Employee Absenteeism in Rane TRW Steering Systems

i
A STUDY ON THE ABSENTEEISM WITH REFERENCE TO RANE TRW STEERING
SYSTEMS LIMITED, CHENNAI
By
LOGESHWARAN A
Reg No: 412515631052
Of
SRI SAI RAM ENGINEERING COLLEGE
A REPORT
Submitted to the
FACULTY OF MANAGEMENT STUDIES
In partial fulfillment of the requirements
For the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY
CHENNAI – 600 025
FEBRUARY 2017

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BONAFIDE CERTIFICATE
This is to certify that this summer internship report titled “A STUDY ON ABSENTEEISM
WITH REFERENCE TO RANE TRW STEERING SYSTEMS LIMITED,CHENNAI” is
the bonaﬁde work of Mr.LOGESHWARAN A (REGNO: 412515631052) who carried out the
work under my supervision. Certiﬁed further, that to the best of my knowledge the work reported
herein does not form part of any other project report or dissertation on the basis of which a
degree or award was conferred on an earlier occasion on an this or any other candidate.
DR.R.SURESH Dr K MARAN
(Project Guide) ( Director-SIMS)
INTERNAL EXAMINER EXTERNAL EXAMINER

iii
DECLARATION
I,LOGESHWARAN A, hereby declare that the final project report, entitled “A STUDY ON
ABSENTEEISM WITH REFERENCE TO RANE TRW STEERING SYSTEMS
LIMITED,CHENNAI” Submitted to the Anna University Chennai in partial fulfillment of the
requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is
record of original and independent research work done by me during February 2017 to May 2017
under the supervision of Dr.R.Suresh, Professor, Department of Management Studies, and it
has not formed the basis for the degree or other similar title to any candidate of any university.
Place : LOGESHWARAN A
Date : Reg. No. 412515631052

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ACKNOWLEDGEMENT
I would like to express deep felt gratitude to Dr.C.V.JAYAKUMAR, Principal of Sri
Sairam Engineering College for providing the required arrangements to carry out this project
work.
I am indebted to HEAD OF DEPARTMENT PROF Dr.K.MARAN who provided all the
suggestions and support for the completion of my project.
My deepest gratitude to my project guide Dr.R.Suresh for constant encouragement to
complete the project.
It is great pleasure and privilege to express my gratitude and to MR. Y. THIYAGRAJAN
SENIOR HR MANAGER in RANE TRW STEERING SYSTEMS for the help rendered by him
during the training period.
Last but not the least I also thank the RANE TRW STEERING SYSTEMS for helping
me directly in the fruitful completion of my project.
It is an immense source to pleasure to place on record my deep sense of gratitude and
special thanks to all of them for their encouragement, support and helpful guidance and wishes.
LOGESHWARAN A

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ABSTRACT
Absenteeism is a major problem which adversely affects the entire industrial economy hence the
extent to which absenteeism of the workers can be reduced is of great importance to the success
of an industry. The problem of absenteeism is of vital importance in Indian organization because
in comparison to the west, the rate is considerably higher in India. Absenteeism among workers
is one the most establishing factors. This study aims to identify factors that result in employees’
absenteeism in an organization, which may help the company manager to develop and identify
attitudes of employees for minimising absenteeism. In an organization, it results in production
losses; an increase labour cost and reduces efficiency of operation. The losses and additional
costs caused by absenteeism expressed in terms of money will be alarming. The increased
productivity of an industry mainly depends upon the best possible use of man power which is the
most valuable and hampers the entire production process. The economic and social losses
occurring from absenteeism cannot be determined accurately. It is difficult to make even an
approximate estimate of such losses because so many factors are involved which do not lend
themselves to accurate measurements. In the first place, there is a lack of evidence concerning
the seriousness of industrial absenteeism because records are inaccurate and incomplete. Only a
small number of organizations attempt to understand this problem or make an effort to solve it. It
is an industrial malady affecting productivity, profits, investments and absentee workers
themselves. As such, increasing rate of absence adds very considerably to the cost of industry
and hampers industrial progress. The absence of a few workmen is an imposition on others,
affects work scheduling and adds to costs that push the price of absenteeism far beyond one
day‟s salary.

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TABLE OF CONTENTS
ACKNOWLEDGEMENT iv
ABSTRACT v
LIST OF TABLES ix
LIST OF FIGURES xi
SL.NO. TITLE
PAGE
NO.
I
1. INTRODUCTION 2
1.1 Introduction of the Study
1.1.1 Causes of Absenteeism 1
1.1.2 Costs of Absenteeism 2
1.1.3 Trends in Absenteeism 3
2
3
4
4
1.2 Industry Profile
1.2.1 Introduction
1.2.2 Market Size
1.2.3 Government Initiatives
1.2.4 Road Ahead
5
7
7
9
10
1.3 Company profile
1.3.1 Mission & Values
1.3.2 Vision
1.3.3 Recent innovation in RTSSL
1.3.4 Rane Company and Product Range
1.3.5 Facilities
13
13
13
13
15

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1.3.6 Quality
1.3.7 Acheivements
1.3.8 HR visions & initiatives
15
15
16
1.4 Review of Literature 19
1.5 Need for the study 22
1.6 Objectives of the study 23
1.7 Scope of the study 24
1.8 Research methodology
1.8.1 Methods of data collection
1.8.2 Statistical Tool used
25
26
26
1.9 Limitations of the study 27
II
2.DATA ANALYSIS AND
INTERPRETATIONS
2.1 Percentage analysis
2.2 Chi Square test
2.3 Independent Sample t test
2.4 One way ANOVA
28
30
43
45
47
3. SUMMARY OF FINDINGS, SUGGESTIONS
AND CONCLUSION
53
3.1 Findings 54

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III 3.2 Suggestion 55
3.3 Conclusion 56
References 57
Appendix 61

ix
LIST OF TABLES
SL.
NO.
TITLE PAGE
NO.
1 Age of the Respondents 30
2 Current Stay of the respondents 31
3 Level of Satisfaction of the respondents 32
4 Monthly Income of the respondents 33
5 Level of Satisfaction of the respondents with respect to
income
34
6 Work Experience of the respondents 35
7 Degree of Balancing their work within permissible leave of the
respondents
36
8 Level of awareness of leave rules and policy by the
respondents
37
9 Leave is either informed or not by the respondents 38
10 PL Credit availability to the respondents 39
11 Awareness of Company Disciplinary Actions by the
respondents
40
12 Level Of Satisfaction by the respondents 41
13 Reasons for Dissatisfaction by the respondents 42
14(i) Crosstabulation- Awareness of leave rules Vs Work
experience
43
14(ii) Chi-Square Test- Leave rules Vs work experience 44
15(i) Age Vs Level of satisfaction (Independent Samples Test) 45
15(ii) Age Vs Level of satisfaction (Independent Samples Test) 46
16 No of Days Vs Current Stay-ANOVA 48
17(i) Level of Satisfaction Vs Income- Descriptives 49
17(ii) Level of Satisfaction Vs Income- ANOVA 50
18(i) Work Experience Vs Level of Satisfaction- Descriptives 51

x
18(ii) Work Experience Vs Level of Satisfaction-ANOVA 52

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LIST OF FIGURES
SL.
NO.
TITLE PAGE
NO.
1 Age of the Respondents 30
2 Current Stay of the respondents 31
3 Level of Satisfaction of the respondents 32
4 Monthly Income of the respondents 33
5 Level of Satisfaction of the respondents with respect to
income
34
6 Work Experience of the respondents 35
7 Degree of Balancing their work within permissible leave of the
respondents
36
8 Level of awareness of leave rules and policy by the
respondents
37
9 Leave is either informed or not by the respondents 38
10 PL Credit availability to the respondents 39
11 Awareness of Company Disciplinary Actions by the
respondents
40
12 Level Of Satisfaction by the respondents 41
13 Reasons for Dissatisfaction by the respondents 42

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CHAPTER -I
INTRODUCTION
1.1 INTRODUCTION
Employee Absenteeism is referred to herein as failure of employees to report for
work when they are scheduled to work. Employees who are away from work on
recognized holidays, vacations, approved leaves of absence, or leaves of absence
allowed for under the collective agreement provisions would not be included. Employee
Absenteeism is a habitual pattern of absence from a duty or obligation. Traditionally,
Employee absenteeism has been viewed as an indicator of poor individual performance,

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as well as a breach of an implicit contract between employee and employer; it was seen
as a management problem, and framed in economic or quasi-economic terms. More
recent scholarship seeks to understand Employee absenteeism as an indicator of
psychological, medical, or social adjustment to work. High absenteeism in the workplace
may be indicative of poor morale, but absences can also be caused by workplace hazards
or sick building syndrome. Many employers use statistics such as the Bradford factor
that do not distinguish between genuine illness and absence for inappropriate reasons.As
a result, many employees feel obliged to come to work while ill, and transmit
communicable diseases to their co-workers. This leads to even greater absenteeism and
reduced productivity among other workers who try to work while ill. Work forces often
excuse absenteeism caused by medical reasons if the worker supplies a doctor's note or
other form of documentation. Sometimes, people choose not to show up for work and do
not call in advance, which businesses may find to be unprofessional and inconsiderate.
This is called a "no call, no show". According to Nelson & Quick (2008) people who are
dissatisfied with their jobs are absent more frequently.The psychological model that
discusses this is the "withdrawal model", which assumes that absenteeism represents
individual withdrawal from dissatisfying working conditions. This finds empirical
support in a negative association between absence and job satisfaction, especially
satisfaction with the work itself. Medical-based understanding of absenteeism find
support in research that links absenteeism with smoking, problem drinking, low back
pain, and migraines. Absence ascribed to medical causes is often still, at least in part,
voluntary.
Research shows that over one trillion dollars is lost annually due to productivity
shortages as a result of medical-related absenteeism, and that increased focus on
preventative wellness could reduce these costs. The line between psychological and
medical causation is blurry, given that there are positive links between both work stress
and depression and absenteeism. Depressive tendencies may lie behind some of the
absence ascribed to poor physical health, as with adoption of a "culturally approved sick
role". This places the adjective "sickness" before the word "absence", and carries a
burden of more proof than is usually offered.
A certain level of absence is to be expected, as employees may have to be absent
from work as a result of illness. In the majority of cases, employees are acting

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responsibly by staying at home to recover, instead of coming to work and either passing
on their illness to other staff, or returning to work too early and getting a more severe
illness. Employers, however, have the right to expect responsible absence behavior when
a healthy working environment is provided. Over half of the companies in the IBEC
survey thought that it would be possible to reduce their absence rates.
1.1.1 THE CAUSES OF ABSENTEEISM
• Serious accidents and illness
• Low morale
• Poor working conditions
• Boredom on the job
• Lack of job satisfaction
• Inadequate leadership and poor supervision
• Personal problems (financial, marital, substance abuse, childcare etc.)
• Poor physical fitness
• Transportation problems
• The existence of income protection plans (collective agreement provisions
which continue income during periods of illness or accident)
• Stress
• Workload
1.1.2 THE COST OF ABSENTEEISM
Decrease in Productivity
• Employees may be carrying an extra workload or supporting new or
replacement staff.
• Employees may be required to train and orientate new or replacement
workers Staff.
• Morale and employee service may suffer.
Financial Costs
• Payment of overtime may result.

4
• Cost of self-insured income protection plans must be borne plus the wage
costs of replacement employees.
• Premium costs may rise for insured plans.
Administrative
• Staff time is required to secure replacement employees or to re-assign the
remaining employees.
• Staff time is required to maintain and control absenteeism.
1.1.3 TRENDS IN ABSENTEEISM
Recent surveys indicate the following trends in absenteeism.
• The higher the rate of pay and the greater the length of service of the
employee, the fewer the absences.
• As an organization grows, there is a tendency towards higher rates of
absenteeism.
• Women are absent more frequently than men.
• Single employees are absent more frequently than married employees.
• Younger employees are absent more frequently than older employees but the
latter are absent for longer periods of time.
• Unionized.
1.2 INDUSTRY PROFILE
Manufacturing is the production of merchandise for use or sale using labour
and machines, tools, chemical and biological processing, or formulation. The term may
refer to a range of human activity, from handicraft to high tech, but is most commonly
applied to industrial production, in which raw materials are transformed into finished
goods on a large scale. Such finished goods may be sold to other manufacturers for the
production of other, more complex products, such as aircraft, household
appliances, furniture, sports equipment or automobiles, or sold to wholesalers, who in
turn sell them to retailers, who then sell them to end users and consumers.

5
Manufacturing engineering or manufacturing process are the steps through which raw
materials are transformed into a final product. The manufacturing process begins with
the product design, and materials specification from which the product is made. These
materials are then modified through manufacturing processes to become the required
part.
Manufacturing takes turns under all types of economic systems. In capitalist free
markets, goods are manufactured on demand by millions of small independent producers
in direct competition with each other. In capitalist captive markets, goods are mass-
produced by legally protected publishing and manufacturing monopolies. In Collectivist
markets, the manufacturing of goods is entirely directed by the state based on necessity.
Modern manufacturing includes all intermediate processes required in the production
and integration of a product's components. Some industries, such as semiconductor and
steel manufacturers use the term fabrication instead.
The manufacturing sector is closely connected with engineering and industrial design.
Examples of major manufacturers in North America include General Motors
Corporation, General Electric, Procter & Gamble, General Dynamics, Boeing, Pfizer,
and Precision Castparts. Examples in Europe include Volkswagen Group, Siemens,
and Michelin. Examples in Asia include Sony, Huawei, Lenovo, Toyota, Samsung,
and Bridgestone.
Companies in this industry manufacture a wide variety of goods; major product groups
include food and beverages, chemicals, machinery, transportation equipment, and
computers and electronics. Major companies include Boeing, Caterpillar, DuPont, Ford,
GE, GM, HP, IBM, Pfizer, Procter & Gamble, and Tyson Foods (all based in the US);
Nestlé (Switzerland), Sanofi (France), Siemens (Germany), and Toyota Motor (Japan).
The global manufacturing sector generates about $12 trillion in annual revenue,
according to the UN. Top manufacturing countries include China, the US, Japan,
Germany, South Korea, India, Italy, France, and the UK. Leading exporting countries
include China, the US, Germany, the UK, Japan, France, the Netherlands, and South
Korea. Growth drivers include rapid industrialization in the developing world, along
with the use of technology to improve products and supply chains.
The US manufacturing sector consists of about 256,000 companies with combined
annual sales of about $5.7 trillion.

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Manufacturing is the production of merchandise for use or sale using labour
and machines, tools, chemical and biological processing, or formulation. The term may
refer to a range of human activity, from handicraft to high tech, but is most commonly
applied to industrial production, in which raw materials are transformed into finished
goods on a large scale. Such finished goods may be sold to other manufacturers for the
production of other, more complex products, such as aircraft, household
appliances, furniture, sports equipment or automobiles, or sold to wholesalers, who in
turn sell them to retailers, who then sell them to end users and consumers.
Manufacturing engineering or manufacturing process are the steps through which raw
materials are transformed into a final product. The manufacturing process begins with
the product design, and materials specification from which the product is made. These
materials are then modified through manufacturing processes to become the required
part.
Manufacturing takes turns under all types of economic systems. In capitalist free
markets, goods are manufactured on demand by millions of small independent producers
in direct competition with each other. In capitalist captive markets, goods are mass-
produced by legally protected publishing and manufacturing monopolies. In Collectivist
markets, the manufacturing of goods is entirely directed by the state based on necessity.
The manufacturing sector is closely connected with engineering and industrial design.
Examples of major manufacturers in North America include General Motors
Corporation, General Electric, Procter & Gamble, General Dynamics, Boeing, Pfizer,
and Precision Castparts. Examples in Europe include Volkswagen Group, Siemens,
and Michelin. Examples in Asia include Sony, Huawei, Lenovo, Toyota, Samsung,
and Bridgestone.
In its earliest form, manufacturing was usually carried out by a single skilled artisan with
assistants. Training was by apprenticeship. In much of the pre-industrial world,
the guild system protected the privileges and trade secrets of urban artisans.
Before the Industrial Revolution, most manufacturing occurred in rural areas, where
household-based manufacturing served as a supplemental subsistence strategy
to agriculture (and continues to do so in places). Entrepreneurs organized a number of
manufacturing households into a single enterprise through the putting-out system. Toll
manufacturing is an arrangement whereby a first firm with specialized equipment
processes raw materials or semi-finished goods for a second firm.

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1.2.1 Introduction
The Indian auto industry is one of the largest in the world. The industry accounts for 7.1
per cent of the country's Gross Domestic Product (GDP). The Two Wheelers segment
with 81 per cent market share is the leader of the Indian Automobile market owing to a
growing middle class and a young population. Moreover, the growing interest of the
companies in exploring the rural markets further aided the growth of the sector. The
overall Passenger Vehicle (PV) segment has 13 per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the
near future. In April-March 2016, overall automobile exports grew by 1.91 per cent. PV,
Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 per
cent, 16.97 per cent, and 0.97 per cent respectively in April-March 2016 over April-
March 2015.*
In addition, several initiatives by the Government of India and the major automobile
players in the Indian market are expected to make India a leader in the 2W and Four
Wheeler (4W) market in the world by 2020.
1.2.2 Market Size
The sales of PVs, CVs and 2Ws grew by 9.17 per cent, 3.03 per cent and 8.29 per cent
respectively, during the period April-January 2017.
Investments
In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has
attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion during the period
April 2000 to September 2016, according to data released by Department of Industrial
Policy and Promotion (DIPP).
Some of the major investments and developments in the automobile sector in India are
as follows:
 Electric car maker Tesla Inc. is likely to introduce its products in India sometime
in the summer of 2017.
 South Korea’s Kia Motors Corp is close to finalising a site for its first factory in
India, slated to attract US$1 billion (Rs 6,700 crore) of investment. It is deciding

8
between Andhra Pradesh and Maharashtra. The target for operationalising the
factory is the end of 2018 or early 2019.
 Several automobile manufacturers, from global majors such as Audi to Indian
companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the
possibilities of introducing driverless self-driven cars for India.
 BMW plans to manufacture a local version of below-500 CC motorcycle, the
G310R, in TVS Motor’s Hosur plant in Tamil Nadu, for Indian markets.
 Honda Motorcycle and Scooter India (HMSI) has inaugurated its 900th Honda
Authorised Exclusive Dealership in India, thereby taking its total dealership
network to 4,800 across the country and further plans to increase its network to
5,300 by end of 2016-17.
 Hero MotoCorp Ltd seeks to enhance its participation in the Indian electric
vehicle (EV) space by pursuing its internal EV Programme in addition to
investing Rs 205 crore (US$ 30.75 million) to acquire around 26-30 per cent
stake in Bengaluru-based technology start-up Ather Energy Pvt Ltd.
 JustRide, a self-drive car rental firm, has raised US$ 3 million in a bridge round
of funding led by a group of global investors and a trio of Y Combinator partners,
which will be utilised to amplify JustRide’s car sharing platform JustConnect and
Yabber, an internet of things (IoT) device for cars that is based on the company’s
smart vehicle technology (SVT).
 Ford Motor Co. plans to invest Rs 1,300 crore (US$ 195 million) to build a
global technology and business centre in Chennai, which will be designed as a
hub for product development, mobility solutions and business services for India
and other markets.
 Cummins has plans to make India an export hub for the world, by investing in
top components and technologies in India.
 Suzuki Motor Corporation, the Japan-based automobile manufacturer, plans to
invest Rs 2,600 crore (US$ 390 million) for setting up its second assembly plant
in India and an engine and transmission unit in Mehsana, Gujarat.
 Mr Masayoshi Son, Chief Executive Officer, SoftBank Group, has stated that Ola
Cabs may introduce a fleet of one million electric cars in partnership with an
electric vehicle maker and the Government of India, which could help reduce
pollution and thereby transform the electric mobility sector in the country.

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 China’s biggest automobile manufacturer, SAIC Motor, plans to invest US$ 1
billion in India by 2018, and is exploring possibilities to set up manufacturing
unit in one of three states – Maharashtra, Andhra Pradesh and Tamil Nadu.
 Suzuki Motorcycle India Pvt Ltd has started exports of made-in-India flagship
bike Gixxer to its home country of Japan, which will be in addition to current
exports to countries in Latin America and surrounding countries.
 General Motors plans to invest US$ 1 billion in India by 2020, mainly to increase
the capacity at the Talegaon plant in Maharashtra from 130,000 units a year to
220,000 by 2025.
 FIAT Chrysler Automobiles has recently invested US$280 million in its
Ranjangaon plant to locally manufacture Jeep Compass, its new compact SUV
which will be launched in India in August 2017.
1.2.3 Government Initiatives
The Government of India encourages foreign investment in the automobile sector and
allows 100 per cent FDI under the automatic route.
Some of the major initiatives taken by the Government of India are:
 The Government of India plans to introduce a new Green Urban Transport
Scheme with a central assistance of about Rs 25,000 crore (US$ 3.75 billion),
aimed at boosting the growth of urban transport along low carbon path for
substantial reduction in pollution, and providing a framework for funding urban
mobility projects at National, State and City level with minimum recourse to
budgetary support by encouraging innovative financing of projects.
 Government of India aims to make automobiles manufacturing the main driver of
‘Make in India’ initiative, as it expects passenger vehicles market to triple to 9.4
million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
 The Government plans to promote eco-friendly cars in the country i.e. CNG
based vehicle, hybrid vehicle, and electric vehicle and also made mandatory of 5
per cent ethanol blending in petrol.
 The government has formulated a Scheme for Faster Adoption and
Manufacturing of Electric and Hybrid Vehicles in India, under the National
Electric Mobility Mission 2020 to encourage the progressive induction of
reliable, affordable and efficient electric and hybrid vehicles in the country.

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1.2.4 Road Ahead
India’s automotive industry is one of the most competitive in the world. It does not cover
100 per cent of technology or components required to make a car but it is giving a good
97 per cent, as highlighted by Mr Vicent Cobee, Corporate Vice-President, Nissan
Motor’s Datsun.
Leading auto maker Maruti Suzuki expects Indian passenger car market to reach four
million units by 2020, up from 1.97 million units in 2014-15.
Mr Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India
is a key market for the company, not only in terms of volumes but also as a hub of small
products for exports to 92 countries.
Mr Joachim Drees, Global CEO, MAN Trucks & Bus AG, has stated that India has the
potential to be among the top five markets, outside of Europe, by 2020 for the company.
The Indian automotive aftermarket is estimated to grow at around 10-15 per cent to
reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to
generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional
jobs and contribute over 12 per cent to India’s Gross Domestic Product#.
1.3 COMPANY PROFILE
Rane group of companies was founded by Shri T. R. Ganapathy Iyer in the year 1929
and the group was originally named as Rane Madras (Ltd).It started off as a distributor
of automobiles and parts. After his death, the business was taken over by his son-in-law
Lakshmana Iyer Lakshminarayan, popularly known as LLN, among friends and business
circles. Under the leadership of LLN, the company was shaped into an auto-component

11
business house. LLN remained as the founder chairman of the group for over three
decades.
During the early periods. Rane TRW Steering Systems Pvt. Ltd was engaged in trading
only. Later in the year 1960, they completely dropped trading and started manufacturing
and it all started with the manufacture of Tie Rod ends at their plant in Velachery,
Chennai. Later; as the automobile industry flourished, the business spread to the
manufacturing of other suspension and steering systems. As a major turn of events, in
2005 the company was de-merged from the group and the group holding company called
Rane Holding Ltd (RHL) and several other subsidiary companies were formed. It was
during this period that Rane (Madras) Ltd emerged as a public limited company. Later,
Rane Holding Ltd made additional investment in the company, and thus Rane (Madras)
Ltd became a wholly owned subsidiary of the Rane Holdings Ltd.It remained a major
manufacturer and supplier of major OEMs in India and abroad.
Rane TRW Steering Systems Private Ltd. (RTSSPL, erstwhile Rane TRW Steering
Systems Limited), incorporated in 1987, is the leading supplier of hydraulic power
steering systems in India. The company is a joint venture between Rane Holdings
Limited (holding company of the established Rane group - a leading domestic auto
ancillary supplier and rated [ICRA]AA-/Stable/[ICRA]A1+) and TRW Automotive Inc.,
USA (one of the largest suppliers of automotive systems in the world). The company
which was initially incorporated as Rane Power Steering Ltd., where the Rane group
had a 50% stake, TRW - 26% and the rest were held by financial institutions, became a
50:50 joint venture (JV) between the Rane group and TRW in 1998 and subsequently
renamed as RTSSPL. The company currently has four manufacturing plants in the
steering gear division – three units in Tamil Nadu and one in Pant Nagar, Uttrakhand.
In 2003, TRW Rane Occupant Restraints Limited (TROR, a then equal joint venture
between the Rane group and TRW Automotive Inc) was merged with RTSSPL.
Following the merger, RTSSPL acquired a manufacturing plant at Singaperumalkoil
(Chennai) under the Occupant Safety Division (OSD), where the company currently
manufactures seatbelts, airbags, reservoirs and other products. As on September 30,
2016, RTSSPL had capacity of 1 million units of steering gears, 0.6 million units of
hydraulic pumps, 3.6 million units of seatbelts and about 0.6 million units of airbags.

12
Major Customers include Maruti Suzuki, Tata Motors, Fiat and Ford,
Ashok Leyland, Eicher, Hero Honda, Renault, Toyota, Mahindra, Yamaha,
Swaraj Mazda, Hyundai, Fiat, and Honda. The major overseas customers are
CNH UK, DEUTZ Germany, Electro motive USA, HATZ Germany, YAMAHA
Asia, and TRW Europe & USA.
Major Suppliers are Hi Tech Engineering Puducherry, STM
Engineering Puducherry, LG forging Chennai, Electroplate Chennai. The plant also
supplies Inner Ball joints and Outer Ball joints for Power Rack& Pinion application to
Rane TRW Steering Systems. Rane enjoys 100% share of this business in Ford, GM,
TATA Motors and 40% share of Hyundai. The plant enter into exports in 2003 by
supplying steering gear for M/s SAIPA– a joint venture between Kia Motors, Korea and
the Iranian Government . the Exports Destination are USA, Mexico, Germany, UK,
Italy, Bulgaria, Jordon, Kenya, Taiwan, Iran, Bangladesh, Srilanka, Singapore,
Indonesia, Australia, Japan. In 2005, the plant started supplying to M/s John Deere
US, for their farm utility vehicle.
The company had been facing space constraints in view of its growing
as exports. The
company decided to set up a new Rs. 24- crore facility to
manufacture an additional
5.65- million pieces, with adequate room for further expansion up to 10 million pieces
annually. The company plan to increase the export contribution from the present 18
percent to 25 percent. It will also expand its product range by including
hydrostatic steering gear for farm tractors rack & pinion steering gear for electro
power steering.

13
Some more Rane group Units are expanding their operation.
 Rane NSK Steering System limited, which manufactures energy
absorbing steering columns, is setting up a production facility at
Uttaranchal.
 Similarly Rane Brake Linings Limited and Rane Engine Values
Limited are also contemplating building a new plant in Chennai.
1.3.1 MISSION & VALUES
 Provide superior products and services to our customers and maintain
market leadership.
 Evolve as an institution that serves the best interests of all stakeholders
 Pursue excellence through total quality management
 Ensure the highest standards of ethics and integrity in all our actions
1.3.2 VISION
 To position RML as a global ball joint supplier through customer focus
 To retain leadership in a domestic steering gear market and penetrate
closed export market
1.3.3 RECENT INNOVATION IN RTSSL
Anticipating way ahead, the inevitable market force, Rane took
initiatives to make investment in a full-fledged integrated power Steering
facility in collaboration with TRW Inc. USA the leader in the field. This
strategic vision is evidenced by strong market presence today with OEMs.
1.3.4 RANE COMPANY AND PRODUCT RANGE
Rane group comprises of a holding company & 7 manufacturing
companies serving different segments.
 Rane Holdings Limited
(Holding Company).
 Rane (Madras) Limited
 Rane Engine Valves Limited

14
(Engine Valves, Valve Guides, Tappets).
 Rane Brake Linings Limited
(Brake Linings, Disc Pads, Clutch Facings and Composite Brake Blocks).
 Rane TRW Steering Systems Limited
(Power Steering Systems, Seat Belt Systems).
 Rane NSK Steering Systems Limited
(Energy Absorbing Steering Columns).
 Kar Mobiles Limited
(Large Engine Valves for Automotive & Defense
Applications).
 Rane Die cast Limited
(High Pressure Die Casting Products)
TECHNOLOGY
Rane group brings to its clientele, the best of technology & Expertise
through strategic technical partnership with leaders from around the world
World Class Technology
i. TRW Automotive US LLC,
Power steering system, Ball Joint
Seat belt system, engine values.
ii. NSK Japan,
Energy absorbing steering columns and
Manual RCB SG.

15
1.3.5 FACILITIES
Rane group partners with a wide spectrum of auto majors to provide
concept to product solution is made possible by manufacturing and testing
facilities at each group of companies.
1. MODERN MANUFACTURING FACILITIES
Facilities consistently upgraded to meet technological advancements
Integrated production lines for all group companies on par with world
standards.
Ball joint line, Engine value line
2. PRODUCT DEVELOPMENT FACILITIES
Significant portion of the group’s turnover invested in Research and
Product development.
Simulation techniques and exhaustive testing mechanisms
implemented regarded as the industry standards...
CAD CAM SOFTWARE – CATIA, IDEAS, ADAMS.
1.3.6 QUALITY
All divisions of the group are in tune with international quality
assurance norms. The Quality Management Systems are further endorsed by
the conferment of the Deming prize to three of the group companies.
1.3.7ACHIEVEMENTS
Deming prize
TQM is the foundation. Conferment of Deming prize for three companies is an
important milestone. At Rane group pursuing excellence is a continuous
journey.

16
Customer Recognitions
Some recognition from customers
 R a n e E n g i n e V a l v e s L t d
(Deutz, Germany - Supplier Award - 2003).
 Rane Engine Valves Ltd
(Maruti Udyog Outstanding Overall Excellence 2003-04).
 Rane TRW Steering Systems Ltd (Steering Gear Division)
( Hyundai Motor India for Best Co- operation 2004).
 Rane NSK Steering Systems Ltd
(Toyota Kirloskar Motor Award for Best Improved Supplier 2005).
 Rane Engine Valves Ltd
( Tata Cummins Limited, Best Supplier Award for 2005-06).
1.3.8 HR VISION & INITIATIVES
HRD Vision
“To stimulate and nurture the intrinsic desire in people to learn, grow
and enhance performance to achieve business success and growth”.
HRD Goals
 Recruit and retain high caliber employees.
 Encourage and recognize outstanding merit and contribution.
 Create opportunities for professional growth and satisfaction.
 Develop leadership capabilities at all levels.
 Foster employee involvement and develop a work ethos that builds
dignity and pride.

17
HRD Organization
HRD at Rane operates at two levels:
 At Group Level - Formulates policies, and designs major people
development initiatives to enhance professional capability of
employees at group level.
 At Business Unit Level - Companies implement group policies and
develop Unit specific interventions
.
Strategies and Initiatives at the Group level:
Specific strategies and initiatives are designed to enable actualization of HRD
Goals.
 Recruitment and Retention
High caliber employees are recruited through well-structured process
including campus recruitments of Diploma and Graduate Engineers and
lateral recruitment of experienced employees..
 Recognition and Reward
Outstanding performance is recognized and rewarded through
comprehensive performance assessment development systems aligned to
TQM principles and practices.
Opportunities for Professional Growth
a. Internal candidates first considered for job vacancies, thereby,
providing employees opportunity for lateral & upward growth.
b. Professional Knowledge and skills enhanced through
continuous education at Rane Institute for Employee
Development (RIED) and other reputed academic institutions
Specific strategies and initiatives are developed and implemented in each
business unit so as to achieve HRD goals.

18
RTSSPL - SGD :
 Design and Development Capability for complete system of Hydraulic Power assisted
steering, that includes Steering gear assembly, Hydraulic pump and Reservoir etc.
 Well established with relevant Design and Simulation Software for design of Power
Steering products.
 Well established Testing facility to validate Products as per Global standards
including Noise Test Specifications.
RTSSPL - OSD :
 Application, Engineering & Development of safety systems using advanced CAD and
simulation tools
 System Integration
 Equipped with Test lab to carry out testing as per National (IS/AIS), International
(ECE/EEC/GS/VSCC..) and Customer specifications and COP testing
RTSSPL - SGD :
 TS 16949 and ISO 14000 standards company
 IS0 14001 certified plants
 OHSAS 18001 certified
 Winner of Deming Prize in the year 2005
 Winner of Japan Quality Medal (JQM) in the year 2011
RTSSPL - OSD :
 TS16949 and ISO 14001 certified & FORD Q1 Award

19
1.4 LITERATURE REVIEW
Dakely C.A. (1948) states “Absenteeism is the ratio of the number of production man-days or
shifts lost to the total number of production scheduled to work”.
Knowles (1979) opined that although absence from work may be due to any of a large number
of factors, empirical evidence supporting the view that causal factors can be organisational in
nature is scant. Absence may be regarded as one facet of a wider behavioural problem
pervading entire organisational sub-units. The author suggests that absence could be used
along with other variables as a valuable personnel statistic indicating areas of organisational
dysfunction. This means that if levels of absenteeism in such cases as these were to be
improved the solution should be looked for at the organisational level rather than at the
individual or job level.
Chevalier.et.al., (1993) Studied the health status of electricity workers exposed to
electromagnetic fields during their job. Two groups of exposed workers were studied from
1978 to 1993: the live line workers (n = 121) and the substation workers (n = 232.7) of the
French Electricity Company (EDF). A control group was randomly selected from all the
company non-management male employees; one control for each exposed subject was
matched for the first year of employment.
Morrow. Et.al., (1998) in their study established a positive relationship between absenteeism
and voluntary turnover and a negative relationship between performance and turnover. An
examination of the turnover literature, however, reveals virtually no consideration of a
possible interaction between these two predictors of turnover. In order to test for such an
interaction, company record data were collected from a sample of nonexempt classification
employees within a large regional life insurance company. Records revealed that 113 of the
company’s 816 employees had voluntarily left the firm over a 2-year period. Company data on
these “leavers” were compared with data on a random sample of 113 employees who stayed.
Schuh (1999) presented an extensive review of the predictability of employee turnover. To
date there has been no comprehensive review of absenteeism, covering not only its correlates,
but the psychometric properties of various absenteeism measures, the relationship of
absenteeism to turnover, programmatic attempts to reduce employee absenteeism, etc.

20
Huse and Taylor (2000) examined four indices of absenteeism: (a) absence frequency-total
number of times absent; (b) absence severity-total number of days absent; (c) attitudinal
absencesfrequency of l-day absences; and (d) medical absences-frequency of absences of 3
days or longer.
Sadri and Lewis (2001) classified workplace absenteeism into two types, Type A and Type B.
Type A absenteeism can be defined as an absence from the workplace that is completely
unavoidable on the employees part.
Nicholson (2003) stated in the past absenteeism was “appositely named ‘a social fact in need
of theory’”. Although there has been a huge amount of varied research carried out on the topic
there have been few theories associated with it.
Locke et al (2005) defines Absenteeism as "the lack of physical presence at a given location
and time when there is a social expectation for the employee to be there". Absenteeism is a
universal problem that affects all organisations in some way although many organisations do
not suffer from the problem of absenteeism as much as others.
March and Simon (2005) were the first theorists to conceptualise this view on absenteeism.
Voluntary absenteeism can include reasons such as deviance and holidays, while involuntary
absenteeism is summed up by reasons 5 out of an employee’s control such as sickness and
funeral attendance.
Edwards(2007) found out The costs incurred by an organisation include both direct and
indirect costs. Direct costs include payment of salary, replacement costs and overtime. While
indirect costs include decrease in productivity, administration, quality of service and any
social security contributions an employer makes for an absent employee.
Smulders (2009) analyzed how attendance motivation is influenced by how satisfied an
employee is by their job situation. This includes both internal and external pressures such as
job scope, leadership style of manager, job level, stress of the role and opportunities for
advancement.
Huczynski and Fitzpatrick (2010) found that most organisations do not understand nor have
they investigated the main causes of absenteeism within their organisations.
Harvey et al (2011) proposed that minor illness should be considered as a ‘multiple variable’
which interacts with socio-economic and gender factors.

21
Stevenson and Harper (2011) found that stress can have both positive and negative effects on
individuals in the workplace. How stress effects an employee depends on the extent of the
stressors.
Picoars and Payers(2011) found that ‘unexpected absence disturbs the efficiency of the group
as the jobs are inter-connected, if one single man remains absent without prior notice the
whole operation process is distributed. This absenteeism results in production losses because,
due to absenteeism, workers cost increases and thus efficiency of operations is affected.
Muchinsky (2013) Studied examining the psychometric properties of absence measures are
reviewed, along with the relationship between absenteeism and personal, attitudinal and
organizational variables chronic absentees into four categories such as; entrepreneurs, status
seekers, family oriented and sick and old.
Barmby, Ercolani and Treble (2015) states that absence is not purely a medical condition.
While employee absence often is described as sickness, there are more aspects which play a
role or have an effect on the absence behaviour of employees.
Netshidzati (2016) implied that the presence of intrinsic factors (motivation factors), such as
achievement, recognition, responsibility, and growth spur an employee to deliver better
performance. Against this background, satisfied employees inevitably have low absenteeism
rates and vice versa.

22
1.5 NEED FOR THE STUDY
This study is needed for the HR department of the company to review
into the absenteeism issue.This study is needed to read the minds of the
apprentice employees and helps the organization to know the view point
about their employers.This study is needed for the employers to
understand the causes of absenteeism and to plan accordingly to
eradicate those.

23
1.6 OBJECTIVES OF THE STUDY
1. To examine the personal causes that give arise to absenteeism.
2. To bring out the factors affecting the working environment of employees
3.To Evaluate internal and external factors affecting absenteeism.
4.To find suitable remedies to reduce absenteeism.

24
1.7 SCOPE OF THE STUDY
“ABSENTEEISM” is one of the great disasters faced by all the organizations in this modernized
world which results in turnover.“ABSENTEEISM” not only indicates the physical presence it
starts with the “Mental absence” of an individual so the firm has to take this as a important issue
before initiating any remedial actions through that and along with the participative management.
Rane TRW Steering Systems is facing this issue of absenteeism for a a prolonged time This study
ensures that it will reveal a clear good result for the absence. Due to absence of employees, the
management is in compulsion to give target production.This research helps to know about the
reason for absenteeism. This research helps to know about the costs associated with
absenteeism.This research useful in find out the employer and employee opinion towards
absenteeism.

25
1.8 RESEARCH METHODOLOGY
The systematic gathering of analyzing and recording the data about problems and finally testing is
to finally determine whether they fit the formulating hypothesis
AIM OF THE STUDY
Having assigned the task of conducting a survey for the company ,the aim of the research is
“Study of the reasons for increased rate of absenteeism at Rane TRW Steering Systems Ltd”
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose. It is a blue print of the study. Descriptive
research design is used in this study for analysis.
SAMPLING DESIGN
Simple random sampling is used in this study, which does not afford any basis for estimating.
SAMPLING TECHNIQUE
Convenient sampling is used in this study, which does not afford any basis for estimating. It is a
non-probabilistic sampling method.
SAMPLE SIZE
The size of the sample selected for the study is 85 respondents.
SAMPLING UNIT
The sampling unit of the study is the employees who are the major respondents.

26
1.8.1 METHODS OF DATA COLLECTION
After identifying and defining the research problems,the task is tolook for source of data which
may yield results.So, Two types of data are being collected which are
1. Primary Data
2.Secondary Data
1.Primary Data
These are the datas collected freshly from the employees in order to find the increased rate
of absenteeism among employees for desired result.
2. Secondary Data
The process of secondary data analysis is actually called as research.It includes all those
datas which were previously collected which can save the money and time which will be provided
by the company for the further process.Here the secondary data was provided in form of payroll of
employees by the company.
COLLECTION OF DATA THROUGH QUESTIONNAIRE
This method of data collection is quite popular,particularly in case of big samples. It
is normally adopted by private individuals,research workers and even by government. In this
method ,Questionnaire consists of number of questions in a definite order on the form.
This method by directly interviewing the respondents is extensively applied in
economic and business surveys.Large samples can be used for easy response which are more
desirable and reliable.
In this study , questionnaire has been used as a tool for data collection for easy analysis.

27
1.8.2 STATISTICAL TOOLS USED :
The tools which will be used for analysis are
1. Chi-Square test.
2. One way ANOVA test.
3. Independent Sample t test.

28
1.9 LIMITATIONS OF THE STUDY
1.The result does not contain any information about Personnel and Account departments.
2. Since the study deals with sensitive area of the organization, it is difficult to extract
accurate information from the employees.
3. The study is confined only to Rane employees .
4. It cannot be generalised.

29
CHAPTER -II
DATAANALYSIS AND INTERPRETATION

30
2.1 PERCENTAGE ANALYSIS
Table No. 1: Age of the respondents
Age No. of respondents Percentage
(20-25) yrs 3 3.5
(25-30) yrs 20 23.5
(30-35) yrs 49 57.6
Above 35 yrs 13 15.3
Figure No. 1: Age Of the respondents
Interpretation – From the above table, 57.6% of the employees are between(30-35) years ,3.5%
are between (20-25)years,23.5% are between(25-30)years and 15.3% are above 35 years.
Table No. 2: Current Stay of the respondents
Current stay No of respondents Percentage
Within the Surroundings of 5 KMs 34 40
Within the Surroundings of 10 KMs 25 29.4
Beyond 10 KMs – Chennai route 17 20
Beyond 10 KMs – Chengalpattu route 9 10.6

31
Figure No. 2: Current Stay of the respondents
Interpretation – The figure shows 40% of the employees are staying within surroundings of
5kms , 10.6% are staying beyond 10 kms in Chengalpattu route,29.4% are staying within
surroundings of 10 kms and 20% are staying beyond 10 kms in Chennai route.
Table No. 3: Level of Satisfaction of the respondents
Level of Satisfaction No of respondents Percentage
Highly Satisfied 23 27.1
Satisfied 48 56.5
Dissatisfied 12 14.1
Highly Dissatisfied 2 2.4
Figure No. 3: Level of Satisfaction of the respondents

32
Interpretation – It can be seen that 56.5% of the employees are satisfied with their job,27.1%
are Highly satisfied with their job,14.1% are dissatisfied with their job and 2.4% are Highly
dissatisfied with their job.
Table No. 4: Monthly Income of the respondents
Monthly income No of respondents Percentage (%)
Rs 10000-Rs 15000 12 14.1
Rs 15000-Rs 20000 35 41.2
Rs 20000-Rs 25000 35 41.2
More than Rs 25000 3 3.5
Figure No. 4: Monthly Income of the respondents
Interpretation – It can be seen that 41.2% of the employees are earning an income of Rs 15000-Rs
25000 ,14.1% are earning an income of Rs 10000-Rs 15000 and 3.5% are earning an income of
more than Rs 25000.
Table No. 5: Level of Satisfaction of the respondents with respect to income
Level of Satisfaction No of respondents Percentage (%)
Satisfied 48 56.5

33
Figure No. 5: Level of Satisfaction of the respondents with respect to income
Interpretation – The graph reveals that 56.5% of the employees are satisfied with their job,
14.1% are dissatisfied with their job,27.1% are Highly satisfied with their job and 2.4% are Highly
dissatisfied with their job with respect to income.
Table No. 6: Work Experience of the respondents
Work Experience No of respondents Percentage (%)
(1-5)Yrs 28 32.9
(5-10)Yrs 23 27.1
(10-15)Yrs 19 22.4
15 Yrs & above 15 17.6
Figure No. 6: Work Experience of the respondents

34
Interpretation – The table implies that 32.9% of the employees are having an experience of (1-
5)yrs, 27.1% are having an experience of (5-10)yrs,22.% are having an experience of (10-15)yrs
and 17.6% are having an experience of above 15 yrs.
Table No. 7:Degree of Balancing their work within permissible leave of the
respondents
Degree of satisfaction No of
respondents
Percentage
Not at all 11 12.9
To some extent 30 35.3
To Great extent 27 31.3
Strongly aware 17 20.0
Figure No. 7:Degree of Balancing their work within permissible leave of the
respondents
Interpretation – It can be seen that 35.3% of the employees are balancing their work to some
extent, 31.3% are balancing their work to great extent,20% are balancing their work strongly and
12.9% are not balancing their work .

35
Table No. 8 :Level of awareness of leave rules and policy by the respondents
Degree of awareness No of respondents Percentage
Not at all 2 2.4
Figure No. 8 :Level of awareness of leave rules and policy by the respondents
Interpretation – It can be seen that 42.4% of the employees are aware of the leave rules of the
company to great extent, 37.6% are strongly aware of the leave rules of company,17.6% are
aware of the leave rules of the company to some extent and 2.4% are not aware of the leave rules.
Table No. 9 :Leave is either informed or not by the respondents
Always 36 42.4
Sometimes I do 26 30.6
Sometimes I don’t 11 12.9
Never 12 14.1

36
Table No. 9 :Leave is either informed or not by the respondents
Interpretation – The graph visualizes that 42.4% of the employees will always inform leave before
availing , 30.6% inform their leave sometimes,14.1% do not inform sometimes and 12.9% will
never inform leave before availing.
Table No. 10 :PL Credit availability to the respondents
PL Credit No. of Respondents Percentage
Yes 73 85.9
No 12 14.1
Figure No. 10 :PL Credit availability to the respondents

37
Interpretation – It can be seen that 85.9% of the employees are having their PL credit for every
year whereas 14.1% are not having their PL credit for every year.
Table No. 11 :Awareness of Company Disciplinary Actions by the respondents
Not at all 11 12.9
Figure No. 11 :Awareness of Company Disciplinary Actions by the respondents
Interpretation –
It can be seen that 41.2% of the employees are strongly aware of the disciplinary actions of the
company , 21.7% are aware of the disciplinary actions to great extent,18.8% are aware of the
disciplinary actions to some extent and 12.9% are not aware of the company disciplinary actions.

38
Table No. 12 :Level Of Satisfaction by the respondents
Level of Satisfaction No of respondents Percentage
Satisfied 48 56.5
Figure No. 12 :Level Of Satisfaction by the respondents
Interpretation – It can be seen that 56.5% of the employees are satisfied with their job ,27.1%
are Highly satisfied with their job,14.1% are dissatisfied with their job and 2.4% are highly
Dissatisfied with their job for their permitted days of leave.
Table No. 13 :Reasons for Dissatisfaction by the respondents
Reason No of respondents Percentage
Sole responsibility 30 35.3
Heavy Work load 26 30.6
Health problem 21 24.7
Not applicable 8 9.4

39
Figure No. 13 :Reasons for Dissatisfaction by the respondents
Interpretation – It can be seen that 35.3% of the employees are having a sole responsibility in
their family,30.6% are suffering from heavy work load,24.7% are having health problems and
9.4% are not applicable with the reasons.
2.2 Chi
Square test- Awareness of leave rules Vs Work Experience
Hypothesis:
H0 : There is no significant relationship between Work experience and awareness of leave
rules.
H1 : There is a significant relationship between Work experience and awareness of leave rules.
Table No. 14(i): Awareness of leave rules Vs Work experience
Awareness of leave rules * Work Experience
Crosstabulation
Count
Work Experience Total

40
(1-
5)Yrs
(5-
10)Yrs
(10-
15)Yrs
15yrs
&
above
Awareness
of leave
rules
Not at
all
0 1 1 0 2
To some
extent
5 4 2 4 15
To great
extent
10 12 9 5 36
Strongly
aware
13 6 7 6 32
Total 28 23 19 15 85
Table No. 14(ii): Leave rules Vs work
experience (Chi-Square Tests)
Value df P value
Pearson
Chi-
Square
5.955a
1 0.00003

41
Interpretation – Here P value is less than 0.05
Since P < 0.05 , H1 is accepted
Therefore , There is a significant relationship between Work experience and leave rules.
2.3 Inde
pendent Sample t test - Age Vs Level of Satisfaction
Hypothesis:
H0 : There is no significant relationship between Age and Level of Satisfaction.
H1 : There is a significant relationship between Age and Level of Satisfaction.
Table No. 15(i): Age Vs Level of satisfaction (Independent Samples
Test)
t-test for Equality of Means

42
95%
Confidence
Interval of
the
Difference
T Df
Sig.
(2-
tailed)
Mean
Difference
Std. Error
Difference Lower
Up
per
Level of
satisfaction
Equal
variances
assumed
0.761 21 0.04 0.417 0.547 -0.722 1.5
55
Equal
variances
not
assumed
0.601 2.337 0.601 0.417 0.693 -2.189 3.0
23
Table No. 15(ii): Age Vs Level of satisfaction (Independent Samples
Test)
t-test for Equality of Means
95%
Confidenc
e Interval
of the
Difference
T Df
Sig.
(2-
tailed)
Mean
Difference
Std. Error
Difference Lower
U
p
p
er

43
Level of
satisfaction
Equal
variances
assumed
-
0.496
60 0 -0.091 0.183 -0.458 0.
2
7
6
Equal
variances
not
assumed
-0.44 16.45
5
0.666 -0.091 0.207 -0.529 0.
3
4
7
Interpretation – Here P1 value=0.04
P2 Value is less than 0.05
Since P1,P2 <0.05 , H1 is accepted
Therefore , There is a significant relationship between Age and Level of Satisfaction.
2.4 (i) One way ANOVA - No of Days applied for leave(Secondary data) Vs
Current Stay
Hypothesis:
H0 : There is no significant relationship between Number of days applied and Current
Stay.
H1 : There is a significant relationship between Number of days applied and Current Stay.

44
Table No. 16: No of Days Vs Current Stay
ANOVA
No of Days applied for leave
Sum of
Squares Df
Mean
Square F Sig.
Between
Groups
1.382 3 0.461 0.584 0.032
Within
Groups
63.865 81 0.788
Total 65.247 84

45
Interpretation – Here P value=0.032
Since P <0.05 , H1 is accepted
Therefore , There is a significant relationship between Number of days applied and Current
Stay.
2.4 (ii) One way ANOVA
(Level of Satisfaction Vs Income)
Hypothesis:
H0 : There is no significant relationship between Level of Satisfaction and Income.
H1 : There is a significant relationship between Level of Satisfaction and Income.
Table No. 17(i):Level of Satisfaction Vs Income

46
Descriptives
Level of satisfaction
N Mean
Std.
Deviation
Std.
Error
95% Confidence
Interval for Mean
MinimumMaximum
Lower
Bound
Upper
Bound
Rs 10000
- Rs
15000
12 2.08 1.084 .313 1.39 2.77 1 4
Rs 15000
- Rs
20000
35 1.86 .601 .102 1.65 2.06 1 3
Rs 20000
- Rs
25000
35 1.86 .648 .110 1.63 2.08 1 4
More
than Rs
25000
3 2.67 .577 .333 1.23 4.10 2 3
Total 85 1.92 .711 .077 1.76 2.07 1 4
Table No. 17(ii):Level of Satisfaction Vs Income
ANOVA
Level of satisfaction
Sum of
Squares df Mean Square F Sig.
Between
Groups
2.269 3 .756 1.526 .014
Within
Groups
40.155 81 .496
Total 42.424 84

47
Interpretation – Here P value=0.014
Therefore , There is no significant relationship between Level of Satisfaction
and Income.
2.4 (iii) One way ANOVA
(Work Experience Vs Level of Satisfaction)
Hypothesis:
H0 : There is no significant relationship between Work Experience and Level Of
Satisfaction.
H1 : There is a significant relationship between Work Experience and Level Of
Satisfaction.

48
Table No. 18(i): Work Experience Vs Level of Satisfaction
Descriptives
Satisfaction Level
N Mean
Std.
Deviation
Std.
Error
95% Confidence
Interval for Mean
MinimumMaximum
Lower
Bound
Upper
Bound
(1-5)Yrs 28 1.96 .838 .158 1.64 2.29 1 4
(5-
10)Yrs
23 1.91 .596 .124 1.66 2.17 1 3
(10-
15)Yrs
19 1.89 .737 .169 1.54 2.25 1 4
15 yrs &
above
15 1.87 .640 .165 1.51 2.22 1 3
Total 85 1.92 .711 .077 1.76 2.07 1 4
Table No. 18(ii): Work Experience Vs Level of
Satisfaction
ANOVA
Satisfaction Level
Sum of
Squares Df
Mean
Square F Sig.
Between
Groups
.110 3 .037 .070 .000
Within
Groups
42.313 81 .522
Total 42.424 84

49
Interpretation – Here P value is less than 0.05
Therefore , There is a significant relationship between Work Experience and Level Of
Satisfaction.

50
CHAPTER-III
SUGGESTIONS ,FINDINGS AND
CONCLUSION
3.1 FINDINGS
From the research, the following things were found to be analysed
• 57.6% of the employees are between(30-35) years .
• 40% of the employees are staying within surroundings of 5kms .
• 56.5% of the employees are satisfied with their job .
• 41.2% of the employees are earning an income of Rs 15000-Rs 25000.
• 56.5% of the employees are satisfied with their job.
• 32.9% of the employees are having an experience of (1-5)yrs.
• 35.3% of the employees are balancing their work to some extent.
• 42.4% of the employees are aware of the leave rules of the company to great extent.
• 42.4% of the employees will always inform leave before availing .

51
• 85.9% of the employees are having their PL credit for every year.
• 41.2% of the employees are strongly aware of the disciplinary actions of the company .
• 56.5% of the employees are satisfied with their job.
• 35.3% of the employees are having a sole responsibility in their family .
• There is a significant relationship between Work experience and leave rules.
• There is a significant relationship between Age and Level of Satisfaction.
• There is a significant relationship between Number of days applied and Current Stay.
• There is a significant relationship between Work Experience and Level Of Satisfaction.
• There is a significant relationship between Level of Satisfaction and Income.
3.2 SUGGESTIONS
• Emphasis should be given on the rehabilitation of chronic absentees and their follow up by
the supervisors
• Once in 3yrs to 5yrs salary has to be increased for all the employees to reduce absenteeism
• Positive Employer and employee relationship have to be improved to reduce absenteeism
• Taking authorized leave from the superiors has to be made compulsory.
• The company has to provide safe and healthy environment and recreation facilities to the
employees to reduce boredom of work and to motivate the employees’ interest towards their
work.
• Provide Incentives- An incentive provides an employee with a boost to their motivation and
avoid unnecessary absenteeism. Incent ives like two hours of bonus pay for every month of
perfect attendance can improve a lot.

52
• Conduct regular training sessions for employees to understand the problems faced by the
employees in the work.
• Conduct regular medical examinations for employees so that it improves work environment
and reduce absentism.
• Regular performance appraisal will keep in check the absentism of employees.
3.3 CONCLUSION
Absenteeism is an unavoidable menace which most of the organizations have to bear
with and it has to be managed. One cannot prepare a fool proof successful formula to
eradicate this problem once and for all. Absenteeism ranging between five to ten
percent is a common phenomenon in most of the industries. In fact employees remain
absent for their work because of various factors, after all they are also human beings.
The causation of the feelings of monotony towards work is a big challenge and the
managements should take appropriate measures like sending employees on holidays,
tours etc. The practice of job rotation and multi tasking strategies also work in the
minimization of the feeling of inertia or monotony . Here, in this study the employees’
wages are also not attractive. Managements should pay their workmen handsomely. So
that it can motivate them to certain levels. Even though, money is not the sole factor to
influence the work behavior of employees it can certainly boost their morale towards
work to some extent.

54
REFERENCES
 Absence Management, Annual Survey Report 2008, Chartered Institute of Personnel and
Development at www.cipd.co.uk/subjects/hrpract/absence/absmagmt.htm
 Akerlof, G.A. (1984) Gift Exchange and Efficiency-Wage Theory: Four Views, The American
Economic Review, Vol. 74, No. 2, pp. 79-83.
 Allen, S.G. (1981) An Empirical Model of Work Attendance, The Review of Economics and
Statistics, Vol. 63, No. 1, pp. 77-87.
 Allen, S.G. (1984) Trade Unions, Absenteeism and Exit Voice, Industrial and Labor Relations
Review, Vol. 37, No. 3, pp. 331-345.
 Allen, N.J., Meyer, J.P. (1993) Organizational Commitment: Evidence of Career Stage
Effects?, Journal of Business Research, Vol. 26, pp. 49-61.
 Baker, C.C., Pocock, S.J. (1982) Ethnic Differences in Certified Sickness Absence, British
Journal of Industrial Medicine, Vol. 39, pp. 277-282.
 Balarajan, R., Yuen, P., Soni Raleigh, V. (1989) Ethnic Differences in General Practitioner
Consultations, British Medical Journal, Vol. 299, pp. 958-960.

55
 Barham, C., Begum, N. (2005) Sickness Absence from Work in the UK, Office of National
Statistics, April 2005, pp.149-158.
 Barmby, T., Orme, C., Treble, J. (1991) Worker Absenteeism: An Analysis using Microdata,
Economic Journal, Vol. 101, No. 405, pp. 214-229.
 Barmby, T., Sessions, J., Treble, J. (1994) Absenteeism, Efficiency Wages and Shirking,
Scandinavian Journal of Economics, Vol. 96, No. 4, pp. 561-566.
 Barmby, T.A., Ercolani, M.G., Treble, J.G. (2002) Sickness Absence: an International
Comparison, The Economic Journal, Vol. 112, pp. 315-331.
 Barmby, T., Ecolani, M., Treble, J. (2003) Sickness Absence in the UK 1984-2002, Paper
prepared for presentation at The Economic Council of Sweden’s Conference “Sickness
Absence: Diagnoses and Cures”, September 2003, pp. 1-15. 52
 Baumgartel, H. and Sobol, R. (1959) Background and Organizational Factors in Absenteeism,
Personnel Psychology, Vol. 12, pp. 431-443.
 Beatty, R.W., Beatty, J.R. (1975) Longitudinal Study of Absenteeism of hard-core
Unemployment, Psychology Reports, Vol. 36, pp. 395-406.
 Behrend, H. (1959) Voluntary Absence from Work, International Labour Review, Vol. 19,
Issue 2, pp. 109.
 Benavides, F.G., Benach, J., Diez-Roux, A.V., Roman, C. (2000) How do Types of
Employment relate to Health Indicators? Findings from the Second European Survey on
Working Conditions, Journal Epidemiol Community Health, Vol. 54, pp. 494-501.
 Bergendorff, S. and others (2004) Sickness Absence in Europe – A Comparative Study, Social
Insurance Studies, No. 2 (Swedish National Insurance Board).
 Bernandin, H.J. (1977) The Relationship of Personality Variables to Organizational
Withdrawal, Personnel Psychology, Vol. 30, pp. 17-27.
Bhatia S.K., “How to Tackle Absenteeism”, Indian Management
August 2000, p 205-207.

56
 Blank, N., Diderichsen, F. (1995) Short-term and Long-term sick leave in Sweden:
Relationships with Social Circumstances, Working Conditions and Gender, Scandinavian
Journal of Social Medicine, Vol. 23, No. 4, pp. 265-272.
 Brooke, P.P., Price, J.L. (1989) The Determinants of Employee Absenteeism: An Empirical
Test of a Causal Model, Journal of Occupational Psychology, Vol. 62, pp. 1- 19.
 Buzzard, R.B., Shaw, .J. (1952) An Analysis of Absence under a Scheme of Paid Sick Leave,
British Journal of Industrial Medicine, Vol. 9, pp. 282-295.
 Clegg, C. (1983) Psychology of Employee Lateness, Absence, and Turnover: A
Methodological Critique and an Empirical Study, Journal of Applied Psychology, Vol. 68, No.
1, pp. 88-101.
 Cooper, R. and Payne, R. (1965) Age and Absence: A Longitudinal Study in three Firms,
Occupational Psychology, Vol. 39, pp. 31-43.
Edwin B Flippo, Personnel Management, Sixth edition, Mcgraw Hill Book Company.
Kothari, C.R., Research Methodology Methods and Techniques, Delhi, Vishwa prakasham ,
New Delhi ,1985, second edition, Ninth reprint 2005.
 Strauss And Sayles: Managing Human Resources – Prentice Hall Inc,2007, p
317-320.

58
QUESTIONNAIRE FOR ANALYSING ABSENTEEISM AT RANE TRW STEERING
SYSTEM -GUDUVANCHERY
Background:
1.Name :
2.Plant : Area:
3.Age :
1. 20-25 Yrs
2. 25-30 Yrs
3. 30-35 Yrs
4. Above 35 Yrs
4.Native Place :
5.Current Stay :
1. Within the Surroundings of 5 KMs
2. Within the Surroundings of 10 KMs
3. Beyond 10 KMs – Chennai route
4. Beyond 10 KMs – Chengalpattu route
6.Educational Qualification :

59
7.Institution :
8.Marital Status :
1. Married
2. Unmarried
9.Total No of members in your family?
1. Three 2. Four
3. Five 4.Above Five Members

60
10.How many kids do you have ?
1. One 2.Two
3. Two or more 4. None
11. How does it affect you on managing your presence to Work?
1. Less time to spend in work
2. More responsibilities
3. Higher Mind Stress
4. Family problems
About Work:
1. Work Experience in Rane:
1. 1-5 years
2. 15-20 years
3. 20-25 years
4. 25 years and above
2.Total Work Experience including Rane
3. Do you work against your recommended working hours
1. Yes
2. No
4. If you work for overtime,what is the purpose?
1. More work 2. To gain more experience
3. To earn more 4. Simply
5. Do you balance your personal work within the permissible leave?
1.Not at all 2.To some extent
3.To great extent 4.Strongly
Leave Rules & Policy:
1.Your views regarding the present Absenteeism Policy of RANE TRW STREERING
SYSTEM Pvt. Ltd.?

1. Not at all
2. To some Extent
3.To Great extent
4. Strongly aware
3.Do you have your full PL Credit for this year?
1. Yes
2. No
If No, What is the reason?
4.Will you inform all your leaves before availing?
1. Always
2. Sometimes prior
3. Sometimes late
4. Never
5.Are you aware about the Company’s Disciplinary Proceeding for the
Absenteeism?
1. Not at all
2. To some extent
3. To great extent
4. Strongly aware
6.Do you get satisfied with your permitted days for taking leave ?
1. Yes
2. No

7. If you are not satisfied , what is the reason ?
1. Sole responsibility in family
2. Heavy work load
3. Health problem
4. Not applicable
About Income
1. What is your monthly income?
1. Rs 10,000- Rs15,000 2. Rs 15,000- Rs 20,000
3. Rs 20,000-Rs 25,000 4. More than Rs 25,000
2.Are you satisfied with your job?
1.Yes
2. No
3. If No,Then what do you do for extra income
1. Work for Overtime 2. Seek part time jobs
3. Work from home 4. Social work

Employee Absenteeism in Rane TRW Steering Systems

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