appreciated . 1. Name 2. Sex : 3. Length of service : 4. Department : 5. Marital Status : 1. Married [ ] 2 . Single [ ] 3. Widower [ ] 4. Separated [ ] 6. Age group : 1. 20 - 30 years [ ] 2. 35 - 40 years [ ] 3. 40 - 50 years [ ] 4. 40 and above [ ] 7. Educational Qualification : 1. S.S.L.C [ ] 2. I.T.I [ ] 3. DIPLOMA [ ] H.R. Institute Of Higher Education, Hassan 82
  • 83. Procedures for Handling Absenteeism 4. B.E. [ ] 5. OTHERS [ ] 8. Experience : 1. Below 5 years [ ] 2. Above 5 years [ ] 3. Above 10 years [ ] 4. Above 15 years [ ] Part-A 8. Does an Absenteeism policy exist? Yes [ ] No [ ] 9. Does these policies include rules and responsible of staff? Yes [ ] No [ ] 10. Is absenteeism recorded by your Manager / Team Leader / supervisor? Yes [ ] No [ ] 11. Is a standard form used to record absenteeism stating the reason, length of time and condition? Yes [ ] No [ ] 12. Does your Manager / Team Leader seek doctor certificate for being absent on sickness? Yes [ ] No [ ] 13. How many casual / paid leaves (in days) awarded for an employee? --------------------------------------------------------------------------------------- 14. Are leaves granted freely to all the employees? Yes [ ] No [ ] 15. Does your Organization encourage Adhoc leaves? Yes [ ] No [ ] 16. Does your organization punish for taking leaves without intimation? Yes [ ] No [ ] H.R. Institute Of Higher Education, Hassan 83
  • 84. Procedures for Handling Absenteeism 17. Does employees get long leaves of they have come from far states / places? Yes [ ] No [ ] Part-B 18. Are you satisfied with the working environment in the organization? Yes [ ] No [ ] 19. Do you work in shifts? Yes [ ] No [ ] 20. Do you think working in odd shifts leads for absenteeism? Yes [ ] No [ ] 21. Do you think shift rotation on a continual basis leads for high absenteeism? Yes [ ] No [ ] 22. Do you think bad working condition leads for absenteeism? Yes [ ] No [ ] 23. Do you think the amount of leaves granted are less? Yes [ ] No [ ] 24. Do you think separate holidays / leaves must be given for educational purposes? Yes [ ] No [ ] 25. Do you think “Unpaid Leaves” or “Loss of Pay” policy is harsh on employees? ------------------------------------------------------------------------------------ 26. Are you happy with the absenteeism management policy? Yes [ ] No [ ] 27. Does your organization have good policy to deal with absenting cases? Yes [ ] No [ ] H.R. Institute Of Higher Education, Hassan 84
  • 85. Procedures for Handling Absenteeism H.R. Institute Of Higher Education, Hassan 85