1. 1.1 INTRODUCTION The importance of Human Resource is been recognized all over the world.Human Resource is regarded as the nerve system of the organization. How much is thenervous system to the human body, that much important is the labour force to theorganization. The title of the project is “A Study on Employee absenteeism” at Milma Dairy,Thevally, Kollam. The main object of the study is to find out the main reasons of absenteeismin Milma Dairy, Kollam and the factors that reduce absenteeism. Sometimes labour absenteeism and turnover become a major problem for themanagement. Absenteeism has been variously defined by different authorities. Absenteeismis a practice or habit of being an „absentee‟ and the „absenter‟ is one who habitually staysaway‟‟. Absence may be authorized or unauthorized, wilful or caused by circumstancesbeyond one‟s control. Absenteeism is a universal phenomenon and it is not peculiar to Indianindustries. But the rate of absenteeism has been relatively higher in India. Any company cannot move without personnel. These personnel have to be managedeffectively so that they don‟t lose interest on their jobs and can result in loss for both theemployee and employer. As an effect of dissatisfaction, the employee tends to be absent,which affects the operations of the organization. In Milma Dairy, the company faces a problem of severe absenteeism among theemployees. This affects the day-to-day operations and in turn failure in meeting deadlines.The company is in the need of a study to understand the factors that contribute to thisabsenteeism. The response and the attitude of the respondents are checked throughindividual interview with the questionnaire.
2. 1.2 STATEMENT OF THE PROBLEM My topic is “A study on The Factors Affecting Employee absenteeism in Milma Dairy, Kollam”. This topic is selected to understand the rate of absenteeism in Kollam Milma dairy and the effect of absenteeism. The level of absenteeism is very high among the employees in and it is increasing day by day. The factors of absenteeism may be improper welfare measures, unsatisfied working conditions, safety measurements..etc.1.3 OBJECTIVES OF THE STUDY To find out the major causes of absenteeism To know the problems of employee absenteeism To study whether the working condition will affect absenteeism To find out the factors that reduces employee absenteeism To find out the preventive measure of employee absenteeism To know the frequency of absenteeism in the organization1.4 PERIOD OF THE STUDY The study was conducted for a period of 45 days starting from 20th October 2011 to5th December 2011.1.5 SCOPE OF THE STUDY The study is limited to Milma dairy, Kollam only. The study is conductedfrom 20th October, 2011 to 5th December, 2011. The respondents are the employees ofMilma dairy, Kollam. This Study attempt to find out reasons for employee absenteeism. Itexamine that this problem have any relation with job satisfaction and to find out themotivational factors to reduce absenteeism. The main scope of this study is to identify theproblems and factors for the employee absenteeism. For the prosperity and goodwill of theorganization, avoidance of labour absenteeism is very essential.
3. 1.6 METHODOLOGY The study is made by personally visiting the company at Milma dairy, Kollam. Thedata‟s are collected through various methods. The methods mainly adopted are: Primary sources Secondary sources Primary Sources Direct observation. Informal interview with Managers and workers. Discussion with various Staff members of the company.Secondary Sources Journals and Magazines Periodicals Brochures Website1.7 LIMITATIONS OF THE STUDY 1) Due to inadequate time, it is not possible to analyze all aspects relevant to the study. 2) The sample includes only a percentage of the total number of workers working in the company. 3) The survey was limited only a small geographical area of Milma dairy at Kollam district. 4) Most of the respondents seemed to be very busy with their jobs and they are not interested in answering the questionnaire. 5) The study was limited only during the day hours. So interactions with the employees in the night shift were not possible.
4. 1.8 CHAPTERISATIONChapter-1 INTRODUCTIONIncludes the introduction to the study, statement of the problem, objectives of the study,period of the study, methodology, scope of the study and limitations of the study.Chapter-2 INDUSTRY PROFILEIncludes industrial profile of milk industryChapter-3 COMPANY PROFILEIncludes Company profile- Milma dairy, KollamChapter-4 THEORETICAL FRAMEWORKThis chapter deals with the theoretical framework on employee absenteeismChapter-5 ANALYSIS AND INTERPRETATIONThis chapter deals with the analysis and interpretation of the collected data‟s from thecompany.Chapter-6 FINDINGS, CONCLUSION AND SUGGESTIONSThis chapter deals with Findings, conclusion and Suggestion.
5. INDUSTRY PROFILEMILK INDUSTRY Milk and milk based industries play a very important role in the world.Internationalization remains a key focus for almost all of the world‟s leading dairy farms. Allthe world‟s largest dairy farms operate in more than one country and some of them are trulyinternational with the activities in every part of the world. The availability and distribution ofmilk and milk products, in the modern world is blend of the centuries old knowledge oftraditional milk products with the application of modern science and technology. Dairy is aplace where handling of milk and milk products done.2.1 WORLD SCENARIO History of International Dairy Federation The International Dairy Federation, with its head quarters Brussels, wasestablished in 1903 and consists of 32 member countries throughout the world. UNICEF hasbeen the motivating force for establishing a dairy industry in many under developedcountries. One of these in India, where large processing plants have been set up to processlocally produced milk or to reconstitute milk from donated or purchased Milk Fat andpowder. Domestic milk production has increased in India and a part of the pasteurized milk isprovided free to children in the larger cities through UNICEF. The first co-operative artificial breeding association was organized inDenmark in 1936, There are now many such association which helped the dairy industries.After 1950, dairy industries faced a wide range of development throughout the world.
6. 2.2 INDIAN SCENARIO Origin of the Industry Indian Dairy sector has come a long way during the past independence era ofacute milk shortage and depended on foreign aid in the form of milk powder to meet thegrowing milk demanded. India‟s milk production in 1950-1951 was as low as million tonnes.The dairy sector in the India has shown remarkable development in the past decade and Indiahas shown now become one of the largest producers of milk and value added milk products inthe world. Today the country has emerged as the second largest milk producer in the worldcurrently there are over 275 dairy plants and 83 milk product factories in co-operative, publicand private sector. The world famous „Anand Milk Union Ltd‟ popularly known as „Amul‟ wasestablished in 1946 and the National Dairy Development Board (NDDB) was set up in 1965.Kerala Co-operative Milk Marketing Federation (KCMMF) popularly known as „Milma‟ wasestablished in April 1980. Dairy Co-operatives accounts major share of processed liquid milkmarketed in the country. Milk is processed and marketed by 170 Milk producers Co-operatives Unions, which federated into 15 state Co-operative Milk Marketing Federations.By the end of the third phase of Operation Flood Program about 72700 Dairy Co-operativeSocieties with 93 million farmer members where organization The country has at present about one lakh organized primary village dairyco-operative with an aggregate membership of 1.1 crore producers. The co-operative milkprocurement crossed 20 million kg/day in 2004-05. Over the years, brands created by co-operatives have become synonymous with quality and value. Brands like Amul (G.C.M.M.F),Vijaya (Andhra Pradesh), Verka (Punjab), Saras (Rajasthan), Nandhini (Karnataka), Milma(Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence. In Kerala there are 3243 dairy Co-operatives including 2404 AnandPattern Societies functioning under KCMMF. Milma represents more than 7.63 lakh dairyfarmers who have organized 2404 Anand Pattern Co-operative Societies. It also represents 10dairies, handling 9.96 lakh liters of milk/day chilling plants, 2 cattle plants, a milk powderplant, an established training center and 5000 distribution outlets.
7. 2.3 GROWTH AND DEVELOPMENT OF THE INDUSTRY After the five year plan there saw a considerable growth in the field ofdairy industry. Providing proper infrastructure facilities can increase the live stockpopulation. There developments accelerated the growth of the dairy industry. The tremendouspotential of the dairy industry was given a major fill up with Finance Minister and the PrimeMinister Dr. Manmohan Singh‟s move to delicence the Milk Industry in 1992 .The delicenceenabled a massive flow of private investment. Organized handling of milk in there sectorswould also lead to proper procurement measured which would in turn be beneficial to thefarmers and one of those market forces are allows to operate the consumer would also benefitin terms of quality and price.2.4 ANAND PATTERN (APCOS) Anand is a village of farmers in Kaira district of Gujarat. It is a village offarmers and such a large quantity of milk is produced in this village. But the sale of the milkis a big problem so the farmers formed co-operative societies for the purpose of distributionof milk. With the Kaira milk producer‟s co-operative union, this produced just 25 liters ofmilk a day. The primary co-operative societies are formed by the union in line withAnand Pattern with a view to strengthen dairy co-operative society at village level bothfinancially and institutionally. Co-operative development programs were started from thefinancial assistance by NDDB. During 1960‟s (Anand/Kaira dist, Gujarat) 1000 of milkproducers united together on co-operation lines, an integrated approach to production,procurement, processing and marketing of milk. The Anand model progressively eliminated middleman, bringing theproducers in direct contact with consumers. In spite of the opposition by middlemen Dr.Varghese Kurian has been able to make major break through in dairy. This resulted in theformation of AMUL (Anand Milk Union Ltd). Over the years thus evolved itself into a modelbased on self rile by farmers ensuring maximum return to them. This model came to beknown as “Anand Pattern”.
8. The Anand Pattern is a three tier structure consists of: 1. Village level primary co-operative societies called APCOS 2. District/Regional Co-operative Milk Producers Union. 3. State Level Milk Marketing Federation.2.5 NATIONAL DAIRY DEVELOPMENT BOARD AND ITS ROLE The efficiency of „Anand Pattern‟ led to the launching of dairy program called Operation Flood in 1970 under NDDB. Credit for the most of the work done in the field of milk supply by co-operatives that goes to NDDB. The board was set up by the Government to replicate the Anand experiment in the rest of the country. The board with the help of Government of India got of commodity assistance valuing Rs.120 crores, under world food program, 1970. This fund was used to develop operation flood program. Under this scheme financial assistance was provided to various state government and other agencies for implementing dairy development scheme. The operation flood phase I was introduced in1970-81. This wasfollowed by phase II from 1981-87 followed by phase III from 1988 onwards. OPERATION FLOOD The dairy program called Operation Flood was launched in 1970 under the aegis of NDDB. NDDB functional as the technical consultant and the rest while Indian Dairy Co- operation as the funding agency the ideology followed by the operation flood was the remuneration linking of rural milk producing centered with the demand centers so as to build up a viable dairy industry.
9. There are virtually 13 major players in India, namely: 1. Andhra Pradesh Dairy Development Co-operative Federation Ltd (APDDCF). 2. Bihar State Co-operative Milk Producers Federation Ltd (COMPFED). 3. Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF). 4. Haryana Dairy Development Co-operative Federation Ltd (HDDCF). 5. Himachal Pradesh State Co-operative Milk Producers Federation Ltd (HPSCMPF). 6. Karnataka Co-operative Milk Producers Federation Ltd (KCMMF). 7. Kerala Co-operative Milk Marketing Federation Ltd (KCMMF). 8. Madhya Pradesh State Co-operative Dairy Federation Ltd (MPCDF). 9. Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh). 10. Orissa State Co-operative Milk Producers Federation Ltd (OMFED). 11. Pradeshik Co-operative Dairy Federation Ltd (UP)(PCDF) 12. Punjab State Co-operative Milk Producers Federation Ltd (MILKFED) 13. Rajasthan Co-operative Dairy Federation Ltd (RCDF).2.6 STATE SCENARIO OPERATION FLOOD IN KERALA The Operation Flood in Kerala was included in the second phase of Operation Flood (1981-87) the 8th Southern district from Trivandrum to Trissur were included in the area of the project which has a total outlay of Rs.99 crores. The uncovered northern area from Palakad to Kasargod was thus broughtunder the co-operative umbrella with the inspection of North Kerala Dairy Project.
10. KERALA CO-OPERATIVE MILK MARKETING FEDERATION LIMITED (KCMMF) The Kerala Co-operative Milk Marketing Federation (KCMMF) popularly called „Milma‟ was established in April 1980 as part of Operation Flood 2nd program, with head office at Thiruvananthapuram. It was started under the Indo Swiss project. The project was launched in 1963 on the basis of a bilateral agreement executed between the Swiss confederation and the Government of India. The project was made great strides in the improvement of life stock Farming in the state. One of them is the development of Swiss brown a cross bread suited form the state conditions. The project is now managed by the Kerala Live Stock Board. Its main motive was to implement the operation flood program started by NDDB in Kerala. KCMMF has played a major role in the development of dairying inthe state. It has a strong presence in the market. With an ever increasing demand for all theproducts manufactured by KCMMF, it is necessary that efforts are taken to fill in the gapsarising out of inadequate supply. The KCMMF is a three tier system with the primary Milk Co-operative societies at the village level, regional milk producers union at the middle level andan apex body at the State level. At present there are three regional co-operative milkproducers union operating. They are: 1. Trivandrum Regional Co-operative Milk Producers Union Limited (TRCMPU). 2. Ernakulam Regional Co-operative Milk Producers union Limited (ERCMPU) 3. Malabar Regional Co-operative Milk Marketing Producers Union Limited (MRCMPU)
11. TRCMPU (TRIVANDRUM REGIONAL CO-OPERATIVE MILK PRODUCERS UNION LTD) TRCMPU was established in the year 1985 as part of theimplementation of operation flood program in Kerala. The area of operation of union coversthe district Trivandrum, Kollam, Alapuzha, Pathanamthitta. All union are posed to on theresponsibility of achieving future growth in terms of procurement and marketing of liquidmilk and products and providing benefits to the consumers and producers. TRCMPU has anelected board of members since inspection, the board meets every month to review theworking of the union and make policy decision, keeping the business interest in mind. Theunion has head office situated at KHEERA BHAVAN, Pattam, and Trivandrum. TRCMPU Trivandrum Kollam Pathanamthitta Alappuzha Societies (APCOS) Farmers Chart 2.1 Structure of TRCMPU
13. FUNCTIONAL AREAS OF KCMMF KCMMF HEAD OFFICE Provides Staff Management functions to support its units & Regional MilkUnions. KCMMF Head Office has well established Marketing, Purchase, Quality Control,Finance, Project, Systems and HRDMARKETING Brand Management Lean Flush Management Bulk trading of surplus products Institutional supply contracts Co-ordinate promotional activities Packaging & Product Development Procurement & Consumer PricingPURCHASE Centralized purchase of Dairy consumables Purchase of Raw Materials for Cattle Feed Plants Purchase functions of KCMMF Head OfficeQUALITY CONTROL Render technical & legal assistance to primary dairy Co-operatives and Regional Milk Unions Liaison and maintain quality of milk and milk products as per the standards Liaison with statutory authorities for bringing in suitable amendments in statutes Attend to consumer complaints on quality problems
14. FINANCEFinancial management of KCMMF and its units Liaison with financial institutions for availing loan for creation of infrastructure. Liaison with Government for availing Government financial assistance Long term repayment and scheduling of loans Capital Management Scheme for primary Co-operative Societies Recommend remuneration of APCOS employeesPROJECTS Planning and execution of projects for creating infra structure for regional Milk Unions and KCMMF. Providing consultancy for execution of projects. Liaisoning with statutory authorities like Factories and Boilers, Electrical Inspectorate, Dept.of Explosives etc for obtaining approval and implementation of projects Liaisoning with Government for land allocation, water, power and other amenities. Estate management and assistance in maintenance of plant & machinery of KCMMF units.COMPUTER Maintenance of systems at KCMMF, units and regional Milk Unions. Development of software‟s to support various functions. Purchase of Hardware & Software Support Management Information System Networking Conducts Training programs of computer skills. Maintenance of account SystemHUMAN RESOURCE DEVELOPMENT Milma family has 2098 skilled, efficient and qualified personnel and has an excellent labour relationship. Take active role in farming personnel policies and service rules. Finalize long term wage settlement, bonus etc