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PROFESSIONAL QUALIFICATION IN CHARTERED
CORPORATE SECRETARIES
THESIS ON
MEASURING AND MANAGING ABSENTEEISM AT
AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED
BANDARANAIKE INTERNATIONAL AIRPORT, KATUNAYAKE
Name : Mrs Dona Anuri Kilanthi Nandiweera
Membership No.: ICCS/096
2
TABLE OF CONTENTS
CHAPTER 01 ..................................................................................................................................7
INTRODUCTION ...........................................................................................................................7
1.1 Background of the study..................................................................................................7
1.2 What do we mean by absenteeism? .................................................................................7
1.2.1 Absenteeism can be grouped into two categories ....................................................8
1.3 Effects of Absenteeism in the workplace.......................................................................10
1.4 Problem statement of the study......................................................................................11
1.5 Research objectives........................................................................................................11
1.6 Significance of the study................................................................................................12
1.6.1 Why Measure Absenteeism ...................................................................................12
1.6.2 Administrative costs of Absenteeism:....................................................................12
1.6.3 Productivity Costs:.................................................................................................13
CHAPTER 02 ................................................................................................................................14
LITERTURE REVIEW .................................................................................................................14
2.1 Maslow‟s Theory to Manage Absenteeism....................................................................14
2.2 Herzberg‟s Two Factor Theory......................................................................................15
2.2.1 Application of Herzberg‟s Theory:........................................................................15
2.3 Expectancy Theory ........................................................................................................16
2.3.1 Major factors for applying expectancy theory .......................................................17
2.4 Equity Theory ................................................................................................................18
2.5 David McClelland‟s - Human Motivation Theory.........................................................19
CHAPTER 03 ................................................................................................................................20
METHODOLOGY ........................................................................................................................20
3.1 Conceptual framework...................................................................................................20
3.1.1 Dependent variable ................................................................................................21
3.1.2 Independent variables ............................................................................................21
3.2 Ways of Measuring Absenteeism ..................................................................................23
3.2.1 The Time Lost........................................................................................................23
3.2.2 Calculating the Total Time Lost ............................................................................24
3
3.2.3 Calculating the Absence Frequency Rate ..............................................................24
3.3 Sample technique...........................................................................................................25
3.4 Data collection method ..................................................................................................25
3.5 Data analysis method.....................................................................................................25
CHAPTER 04 ................................................................................................................................26
DATA ANALYSIS........................................................................................................................26
4.1 Introduction....................................................................................................................26
4.2 Gender distribution ........................................................................................................26
4.3 Age Distribution.............................................................................................................27
4.4 Employee preference for being absent to work .............................................................27
4.5 Impact of personal factors towards absenteeism............................................................28
4.5.1 Willingness to absent based on negative attitudes.................................................28
4.5.2 Willingness to absent based on age category.........................................................29
4.5.3 Willingness to absent based on gender category....................................................29
4.6 Impact of work place towards absenteeism ...................................................................30
4.6.1 Willingness to absent based on culture..................................................................30
4.6.2 Willingness to absent based on motivation............................................................31
4.6.3 Willingness to absent due to absence of learning environment .............................31
4.6.4 Willingness to absent due to working stress ..........................................................32
CHAPTER 05 ................................................................................................................................33
CONCLUSION AND RECOMMENDATION.............................................................................33
5.1 Conclusion .....................................................................................................................33
5.2 Measurement and benchmarking ...................................................................................34
5.3 Managing absenteeism...................................................................................................36
5.3.1 Leadership modelling and commitment.................................................................36
5.3.2 Work motivation and rewards................................................................................37
5.3.3 Effective Groups and Team Building ....................................................................37
5.3.4 Recruitment and selection......................................................................................37
5.3.5 Employee orientation and training.........................................................................38
5.3.6 Performance Appraisal...........................................................................................38
5.4 Solutions to control absenteeism....................................................................................38
5.4.1 Address Debt in the Workplace .............................................................................38
5.4.2 Create an Absenteeism Policy................................................................................38
4
5.4.3 Conduct „Return to Work‟ Interviews....................................................................39
5.4.4 An Effective Employee Assistance Programme ....................................................39
5.4.5 Ask Employees what they want and Implement what is Possible .........................39
5.4.6 Reward Great Results.............................................................................................39
5.4.7 Provide a Good Working Environment .................................................................39
5.4.8 Keep the Lines of Communication Open...............................................................40
5.4.9 Introduce Workplace Stress Strategy.....................................................................40
5.4.10 Workplace organization, work and management practices....................................41
REFERENCES ..............................................................................................................................42
LIST OF FIGURES
Figure 3.1: Conceptual Framework...........................................................................................................20
Figure 4.1: Gender distribution of the responders in the sample............................................................26
Figure 4.2: Age distribution of the responders in the sample..................................................................27
Figure 4.3: Employee preference for being absent to work.....................................................................27
Figure 4.4: Willingness to absent based on negative attitudes ................................................................28
Figure 4.5: Willingness to absent based on age category .........................................................................29
Figure 4.6: Willingness to absent based on gender category ...................................................................29
Figure 4.7 Willingness to absent based on culture....................................................................................30
Figure 4.8: Willingness to absent based on motivation ............................................................................31
Figure 4.9 Willingness to absent due to absence of learning environment.............................................31
Figure 4.10 Willingness to absent due to working stress .........................................................................32
5
ACKNOWLEDGEMENTS
Mr Rajitha Silva, my thesis supervisor for his wise counsel, constant
encouragement and professional guidance during the study.
Mrs M C G Mahipala, Head of Human Resources/Company Secretary of Airport
& Aviation Services (Sri Lanka) Limited, for granting permission to extract the
laid down procedures and policies.
Mr Aruna Rajapaksha, Airport Manager/ Colombo Airport, Ratmalana of Airport
& Aviation Services (Sri Lanka) Limited, for the guidance and encouragement in
compilation of the areas relevant to the study.
My colleagues in the Airport Management Division, Airport & Aviation Services
(Sri Lanka) Limited, Colombo Airport, Ratmalana for their kind support and
encouragement.
Mr Kishantha Nimalaratne, Senior Air Traffic Controller, Airport & Aviation
Services (Sri Lanka) Limited, Mattala Rajapaksa International Airport for his
assistance with the editing and layout of the thesis.
My family for their patience, love and affirmation.
6
EXECUTIVE SUMMARY
Productivity loss due to absenteeism is a serious growing challenge.
We live in an absenteeism culture. Talking a day off and calling in sick is supported and
encouraged by the society. Many people‟s attitude is” The time is coming to us” (Robert
F.Allen and Michael Higgens - the Absenteeism Culture. Becoming attendance oriented.)
Absence measurement and management is an increasingly growing body of knowledge
and experience that managers apply to control and reduce absenteeism and its accruing
costs.
To ensure that the issue of absenteeism is effectively addressed, managers and
supervisors armed with the required guidance and training, need to understand the
circumstances and factors surrounding absenteeism in the workplace, and thus actively
participate in the company‟s procedures and policies to effective curb absenteeism in the
workplace.
Employers attempt to cut down excessive employee absenteeism through tighter controls.
They demand doctor‟s report or use some other punitive mechanisms that targets
symptoms of absenteeism rather than its causes. The problem will not go away unless the
underlying root causes are removed. Building an attendance culture!
How should absenteeism effectively be managed, via triggers or incentives? Or else using
Carrots or sticks?
7
CHAPTER 01
INTRODUCTION
1.1Background of the study
Absenteeism from workplace has been on the increase and may be an indicative of poor
morale, lack of motivation, sick building syndrome, poor organizational policies or mere
indiscipline from the employees. However, many employers have introduced and
implemented absence policies which make no distinction between absence for genuine
reasons or illness and absence for inappropriate reasons. One of these policies is the
calculation of the Bradford Factor, which only factors total number and frequency of
individual absence into account, neglecting the kind of absence.
Workers decide to stay away from work for a host of other reasons relating to work and
personal issues, which range from job de-motivation, low pay, lack of work life balance
and occasional hangover.
Absenteeism has been viewed traditionally as a breach of an implicit contract between
employee and employer, as a management problem and has been framed in economic
terms. This report will critically discuss the causes and effects of absenteeism in the
workplace with the view to derive effective ways to measure and manage absenteeism. It
will seek to understand absenteeism as an indicator of psychological, social adjustment to
work.
1.2What do we mean by absenteeism?
According to dictionary reference.com, Absenteeism can be defined as habitual failure to
appear, especially for work and other regular duty. It is also explained as the occurrence
rate of habitual absence of work or duty.
8
Absenteeism can be viewed as re-occurring absence from work, duty and obligation,
thought to reflect employee demoralization or dissatisfaction.
This can also be viewed as a breach of the implicit contract that exists between the
employer and the employed.
Simply put, Failure to report to or stay at work when scheduled is tagged absenteeism.
1.2.1 Absenteeism can be grouped into two categories
 Involuntary/Innocent absenteeism
This is when absences are unavoidable and understandable. This kind of absenteeism can
be occurred due to death in the family, pregnancy or maternity issues, absences caused by
illness or injury, car/ vehicle issues, other family related or personal issues, accidents and
natural disasters, disability-related absenteeism- Human rights obligations.
 Voluntary/Culpable Absenteeism
Voluntary absenteeism is an instance where an employee, out of his own freewill or
laziness, chooses to stay off work. Absences in this case are avoidable. This kind of
absenteeism can be occurred due to missing work without advance notice to go on a trip
or watch cricket match, making excuses for consistent late coming to work,
deceitfully/fraudulently applying for sick leave or calling in „sick‟ and failure to report to
work as scheduled or showing up late for no good reason.
Voluntary Absenteeism also takes place where the employees feel there is a strain on
their psychological contract with the employer, this indirectly erupts lack of
organizational commitment. This strain could develop to stress and impact on employee
attendance to work.
9
 Leadership Style
An organization‟s, team or unit leadership style could impact on employee
commitment, job satisfaction with improved or impaired participation and
attendance to work.
While democratic and laissez fair leadership style encourages shared decision making,
shared responsibility, creativity and participation and can be highly motivational, which
enhances teamwork and interpersonal relations. Autocratic and paternalistic leadership
styles could de-motivate and alienate employees. Employees might feel less important in
the organization, hence the need to avoid work.
 Work Routine and lack of Change
Doing the same job or task over a long period of time can get monotonous. The
employees get bored and thus might choose to take unauthorized time off to do
something he considers interesting than going to work.
 Job Satisfaction
If employees do not find their work interesting, satisfying and challenging, they
feel dissatisfied, which leads to increased absenteeism in the workplace.
 Work life balance
Organization that not factor employee‟s roles and work life such that a balance is
stroked with work and the individual‟s personal life commitments and family
would experience increased employee absenteeism.
 Conflict in the workplace
Ultimately increases chances of employee absenteeism.
10
 Lack of team spirit
A team that lacks unity, synergy and good interpersonal relationship amongst its
members, will be a weak and unproductive. Such team members will lack team
spirit-the spirit that bonds individuals in a team. This lack of team spirit can de-
motivate team members, make them work in isolation, they would lack the sense
of belonging, love and satisfaction. There would exist, fears of the unknown, lack
of trust for team members. These feelings will encourage an employee to stay off
work.
 Social Factors
It consists with factors such as difficult community circumstances such as high
crime and intimidation rates which constitutes fear in employee‟s catalyses
absenteeism in the workplace.
Other social factors are -
 Repetitive Public Holidays fall in-between working days
 Lack of transportation/transport facilities
 Poverty levels
 Re-structuring
 Harassment/Violence
 Labour Strikes
1.3Effects of Absenteeism in the workplace
When a company has an absentee problem, it has a profit problem. Absenteeism can take
a deep financial toll on any business, whether a small or multinational company. There
are also other significant effects associated with excessive absenteeism:
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 Decreased Productivity
In a team of people doing interrelated tasks, if one persistent remains absent or
fails to deliver, it creates a domino effect on productivity.
 It affects employee/team morale
This is due to the fact that additional stress is placed on employees who act as
replacements or assume additional tasks for absentees.
.
1.4Problem statement of the study
Absenteeism of employee has become a common issue in each and every organization.
There are various factors which effect on employee absenteeism. Past literatures have
identified different kind of sources which cause employee absenteeism.
According to Airport & Aviation Services (Sri Lanka), both personal factors and
workplace factors have been impacted on absenteeism of employees. Impact of employee
attitudes, age and gender have been analysed under personal factors. Further impact of
organizational culture, lack of motivation and rewards, absence of learning management
and stress at work have been analysed under workplace factors. Through this research
influence of each personal factors and workplace factors are going to be identified.
1.5Research objectives
1. To identify the existence absenteeism problem at Airport & Aviation Services (Sri
Lanka) Limited, Bandaranaike International Airport, Katunayake.
2. To identify the factors which impact on absenteeism problem.
3. Identify the solutions to minimise the absenteeism rate of the organization.
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1.6Significance of the study
1.6.1 Why Measure Absenteeism
It is pertinent to measure the rate of absenteeism in the workplace. Measuring employee‟s
absenteeism is a good way to measure Overall Labour Effectiveness (OLE) in the
workplace, which is a key performance indicator (KPI) that measures the utilization,
performance and quality of the workforce and its impact on productivity.
Monitoring staff absence rates helps to trace the pattern of employee attendance. To
monitor and check dead times, in the workplace, to derive and measure resources and
costs incurred due to employee absenteeism with the aim of devising effective methods to
manage absenteeism in the workplace.
In measuring absenteeism in the workplace, we derive the ratio of its administrative,
financial and productivity cost to the organization which will enable development of
strategies to curb absenteeism while rechanneling resources more effectively to effect the
bottom-line positively.
1.6.2 Administrative costs of Absenteeism:
 Time consumed in controlling absenteeism
 Time consumed in sourcing replacements and re-assigning duties.
 Supervisor‟s time
 Financial Costs: this are the costs accruing form
 Overtime costs
 Replacement employee costs
 Training costs
 Over staffing costs
13
1.6.3 Productivity Costs:
 Replaced productivity and loss of output costs
 The costs of supporting replacement employees
 Costs accrued in training new or replacement staff/hiring temporary staff
 Substandard production
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CHAPTER 02
LITERTURE REVIEW
According to Graham and Bennett (1995) has identified that nature of the job or nature of
the workplace as well as personal characteristics of the worker influence on absenteeism
of employees. Further some literatures have found that Leadership style of the
supervisors as well as organizational culture affect to the absenteeism of employees,
(Evans & W alters, 2002).
There are many organizational theories related to managing organization‟s absenteeism
and implementing the appropriate theory in the organization will me a major solution to
managing absenteeism of employees. Few of the theories to manage absenteeism in work
place are discussed as follows.
2.1 Maslow‟s Theory to Manage Absenteeism
The major reason for absenteeism of workers in an organization is when their needs are
not met since it leads to dissatisfaction in the job they do. These needs range from basic
psychological needs to other organisational needs like safety needs sense of
belongingness and self-actualization. Maslow‟s theory can be used to manage
absenteeism which arises due to lack of fulfilment of employee needs.
Psychologist Abraham Maslow said that people are motivated by attempts to fulfil their
personal needs. Here are some examples of how his Hierarchy of Needs explains
motivation in the workplace and helps to manage absenteeism. Basic physiological needs
are met with good ventilation (breathing), toilets (excretion), and a break at the end of the
day (sleep). Safety and security is covered with security personnel (personal safety),
safety equipment like hard hats and goggles in factories (physical safety), and a regular
pay packet (financial security). Friendship and a feeling of belonging comes from
15
relationships with co-workers. These are all “deficiency needs”, without which people
cannot work very well. If they have been met at least to some degree, then the “growth
needs” of achievement, creativity, and problem-solving can be pursued.
Maslow also said was that 'gratified needs are not active motivators'. For a business, this
is an important conclusion. The importance of Maslow is to recognise that in some cases,
money might be an important motivator. What might act as a motivator to one individual
might not act as a motivator to another. The organization therefore needs to have
different motivation strategies in place to get the best out of their employees.
2.2 Herzberg‟s Two Factor Theory
This theory can be used to manage absenteeism related to job satisfaction and
psychological growth. Job satisfaction is important for both the employee and the
employer. To get the most of an employee an employer should make sure they use a two
pronged approach to employee satisfaction. The employer should provide opportunity for
psychological growth and job satisfaction. Herzberg gives these two areas the labels of
"hygiene" and "motivation". The hygiene is elements of job context. They include
working conditions and supervisor quality, as well as salary, status and safety issue.
Motivators are embedded in the employee-job interaction and they are job-centres
characteristics. They are also called intrinsic job factors. They include growth
opportunity, achievement and recognition, among other factors.
In order to manage absenteeism using this Motivation- Hygiene theory it is necessary to
distinguish factors which lead to satisfaction from factors that lead to dissatisfaction.
These factors of dissatisfaction consists with achievement, company Policies,
recognition, supervision, the work itself, relationship with supervisor and peers,
responsibility, work conditions, advancement, salary and security, growth and status.
2.2.1 Application of Herzberg‟s Theory:
The application of Herzberg‟s theory involves two steps as given below:
16
Step One: Eliminate Job Dissatisfaction
Herzberg called the causes of dissatisfaction "hygiene factors". There is no point in trying
to motivate the staff until these factors have not been performed. Particular organization
has to fix poor and obstructive company policies, provide effective, supportive and non-
intrusive supervision, create and support a culture of respect and dignity for all team
members, ensure that wages are competitive, build job status by providing meaningful
work for all positions and provide job security as well as just because someone is not
dissatisfied, it doesn't mean he or she is satisfied either. Hence the next step is to build
job satisfaction.
Step Two: Create Conditions for Job Satisfaction
To create satisfaction, you need to address the motivating factors associated with work.
This is called "job enrichment". Every job should be examined to determine how it could
be made better and more satisfying to the person doing the work. Hence the organization
should be considered in providing opportunities for achievement, recognizing workers'
contributions, creating work that is rewarding and that matches the skills and abilities of
the worker, giving as much responsibility to each team member as possible, providing
opportunities to advance in the company through internal promotions, offering training
and development opportunities, so that people can pursue the positions they want within
the company.
2.3 Expectancy Theory
There are several occasions where employees lose interest in their job when they feel that
their performances have not been encouraged and rewarded appropriately. This leads to
lack of commitment towards the job itself. Absenteeism caused due to these factors can
be managed by following the expectancy theory. The most widely used is the Vroom‟s
Expectancy Model. Vroom realized that an employee's performance is based on
individual factors such as personality, skills, knowledge, experience and abilities.
Vroom‟s model is based on three concepts:
 Valence –
17
Strength of an individual‟s preference for a particular outcome. For the valence to
be positive, the person must prefer attaining the outcome to not attaining it.
 Instrumentality –
Means of the first level outcome in obtaining the desired second level outcome;
the degree to which a first level outcome will lead to the second level outcome.
 Expectancy –
Probability or strength of belief that a particular action will lead to a particular
first level outcome.
2.3.1 Major factors for applying expectancy theory
The employee‟s need for achievement is a personal trait which influences effort,
instrumentality and expectancy. The employee feels that his performance is high and he
is willing to expend much effort on the job if it challenges his skills and abilities. His
instrumentalities will be high and positive if he believes that the organization will reward
his performance.
Another factor to be considered in the application of expectancy theory is the firm‟s
reward system. Employees always want a clear picture about performance expectations
and keep them informed about requirements for successful job performances.
Last but not the least; the job design system plays a key role in the expectancy theory.
Most employees prefer more control in their work. This can be done by making the job
more challenging and fulfilling. One way to do this is to reward employees for acquiring
new skills. The more skills they learn, the more control they acquire over their work.
 Individual Factors
 Self-efficacy
 Need for achievement
 Locus of Control
18
 Valued Outcomes
 Performance
 Effort
 Organisational Factors
 Reward System
 Job design
 Performance Appraisal System
2.4 Equity Theory
This theory addresses the problem of inequity as a cause of absenteeism. When people
feel fairly treated they are more likely to be motivated. The way that people measure this
sense of fairness is at the heart of Equity Theory.
The basic idea behind the Equity Theory is that workers, in an attempt to balance what
they put in to their jobs and what they get from them, will unconsciously assign values to
each of his various contributions.
In addition to their time, workers contribute their experience, their qualifications, and
their capability in addition to their personal strengths such as acumen and ambition.
Money, of course, is the primary motivating outcome for an employee, but it is not the
only, and in some cases not even the most important, factor. Power and status are also
prime motivators, as are flexibility, perquisites and variety.
Research on Equity Theory and employee motivation has shown that, in general, over-
rewarded employees will produce more and of a higher quality than will under-rewarded,
less motivated employees.
19
2.5 David McClelland‟s - Human Motivation Theory
Human motivation is dominated by three needs as follows:
 The need for achievement :
This states that high achievers prefer to work independently, need immediate
feedback on their performance, takes up tasks that are moderately difficult and
derives satisfaction from set goals.
 The need for power :
It states that powerful people derive satisfaction from their ability to control
others and being in a position to influence.
 The need for affiliation :
They derive satisfaction from social and inter-personal activities.
Lack of satisfaction of these needs is the major reasons for absenteeism in workplace.
The importance of each of these needs will vary from one person to another.
With reference to above theories, it justifies that both personal factors of the employees
as well as workplace factors have implement on absenteeism. Therefore this research
investigates both factors influence on employee absenteeism in Airport & Aviation
Services (Sri Lanka).
20
CHAPTER 03
METHODOLOGY
This research is organises under deductive research philosophy and such researcher
expecting to text the motivation al theories in practice in connection with employee
absenteeism in Sri Lankan Ari Line. Further data collection undertaken with reference to
survey strategy through a pre tested questionnaire and major part of data being gathered
through secondary data. Many internal sources being used with prior authorisation in
gathering such secondary data
3.1Conceptual framework
Figure 3.1: Conceptual Framework
Source: Developed by Researcher
Independent variables Dependent variable
Personal Factors
Workplace Factors
Absenteeism
21
3.1.1 Dependent variable
Dependent variable of this study is absenteeism which means the occurrence rate of
habitual absence of work or duty. According to the past literatures, there are various
factors that could influence an employee to be absent at work. Basically, these factors are
as follows.
3.1.2 Independent variables
 Personal Factors:
i. Personal Attitude
Individuals possess different attitudes and bring these attitudes forth to the
workplace. Employees with strong workplace ethics will respect their work and
appreciate their contribution to the organization and as such, will not take
unscheduled off from the workplace. Conversely, employees with low or without
work ethics are in- disciplined and have behavioural issues. Because they feel no
obligation to the organization, absenteeism comes easily to them.
ii. Age
The age of an employee often affects their attitude to work. The younger the
employees are often restless, they want to have fun and be with friends rather than
being tied down with responsibilities. This leads to lack of ownership and usually
leads to unscheduled and unauthorised time off.
iii. Gender
Women are usually challenged with balancing their time between work and home.
Their families are always the utmost priority, thus they would rather be absent
from work to sort out family issues.
22
 Workplace Factors:
i. Organizational Culture
Every organization is a culture with its own norms. An organization with an
embedded absenteeism culture, screen played by its management and supervisors
lack of commitment would encourage further employee absenteeism.
ii. Lack of Motivation and Rewards
The relationship between the organization and its employees is influenced by
what motives them to work and the rewards and fulfilment they derive from it.
Inability of managers or employers to motivate employees and meet their
extrinsic and intrinsic needs would lead to lack of motivation and commitment
hence, absenteeism in the workplace
iii. Absence of learning environment
Learning means change, thus can affect organizations effectiveness. Employees
love to work in an organization where they would improve themselves and their
career through organizational learning and knowledge management, which could
be inculcated through coaching, mentoring, trainings and other explicit methods.
In an organization where a learning culture is absent, employees feel de-
motivated, unsatisfied and feel their career growth is threatened. Hence they
excuse themselves from work without authorization in search for greater
challenges and organizations where they would gain improve themselves.
iv. Stress at work:
According to a report cited in Daily FT : „Stress at work is the biggest problem in
Sri Lankan companies‟. Voluntary absenteeism takes place because employees
are dissatisfied with their job; hence they feel stressed doing the work either
because of the work load or unsuitable assigned roles. As an example, wrongly
assigning a customer service manager to manage treasury department, without
23
adequate experience and training. Due to lack of adequate experience in the field
and fixed timed deliverables and tasks, he feels stressed and harassed in the role
and thus breaks down into stress or depression and seeks sick leave and abandons
the job.
3.2Ways of Measuring Absenteeism
3.2.1 The Time Lost
The time lost which occurred due to the absenteeism can be measured as follows,
Number of individual days lost
through the absence during period
X 100
(Average number of employees) x
(Number of Work days)
This rate also can be based on number of hours instead of number of days. In the same
manner, the “individual frequency” can be measured by using following formula,
Individual frequency = (Number of Absent Employees/Average Number of
Employees) x100
 The Bradford factor can be calculated as follows:
B= S2
x D
Where: B is the Bradford Factor score
S is the total number of spells (instances) of absence of an
individual over a set period
D is the total number of days of absence of that individual over the
same set period
The „set period‟ is typically set as a rolling 52 week period.
For example:
1 instance of absence with a duration of 15 days (1x 1 x 5) = 5 points
24
4 instances of absence; one of one, one of four and one of six days
(4 x 4 x 5) = 80 points
6 instances of absences; each for two days (6 x 6 x 5) = 180 points
However, the Bradford Factor has been critiqued for its limited and short-sightedness in
effectively measuring absenteeism; this is because it only factors total number and
frequency of individual absence into account, neglecting the kind of absence.
Measuring absenteeism allows HR and management to determine the extent and reasons
of absenteeism in order to take corrective measures. The following are the popular ways
to measure absenteeism:
3.2.2 Calculating the Total Time Lost
This measure expresses the percentage of total time available which has been lost due to
absence:
 Total absence (hours or days) in the period x 100
Possible total (hours or days) in the period
For example, if the total absence in the period is 124 person-hours and the total time
available is 1,550 person-hours, the lost time rate is:
 124/1,550 x 100 = 8 %
It can be calculated separately for individual departments of groups of employees to
reveal particular absence problems.
3.2.3 Calculating the Absence Frequency Rate
The method shows the average number of absences per employee, expressed as a
percentage. However it does not indicate of the length of each absence period, nor any
indication of employees who take more than one spell of absence:
 No of spells of absence in the period x 100
25
No of employees
For example, if in one month and organisation employed on average 80 workers, and
during this time there were a total of 16 spells of absence, the frequency rate is:
 16/80 x 100 = 20%
By counting the number of employees who take at least one spell of absence in the
period, rather than to total number of spells of absence, this calculation gives an
individual frequency rate
3.3Sample technique
Simple random sampling technique will be used as the sampling technique
3.4Data collection method
Data gathered from both primary sources and secondary sources. Secondary data refers to
information obtained from reports of human resource department in AIRPORT &
AVIATION SERVICES (SRI LANKA) LIMITED as well as past researches. Primary
data were gathered via questionnaire method.
3.5Data analysis method
Descriptive statistics have been used to analyse the data through spread sheet application.
26
CHAPTER 04
DATA ANALYSIS
4.1 Introduction
This data analysis chapter consists with the output of the research. According to this
research, Impact of personal factors as well as work place factors on absenteeism was
analysed. In this research, the researcher used three personal factors and four work place
factors under the independent variable and preference to being absent is measured under
the dependent variable. For the data analysis purpose, Microsoft excel has been used.
4.2 Gender distribution
Figure 4.1: Gender distribution of the responders in the sample
Source: Survey data
According to the analysed data, among 50 employees in the selected sample 17 amounts
consists with male employees and 33 amounts consists with female employees.
27
4.3 Age Distribution
Figure 4.2: Age distribution of the responders in the sample
Source: Survey data
Four age categories have been identified within selected sample and highest number of
employee are within 25-30 age category.
4.4 Employee preference for being absent to work
Figure 4.3: Employee preference for being absent to work
Source: Survey data
28
According to the analysed data among 50 employees, 23 of employees are preferred to
being absent to work.
4.5 Impact of personal factors towards absenteeism
4.5.1 Willingness to absent based on negative attitudes
Figure 4.4: Willingness to absent based on negative attitudes
Source: Survey data
Negative attitude of the employees towards work has highly impacted on absenteeism and 22
numbers of employees who prefer to be absent to work have negative attitudes for working.
29
4.5.2 Willingness to absent based on age category
Figure 4.5: Willingness to absent based on age category
Source: Survey data
According to the age factor, highest number of employees who prefer to be absent includes in
between 25 and 30 age category. Then consecutively 18-25 age category, over 40 age category
and zero from 30-40 age category.
4.5.3 Willingness to absent based on gender category
Figure 4.6: Willingness to absent based on gender category
Source: Survey data
30
With reference to gender, 15 numbers of male employees are preferred to be absent to work and
there are 4 female employees who prefer to be absent to work.
4.6 Impact of work place towards absenteeism
4.6.1 Willingness to absent based on culture
Figure 4.7 Willingness to absent based on culture
Source: Survey data
According to the analysed data employees who work under strict rules and regulations,
reluctant to be absent for their work.
31
4.6.2 Willingness to absent based on motivation
Figure 4.8: Willingness to absent based on motivation
Source: Survey data
18 numbers of employees who within absenteeism positive category are not satisfied with
the motivation methods which have been implemented by the organization.
4.6.3 Willingness to absent due to absence of learning environment
Figure 4.9 Willingness to absent due to absence of learning environment
Source: Survey data
Due to lack of training and development facilities of the organization 17 numbers of
employees are prefer to be absent to work.
32
4.6.4 Willingness to absent due to working stress
Figure 4.10 Willingness to absent due to working stress
Because of the stress in the working environment, 13 numbers of employees do not prefer to
attend to their work regularly.
33
CHAPTER 05
CONCLUSION AND RECOMMENDATION
5.1 Conclusion
Employee absenteeism can be a nuisance that if left unattended can become a significant
expense to any company which includes in loss of productivity. It affects every business
in different ways. Absenteeism does not discriminate and affects individuals no matter
their sex, race, or religion. It is important to acknowledge that absenteeism has
consequences and most importantly that it costs companies funds. In these tough
economic times, unscheduled absences cost companies in turnover, sick time and
replacement costs. It is the nature of the beast.
Employers should do well to recognize this and try to counter its effects. An occupied
employee is less likely to be habitually absent. Let them know what is expected and
routinely reward them for their efforts.
Management, absenteeism is an important concern from the viewpoints of service
delivery, efficacy and a concern for their employees. Absenteeism is also an important
and legitimate concern of trade unions in their role of supporting measures that alleviate
the causes of absenteeism including counselling programmes, wellness programmes and
enhancement of co-worker and supervisor support and the construction of better working
arrangements that suit the needs of both employer and employee. To be effective
strategies will need to focus on areas of common concern to workers, management and
unions, and will require the co-operation of these parties.
34
That absenteeism is a very complex subject is shown by the enormous number of factors
believed to contribute to it, and the mostly ineffectual methods that have been
traditionally used in attempts to reduce it. Approaches to workplace attendance need to
take into account the complexity of humanity its behaviour and needs and not merely
consider the matter in terms of money saved or work to be performed. Absenteeism can
only be modified but not eliminated when it is excessive.
For a programme to be effective an organization must benefit from it in terms of
decreased costs and from the production of a work force with a higher level of morale
and commitment.
The common responses to absenteeism are to tighten up certification requirements,
restrict access to sick leave, discipline offenders or censure doctors issuing the
certificates. These approaches neglect to focus on the opportunity to explore structural
and policy factors, which contribute to absenteeism. Ignoring the situation, whereby it
may be the culture of an organization that is a strong determinant of absence behaviour,
may reduce the opportunity for effective intervention based upon effective policies and
communication, development of supervisory skills and procedures.
Acknowledge the external factors that cause absenteeism, draw suggestions from the
employees on how to handle these issues and implement programmes and policies to
assist and guide employees.
It may not eliminate absenteeism from your workplace but it may very well decrease
levels and foster good employee employer relations.
5.2 Measurement and benchmarking
Measurement is an important step to the assessment of workplace attendance. There is a
frequent tendency to just guess the extent or focus on a perceived problem rather than to
take a systematic approach. There are very few norms for sickness absence though some
have suggested limits of concern.
35
Benchmarking within industry categories and within organizations is an important tool
for absence management. The question of the need to measure is a simple one, but what
to measure becomes more complex. Most companies keep records for accounting reasons
to ensure that leave is not expended past entitlements. This is often kept in personnel files
or cards. Such data, however, is not readily accessible for systematic analysis. The
increasing use of computer databases for personnel and pay records has the potential to
provide more meaningful information.
The rate, pattern and distribution of lost time from sickness absence can give an insight
into the possible causes of absenteeism. For example, through assessing temporal
relationships relating to shifts, weekends, rostered overtime, patterns such as absence
length or classification (such as certified or uncertified leave), productivity, turnover and
key organizational event indicators, factors associated with absenteeism can be identified.
At first glance measuring absenteeism would appear to be an easy proposition. It means
staff is either at work or not. Such a rate, however, tells us little about what may be
happening and what may be the causes. The distribution of leave taking is typically
skewed, with most episodes being short and frequent. Awards influence the pattern leave
by placing limits on the total of certified and uncertified leave available. The patterns of
these types of leave may be very different. The timing of leave is also important. It seems
more frequent at the beginning or end of a working roster, near public holidays and
during school holidays. Increased levels occur during the months where weather changes
in association with the peak of upper respiratory tract infectious disease. In most
organizations half the total time lost is due to a small fraction of the workforce.
The key features are:
 defining absence leave types
 defining a denominator- normal working hours, normal working days per year
 an absence profile
36
 attaching a cost (financial and productivity)
 able to be diagnostic
 integrated with other performance measures
Positive measures such as attendance rather than absence may offer a useful
interpretation of the data.
There are a number of hidden areas of cost in administration, human resources, training
and overtime. Costs and opportunities for improvement not only include high frequency
short-term leaves but also prolonged sickness absence. Hidden losses such premature
retirements are not often considered.
Measurement should lead to benchmarking and the use of quality management tools such
as control charts to detect and monitor performance. Monitoring systems need to be in
tune with organizational structure with figures referable to areas of responsibility.
Frequently this will require the use of computer based systems.
5.3 Managing absenteeism
Absenteeism is often symptoms of larger organizational problems and can be managed as
thus:
5.3.1 Leadership modelling and commitment
Managerial commitments and participatory culture have an important impact on
attendance. E.g. in a retail company, a manager who demonstrated little commitment to
attendance practices recorded one of the highest absenteeism rates in his organization.
37
5.3.2 Work motivation and rewards
Motivation in the work place is the driving force to achieve employee job satisfaction and
commitment. This motivation could be Extrinsic or Intrinsic.
Extrinsic motivation relates to the tangible rewards e.g. Salary, security, promotion and
conditions of work while, Intrinsic motivation relates to the psychological rewards which
includes; a sense of challenge and achievement, participation and appreciation from the
employer.
According to Maslow‟s hierarchy of needs; the expectancies of an employee from the
employer are captured as;
Motivated employees overcome obstacles to make it to work. The key to reducing
employee absenteeism is to create a culture where employees want to come to work.
5.3.3 Effective Groups and Team Building
Groups and teams are essential features of the work pattern of organizations. These
include formal and informal groups, project and virtual teams. Effective group and team
building encourages inter personal relationships, fulfils the individuals psychological
need of love and belonging, encourages organisational learning and communication while
reducing conflicts in the organization. This ultimately gives employees, sense of
belonging and contribution, job satisfaction and an increased love for the job which will
be evidenced in attendance rate.
5.3.4 Recruitment and selection
Employers should recruit employees with good attendance records. This information
should be included in references.
38
5.3.5 Employee orientation and training
Attendance norms should be established the first day on the job. These norms are
inculcated at inductions and orientation sessions.
5.3.6 Performance Appraisal
This can boost employee attendance rates. Management should attach attendance rates to
performance appraisals, if employees are aware that attendance would be a part of their
appraisal, they would minimize unnecessary absence from work.
5.4 Solutions to control absenteeism
5.4.1 Address Debt in the Workplace
Companies are encouraged to hold employee workshops facilitated by trained debt
counsellors and where possible address affected employees in individual sessions. If the
interventions are successful, they can bring about a decrease in absenteeism.
5.4.2 Create an Absenteeism Policy
By recording and analysing employee absences, a company can pinpoint problems/trends
in the company and implement an effective attendance and absenteeism policy. Introduce
a rule in the company that requires employees to contact their immediate supervisors to
report their absence for the day, before a certain time. Make it clear that the employee
must be able to provide a satisfactory explanation if he fails to make the report himself.
39
5.4.3 Conduct „Return to Work‟ Interviews
It is useful to introduce a „Return to Work. Interview Form‟ for the immediate supervisor
to complete each time an employee returns from sick leave. This will serve as a form of
„visible‟ management of the problem as the company will be seen to be addressing
matters as they arise and will also discourage those regular „entitlement‟ offenders.
5.4.4 An Effective Employee Assistance Programme
This includes wellness programmes. Employers need to think of their contributions to
these programmes not only in terms of the provision of a benefit to employees but as an
investment in productivity for the company.
5.4.5 Ask Employees what they want and Implement what is Possible
Suggestion boxes and surveys that seek anonymous feedback about the workplace
provide information about interest and engagement among employees. Implementing
many of these suggestions are free or inexpensive. Casual Fridays or a spontaneous jeans
day, is engaging, motivating and is great for succession planning. An engaged employees
are absent less often.
5.4.6 Reward Great Results
Don‟t save recognition of good work for annual functions and performance reviews.
Recognition does not have to be monetary; in fact studies verbal praise is more effective,
so are gift certificates for goods or services or an afternoon off. All employees provide
some benefit to the company. A recognized employee is less likely to be absent.
5.4.7 Provide a Good Working Environment
As much as possible, make sure the environment employees work in is clean,
technologically updated and pleasant with ergonomically correct office furniture or
40
machinery. Provide a lounge where employees can eat or take a break and make sure
occupation health and safety procedures are followed.
5.4.8 Keep the Lines of Communication Open
Enforce absenteeism policies but do so effectively and judiciously. Other employees are
watching how someone struggling is treated and it will impact their impression of the
company. However, the employee who is clearly just disinterested and disrespectful does
need to be disciplined or dismissed. Be flexible and proactive in devising short-term
solutions like working from home, non-traditional hours or a reduced work week.
5.4.9 Introduce Workplace Stress Strategy
One of the most commonly used models of occupational stress is the person environment
fit model. This provides two avenues for reducing the experience of work stress, firstly
by improving and enhancing the skills and strengths of individuals and secondly by
reducing the numbers and strength of occupational stressors. There is evidence to suggest
that organizational level interventions may be more effective.
Effective and simple strategies exist to assess workplace stress as a component of
absence management practices. Whilst they do not represent a primary strategy, they may
be important in environments where there is high absenteeism, high turnover, low
morale, reduced productivity and frequent episodes of occupational stress. In a review of
academic methods and practical managerial procedures, various techniques are discussed
in terms of cost and accuracy.
Stress management and stress training may have an important role in some industries and
workplaces. Skills in conflict management and conflict resolution are valuable for
managers as well as employees. Attendance impacts may be expected in the following
circumstances:
 Shift work- existing, introduced or modified
41
 Downsizing
 Relocation
 Rapid change
 Major events: fire, explosion, violence
 Technological change.
5.4.10 Workplace organization, work and management practices
 Flexible Working Arrangements
The introduction of flexible work practices requires a high level of organization, planning
and support. Issues such as equity of participation, monitoring, dispute resolution and
penalty payments will need to be considered in advance.
Many managers may be familiar with the taking of sick leave when annual leave or other
leaves are denied. Poor planning, lack of consideration of staffing requirements and leave
requisitions can result in destructive leave taking patterns. Short recreational or
discretionary leaves ranging from one to four days together with forward manpower
planning are useful considerations.
Unfortunately there is little objective discussion on the effectiveness of the provision of
childcare on employee attendance, though there is a weight of opinion that suggests that
it may be very effective. There is good evidence to support the effectiveness of childcare
provision in reducing turnover and improving recruitment. Its effect on absenteeism is
ambivalent.
42
REFERENCES
1. Paul S. Goodman, Robert S. Atkin. (1984). Effects of Absenteeism on Individuals
and Organizations. 283-300.
2. Upekha Tammita, B. M. D. Seedevi, D. G. T. S. Jayarathne, Aruna
Welianga,(2010). A Study of Employee Absenteeism in the Apparel Industry.
Human Resource Management Journal.
3. Managing Absenteeism Management Essay. (n.d.). Retrieved 2003-2006, from
www.ukessay.com:http://www.ukessays.com/essays/management/managingabsen
teeism-management-essay.php
43
APPENDIX
A : CIRCULAR NO. AP/1 – WORKING CONDITIONS AND
RULES GOVERNING EMPLOYEES
B : NOTICE NO: HR/621 - PAYMENT OF BONUS AND
EX-GRATIA PAYMENT FOR THE YEAR 2014
C : NOTICE NO: HR/635/5/INSU - HEALTH INSURANCE SCHEME
D : CIRCULAR NO. AP/178 - PAYMENT OF MEAL ALLOWANCE
E : CIRCULAR NO. AP/32 - MATERNITY LEAVE FOR FEMALE
EMPLOYEES
The above appendixes were extracted from the available circulars and notices issued to
the concern of employees of Airport & Aviation Services (Sri Lanka) Limited by the
Board of Management, with the permission of Head of Human Resources.
44
APPENDIX A : CIRCULAR NO. AP/1
AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED
WORKING CONDITIONS AND RULES GOVERNING EMPLOYEES
1. Normal Hours of Work - Monday to Friday 0830hrs to 1645hrs
1.1 Intervals - Lunch :- 1230hrs to 1315hrs
Tea :- There will be no tea breaks
1.2 - Unless otherwise specifically instructed
by the Management every employee
shall present himself/herself for work
each day at the starting time of the
office and shall remain there available
for work throughout the normal
working hours as at „1‟ above.
1.3 - The hours of work as given in „1‟ is
subject to change from time to time
depending on exigencies of service.
2. Recording of Attendance - Employee will record their exact time of
arrival and departure on attendance
registers.
2.1 Late Attendance - i) A grace period of 5 minutes only will
be given in respect of late attendance.
ii) Any arrival after the grace period of
5 minutes will be subject to pay
45
deductions in the following manner :-
06 – 14 - 15 minutes
15 – 30 - 30 minutes
iii) Any arrival after 30 minutes may be
allowed to sign on at the sole discretion
of the Management, subject to ½ days
leave/pay cut.
iv) Late attendance will entail
disciplinary action including :-
(a) Withholding of increments
(b) Dismissals
3. Half Days Leave - Employees taking half days leave
should report/leave office at following
times :-
i) 1230hrs – leaving time
ii) 1315hrs – reporting time
4. Leave - Permanent employees are entitled to the
following leave for a year :-
Casual - 7 days
Annual - 14 days
Sick - 21 days
4.1 Casual Leave - Casual leave is intended to enable an
employee to absent himself/herself for a
short period for personal reasons,
46
An employee is entitled in the first year
of employment to one day‟s casual
leave for each period of 2 months
completed service and to the full quota
of 7 days from the 2nd
calendar year in
service.
Casual leave shall not be granted for
more than 2 days at a time.
Casual leave shall be obtained
whenever possible by application in the
appropriate form at least 24 hours
before the time from which leave us
required.
4.2 Annual Leave - Annual leave will be granted as follows
Employee will not be entitled to annual
leave in the calendar year of recruitment
but will be entitled to annual leave
during the second calendar year of
recruitment on a proportionate basis
depending on the date of
commencement of employment as
indicated hereunder and to the full quota
thereafter.
i) January – March - 14 days
ii) April – June - 10 days
iii) July – September - 07 days
47
iv) October – December – 04 days
Annual leave must be applied for and
approval obtained on appropriate form
before the date on which leave
commences.
4.3 Sick Leave - An employee is entitled in the first
calendar year of employment to 2 days
sick leave for each completed month of
service but not exceeding 21 days for a
year.
In the second calendar year of service
he/she will be entitled to the full quota
of 21 days.
If an employee enters a Government
hospital for treatment he/she shall
immediately inform the management
giving full particulars.
Continuous absence exceeding 14 days
should be supported by a medical
certificate from a Government
doctor/company approved doctor.
5. Maternity Leave - Maternity leave to female office
employees will be granted in terms of
the Shop & Office Employees Act,
which at present is 12 weeks
48
(excluding statutory holidays, company
holidays).
6. Weekly Holidays - Saturday and Sunday shall be weekly
holidays.
Saturday, though a non-working day
will be regarded for the purpose of
weekly holiday a half working day.
Sunday shall be a full weekly holiday.
7. Statutory Holidays - All employees are entitled to the
following days which have been
presently declared by the Government
as Statutory Holidays :-
Thai Pongal Day
Independence (National) day
Milad-un-Nabi (Holy Prophet
Mohamed‟s Birthday)
The day immediately prior to
Sinhala/Hindu New Year Day
Sinhala/Hindu New Year Day
May Day
National Hero‟s Day
Day immediately succeeding Wesak
Full Moon Day
Christmas Day
8. Overtime Work - Work outside normal working hours is
49
considered as overtime work.
8.1 Payments - Monthly Salary – Every employee shall
be paid his/her salary will be paid on the
25th
of each month.
Salary for period less than 1 month shall
be computed as follows :-
For one hour – Monthly Salary
240
For one day – Monthly Salary
30
For half day – Monthly Salary
30 x 2
9. Absence from Duty - An employee shall not absent
himself/herself from duty without the
prior permission of his/her respective
superior officer.
If an employee absent himself/herself
without obtaining prior permission for
reasons which were unforeseen he/she
shall inform his/her superior officer by
telegram/telephone or any other means
within 24 hours of the time he/she was
to have reported for work.
When an employee obtains leave he/she
must as soon as he/she returns to work
50
fill up a leave application form and
submit it to his/her superior officer for
his covering approval.
10. Probation Period - All appointments are subject to a period
of 01 year probation from the date of
appointment as specified in each
individual letter of appointment.
the Management reserves the right to
summarily terminate the services of any
employee if his/her work.
11. Increments - Annual increments will be granted with
effect from 1st
January each year as
indicated in the letters of appointment
and will be dependent on a certificate
issued by the respective Head of the
Division that the employee concerned
has discharged his/her duties with
efficiency, diligence and fidelity during
the incremental year and thereby earned
his/her increment Any disciplinary
action imposed or any No-pay Leave
obtained b the employee during the
incremental year will be taken into
account for the purpose of increment.
12. Transfer of Employees - Employees may be transferred at any
time without notice to any place of
work of the Company in any part of the
51
country.
13. Retirement - No employee shall continue in
employment after his/her 60th
birthday,
except at the sole discretion of the
Management.
14. Obligation of Employees - All employees of the company are
expended at all times to discharge the
duties entrusted to them with efficiency,
diligence and fidelity, to safeguard the
property, personnel an interest of the
company.
Sgnd.
CHAIRMAN
52
APPENDIX B :- NOTICE NO: HR/621
AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED
PAYMENT OF BONUS AND EX-GRATIA PAYMENT FOR THE YEAR 2014
Considering the growth in the operational performance of the Company mainly due to the
peace prevailed in the country during the year, the Board of Directors at it‟s meeting held
on 2nd
December 2014 decided to pay Bonus and Ex-gratia payments as detailed below .
Board of Directors is pleased to inform you that it has been decided to increase the Ex-
gratia payment up to Rs. 40,000/- for this year in recognition of co-operation and
dedication of the staff in improving performance of the Company.
Bonus Payment : - Three months basic salary subject to a minimum of Rs. 20,000/- (Net
of Tax).
Ex-gratia Payment:- Rs. 40,000/- (Net of Tax) is granted.
 The Board of Directors wishes to emphasise that the quantum of Bonus/Ex-gratia
Payment to its staff in any year depends on the financial status of the Company.
 The advance already paid in April 2014 against the Bonus for year 2014 will be
set-off from the total sum mentioned above when making payments in December
2014.
 All Heads of Divisions are kindly requested to bring the contents of this
communication to the notice of all employees in their division
Sgnd
CHAIRMAN
03/12/2014
53
APPENDIX C :- NOTICE NO: HR/635/5/INSU
AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED
HEALTH INSURANCE SCHEME
Objective :-
The main object of the scheme is to provide financial assistance to Company employees
and
their family units for medical treatments obtained locally and/or in a foreign country in
respect of
themselves and their family units by way of reimbursement of expenses partly or fully
incurred
by an employee.
Coverage :-
The medical benefits under the scheme are classified as
Indoor (Hospitalization)
Outdoor Treatments
Critical Illness Cover for Special Surgical Treatment
Instructions :-
Those employees who wish to enjoy the benefits under the Health Insurance Scheme
Operated by the Company could remain and continue to received the benefits under the
Scheme 1 of the New Scheme with the same contribution of Rs. 250/- per month.
Scheme Indoor
Benefit
Outdoor
Benefit
Contribution
per Employee
per month
Contribution
per
Employee
per year
Scheme 1 Rs. 100,000/- Rs. 22,500/- Rs. 250/ Rs. 3,000/-
54
Those employees who wish to obtain further benefits under Scheme 2, 3 or 4 under the
New Health Insurance Scheme could do so by contributing the monthly payment
applicable as shown hereunder.
Scheme Indoor
Benefit
Outdoor
Benefit
Contribution
per Employee
per month
Contribution
per
Employee
per year
Scheme 2 Rs. 150,000/- Rs.25,000/- Rs. 2,214.90 Rs. 26,578.80
Scheme 3 Rs. 200,000/- Rs. 27,500/- Rs. 2,672.47 Rs. 32,069.64
Scheme 4 Rs. 300,000/- Rs. 30,000/- Rs. 3,435.07 Rs. 41,220.84
Cover Benefit For All Schemes
Critical Illness
Any one event per
person
Rs. 800,000/-
Annual Aggregate Rs. 7,500,000/-
The employees who wish to do so are requested to perfect and return the attached
application form to reach Head of Human Resources on or before 1st
April 2014.
All Heads of Divisions are kindly requested to bring this to the notice of all employees of
their division.
Sgnd
CHAIRMAN
01/03/2014
55
Attachment to Notice No: HR/635/5/INSU
Health Insurance Scheme
Application for Additional Benefits
1. Name of Employee :
2. Service No. :
3. Designation :
4. Division :
5. Enrolment No. :
6. The scheme I wish to join to obtain further benefits under the Health Insurance
Scheme. (Please mark () in the appropriate cage)
Scheme 1 Scheme 2 Scheme 3 Scheme 4
Scheme Indoor
Benefit
Outdoor
Benefit
Contribution
per Employee
per month
Contribution
per Employee
per year
Scheme 1 Rs. 100,000/- Rs. 22,500/- Rs. 250/ Rs. 3,000/-
Scheme 2 Rs. 150,000/- Rs.25,000/- Rs. 2,214.90 Rs. 26,578.80
Scheme 3 Rs. 200,000/- Rs. 27,500/- Rs. 2,672.47 Rs. 32,069.64
Scheme 4 Rs. 300,000/- Rs. 30,000/- Rs. 3,435.07 Rs. 41,220.84
I consent to deduct a sum of Rs……………….. per month from my salary with effect
from January 2015.
Date …………………….. Signature of Employee ……………………
Head of Human Resources
Forwarded please.
Date ………………………. ……………………………………..
Signature of Head of Division
56
APPENDIX D : CIRCULAR NO. AP/178
AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED
PAYMENT OF MEAL ALLOWANCE
Board of Management has decided to pay a Meal Allowance of Rs. 65/- to all employees
for the working days of each month. This decision will come into effect from 1st
October
2006.
For the purpose of payment of Meal Allowance, normal working days of a month will be
considered.
Normal working days of a month = No. of days of the month –
(Saturdays +
Sundays + Mercantile Holidays +
Poya Days)
Number of days of leave availed by an employee should be deducted from the normal
working days of the month for this purpose. If an employee has availed half a day‟s
leave, he/she is not entitled for the Meal Allowance for the said day.
All Heads of Division are requested to calculate the number of days for the entitlement of
Meal Allowance per employee and inform such details to the Finance Division by the
10th
of each month using the specimen formal attached hereto, with a copy to Head of
Internal Audit & Quality Assurance.
Please bring the contents of this Circular to the notice of all employees.
Sgnd.
CHAIRMAN
08/11/2006
57
Attachment to AP/178
DETAILS OF EMPLOYEES FOR MEAL ALLOWANCE
Division :
Month :
S/No. EPF No. Name of Employee No. of
working
days for
the month
No. of
days
leave
availed*
No, of days
entitled for
Meal
Allowance
*For this purpose ½ day‟s leave should be treated as 01 day‟s leave.
Date :
Prepared by :
Checked by :
..………………………………
Signature of Head of Division
cc : Head of Internal Audit & Quality Assurance
58
APPENDIX E : CIRCULAR NO. AP/32
AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED
MATERNITY LEAVE FOR FEMALE EMPLOYEES
With the amendment to the Shop & Office Employees Act by Act No. 44 of 1985, the
following procedures relating to maternity leave benefits will be implemented.
(i) A female employee who expected to be confined should give notice in writing to
the Head of Division in which she works that she expects to be confined
within 14 days from the date to be specified by her in the notice.
(ii) Upon receipt of such notice the Head of Division will allow 14 days leave to end
on the day immediately preceding the date of confinement.
(iii)In addition to the 14 days mentioned above, a female employee will also be
allowed leave as follows :-
 70 working days of leave commencing on the date of confinement if the
confinement resulted in the issue of a live child and she has, at the date of
such confinement, no child or has one child (in other words a female
employee will be allowed 70 days of leave for any number of surviving
child).
(iv)If the employee has not been able to avail of the 14 days of leave mentioned in (i)
above, as a result of the confinement occurring earlier than the expected date,
she will be allowed to take the balance period of un-availed leave from the 14
days after the expiry of the leave she would be applying for under (iii),
provided that she mentioned same in her application for leave giving the
necessary particulars.
59
(v) In counting the days of leave, only working days, should be taken into account.
Weekly off days, Poya days, Statutory Holidays and Special Company
Holidays falling within the period of maternity leave should be excluded.
All Head of Divisions are kindly requested to bring the contents of this Circular to the
notice of all employees of your division.
Sgnd.
CHAIRMAN
60
INSTITUTE OF CHARTERED CORPORATE
SECRETRIES OF SRI LANKA
THESIS FOR ICCS STUDENTS
CERTIFICATION BY THE STUDENT
Title of Thesis : Measuring And Managing Absenteeism At Airport &
Aviation Services (Sri Lanka) Limited, Bandaranaike
International Airport, Katunayake.
I Mrs Dona Anuri Kilanthi Nandiweera hereby certify that this Thesis is the
result of my own independent work and investigation, except where
otherwise stated. Such other sources are acknowledged in the
footnotes/endnotes, by specific reference in the text, in the bibliography, etc.
This work has not previously been accepted in substance for any Diploma,
Degree or other program of studies, and is not being concurrently submitted
in candidature for any such program.
I give my consent for this presentation to be made available for reference in
the Library of the ICCS or for copying for limited academic purposes.
ICCS Student Registration No. :0096
Signature of Student :
Full Name of Student : Mrs Dona Anuri Kilanthi Nandiweera
Dated this14th
day of January 2016.
61
INSTITUTE OF CHARTERED CORPORATE
SECRETRIES OF SRI LANKA
THESIS FOR ICCS STUDENTS
CERTIFICATION BY THE SUPERVISOR
Title of Thesis : Measuring And Managing Absenteeism At Airport &
Aviation Services (Sri Lanka) Limited, Bandaranaike
International Airport, Katunayake.
ICCS Student Registration No. :0096
I have supervised the appended Thesis of the above student of the ICCS.
The student has discussed drafts with me during the conduct of research and
writing of this work and I have read the draft/s and provided advice and
guidance to the student where necessary.
Name of Supervisor : Mr Rajitha Silva
Signature of Supervisor :
Dated this 14th
day of January 2016.
62
QUESTIONNAIRE
Dear Sir/ Madam,
Attached here with is the questionnaire that I am using to collect data for my research on
“Measuring and Managing Absenteeism at Airport & Aviation Services (Sri Lanka)
Limited Bandaranaike International Airport, Katunayake”. Please be kind to provide
your genuine responses and complete this questionnaire. The information provided by
you will be treated confidentially and will only be used for the purpose of the study.
Please answer all questions by tickingmark of your own opinion. Thanking in advance
for your kind cooperation.
Section 1 - Personal Information
1.1 Gender
Male Female
1.2 How old are you?
18 - 25 years 30 - 40 years
25- 30 years over 40 years
Section 2 – Factors affecting the absenteeism
2.1 Do you feel stress at work?
Yes No
2.2 Is it a reason for not attending to the job?
Yes No
63
2.3 Are there any motivations of rewards that you have got from your organization?
Yes No
2.4 Do you think that is enough?
Yes No
2.5 Are the any big changes in your work place/ job?
Yes No
2.6 Do you prefer to work in a changing environment without absenting?
Yes No
2.7 Do your supervisor, immediate boss punish you on absent to work?
Yes No
2.6 Do your supervisor, immediate boss provide a leave if you request?
Yes No
2.7 Do you feel continuous attendance give benefits to you or for the organization?
Yes No
2.8 Have you ever feel not to attend to work even there is no any reasonable issue?
Yes No

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Research on Absenteeism

  • 1. PROFESSIONAL QUALIFICATION IN CHARTERED CORPORATE SECRETARIES THESIS ON MEASURING AND MANAGING ABSENTEEISM AT AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED BANDARANAIKE INTERNATIONAL AIRPORT, KATUNAYAKE Name : Mrs Dona Anuri Kilanthi Nandiweera Membership No.: ICCS/096
  • 2. 2 TABLE OF CONTENTS CHAPTER 01 ..................................................................................................................................7 INTRODUCTION ...........................................................................................................................7 1.1 Background of the study..................................................................................................7 1.2 What do we mean by absenteeism? .................................................................................7 1.2.1 Absenteeism can be grouped into two categories ....................................................8 1.3 Effects of Absenteeism in the workplace.......................................................................10 1.4 Problem statement of the study......................................................................................11 1.5 Research objectives........................................................................................................11 1.6 Significance of the study................................................................................................12 1.6.1 Why Measure Absenteeism ...................................................................................12 1.6.2 Administrative costs of Absenteeism:....................................................................12 1.6.3 Productivity Costs:.................................................................................................13 CHAPTER 02 ................................................................................................................................14 LITERTURE REVIEW .................................................................................................................14 2.1 Maslow‟s Theory to Manage Absenteeism....................................................................14 2.2 Herzberg‟s Two Factor Theory......................................................................................15 2.2.1 Application of Herzberg‟s Theory:........................................................................15 2.3 Expectancy Theory ........................................................................................................16 2.3.1 Major factors for applying expectancy theory .......................................................17 2.4 Equity Theory ................................................................................................................18 2.5 David McClelland‟s - Human Motivation Theory.........................................................19 CHAPTER 03 ................................................................................................................................20 METHODOLOGY ........................................................................................................................20 3.1 Conceptual framework...................................................................................................20 3.1.1 Dependent variable ................................................................................................21 3.1.2 Independent variables ............................................................................................21 3.2 Ways of Measuring Absenteeism ..................................................................................23 3.2.1 The Time Lost........................................................................................................23 3.2.2 Calculating the Total Time Lost ............................................................................24
  • 3. 3 3.2.3 Calculating the Absence Frequency Rate ..............................................................24 3.3 Sample technique...........................................................................................................25 3.4 Data collection method ..................................................................................................25 3.5 Data analysis method.....................................................................................................25 CHAPTER 04 ................................................................................................................................26 DATA ANALYSIS........................................................................................................................26 4.1 Introduction....................................................................................................................26 4.2 Gender distribution ........................................................................................................26 4.3 Age Distribution.............................................................................................................27 4.4 Employee preference for being absent to work .............................................................27 4.5 Impact of personal factors towards absenteeism............................................................28 4.5.1 Willingness to absent based on negative attitudes.................................................28 4.5.2 Willingness to absent based on age category.........................................................29 4.5.3 Willingness to absent based on gender category....................................................29 4.6 Impact of work place towards absenteeism ...................................................................30 4.6.1 Willingness to absent based on culture..................................................................30 4.6.2 Willingness to absent based on motivation............................................................31 4.6.3 Willingness to absent due to absence of learning environment .............................31 4.6.4 Willingness to absent due to working stress ..........................................................32 CHAPTER 05 ................................................................................................................................33 CONCLUSION AND RECOMMENDATION.............................................................................33 5.1 Conclusion .....................................................................................................................33 5.2 Measurement and benchmarking ...................................................................................34 5.3 Managing absenteeism...................................................................................................36 5.3.1 Leadership modelling and commitment.................................................................36 5.3.2 Work motivation and rewards................................................................................37 5.3.3 Effective Groups and Team Building ....................................................................37 5.3.4 Recruitment and selection......................................................................................37 5.3.5 Employee orientation and training.........................................................................38 5.3.6 Performance Appraisal...........................................................................................38 5.4 Solutions to control absenteeism....................................................................................38 5.4.1 Address Debt in the Workplace .............................................................................38 5.4.2 Create an Absenteeism Policy................................................................................38
  • 4. 4 5.4.3 Conduct „Return to Work‟ Interviews....................................................................39 5.4.4 An Effective Employee Assistance Programme ....................................................39 5.4.5 Ask Employees what they want and Implement what is Possible .........................39 5.4.6 Reward Great Results.............................................................................................39 5.4.7 Provide a Good Working Environment .................................................................39 5.4.8 Keep the Lines of Communication Open...............................................................40 5.4.9 Introduce Workplace Stress Strategy.....................................................................40 5.4.10 Workplace organization, work and management practices....................................41 REFERENCES ..............................................................................................................................42 LIST OF FIGURES Figure 3.1: Conceptual Framework...........................................................................................................20 Figure 4.1: Gender distribution of the responders in the sample............................................................26 Figure 4.2: Age distribution of the responders in the sample..................................................................27 Figure 4.3: Employee preference for being absent to work.....................................................................27 Figure 4.4: Willingness to absent based on negative attitudes ................................................................28 Figure 4.5: Willingness to absent based on age category .........................................................................29 Figure 4.6: Willingness to absent based on gender category ...................................................................29 Figure 4.7 Willingness to absent based on culture....................................................................................30 Figure 4.8: Willingness to absent based on motivation ............................................................................31 Figure 4.9 Willingness to absent due to absence of learning environment.............................................31 Figure 4.10 Willingness to absent due to working stress .........................................................................32
  • 5. 5 ACKNOWLEDGEMENTS Mr Rajitha Silva, my thesis supervisor for his wise counsel, constant encouragement and professional guidance during the study. Mrs M C G Mahipala, Head of Human Resources/Company Secretary of Airport & Aviation Services (Sri Lanka) Limited, for granting permission to extract the laid down procedures and policies. Mr Aruna Rajapaksha, Airport Manager/ Colombo Airport, Ratmalana of Airport & Aviation Services (Sri Lanka) Limited, for the guidance and encouragement in compilation of the areas relevant to the study. My colleagues in the Airport Management Division, Airport & Aviation Services (Sri Lanka) Limited, Colombo Airport, Ratmalana for their kind support and encouragement. Mr Kishantha Nimalaratne, Senior Air Traffic Controller, Airport & Aviation Services (Sri Lanka) Limited, Mattala Rajapaksa International Airport for his assistance with the editing and layout of the thesis. My family for their patience, love and affirmation.
  • 6. 6 EXECUTIVE SUMMARY Productivity loss due to absenteeism is a serious growing challenge. We live in an absenteeism culture. Talking a day off and calling in sick is supported and encouraged by the society. Many people‟s attitude is” The time is coming to us” (Robert F.Allen and Michael Higgens - the Absenteeism Culture. Becoming attendance oriented.) Absence measurement and management is an increasingly growing body of knowledge and experience that managers apply to control and reduce absenteeism and its accruing costs. To ensure that the issue of absenteeism is effectively addressed, managers and supervisors armed with the required guidance and training, need to understand the circumstances and factors surrounding absenteeism in the workplace, and thus actively participate in the company‟s procedures and policies to effective curb absenteeism in the workplace. Employers attempt to cut down excessive employee absenteeism through tighter controls. They demand doctor‟s report or use some other punitive mechanisms that targets symptoms of absenteeism rather than its causes. The problem will not go away unless the underlying root causes are removed. Building an attendance culture! How should absenteeism effectively be managed, via triggers or incentives? Or else using Carrots or sticks?
  • 7. 7 CHAPTER 01 INTRODUCTION 1.1Background of the study Absenteeism from workplace has been on the increase and may be an indicative of poor morale, lack of motivation, sick building syndrome, poor organizational policies or mere indiscipline from the employees. However, many employers have introduced and implemented absence policies which make no distinction between absence for genuine reasons or illness and absence for inappropriate reasons. One of these policies is the calculation of the Bradford Factor, which only factors total number and frequency of individual absence into account, neglecting the kind of absence. Workers decide to stay away from work for a host of other reasons relating to work and personal issues, which range from job de-motivation, low pay, lack of work life balance and occasional hangover. Absenteeism has been viewed traditionally as a breach of an implicit contract between employee and employer, as a management problem and has been framed in economic terms. This report will critically discuss the causes and effects of absenteeism in the workplace with the view to derive effective ways to measure and manage absenteeism. It will seek to understand absenteeism as an indicator of psychological, social adjustment to work. 1.2What do we mean by absenteeism? According to dictionary reference.com, Absenteeism can be defined as habitual failure to appear, especially for work and other regular duty. It is also explained as the occurrence rate of habitual absence of work or duty.
  • 8. 8 Absenteeism can be viewed as re-occurring absence from work, duty and obligation, thought to reflect employee demoralization or dissatisfaction. This can also be viewed as a breach of the implicit contract that exists between the employer and the employed. Simply put, Failure to report to or stay at work when scheduled is tagged absenteeism. 1.2.1 Absenteeism can be grouped into two categories  Involuntary/Innocent absenteeism This is when absences are unavoidable and understandable. This kind of absenteeism can be occurred due to death in the family, pregnancy or maternity issues, absences caused by illness or injury, car/ vehicle issues, other family related or personal issues, accidents and natural disasters, disability-related absenteeism- Human rights obligations.  Voluntary/Culpable Absenteeism Voluntary absenteeism is an instance where an employee, out of his own freewill or laziness, chooses to stay off work. Absences in this case are avoidable. This kind of absenteeism can be occurred due to missing work without advance notice to go on a trip or watch cricket match, making excuses for consistent late coming to work, deceitfully/fraudulently applying for sick leave or calling in „sick‟ and failure to report to work as scheduled or showing up late for no good reason. Voluntary Absenteeism also takes place where the employees feel there is a strain on their psychological contract with the employer, this indirectly erupts lack of organizational commitment. This strain could develop to stress and impact on employee attendance to work.
  • 9. 9  Leadership Style An organization‟s, team or unit leadership style could impact on employee commitment, job satisfaction with improved or impaired participation and attendance to work. While democratic and laissez fair leadership style encourages shared decision making, shared responsibility, creativity and participation and can be highly motivational, which enhances teamwork and interpersonal relations. Autocratic and paternalistic leadership styles could de-motivate and alienate employees. Employees might feel less important in the organization, hence the need to avoid work.  Work Routine and lack of Change Doing the same job or task over a long period of time can get monotonous. The employees get bored and thus might choose to take unauthorized time off to do something he considers interesting than going to work.  Job Satisfaction If employees do not find their work interesting, satisfying and challenging, they feel dissatisfied, which leads to increased absenteeism in the workplace.  Work life balance Organization that not factor employee‟s roles and work life such that a balance is stroked with work and the individual‟s personal life commitments and family would experience increased employee absenteeism.  Conflict in the workplace Ultimately increases chances of employee absenteeism.
  • 10. 10  Lack of team spirit A team that lacks unity, synergy and good interpersonal relationship amongst its members, will be a weak and unproductive. Such team members will lack team spirit-the spirit that bonds individuals in a team. This lack of team spirit can de- motivate team members, make them work in isolation, they would lack the sense of belonging, love and satisfaction. There would exist, fears of the unknown, lack of trust for team members. These feelings will encourage an employee to stay off work.  Social Factors It consists with factors such as difficult community circumstances such as high crime and intimidation rates which constitutes fear in employee‟s catalyses absenteeism in the workplace. Other social factors are -  Repetitive Public Holidays fall in-between working days  Lack of transportation/transport facilities  Poverty levels  Re-structuring  Harassment/Violence  Labour Strikes 1.3Effects of Absenteeism in the workplace When a company has an absentee problem, it has a profit problem. Absenteeism can take a deep financial toll on any business, whether a small or multinational company. There are also other significant effects associated with excessive absenteeism:
  • 11. 11  Decreased Productivity In a team of people doing interrelated tasks, if one persistent remains absent or fails to deliver, it creates a domino effect on productivity.  It affects employee/team morale This is due to the fact that additional stress is placed on employees who act as replacements or assume additional tasks for absentees. . 1.4Problem statement of the study Absenteeism of employee has become a common issue in each and every organization. There are various factors which effect on employee absenteeism. Past literatures have identified different kind of sources which cause employee absenteeism. According to Airport & Aviation Services (Sri Lanka), both personal factors and workplace factors have been impacted on absenteeism of employees. Impact of employee attitudes, age and gender have been analysed under personal factors. Further impact of organizational culture, lack of motivation and rewards, absence of learning management and stress at work have been analysed under workplace factors. Through this research influence of each personal factors and workplace factors are going to be identified. 1.5Research objectives 1. To identify the existence absenteeism problem at Airport & Aviation Services (Sri Lanka) Limited, Bandaranaike International Airport, Katunayake. 2. To identify the factors which impact on absenteeism problem. 3. Identify the solutions to minimise the absenteeism rate of the organization.
  • 12. 12 1.6Significance of the study 1.6.1 Why Measure Absenteeism It is pertinent to measure the rate of absenteeism in the workplace. Measuring employee‟s absenteeism is a good way to measure Overall Labour Effectiveness (OLE) in the workplace, which is a key performance indicator (KPI) that measures the utilization, performance and quality of the workforce and its impact on productivity. Monitoring staff absence rates helps to trace the pattern of employee attendance. To monitor and check dead times, in the workplace, to derive and measure resources and costs incurred due to employee absenteeism with the aim of devising effective methods to manage absenteeism in the workplace. In measuring absenteeism in the workplace, we derive the ratio of its administrative, financial and productivity cost to the organization which will enable development of strategies to curb absenteeism while rechanneling resources more effectively to effect the bottom-line positively. 1.6.2 Administrative costs of Absenteeism:  Time consumed in controlling absenteeism  Time consumed in sourcing replacements and re-assigning duties.  Supervisor‟s time  Financial Costs: this are the costs accruing form  Overtime costs  Replacement employee costs  Training costs  Over staffing costs
  • 13. 13 1.6.3 Productivity Costs:  Replaced productivity and loss of output costs  The costs of supporting replacement employees  Costs accrued in training new or replacement staff/hiring temporary staff  Substandard production
  • 14. 14 CHAPTER 02 LITERTURE REVIEW According to Graham and Bennett (1995) has identified that nature of the job or nature of the workplace as well as personal characteristics of the worker influence on absenteeism of employees. Further some literatures have found that Leadership style of the supervisors as well as organizational culture affect to the absenteeism of employees, (Evans & W alters, 2002). There are many organizational theories related to managing organization‟s absenteeism and implementing the appropriate theory in the organization will me a major solution to managing absenteeism of employees. Few of the theories to manage absenteeism in work place are discussed as follows. 2.1 Maslow‟s Theory to Manage Absenteeism The major reason for absenteeism of workers in an organization is when their needs are not met since it leads to dissatisfaction in the job they do. These needs range from basic psychological needs to other organisational needs like safety needs sense of belongingness and self-actualization. Maslow‟s theory can be used to manage absenteeism which arises due to lack of fulfilment of employee needs. Psychologist Abraham Maslow said that people are motivated by attempts to fulfil their personal needs. Here are some examples of how his Hierarchy of Needs explains motivation in the workplace and helps to manage absenteeism. Basic physiological needs are met with good ventilation (breathing), toilets (excretion), and a break at the end of the day (sleep). Safety and security is covered with security personnel (personal safety), safety equipment like hard hats and goggles in factories (physical safety), and a regular pay packet (financial security). Friendship and a feeling of belonging comes from
  • 15. 15 relationships with co-workers. These are all “deficiency needs”, without which people cannot work very well. If they have been met at least to some degree, then the “growth needs” of achievement, creativity, and problem-solving can be pursued. Maslow also said was that 'gratified needs are not active motivators'. For a business, this is an important conclusion. The importance of Maslow is to recognise that in some cases, money might be an important motivator. What might act as a motivator to one individual might not act as a motivator to another. The organization therefore needs to have different motivation strategies in place to get the best out of their employees. 2.2 Herzberg‟s Two Factor Theory This theory can be used to manage absenteeism related to job satisfaction and psychological growth. Job satisfaction is important for both the employee and the employer. To get the most of an employee an employer should make sure they use a two pronged approach to employee satisfaction. The employer should provide opportunity for psychological growth and job satisfaction. Herzberg gives these two areas the labels of "hygiene" and "motivation". The hygiene is elements of job context. They include working conditions and supervisor quality, as well as salary, status and safety issue. Motivators are embedded in the employee-job interaction and they are job-centres characteristics. They are also called intrinsic job factors. They include growth opportunity, achievement and recognition, among other factors. In order to manage absenteeism using this Motivation- Hygiene theory it is necessary to distinguish factors which lead to satisfaction from factors that lead to dissatisfaction. These factors of dissatisfaction consists with achievement, company Policies, recognition, supervision, the work itself, relationship with supervisor and peers, responsibility, work conditions, advancement, salary and security, growth and status. 2.2.1 Application of Herzberg‟s Theory: The application of Herzberg‟s theory involves two steps as given below:
  • 16. 16 Step One: Eliminate Job Dissatisfaction Herzberg called the causes of dissatisfaction "hygiene factors". There is no point in trying to motivate the staff until these factors have not been performed. Particular organization has to fix poor and obstructive company policies, provide effective, supportive and non- intrusive supervision, create and support a culture of respect and dignity for all team members, ensure that wages are competitive, build job status by providing meaningful work for all positions and provide job security as well as just because someone is not dissatisfied, it doesn't mean he or she is satisfied either. Hence the next step is to build job satisfaction. Step Two: Create Conditions for Job Satisfaction To create satisfaction, you need to address the motivating factors associated with work. This is called "job enrichment". Every job should be examined to determine how it could be made better and more satisfying to the person doing the work. Hence the organization should be considered in providing opportunities for achievement, recognizing workers' contributions, creating work that is rewarding and that matches the skills and abilities of the worker, giving as much responsibility to each team member as possible, providing opportunities to advance in the company through internal promotions, offering training and development opportunities, so that people can pursue the positions they want within the company. 2.3 Expectancy Theory There are several occasions where employees lose interest in their job when they feel that their performances have not been encouraged and rewarded appropriately. This leads to lack of commitment towards the job itself. Absenteeism caused due to these factors can be managed by following the expectancy theory. The most widely used is the Vroom‟s Expectancy Model. Vroom realized that an employee's performance is based on individual factors such as personality, skills, knowledge, experience and abilities. Vroom‟s model is based on three concepts:  Valence –
  • 17. 17 Strength of an individual‟s preference for a particular outcome. For the valence to be positive, the person must prefer attaining the outcome to not attaining it.  Instrumentality – Means of the first level outcome in obtaining the desired second level outcome; the degree to which a first level outcome will lead to the second level outcome.  Expectancy – Probability or strength of belief that a particular action will lead to a particular first level outcome. 2.3.1 Major factors for applying expectancy theory The employee‟s need for achievement is a personal trait which influences effort, instrumentality and expectancy. The employee feels that his performance is high and he is willing to expend much effort on the job if it challenges his skills and abilities. His instrumentalities will be high and positive if he believes that the organization will reward his performance. Another factor to be considered in the application of expectancy theory is the firm‟s reward system. Employees always want a clear picture about performance expectations and keep them informed about requirements for successful job performances. Last but not the least; the job design system plays a key role in the expectancy theory. Most employees prefer more control in their work. This can be done by making the job more challenging and fulfilling. One way to do this is to reward employees for acquiring new skills. The more skills they learn, the more control they acquire over their work.  Individual Factors  Self-efficacy  Need for achievement  Locus of Control
  • 18. 18  Valued Outcomes  Performance  Effort  Organisational Factors  Reward System  Job design  Performance Appraisal System 2.4 Equity Theory This theory addresses the problem of inequity as a cause of absenteeism. When people feel fairly treated they are more likely to be motivated. The way that people measure this sense of fairness is at the heart of Equity Theory. The basic idea behind the Equity Theory is that workers, in an attempt to balance what they put in to their jobs and what they get from them, will unconsciously assign values to each of his various contributions. In addition to their time, workers contribute their experience, their qualifications, and their capability in addition to their personal strengths such as acumen and ambition. Money, of course, is the primary motivating outcome for an employee, but it is not the only, and in some cases not even the most important, factor. Power and status are also prime motivators, as are flexibility, perquisites and variety. Research on Equity Theory and employee motivation has shown that, in general, over- rewarded employees will produce more and of a higher quality than will under-rewarded, less motivated employees.
  • 19. 19 2.5 David McClelland‟s - Human Motivation Theory Human motivation is dominated by three needs as follows:  The need for achievement : This states that high achievers prefer to work independently, need immediate feedback on their performance, takes up tasks that are moderately difficult and derives satisfaction from set goals.  The need for power : It states that powerful people derive satisfaction from their ability to control others and being in a position to influence.  The need for affiliation : They derive satisfaction from social and inter-personal activities. Lack of satisfaction of these needs is the major reasons for absenteeism in workplace. The importance of each of these needs will vary from one person to another. With reference to above theories, it justifies that both personal factors of the employees as well as workplace factors have implement on absenteeism. Therefore this research investigates both factors influence on employee absenteeism in Airport & Aviation Services (Sri Lanka).
  • 20. 20 CHAPTER 03 METHODOLOGY This research is organises under deductive research philosophy and such researcher expecting to text the motivation al theories in practice in connection with employee absenteeism in Sri Lankan Ari Line. Further data collection undertaken with reference to survey strategy through a pre tested questionnaire and major part of data being gathered through secondary data. Many internal sources being used with prior authorisation in gathering such secondary data 3.1Conceptual framework Figure 3.1: Conceptual Framework Source: Developed by Researcher Independent variables Dependent variable Personal Factors Workplace Factors Absenteeism
  • 21. 21 3.1.1 Dependent variable Dependent variable of this study is absenteeism which means the occurrence rate of habitual absence of work or duty. According to the past literatures, there are various factors that could influence an employee to be absent at work. Basically, these factors are as follows. 3.1.2 Independent variables  Personal Factors: i. Personal Attitude Individuals possess different attitudes and bring these attitudes forth to the workplace. Employees with strong workplace ethics will respect their work and appreciate their contribution to the organization and as such, will not take unscheduled off from the workplace. Conversely, employees with low or without work ethics are in- disciplined and have behavioural issues. Because they feel no obligation to the organization, absenteeism comes easily to them. ii. Age The age of an employee often affects their attitude to work. The younger the employees are often restless, they want to have fun and be with friends rather than being tied down with responsibilities. This leads to lack of ownership and usually leads to unscheduled and unauthorised time off. iii. Gender Women are usually challenged with balancing their time between work and home. Their families are always the utmost priority, thus they would rather be absent from work to sort out family issues.
  • 22. 22  Workplace Factors: i. Organizational Culture Every organization is a culture with its own norms. An organization with an embedded absenteeism culture, screen played by its management and supervisors lack of commitment would encourage further employee absenteeism. ii. Lack of Motivation and Rewards The relationship between the organization and its employees is influenced by what motives them to work and the rewards and fulfilment they derive from it. Inability of managers or employers to motivate employees and meet their extrinsic and intrinsic needs would lead to lack of motivation and commitment hence, absenteeism in the workplace iii. Absence of learning environment Learning means change, thus can affect organizations effectiveness. Employees love to work in an organization where they would improve themselves and their career through organizational learning and knowledge management, which could be inculcated through coaching, mentoring, trainings and other explicit methods. In an organization where a learning culture is absent, employees feel de- motivated, unsatisfied and feel their career growth is threatened. Hence they excuse themselves from work without authorization in search for greater challenges and organizations where they would gain improve themselves. iv. Stress at work: According to a report cited in Daily FT : „Stress at work is the biggest problem in Sri Lankan companies‟. Voluntary absenteeism takes place because employees are dissatisfied with their job; hence they feel stressed doing the work either because of the work load or unsuitable assigned roles. As an example, wrongly assigning a customer service manager to manage treasury department, without
  • 23. 23 adequate experience and training. Due to lack of adequate experience in the field and fixed timed deliverables and tasks, he feels stressed and harassed in the role and thus breaks down into stress or depression and seeks sick leave and abandons the job. 3.2Ways of Measuring Absenteeism 3.2.1 The Time Lost The time lost which occurred due to the absenteeism can be measured as follows, Number of individual days lost through the absence during period X 100 (Average number of employees) x (Number of Work days) This rate also can be based on number of hours instead of number of days. In the same manner, the “individual frequency” can be measured by using following formula, Individual frequency = (Number of Absent Employees/Average Number of Employees) x100  The Bradford factor can be calculated as follows: B= S2 x D Where: B is the Bradford Factor score S is the total number of spells (instances) of absence of an individual over a set period D is the total number of days of absence of that individual over the same set period The „set period‟ is typically set as a rolling 52 week period. For example: 1 instance of absence with a duration of 15 days (1x 1 x 5) = 5 points
  • 24. 24 4 instances of absence; one of one, one of four and one of six days (4 x 4 x 5) = 80 points 6 instances of absences; each for two days (6 x 6 x 5) = 180 points However, the Bradford Factor has been critiqued for its limited and short-sightedness in effectively measuring absenteeism; this is because it only factors total number and frequency of individual absence into account, neglecting the kind of absence. Measuring absenteeism allows HR and management to determine the extent and reasons of absenteeism in order to take corrective measures. The following are the popular ways to measure absenteeism: 3.2.2 Calculating the Total Time Lost This measure expresses the percentage of total time available which has been lost due to absence:  Total absence (hours or days) in the period x 100 Possible total (hours or days) in the period For example, if the total absence in the period is 124 person-hours and the total time available is 1,550 person-hours, the lost time rate is:  124/1,550 x 100 = 8 % It can be calculated separately for individual departments of groups of employees to reveal particular absence problems. 3.2.3 Calculating the Absence Frequency Rate The method shows the average number of absences per employee, expressed as a percentage. However it does not indicate of the length of each absence period, nor any indication of employees who take more than one spell of absence:  No of spells of absence in the period x 100
  • 25. 25 No of employees For example, if in one month and organisation employed on average 80 workers, and during this time there were a total of 16 spells of absence, the frequency rate is:  16/80 x 100 = 20% By counting the number of employees who take at least one spell of absence in the period, rather than to total number of spells of absence, this calculation gives an individual frequency rate 3.3Sample technique Simple random sampling technique will be used as the sampling technique 3.4Data collection method Data gathered from both primary sources and secondary sources. Secondary data refers to information obtained from reports of human resource department in AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED as well as past researches. Primary data were gathered via questionnaire method. 3.5Data analysis method Descriptive statistics have been used to analyse the data through spread sheet application.
  • 26. 26 CHAPTER 04 DATA ANALYSIS 4.1 Introduction This data analysis chapter consists with the output of the research. According to this research, Impact of personal factors as well as work place factors on absenteeism was analysed. In this research, the researcher used three personal factors and four work place factors under the independent variable and preference to being absent is measured under the dependent variable. For the data analysis purpose, Microsoft excel has been used. 4.2 Gender distribution Figure 4.1: Gender distribution of the responders in the sample Source: Survey data According to the analysed data, among 50 employees in the selected sample 17 amounts consists with male employees and 33 amounts consists with female employees.
  • 27. 27 4.3 Age Distribution Figure 4.2: Age distribution of the responders in the sample Source: Survey data Four age categories have been identified within selected sample and highest number of employee are within 25-30 age category. 4.4 Employee preference for being absent to work Figure 4.3: Employee preference for being absent to work Source: Survey data
  • 28. 28 According to the analysed data among 50 employees, 23 of employees are preferred to being absent to work. 4.5 Impact of personal factors towards absenteeism 4.5.1 Willingness to absent based on negative attitudes Figure 4.4: Willingness to absent based on negative attitudes Source: Survey data Negative attitude of the employees towards work has highly impacted on absenteeism and 22 numbers of employees who prefer to be absent to work have negative attitudes for working.
  • 29. 29 4.5.2 Willingness to absent based on age category Figure 4.5: Willingness to absent based on age category Source: Survey data According to the age factor, highest number of employees who prefer to be absent includes in between 25 and 30 age category. Then consecutively 18-25 age category, over 40 age category and zero from 30-40 age category. 4.5.3 Willingness to absent based on gender category Figure 4.6: Willingness to absent based on gender category Source: Survey data
  • 30. 30 With reference to gender, 15 numbers of male employees are preferred to be absent to work and there are 4 female employees who prefer to be absent to work. 4.6 Impact of work place towards absenteeism 4.6.1 Willingness to absent based on culture Figure 4.7 Willingness to absent based on culture Source: Survey data According to the analysed data employees who work under strict rules and regulations, reluctant to be absent for their work.
  • 31. 31 4.6.2 Willingness to absent based on motivation Figure 4.8: Willingness to absent based on motivation Source: Survey data 18 numbers of employees who within absenteeism positive category are not satisfied with the motivation methods which have been implemented by the organization. 4.6.3 Willingness to absent due to absence of learning environment Figure 4.9 Willingness to absent due to absence of learning environment Source: Survey data Due to lack of training and development facilities of the organization 17 numbers of employees are prefer to be absent to work.
  • 32. 32 4.6.4 Willingness to absent due to working stress Figure 4.10 Willingness to absent due to working stress Because of the stress in the working environment, 13 numbers of employees do not prefer to attend to their work regularly.
  • 33. 33 CHAPTER 05 CONCLUSION AND RECOMMENDATION 5.1 Conclusion Employee absenteeism can be a nuisance that if left unattended can become a significant expense to any company which includes in loss of productivity. It affects every business in different ways. Absenteeism does not discriminate and affects individuals no matter their sex, race, or religion. It is important to acknowledge that absenteeism has consequences and most importantly that it costs companies funds. In these tough economic times, unscheduled absences cost companies in turnover, sick time and replacement costs. It is the nature of the beast. Employers should do well to recognize this and try to counter its effects. An occupied employee is less likely to be habitually absent. Let them know what is expected and routinely reward them for their efforts. Management, absenteeism is an important concern from the viewpoints of service delivery, efficacy and a concern for their employees. Absenteeism is also an important and legitimate concern of trade unions in their role of supporting measures that alleviate the causes of absenteeism including counselling programmes, wellness programmes and enhancement of co-worker and supervisor support and the construction of better working arrangements that suit the needs of both employer and employee. To be effective strategies will need to focus on areas of common concern to workers, management and unions, and will require the co-operation of these parties.
  • 34. 34 That absenteeism is a very complex subject is shown by the enormous number of factors believed to contribute to it, and the mostly ineffectual methods that have been traditionally used in attempts to reduce it. Approaches to workplace attendance need to take into account the complexity of humanity its behaviour and needs and not merely consider the matter in terms of money saved or work to be performed. Absenteeism can only be modified but not eliminated when it is excessive. For a programme to be effective an organization must benefit from it in terms of decreased costs and from the production of a work force with a higher level of morale and commitment. The common responses to absenteeism are to tighten up certification requirements, restrict access to sick leave, discipline offenders or censure doctors issuing the certificates. These approaches neglect to focus on the opportunity to explore structural and policy factors, which contribute to absenteeism. Ignoring the situation, whereby it may be the culture of an organization that is a strong determinant of absence behaviour, may reduce the opportunity for effective intervention based upon effective policies and communication, development of supervisory skills and procedures. Acknowledge the external factors that cause absenteeism, draw suggestions from the employees on how to handle these issues and implement programmes and policies to assist and guide employees. It may not eliminate absenteeism from your workplace but it may very well decrease levels and foster good employee employer relations. 5.2 Measurement and benchmarking Measurement is an important step to the assessment of workplace attendance. There is a frequent tendency to just guess the extent or focus on a perceived problem rather than to take a systematic approach. There are very few norms for sickness absence though some have suggested limits of concern.
  • 35. 35 Benchmarking within industry categories and within organizations is an important tool for absence management. The question of the need to measure is a simple one, but what to measure becomes more complex. Most companies keep records for accounting reasons to ensure that leave is not expended past entitlements. This is often kept in personnel files or cards. Such data, however, is not readily accessible for systematic analysis. The increasing use of computer databases for personnel and pay records has the potential to provide more meaningful information. The rate, pattern and distribution of lost time from sickness absence can give an insight into the possible causes of absenteeism. For example, through assessing temporal relationships relating to shifts, weekends, rostered overtime, patterns such as absence length or classification (such as certified or uncertified leave), productivity, turnover and key organizational event indicators, factors associated with absenteeism can be identified. At first glance measuring absenteeism would appear to be an easy proposition. It means staff is either at work or not. Such a rate, however, tells us little about what may be happening and what may be the causes. The distribution of leave taking is typically skewed, with most episodes being short and frequent. Awards influence the pattern leave by placing limits on the total of certified and uncertified leave available. The patterns of these types of leave may be very different. The timing of leave is also important. It seems more frequent at the beginning or end of a working roster, near public holidays and during school holidays. Increased levels occur during the months where weather changes in association with the peak of upper respiratory tract infectious disease. In most organizations half the total time lost is due to a small fraction of the workforce. The key features are:  defining absence leave types  defining a denominator- normal working hours, normal working days per year  an absence profile
  • 36. 36  attaching a cost (financial and productivity)  able to be diagnostic  integrated with other performance measures Positive measures such as attendance rather than absence may offer a useful interpretation of the data. There are a number of hidden areas of cost in administration, human resources, training and overtime. Costs and opportunities for improvement not only include high frequency short-term leaves but also prolonged sickness absence. Hidden losses such premature retirements are not often considered. Measurement should lead to benchmarking and the use of quality management tools such as control charts to detect and monitor performance. Monitoring systems need to be in tune with organizational structure with figures referable to areas of responsibility. Frequently this will require the use of computer based systems. 5.3 Managing absenteeism Absenteeism is often symptoms of larger organizational problems and can be managed as thus: 5.3.1 Leadership modelling and commitment Managerial commitments and participatory culture have an important impact on attendance. E.g. in a retail company, a manager who demonstrated little commitment to attendance practices recorded one of the highest absenteeism rates in his organization.
  • 37. 37 5.3.2 Work motivation and rewards Motivation in the work place is the driving force to achieve employee job satisfaction and commitment. This motivation could be Extrinsic or Intrinsic. Extrinsic motivation relates to the tangible rewards e.g. Salary, security, promotion and conditions of work while, Intrinsic motivation relates to the psychological rewards which includes; a sense of challenge and achievement, participation and appreciation from the employer. According to Maslow‟s hierarchy of needs; the expectancies of an employee from the employer are captured as; Motivated employees overcome obstacles to make it to work. The key to reducing employee absenteeism is to create a culture where employees want to come to work. 5.3.3 Effective Groups and Team Building Groups and teams are essential features of the work pattern of organizations. These include formal and informal groups, project and virtual teams. Effective group and team building encourages inter personal relationships, fulfils the individuals psychological need of love and belonging, encourages organisational learning and communication while reducing conflicts in the organization. This ultimately gives employees, sense of belonging and contribution, job satisfaction and an increased love for the job which will be evidenced in attendance rate. 5.3.4 Recruitment and selection Employers should recruit employees with good attendance records. This information should be included in references.
  • 38. 38 5.3.5 Employee orientation and training Attendance norms should be established the first day on the job. These norms are inculcated at inductions and orientation sessions. 5.3.6 Performance Appraisal This can boost employee attendance rates. Management should attach attendance rates to performance appraisals, if employees are aware that attendance would be a part of their appraisal, they would minimize unnecessary absence from work. 5.4 Solutions to control absenteeism 5.4.1 Address Debt in the Workplace Companies are encouraged to hold employee workshops facilitated by trained debt counsellors and where possible address affected employees in individual sessions. If the interventions are successful, they can bring about a decrease in absenteeism. 5.4.2 Create an Absenteeism Policy By recording and analysing employee absences, a company can pinpoint problems/trends in the company and implement an effective attendance and absenteeism policy. Introduce a rule in the company that requires employees to contact their immediate supervisors to report their absence for the day, before a certain time. Make it clear that the employee must be able to provide a satisfactory explanation if he fails to make the report himself.
  • 39. 39 5.4.3 Conduct „Return to Work‟ Interviews It is useful to introduce a „Return to Work. Interview Form‟ for the immediate supervisor to complete each time an employee returns from sick leave. This will serve as a form of „visible‟ management of the problem as the company will be seen to be addressing matters as they arise and will also discourage those regular „entitlement‟ offenders. 5.4.4 An Effective Employee Assistance Programme This includes wellness programmes. Employers need to think of their contributions to these programmes not only in terms of the provision of a benefit to employees but as an investment in productivity for the company. 5.4.5 Ask Employees what they want and Implement what is Possible Suggestion boxes and surveys that seek anonymous feedback about the workplace provide information about interest and engagement among employees. Implementing many of these suggestions are free or inexpensive. Casual Fridays or a spontaneous jeans day, is engaging, motivating and is great for succession planning. An engaged employees are absent less often. 5.4.6 Reward Great Results Don‟t save recognition of good work for annual functions and performance reviews. Recognition does not have to be monetary; in fact studies verbal praise is more effective, so are gift certificates for goods or services or an afternoon off. All employees provide some benefit to the company. A recognized employee is less likely to be absent. 5.4.7 Provide a Good Working Environment As much as possible, make sure the environment employees work in is clean, technologically updated and pleasant with ergonomically correct office furniture or
  • 40. 40 machinery. Provide a lounge where employees can eat or take a break and make sure occupation health and safety procedures are followed. 5.4.8 Keep the Lines of Communication Open Enforce absenteeism policies but do so effectively and judiciously. Other employees are watching how someone struggling is treated and it will impact their impression of the company. However, the employee who is clearly just disinterested and disrespectful does need to be disciplined or dismissed. Be flexible and proactive in devising short-term solutions like working from home, non-traditional hours or a reduced work week. 5.4.9 Introduce Workplace Stress Strategy One of the most commonly used models of occupational stress is the person environment fit model. This provides two avenues for reducing the experience of work stress, firstly by improving and enhancing the skills and strengths of individuals and secondly by reducing the numbers and strength of occupational stressors. There is evidence to suggest that organizational level interventions may be more effective. Effective and simple strategies exist to assess workplace stress as a component of absence management practices. Whilst they do not represent a primary strategy, they may be important in environments where there is high absenteeism, high turnover, low morale, reduced productivity and frequent episodes of occupational stress. In a review of academic methods and practical managerial procedures, various techniques are discussed in terms of cost and accuracy. Stress management and stress training may have an important role in some industries and workplaces. Skills in conflict management and conflict resolution are valuable for managers as well as employees. Attendance impacts may be expected in the following circumstances:  Shift work- existing, introduced or modified
  • 41. 41  Downsizing  Relocation  Rapid change  Major events: fire, explosion, violence  Technological change. 5.4.10 Workplace organization, work and management practices  Flexible Working Arrangements The introduction of flexible work practices requires a high level of organization, planning and support. Issues such as equity of participation, monitoring, dispute resolution and penalty payments will need to be considered in advance. Many managers may be familiar with the taking of sick leave when annual leave or other leaves are denied. Poor planning, lack of consideration of staffing requirements and leave requisitions can result in destructive leave taking patterns. Short recreational or discretionary leaves ranging from one to four days together with forward manpower planning are useful considerations. Unfortunately there is little objective discussion on the effectiveness of the provision of childcare on employee attendance, though there is a weight of opinion that suggests that it may be very effective. There is good evidence to support the effectiveness of childcare provision in reducing turnover and improving recruitment. Its effect on absenteeism is ambivalent.
  • 42. 42 REFERENCES 1. Paul S. Goodman, Robert S. Atkin. (1984). Effects of Absenteeism on Individuals and Organizations. 283-300. 2. Upekha Tammita, B. M. D. Seedevi, D. G. T. S. Jayarathne, Aruna Welianga,(2010). A Study of Employee Absenteeism in the Apparel Industry. Human Resource Management Journal. 3. Managing Absenteeism Management Essay. (n.d.). Retrieved 2003-2006, from www.ukessay.com:http://www.ukessays.com/essays/management/managingabsen teeism-management-essay.php
  • 43. 43 APPENDIX A : CIRCULAR NO. AP/1 – WORKING CONDITIONS AND RULES GOVERNING EMPLOYEES B : NOTICE NO: HR/621 - PAYMENT OF BONUS AND EX-GRATIA PAYMENT FOR THE YEAR 2014 C : NOTICE NO: HR/635/5/INSU - HEALTH INSURANCE SCHEME D : CIRCULAR NO. AP/178 - PAYMENT OF MEAL ALLOWANCE E : CIRCULAR NO. AP/32 - MATERNITY LEAVE FOR FEMALE EMPLOYEES The above appendixes were extracted from the available circulars and notices issued to the concern of employees of Airport & Aviation Services (Sri Lanka) Limited by the Board of Management, with the permission of Head of Human Resources.
  • 44. 44 APPENDIX A : CIRCULAR NO. AP/1 AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED WORKING CONDITIONS AND RULES GOVERNING EMPLOYEES 1. Normal Hours of Work - Monday to Friday 0830hrs to 1645hrs 1.1 Intervals - Lunch :- 1230hrs to 1315hrs Tea :- There will be no tea breaks 1.2 - Unless otherwise specifically instructed by the Management every employee shall present himself/herself for work each day at the starting time of the office and shall remain there available for work throughout the normal working hours as at „1‟ above. 1.3 - The hours of work as given in „1‟ is subject to change from time to time depending on exigencies of service. 2. Recording of Attendance - Employee will record their exact time of arrival and departure on attendance registers. 2.1 Late Attendance - i) A grace period of 5 minutes only will be given in respect of late attendance. ii) Any arrival after the grace period of 5 minutes will be subject to pay
  • 45. 45 deductions in the following manner :- 06 – 14 - 15 minutes 15 – 30 - 30 minutes iii) Any arrival after 30 minutes may be allowed to sign on at the sole discretion of the Management, subject to ½ days leave/pay cut. iv) Late attendance will entail disciplinary action including :- (a) Withholding of increments (b) Dismissals 3. Half Days Leave - Employees taking half days leave should report/leave office at following times :- i) 1230hrs – leaving time ii) 1315hrs – reporting time 4. Leave - Permanent employees are entitled to the following leave for a year :- Casual - 7 days Annual - 14 days Sick - 21 days 4.1 Casual Leave - Casual leave is intended to enable an employee to absent himself/herself for a short period for personal reasons,
  • 46. 46 An employee is entitled in the first year of employment to one day‟s casual leave for each period of 2 months completed service and to the full quota of 7 days from the 2nd calendar year in service. Casual leave shall not be granted for more than 2 days at a time. Casual leave shall be obtained whenever possible by application in the appropriate form at least 24 hours before the time from which leave us required. 4.2 Annual Leave - Annual leave will be granted as follows Employee will not be entitled to annual leave in the calendar year of recruitment but will be entitled to annual leave during the second calendar year of recruitment on a proportionate basis depending on the date of commencement of employment as indicated hereunder and to the full quota thereafter. i) January – March - 14 days ii) April – June - 10 days iii) July – September - 07 days
  • 47. 47 iv) October – December – 04 days Annual leave must be applied for and approval obtained on appropriate form before the date on which leave commences. 4.3 Sick Leave - An employee is entitled in the first calendar year of employment to 2 days sick leave for each completed month of service but not exceeding 21 days for a year. In the second calendar year of service he/she will be entitled to the full quota of 21 days. If an employee enters a Government hospital for treatment he/she shall immediately inform the management giving full particulars. Continuous absence exceeding 14 days should be supported by a medical certificate from a Government doctor/company approved doctor. 5. Maternity Leave - Maternity leave to female office employees will be granted in terms of the Shop & Office Employees Act, which at present is 12 weeks
  • 48. 48 (excluding statutory holidays, company holidays). 6. Weekly Holidays - Saturday and Sunday shall be weekly holidays. Saturday, though a non-working day will be regarded for the purpose of weekly holiday a half working day. Sunday shall be a full weekly holiday. 7. Statutory Holidays - All employees are entitled to the following days which have been presently declared by the Government as Statutory Holidays :- Thai Pongal Day Independence (National) day Milad-un-Nabi (Holy Prophet Mohamed‟s Birthday) The day immediately prior to Sinhala/Hindu New Year Day Sinhala/Hindu New Year Day May Day National Hero‟s Day Day immediately succeeding Wesak Full Moon Day Christmas Day 8. Overtime Work - Work outside normal working hours is
  • 49. 49 considered as overtime work. 8.1 Payments - Monthly Salary – Every employee shall be paid his/her salary will be paid on the 25th of each month. Salary for period less than 1 month shall be computed as follows :- For one hour – Monthly Salary 240 For one day – Monthly Salary 30 For half day – Monthly Salary 30 x 2 9. Absence from Duty - An employee shall not absent himself/herself from duty without the prior permission of his/her respective superior officer. If an employee absent himself/herself without obtaining prior permission for reasons which were unforeseen he/she shall inform his/her superior officer by telegram/telephone or any other means within 24 hours of the time he/she was to have reported for work. When an employee obtains leave he/she must as soon as he/she returns to work
  • 50. 50 fill up a leave application form and submit it to his/her superior officer for his covering approval. 10. Probation Period - All appointments are subject to a period of 01 year probation from the date of appointment as specified in each individual letter of appointment. the Management reserves the right to summarily terminate the services of any employee if his/her work. 11. Increments - Annual increments will be granted with effect from 1st January each year as indicated in the letters of appointment and will be dependent on a certificate issued by the respective Head of the Division that the employee concerned has discharged his/her duties with efficiency, diligence and fidelity during the incremental year and thereby earned his/her increment Any disciplinary action imposed or any No-pay Leave obtained b the employee during the incremental year will be taken into account for the purpose of increment. 12. Transfer of Employees - Employees may be transferred at any time without notice to any place of work of the Company in any part of the
  • 51. 51 country. 13. Retirement - No employee shall continue in employment after his/her 60th birthday, except at the sole discretion of the Management. 14. Obligation of Employees - All employees of the company are expended at all times to discharge the duties entrusted to them with efficiency, diligence and fidelity, to safeguard the property, personnel an interest of the company. Sgnd. CHAIRMAN
  • 52. 52 APPENDIX B :- NOTICE NO: HR/621 AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED PAYMENT OF BONUS AND EX-GRATIA PAYMENT FOR THE YEAR 2014 Considering the growth in the operational performance of the Company mainly due to the peace prevailed in the country during the year, the Board of Directors at it‟s meeting held on 2nd December 2014 decided to pay Bonus and Ex-gratia payments as detailed below . Board of Directors is pleased to inform you that it has been decided to increase the Ex- gratia payment up to Rs. 40,000/- for this year in recognition of co-operation and dedication of the staff in improving performance of the Company. Bonus Payment : - Three months basic salary subject to a minimum of Rs. 20,000/- (Net of Tax). Ex-gratia Payment:- Rs. 40,000/- (Net of Tax) is granted.  The Board of Directors wishes to emphasise that the quantum of Bonus/Ex-gratia Payment to its staff in any year depends on the financial status of the Company.  The advance already paid in April 2014 against the Bonus for year 2014 will be set-off from the total sum mentioned above when making payments in December 2014.  All Heads of Divisions are kindly requested to bring the contents of this communication to the notice of all employees in their division Sgnd CHAIRMAN 03/12/2014
  • 53. 53 APPENDIX C :- NOTICE NO: HR/635/5/INSU AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED HEALTH INSURANCE SCHEME Objective :- The main object of the scheme is to provide financial assistance to Company employees and their family units for medical treatments obtained locally and/or in a foreign country in respect of themselves and their family units by way of reimbursement of expenses partly or fully incurred by an employee. Coverage :- The medical benefits under the scheme are classified as Indoor (Hospitalization) Outdoor Treatments Critical Illness Cover for Special Surgical Treatment Instructions :- Those employees who wish to enjoy the benefits under the Health Insurance Scheme Operated by the Company could remain and continue to received the benefits under the Scheme 1 of the New Scheme with the same contribution of Rs. 250/- per month. Scheme Indoor Benefit Outdoor Benefit Contribution per Employee per month Contribution per Employee per year Scheme 1 Rs. 100,000/- Rs. 22,500/- Rs. 250/ Rs. 3,000/-
  • 54. 54 Those employees who wish to obtain further benefits under Scheme 2, 3 or 4 under the New Health Insurance Scheme could do so by contributing the monthly payment applicable as shown hereunder. Scheme Indoor Benefit Outdoor Benefit Contribution per Employee per month Contribution per Employee per year Scheme 2 Rs. 150,000/- Rs.25,000/- Rs. 2,214.90 Rs. 26,578.80 Scheme 3 Rs. 200,000/- Rs. 27,500/- Rs. 2,672.47 Rs. 32,069.64 Scheme 4 Rs. 300,000/- Rs. 30,000/- Rs. 3,435.07 Rs. 41,220.84 Cover Benefit For All Schemes Critical Illness Any one event per person Rs. 800,000/- Annual Aggregate Rs. 7,500,000/- The employees who wish to do so are requested to perfect and return the attached application form to reach Head of Human Resources on or before 1st April 2014. All Heads of Divisions are kindly requested to bring this to the notice of all employees of their division. Sgnd CHAIRMAN 01/03/2014
  • 55. 55 Attachment to Notice No: HR/635/5/INSU Health Insurance Scheme Application for Additional Benefits 1. Name of Employee : 2. Service No. : 3. Designation : 4. Division : 5. Enrolment No. : 6. The scheme I wish to join to obtain further benefits under the Health Insurance Scheme. (Please mark () in the appropriate cage) Scheme 1 Scheme 2 Scheme 3 Scheme 4 Scheme Indoor Benefit Outdoor Benefit Contribution per Employee per month Contribution per Employee per year Scheme 1 Rs. 100,000/- Rs. 22,500/- Rs. 250/ Rs. 3,000/- Scheme 2 Rs. 150,000/- Rs.25,000/- Rs. 2,214.90 Rs. 26,578.80 Scheme 3 Rs. 200,000/- Rs. 27,500/- Rs. 2,672.47 Rs. 32,069.64 Scheme 4 Rs. 300,000/- Rs. 30,000/- Rs. 3,435.07 Rs. 41,220.84 I consent to deduct a sum of Rs……………….. per month from my salary with effect from January 2015. Date …………………….. Signature of Employee …………………… Head of Human Resources Forwarded please. Date ………………………. …………………………………….. Signature of Head of Division
  • 56. 56 APPENDIX D : CIRCULAR NO. AP/178 AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED PAYMENT OF MEAL ALLOWANCE Board of Management has decided to pay a Meal Allowance of Rs. 65/- to all employees for the working days of each month. This decision will come into effect from 1st October 2006. For the purpose of payment of Meal Allowance, normal working days of a month will be considered. Normal working days of a month = No. of days of the month – (Saturdays + Sundays + Mercantile Holidays + Poya Days) Number of days of leave availed by an employee should be deducted from the normal working days of the month for this purpose. If an employee has availed half a day‟s leave, he/she is not entitled for the Meal Allowance for the said day. All Heads of Division are requested to calculate the number of days for the entitlement of Meal Allowance per employee and inform such details to the Finance Division by the 10th of each month using the specimen formal attached hereto, with a copy to Head of Internal Audit & Quality Assurance. Please bring the contents of this Circular to the notice of all employees. Sgnd. CHAIRMAN 08/11/2006
  • 57. 57 Attachment to AP/178 DETAILS OF EMPLOYEES FOR MEAL ALLOWANCE Division : Month : S/No. EPF No. Name of Employee No. of working days for the month No. of days leave availed* No, of days entitled for Meal Allowance *For this purpose ½ day‟s leave should be treated as 01 day‟s leave. Date : Prepared by : Checked by : ..……………………………… Signature of Head of Division cc : Head of Internal Audit & Quality Assurance
  • 58. 58 APPENDIX E : CIRCULAR NO. AP/32 AIRPORT & AVIATION SERVICES (SRI LANKA) LIMITED MATERNITY LEAVE FOR FEMALE EMPLOYEES With the amendment to the Shop & Office Employees Act by Act No. 44 of 1985, the following procedures relating to maternity leave benefits will be implemented. (i) A female employee who expected to be confined should give notice in writing to the Head of Division in which she works that she expects to be confined within 14 days from the date to be specified by her in the notice. (ii) Upon receipt of such notice the Head of Division will allow 14 days leave to end on the day immediately preceding the date of confinement. (iii)In addition to the 14 days mentioned above, a female employee will also be allowed leave as follows :-  70 working days of leave commencing on the date of confinement if the confinement resulted in the issue of a live child and she has, at the date of such confinement, no child or has one child (in other words a female employee will be allowed 70 days of leave for any number of surviving child). (iv)If the employee has not been able to avail of the 14 days of leave mentioned in (i) above, as a result of the confinement occurring earlier than the expected date, she will be allowed to take the balance period of un-availed leave from the 14 days after the expiry of the leave she would be applying for under (iii), provided that she mentioned same in her application for leave giving the necessary particulars.
  • 59. 59 (v) In counting the days of leave, only working days, should be taken into account. Weekly off days, Poya days, Statutory Holidays and Special Company Holidays falling within the period of maternity leave should be excluded. All Head of Divisions are kindly requested to bring the contents of this Circular to the notice of all employees of your division. Sgnd. CHAIRMAN
  • 60. 60 INSTITUTE OF CHARTERED CORPORATE SECRETRIES OF SRI LANKA THESIS FOR ICCS STUDENTS CERTIFICATION BY THE STUDENT Title of Thesis : Measuring And Managing Absenteeism At Airport & Aviation Services (Sri Lanka) Limited, Bandaranaike International Airport, Katunayake. I Mrs Dona Anuri Kilanthi Nandiweera hereby certify that this Thesis is the result of my own independent work and investigation, except where otherwise stated. Such other sources are acknowledged in the footnotes/endnotes, by specific reference in the text, in the bibliography, etc. This work has not previously been accepted in substance for any Diploma, Degree or other program of studies, and is not being concurrently submitted in candidature for any such program. I give my consent for this presentation to be made available for reference in the Library of the ICCS or for copying for limited academic purposes. ICCS Student Registration No. :0096 Signature of Student : Full Name of Student : Mrs Dona Anuri Kilanthi Nandiweera Dated this14th day of January 2016.
  • 61. 61 INSTITUTE OF CHARTERED CORPORATE SECRETRIES OF SRI LANKA THESIS FOR ICCS STUDENTS CERTIFICATION BY THE SUPERVISOR Title of Thesis : Measuring And Managing Absenteeism At Airport & Aviation Services (Sri Lanka) Limited, Bandaranaike International Airport, Katunayake. ICCS Student Registration No. :0096 I have supervised the appended Thesis of the above student of the ICCS. The student has discussed drafts with me during the conduct of research and writing of this work and I have read the draft/s and provided advice and guidance to the student where necessary. Name of Supervisor : Mr Rajitha Silva Signature of Supervisor : Dated this 14th day of January 2016.
  • 62. 62 QUESTIONNAIRE Dear Sir/ Madam, Attached here with is the questionnaire that I am using to collect data for my research on “Measuring and Managing Absenteeism at Airport & Aviation Services (Sri Lanka) Limited Bandaranaike International Airport, Katunayake”. Please be kind to provide your genuine responses and complete this questionnaire. The information provided by you will be treated confidentially and will only be used for the purpose of the study. Please answer all questions by tickingmark of your own opinion. Thanking in advance for your kind cooperation. Section 1 - Personal Information 1.1 Gender Male Female 1.2 How old are you? 18 - 25 years 30 - 40 years 25- 30 years over 40 years Section 2 – Factors affecting the absenteeism 2.1 Do you feel stress at work? Yes No 2.2 Is it a reason for not attending to the job? Yes No
  • 63. 63 2.3 Are there any motivations of rewards that you have got from your organization? Yes No 2.4 Do you think that is enough? Yes No 2.5 Are the any big changes in your work place/ job? Yes No 2.6 Do you prefer to work in a changing environment without absenting? Yes No 2.7 Do your supervisor, immediate boss punish you on absent to work? Yes No 2.6 Do your supervisor, immediate boss provide a leave if you request? Yes No 2.7 Do you feel continuous attendance give benefits to you or for the organization? Yes No 2.8 Have you ever feel not to attend to work even there is no any reasonable issue? Yes No