2. INTRODUCTION
A cable is two or more wires or ropes running side by side and bonded, twisted or
braided together to form a single assembly. In mechanics, cables are used for lifting
and hauling; in electricity they are used to carry electrical currents. An optical cable
contains one or more optical fibers in a protective jacket that supports the fibers.
Mechanical cable is more specifically called wire rope.
Rope made of multiple strands of natural fibers such as hemp; sisal, manila
and cotton have been used for millennia for hoisting and hauling. By the 19th
century, Deeping of mines and construction of large ships increased demand for
stronger cables. Invention of improved steelmaking techniques made high quality
steel available at lower cost, and so wire ropes became common in mining and other
industrial applications. By the middle of the 19* century, manufacture of large
submarine telegraph cables was done using machines similar to that used for
manufacture of mechanical.
HISTORY OF CABLE
Early telegraph systems were the first forms of electrical cabling but
transmitted only small amounts of power. Gutta-percha insulation used for the first
transatlantic cables was unsuitable for building wiring use since gutta-percha
deteriorated rapidly when exposed to air. The first power distribution system
developed by Thomas Edison used copper rods, wrapped in jute and placed in rigid
pipes filled with a bituminous compound.
Although vulcanized rubber had been patented by Charles Goodyear in 1844, it
was not applied to cable insulation until the 1880s, when it was used for lighting
circuits. Rubber-insulated cable was used for 11,000 volt circuits in 1897 installed
for the Niagara Falls power project. Oil-impregnated paper-insulated high voltage
cables were commercially practical by 1895. During World War 11 several varieties
of synthetic rubber and polyethylene insulation were applied to cables. Modern
3. power cables come in a variety of sizes, materials, and types, each particularly
adapted to its uses.
POWER CABLES
A power cable is an assembly of two or more electrical conduction, usually
held together with an overall sheath. The assembly is used for transmission of
electrical power. Power cables may be installed permanent wiring the building buried
in ground.
Flexible powers are used for portable device; mobile tools and machinery early
telegraph system used the first form of electrical cabling transmitting small amount
of power, Gutta-percha insulation used on the first submarine. Cable was unsuited for
building wiring use since it deteriorated rapidly when exposed to air.
The first power distribution system developed by THOMAS EDISON in 1882
at New York City used copper road, wrapped in jute and placed in variety of sizes,
material and type search particularly adapted to its uses. Large single insulated
conductors are also some times called power cables in the industries.
FLEXIBLE CABLES
Applications require a cable to be moved repeatedly, more flexible cables are
used. Small cables are called "cords" or "flex". Flexible cords contains finer stranded
conductors rather than solid, and have insulation and sheaths that are engineered to
withstand the force of repeated flexibility.
Heavy duty flexible power cords such as feeling a mine face cutting machine
are carefully engineered since their life is measured in weeks. Very flexible power
cable are used in automated machinery, robotics, and machine tools, "power cord"
and "extension cable" for further description of flexible cable include twisted pairs,
extensible, coaxial shielded, and communication cable.
4. STRUCTURED CABLING
Buildings today should be wired in accordance with guidelines known as
"structured cabling". The basic objective of this system is to minimize future costs for
"moves and additions", and to maximize availability, reliability, and
configurability.The method by which this reliability and cost saving is accomplished
is to pull only one type of wire which can be used for any variety of network, for
telephone, and for serial terminals and printers.
All configuration of the wiring system is done at a single point, a "wiring
closet" on each floor to which every cable on that wiring closets is connected by a
riser cable. 5 cable: one for network and other for telephone. This cable run from a
wall jack at the work station to a patch panel or background termination device in the
wiring closet. Even if the network use only one cable and the cable contains four
pairs; it is considered by very bad form to run to networks connection through that one
cable.
ONE reason is the possibility of interference between the two connections
slowing your network, another is that, should you upgrade to a faster network that
uses all four pairs.
third reason is that it can make things messy and difficult to interpret at the backboard
or patch panel. Telephone lines can share the same cable without serious problems,
except for upgrade and interpretability considerations.
OPTICAL FIBER CABLE
A few years ago copper wire was doomed and we would all have optical fibre cable
to our desks. Every year fibre enthusiasts declare that "The cost of fibre is now
competitive with the cost of copper wire". Every year more copper wire is pulled.
Primary advantage of optical fibre is transmission speed and distance. This had made
it essential for many backbone installations connecting servers and hubs. With copper
you are talking 100 meters, with fibre you can be talking thousands of meters.Speeds
5. of over 100 megabits/second are still a bit dicey on copper, but are no problem for
fibre.
Other advantages of fibre are security and electrical isolation. It is much harder to tap
into a fibre transmission line than copper wire, which often doesn't even need to be
touched to tap it. Since fibre does not conduct electricity, it is immune from
grounding fault and other electrical problems that plague some networks. For most
uses, optical fibre must be pulled in pairs. One fibre is transmitted, the other is
receiving.
WORLD SCENARIO
Wires and cables are used for transmitting power, signals, and payloads in various
industries. They are widely used across various end-use segments including
residential, commercial and industrial purpose. The growth of global wires and cables
market is primarily driven by the growth of the IT and communication industry where
wires and cables play a vital role in transmitting power.
The growing demand for wire and cables across various end-use industries such as IT
and telecommunication is one of the major concerns for various players operating in
the global market for wires and cables.The global wires and cable industry is very
large with many participants operating in the market. Some of the end-use industries
for wires and cables market include telecom operators and power supply companies.
The global market also exhibits non-homogenous characteristics.
The market for wire and cables can be segmented into power cables and
telecommunication cables based on their application. Power cable constitute the
biggest segment for the wire and cables market which is expected to exceed a market
worth of USD 190 billion by 2018, growing at a CAGR of approximately 8.9% from
2012-2018.
The telecommunication segment is the fastest growing one for wires and cables and
is expected to grow at a CAGR of approximately 11.1% from 2012-2018. Some of
the leading companies operating in the global market of cables and wires include
6. AkshQptifiber, Alcan Cable, Belden, CommScope, Corning Inc., EL Sewedy,
Finolex Cables, Leviton and Molex.
The global cable industry is a highly fragmented market with APAC dominating and
increased discretionary spending is seen to impact market dynamics significantly
operating profit declined during 2009 due to weak demand, pricing for the residential
cables, and unfavourable foreign currency rate changes. The industry's net profit
suffered significantly in 2011 due to higher taxes, lower volumes, and a substantial
price decline.
INDIAN SCENARIO
In India most of the communication is being made possible through cable
communication. The cable plays an important role in the field of communication.
India is not for behind most of the developed countries in the field of communication.
India is making his head way.
Due to the lack of latest technology in the field of cable manufacturing. India has to
depend in neighbouring countries for the import of either raw material or finished
cables. So that, more money is spending on the import of cables from the foreign
countries.
As a result India had no.l only achieved self-efficiency in the field of cable
manufacturing but is his made a big head in to the international market.
The manufacturing of telephone cables was mainly reserved for public sector. The
only manufacturer until 1974 was HINDUSTAN cables limited government of India
undertaking.
8. STATE SCENARIO
The uses of cable products are increased by days. According to the emerging of
new industries and malls increased the need for cables. As per a study conducted by
IEEMA, there is 15% growth rate expected in the annual demand of XLPE cables
during 2010-2017.
TRACO was the first state sector unit to manufacture telephone cables in India. It
started its commercial production in the year of 1974. It is evident there is a scope of
establishing the facility for manufacturing of 5000 lakhs KM jelly filled telephone
cables by TRACO in Kerala. The wire and cable industry had moved being a small
industry 20 years back to a very large industry over the last decade. Although it is a
volume driven product, it has a lot of quality and technical particulars.
Over a period of time, the industry has moved from the unorganized to the
organized sector. However, about 35% of the industry is still in the unorganized
sector. Requirements like brand and quality perception are key in this PRs 15000Cr
industry. The wire and cable industry predominantly provides challenging
opportunities in the field of manufacturing, supply chain, procurement, marketing and
HR.
This industry is currently undergoing a major change and portends huge
opportunity for upcoming professionals and will give them a first-hand experience on
subjects like techno-marketing, brand building, six sigma, just-in-time manufacturing
etc.
The wire and cable industry will eventually focus on supplying cables for
specific applications pertaining to the industry needs. India has a lot of potential in the
mining, power, oil and gas, metro railways, cement industry, steel industry and other
sectors. Different kinds of cables like extra high voltage cables, Elastomer cables etc.
9. COMPANY PROFILE
INTRODUCTION
TRACO CABLE COMPANY LTD, a premier Kerala government company.
Commenced operation in the year 1960 and is manufacturing high quality electric
cables and wires in technical collaboration with M/S Kelsey Engineering Co.Ltd,
Canada.
That was the time when Kerala had been looking for the telecommunication
development. Since then TRACO has been in the forefront in meeting the needs of
public sector undertakings in India like railways, electricity boards and other for
ASCR, JFTC, Control cables, Power and signaling cables with the progress in cable
technology.
TRACO has upgraded with prescribed standards are allowed to go to the market.
TRACO cables have thus earned a name for themselves in India market for
dependability and quality under any circumstances.
The company's first manufacturing unit was set up at cochin commenced
manufacturing power cables, control cables, signal cables and bear conductors in
1964 and second unit was set up in 1990 for manufacturing jelly filled telephone
cables at Thiruvalla.
The company added facilities by induction of new machines and equipment at
Thiruvalla unit for manufacturing of power cables, control cables at February 2007.
Registration Number -CHR/10/110/89
Postal Code - TRACO Cable Company Ltd Chumathara, Thiruvalla Pathanamthitta -
689103
Registered Office -XXVIII/1242, KSHB Office Kochi
10. MISSION
TRACO Cable Company Ltd is committed for continual improvement in its
performance in preventing environment pollution, to conserve resource and to comply
with relevant environmental regulations.
VISION
TRACO Cable Company Ltd is committed for continual improvement in its
performance, by meeting the needs of internal and external customers complying with
regulations through the involvement of all its employees.
OBJECTIVES OF THE COMPANY PRIMARY OBJECTIVES
• Create and distribute a product or service
» Meet community and social obligation
• Protectionor enhancement of physical resource of society
• Satisfying personal objectives of members of the organization via:
• Profit to owners(Return on investment to owners)
• Wages and other compensation for employers
SECONDARY OBJECTIVES
• Economic of operation in meeting the primary objectives
• Effectiveness of operation in meeting of primary obj ecti ves
QUALITY POLICY
TRACO CABLE COMPANY LTD work with a prime motive of offering premium
quality products to the clients.
TRACO Cable Company Ltd shall strive for continuously improvement in its
performance by meeting the needs of internal and external customers complying with
11. regulations through the involvement of all its employees. Making no compromise
with quality standards, company tends to manufacture cables that stand to
international quality standards.
To ensure quality standards of the cables manufactured by the company, the quality
experts in the company conduct stringent quality cheeks at each level of product
development. Cables offered by the company are manufactured using finest quality
raw materials procured after setting from registered and acclaimed vendors.
Products offered by the company are appreciated for their tensile strength, flexibility,
durability, long life value, less services and conducting power.
ETHICS
TRACO Cable Company Limited is committed for continual improvement in its
performance by preventing environmental pollution, to conserve resources and to
comply with relevant environmental regulations.
12. HISTORYOF THE COMPANY
TRACO CABLE COMPANY LIMITED was incorporated in the year lyoU. The
total paid up is 146.92 lakhs of which 127.17 lakhs (86.6%) are held by the
government of Kerala. The registered office of the company is situated at KSHB
office complex, Panampally Nagar, Ernakulum, the industrial capital of Kerala. The
company has now two manufacturing divisions; they are power cable division and
telephone cables division both located at Irimpanum and Thiruvalla.
As first step towards diversification and expansion, TRACO commenced production
of paper insulated load sheltered polythene jacketed copper telephone cables in 1974
with technical assistance from m/s HINDUSTAN CABLE LTD. These cables were
mainly used for subscribe connection of telephones are laid underground in view to
enlarge its activities.
The power cable division commenced in 1965, has facilities for manufacture of PVC
insulated armoured and unarmoured heavy duty cables up to 1.1 KV with
copper/aluminium conductors. PVC insulated wires and flexible and bare Aluminium
Conductors (AAC & ACSR). All these types of cables are used for electrical
transmission and distribution systems. It has received an industrial.
License number CK:#49(80) DATED 29/11/1980 from the Government of Kerala
under IDRA in 1951 from manufacture of 50001ines kilometre roof jelly tilled at
kuttapuzha, Thiruvalla.
The company started its production in 1996. It has a capacity of producing 15 lakh km
of cables annually. Here various types of JFTC are produced like 10 pair, 20 pair, 50
pair etc. up to 1600 pairs. The main customer of these cables is department of
telecommunication; direct sales are done by the plant. All order is obtained by the
Head Office and the finished products are transferred to the Head Office.
Total man power of the company is 5000. The range consist of underground armoured
and unarmoured jelly filled Telephone cables, Arial Cables and PVC Cables besides
AAL, ACSR and power/control etc.superiority of TRACO Cable is a result of better
13. know-how, combined with latest sophisticated machinery and equipment employed in
their manufacture, Gregarious quality control is maintained at every stage of
manufacture, which ensures only products better than prescribed standard are allowed
to go but to the market. TRACO Cable Company has thus earned a name for
themselves in Indian and world market for quality and dependability.
With a view to enlarge its activities TRACO has decided to take up manufacturing of
petroleum jelly filled cables incorporating the latest techniques in the manufacturing
of telephone cables. TRACO has received an industrial license number CDL 349(80)
dated 29/11/80 from government of India under industries act 1951 for manufacturing
5000 linear kilometre jelly filled cables at Kuttapuzha, Thiruvalla, in Pathanamthitta
District.
Depending up on the requirement of telecommunication department product mix may
vary from year to year, it is assumed that when all the machinery and equipment are
commissioned this unit will have capacity to manufacture 7.30 lakhs C.K.M of
telephone cables ranging from 20-1000 pairs equivalent to 5000 linear kilometre on
double shift working.
Government of Kerala had already approved the site tor establishing this unit in Thiruvalla
vide letter no 22318/h 1/75/10 dated 8-9-75 the government have been already acquired and
the company has to take the possession of land of 18 acres at Kuttapuzha, Thiruvalla.
TRACO has signed no November 23rd 1984 a technical collaboration with messer general
cable international INC USA for establishing this unit for the manufacturing of jelly filled
telephone cables. An agreement has been concluded by TRACO with Messer De-Angeli
Industries SLR Italy for supply of plant and machinery for this project.
By emergence of mobile phone demand for jelly filled cables are reduced tremendously, so
the company stops the production of it. Now company switch over there product to
Aluminium Conductor Steel Reinforced Cables(ACSR), Weather proof Cables Etc.
14. DEPARTMENTS
• Personal and administration department
• Production Department
• Store Department
• Marketing Department
• Quality Assurance Department
• Finance Department
• Security Department
1) PERSONAL AND ADMINISTRATIVE DEPARTMENT
Its main responsibility is the recruitment selection. Training and development of staff
they may also create policies mat balance organizational needs those of the employees.
DEPARTMENT STRUCTURE
Manager in Charge (P&A)
Officers (P&A)
Clerk & Attenders.
2) PRODUCTION DEPARTMENT
Production is the functional area responsible for turning inputs in to finished outputs
through a services of production process.
DEPARTMENT STRUCTURE Manager (Production) Assistant Manager (Production)
Engineers Machine Operators
3) STORESDEPARTMENT
The complete control on the raw material is invited in the stores. Department
15. DEPARTMENT STRUCTURE
Manager
Q/A Stores
Q/A Store
Store Keeper
4) MARKETING AND DESPATCH DEPARTMENT
The marketing department will research customer needs to develop strategy and
product to satisfy that customer need. DEPARTMENT STRUCTURE
Manager in Charge
Marketing Department Staff
5) QUALITY ASSURANCE DEPARTMENT
Quality assurance is part of quality management which represents a complex process
focused a creation of the confidence that me corresponding requirement to quality is
kept and includes all the factors and the actors needed for achievement of the
appropriate quality level of products and services.
DEPARTMENT STRUCTURE
Manager (Q/A Stores) Assistant Manager
(Q/A And Stores)
Engineer's Staff
6) FINANCE DEPARTMENT
The finance department is responsible for administrating employee expenses and
salaries.
16. DEPARTMENT STRUCTURE
Manager in charge
Management Staff
Officers, Clarks, Attenders
7) PURCHASE DEPARTMENT
The purchasing department will responsible for providing the material, components
and equipment required process running smoothly
DEPARTMENT STRUCTURE
Manager in Charge
Manager (Effect main and Purchase)
Engineer (Effect main and Purchase)
COMPETITORS
• Hindustan Cables
• Telecom Steroile
• Finolex Cable
• RPG
17. Facilities available in the company
SITE
Government of Kerala has already acquired over possession of 18 acres of land to
TRACO at Kuttapuzha in Thiruvalla Taluk, Pathanamthitta district. It has all other
Location advantages such as nearness to trunk roads to the broad gauge of railway
station and to the power line.
WATER
The requirement of water for the operations in the factory will be met from the
exciting well and 2 tube wells. In this area there is an abundant supply of ground
water for human consumption in this area.
POWER
11 K.V. power lines are passing through the road very close to the site. KSEB has
agreed to supply sufficient quantity of power on completion or erection of machinery
at site.
TRANSPORT
The site at Kutapuzha is connected by road and rail at all parts of India. The nearest
railway station Thiruvalla is only 5KM west of factory site. Distance from factory site
to main central road is 6KM. To Cochin airport there is only 90KM and to Cochin
harbour mere is only 93KM. So there is no difficulty for transportation of raw
materials and finished goods.
LABOUR
Kerala has highest rate of literacy in our country this applies training to
technical education and training too workers have the requisite skill to
switch over the manufacturing system. There is no dearth of technically
18. qualified and experienced personnel in Kerala and they can be recruited at
short notice.
LEGAL ENVIRONMENT
The company has adopted various labour legislations which are enacted for labour
welfare.
• Workmen's compensation ACT
• Payment of wage ACT
• Gratuity ACT
• Bonus ACT
• ESI ACT
• Apprentice ACT
• Factories ACT
• Industrial dispute ACT
• Maternity benefits ACT
POLITICAL ENVIRONMENT
TRACO cables is a government owned firm so naturally its policies and strategies are
being affected by actions of political parties. Functioning of the company is being
closelyrelated to the policies and plans of ruling political parties.
CORPORATE GOVERNANCE
TRACO cables philosophy on corporate governance envisages the attainment of
highest level of transparency .accountability and equity in all factors of all its
operation and all its interactions with its stakeholder's .Company maintain its
19. corporate governance through value addition, wealth maximization and efficient use
of resources.
PLANT AND EQUIPMENTS
The Thiruvalla plant is having all the facilities for the manufacture of jelly filled
telephone cables and power conductors, power cables, control cables and signalling
cables.
INFRASTRUCTURE FACILITES
The Thiruvalla unit has around 6000 sq.meters covered area (factory: 4750 sq.mtr;
laboratory:! 25 Osq.meter) within 18 acres of land and is located within municipal
limits of Thiruvalla. The Kerala State Electricity Board has exclusively set up a 66
KV/11KV substations for Thiruvalla unit within the company compound for
uninterrupted power supply-
A part from this the company has two Captive Diesel Power Generating sets each of
500 KVA capacities to ensure uninterrupted activities in the unit. The unit is having
its own captive water resources for continuous water supply.
CERTIFICATIONS
ISO 9001
This is the quality management system and quality assurance standard brought into
phase by international standards organization (ISO) a confederation comprising
standard of the world which aims at standards action of the quality of the product and
services to enter to the complete satisfaction of the customer.
ISO 14001
TRACO cable company Ltd is committed for continual improvement in
environmental pollution to conserve resource and to comply with relevant
environmental regulations. As a reward for its environmental policy, TRACO cable
has got ISO 14001 certificationin the year 2001.
20. OTHER CERTIFICATION
• RINA-ITALY
• KEMA-NETHERLANDS
SWOT ANALYSIS STRENGTH
• Company Reputation
• Product Quality
• Service Quality
• Technical Manufacturing Skills
• Dedicated Employees
WEAKNESS
• There is no fixed sales and production
• Lack of modern management consents
• Risk Management
OPPORTUNITIES
• Modern Trends
• Implementation of Modern Technology
22. PRODUCT PROFILE
It is true that all these years much of our time and efforts was spend on making
underground cables that are as fail proof as can be. As a result the company has
connected millions of people. Playing an importance role in communication. TRACO
has diversified in to Aerial Cables. TRACO's new range of self-support Aerial Cables
connects people aerially at the I- same time economically. They are manufactured to
both national and international standards.
TRACO has developed Aerially Bunched Cables or LT Overhead lines also. They are
polythene insulated aluminium cables of specification: REC specification no: s2/1984
and have a rated voltage of 1.1KV. This type of cables helps in reducing the power
interruption to the barest minimum level possible. Many of the de veloped Countries
are all ready to I switching over to these enables from the bare counter system.
Bare conductors, weather proof cables and power cables are used by several electricity
boards in India. With stringent quality control methods, these cables are of excellent
quality and have been acclaimed as one of the best in the country. Signalling cables
made to railway [ specification are functioning all over.
Company Products
23.
24. LABOUR TURNOVER
MEANING
Labour turnover refers to how many employees in an organization leave their
position in a designated time period, usually over the period of a year. Labour turnover is
measured in a percentage of total workers and is a popular metric to evaluate the stabilityof
a company's workforce.
Labour Turnover is an important parameter which indicates the overall health of an
industry or an establishment in terms of wages, industrial relations, working conditions and
other welfare facilities provided to the workers. Labour turnover, which refers to the
movement of employees in and out of a business, measures the extent of change in the work
force due to accession (total number of workers added to employment) and separation
(severance of employment at the instance of workers or employers) during a particular period
of time. High Labour Turnover causes problems for a business. It is costly, lowers
productivity and morale and tends to get worse if not dealt with. Labour Turnover does not
just create costs, but some level of Labour Turnover is important to bring new ideas, skills
and enthusiasm to the labour force. A natural level of Labour Turnover can be a way in
which abusiness can slowly reduce its workforce without having to resort to redundancies
DEFINITION
The ratio of the number of employees that leave a company through attrition,
dismissal, or resignation during a period to the number of employees on payroll during the
same period.
CAUSES OFLABOUR TURNOVER:
• Dissatisfaction with job
• Discontentment at the remuneration
• Dissatisfaction with the hours of work.
• Unhealthy relationship with supervisors and workers.
• Illness or accident
25. • Move from locality
• Discharge
• Death
• Retirement
• Betterment
26. TYPES OF LABOUR TURNOVER
INVOLUNTARY TURNOVER
Employee termination for poor job performance, absenteeism or violation of
workplace policies is calledinvoluntaryturnover — also referred to as termination, firing or
discharge. It's involuntary because it is not the employee's decision to leave the company.
Layoffs could also be considered involuntary terminations, though layoff procedures
usually are handled differently from termination. Some layoffs have certain federal and
state provisions that aren't afforded to employees who are fired because of undesirable
performance or policy violations.
VOLUNTARY TURNOVER
When an employee leaves the company of her own volition, it's called voluntary
termination. Employees give a number of reasons for leaving their jobs. They may be
accepting employment with another company, relocating to a new area or dealing with a
personal matter that makes it impossible to work. When anemployee voluntarily terminates
the employment relationship, he/she generally gives the employer verbal or written notice
of intent in advance to resign from her job.
DESIRABLE AND UNDESIRABLE TURNOVER
Turnover often has a negative connotation, yet turnover isn't always a negative
event. For example, desirable turnover occurs an employee whose performance falls below
the company's expectations is replaced by someone whose performance meets or exceeds
expectations. It's desirable because poor job performance, absenteeism and tardiness are
costly, replacing a poor performer with an employee who does his job can improve the
company's profitability. Desirable turnover also occurs when replacing employees infuses
new talent and skills, which can give an organization a competitive advantage. Conversely,
undesirable turnover means the company is losing employees whose performance, skills
and qualifications are valuable resources.
27. METHODS OF MEASURING LABOUR TURNOVER
1. CALCULATING LABOUR TURNOVER BY SEPARATION METHOD
Under the Separation Method, the relationship between the number of workers
separated or left from the organization and average number of workers of the organization
inthe period is expressed in terms of percentage.
A worker may be left or separated from the organization due to surplus workers,
poor working conditions and wages, less chance for promotion and the like.
The following formula is used to measure the labour turnover by Separation method.
Labour Turnover = No. of workers left or separated during a period /
Average number of workers on role during that period x 100
Average No. Of Workers= (No.of workersat the beginningof theperiodI
No. of workers at the endof the period)/ 2
2. CALCULATING LABOUR TURNOVER BY REPLACEMENT METHOD
There is no need of replacement if the surplus workers left from the organization.
The workers whose services are required by the organization are to be replaced by new
appointments if they leave.
Hence, the relationship between the number of workers replaced and average
number of workers of the organization in a period is expressed in terms of percentage
under the replacement method.
Generally, the replacement of labour is followed by the organization if skilled
labourers are left from the organization.
The following formula is used to measure the labour turnover by replacement
method.
Labour Turnover = No. of workers replacedduring a period/ Average number of
workers on role during that periodx 100
28. 3. CALCULATING LABOUR TURNOVER BYFLUX METHOD
This is the combination of separation method and replacement method. Both
separation and replacement are taken into considerationto calculate labour turnover in Flux
method.
Hence, the relationship hetween both separation and replacement of labour force of
the organization in a period and average number of workers on roll during that period is
expressed in terms of percentage. The following formula is used to calculate labour turnover
by flux method.
Labour Turnover = (No. of workers separated in a period + No. of workers replaced in
the same period) / Average number of workers on role during that period xlOO
ABSENTEEISM
DEFINITION
According to Webster's dictionary,
"Absenteeism is the practice or habit of being an absentee and an absentee is one
who habitually stays away from work."
According to Labour Bureau of Shimla,
"Absenteeism is defined as the total man shifts lost because of absence as
percentage of total number of man shifts scheduled to work".
Voluntary nonattendance at work, without valid reason. Absenteeism means either
habitual evasion of work, or wilful absence as in a strike action. It does not include
involuntary or occasional absence due to valid causes, or reasons beyond one's control, such
as accidents or sickness. See also attendance management.
MEANING
Absenteeism is a habitual pattern of absence from a duty or obligation. Traditionally,
absenteeism has been viewed as an indicator of poor individual performance, as well as a
breach of an implicit contract between employee and employer; it was seen as a
29. management problem, and framed in economic or quasi-economic terms. More recent
scholarship seeks to understand absenteeism as an indicator of psychological, medical, or
social adjustment to work.
CONCEPT OF ABSENTEEISM
It refers to workers absence from their regular task when he is normally schedule to
work. Absenteeism means either habitual evasion of work, or willful absence as in a strike
action. It does not include involuntary or occasional absence due to valid causes, or reasons
beyond one's control, such as accidents or sickness. See also attendance management.
In other words, it signifies the absence, of an employee from work when he is
scheduled to be at work. Any employee may stay away from work if he has taken leave to
which he is entitled or on ground of sickness or some accident or without any previous
sanction of leave. Thus, absence may be authorised or unauthorized, wilful or caused by
circumstances beyond one's control. May be even worse than absenteeism. Such team
members need individual attention from frontline supervisors and management.
Indeed, as prevention is better than cure, where such a problem occurs, it is always
important to review recruitment procedures to identify how such individuals came to be
employed in the first place. For any business owner or manager, to cure excessive
absenteeism, it is essential to find and then eliminate the causes of discontent among team
members.
If they find their supervisor or job unpleasant - really unpleasant - they look for
legitimate excuses to stay home and find them with things such as upset stomachs or
splitting headaches.
Any effective absenteeism control program has to locate the causes of discontent
and modify those causes or eliminate them entirely. In other words, if we deal with the
real reasons team members stay home it can become unnecessary for t hem to stay away.
Any investigation into absenteeism needs to look at the real reasons for it,
Sometimes team members call in sick when they really do not want to go to work.
30. They would not call you up and say, "I'm not coming in today because my
supervisor abuses me." Or, "I'm not coming in today because my chair is uncomfortable."
Or, "I'm not coming in today because the bathrooms are so filthy; it makes me sick to
walk into them". There are a few essential questions to consider at the outset if you want to
make a measurable improvement to your absenteeism figures.
FEATURES OF ABSENTEEISM
• The rate of absenteeism is the lowest on pay day; it increases considerably on the days
following the payment of wages and bonus.
• Absenteeism is generallyhigh among the workers below 25 years of age and those
above 40 years of age.
• The rate of absenteeism varies from department of department within an organization.
Generally, it is high in the production department.
• Absenteeism in traditional industries in character.
CAUSES OF ABSENTEEISM
• Maladjustment with the working conditions
• Social and religious ceremonies unsatisfactory housing
• Unhealthy working conditions
• Poor welfare facilities
• Alcoholism
• Maladjustment with the job demands
• Unsound personnel policies
• Inadequate leave facilities
CATEGORIES OF ABSENTEEISM
Entrepreneurs; this class of absentees considers that their job are very small for their total
interest and personal goals.
Status seekers; this type of absentees enjoys or perceives a higher ascribe social status and
is keen on maintaining it.
31. Epicureans; this class of absentees does not like to take up the jobs which demand initiative,
responsibility, discipline, and discomfort.
Family-oriented and; this type of absentees is often identified with the family activities
The sick and old; this category of absentees is mostly unhealthily, with a weak constitution
or old.
EFFECTS OF ABSENTEEISM ONINDUSTRIAL PROGRESS
It is quite evident that absenteeism is a common feature of industrial labour in India.
It hinders industrial growth and its effect in two fold.
1) LOSS TO WORKER
Firstly, worker's income is reduced to a large extent due to the habit of frequent
absent. It is because there is a general principle of "no work - no pay". Thus the time lost in
terms of absenteeism is a loss of income to workers
2) LOSS TO EMPLOYERS
On other hand, the employer has to suffer a greater loss due to absentees. It disturbs
the efficiency and discipline of industries consequently, industrial production is reduced. In
order to meet the emergency and strikes, an additional labour force is also maintained by the
industries. On certain occasions, those workers are employed who present themselves at
factory gates. During strikes they are adjusted in place of absent workers. Their adjustment
brings serious complications because such workers do not generally prove themselves up to
work. Higher absenteeism is an evil both for workers and the employers and ultimately it
adversely affects the production of industries
.ABSENTEEISM- TYPES & THEIR CONTROL
There are two types of absenteeism, each of which requires a different type of
approach.
32. 1. INNOCENT ABSENTEEISM
Innocent absenteeism refers to employees who are absent for credible reasons
beyond their control; like sickness and injury. Innocent absenteeism is not culpable which
means that it is blameless. In a labour relations context this means that it cannot be
remedied or treated by disciplinary measures.
2. CULPABLE ABSENTEEISM
Culpable absenteeism refers to employees who are absent without authorization for
reasons which are within their control. For instance, an employee who is on sick leave even
though he/she is not sick, and it can be proven that the employee was not sick, is guilty of
culpable absenteeism. To be culpable is to be blameworthy. In a labour relations context
this means that progressive discipline can be applied.
For the large majority of employees, absenteeism is legitimate, innocent
absenteeism which occurs frequently. Procedures for disciplinary action apply only to
culpable absenteeism. Many organizations take the view that through the process of
individual absentee counselling and treatment. The majority of employees will overcome
their problems and return to an acceptable level of regular attendance.
COUNSELLING INNOCENT ABSENTEEISM
Innocent absenteeism is not blameworthy and therefore disciplinary action is not
justified. It is obviously unfair to punish someone for conduct which is beyond his/her
control. Absenteeism, no matter what the cause, imposes losses on the employer who is also
not at fault. The damage suffered by the employer must be weighed against the employee's
right to be sick. There is a point at which the employer's right to expect the employee to
attend regularly and fulfil the employment contract will outweigh the employee's right to be
sick. At such a point the termination of the employee may be justified, as will be discussed.
The procedure taken by an employer for an innocent absenteeism is as follows:
1. Initial counselling
2. Written counselling
3. Reduction of hours andVor j ob reclassification
4. Discharge
33. 1. INITIAL COUNSELLING
2. Presuming you have communicated attendance expectations generally and have
already identified an employee as a problem, you will have met with him or her as
part of your attendance programme and you should now continue to monitor the
effect of these efforts on his or her attendance. If the absences are intermittent, meet
with the employee each time he/she returns to work. You may require the employee
to provide you with regular medical assessments. This will enable you to judge
whether or not there is any likelihood of the employee providing regular attendance
in future. Regular medical assessments will also give you an idea of what steps the
employee is taking to seek medical or other assistance.
3. WRITTEN COUNSELLING
If the absences persist, you should meet with the employee formally and provide
him/her with a letter of concern. If the absenteeism still continues to persist then the
employees should be given a second letter of concern during another formal meeting. This
letter would be stronger worded in that it would warn the employee that improves,
termination may be necessary.
3. REDUCTION OF HOURS AND OR JOB RECLASSIFICATION
In between the first and second letters the employee may be given the option to
reduce his/her hours to better fit his/her personal circumstances. This option must be
voluntarily accepted by the employee and cannot be offered as an ultimatum, as are
deduction in hours is a reduction in pay and therefore can be looked upon as a discipline. If
the nature of the illness or injury is such that the employee is unable to fulfil there
requirements of his/her job, but could for example benefit from modified work,counsel the
employee to bid on jobs of such type if they become available.
4. DISCHARGE
Only when all the previously noted needs and conditions have been met and
everything has been done to accommodate the employee can termination be considered. An
Arbitrator would consider the following in ruling on an innocent absenteeism really
dismissal case.
a) Has the employee done everything possible to regain their health and ret urn to work?
34. b) Has the employer informed the employee of the unworkable situation resulting from
their sickness?
c) Has the employer attempted to accommodate the employee by offering a more suitable
position (if available) or a reduction of hours?
d) Has enough time elapsed to allow for every possible chance of recovery?
e) Has the employer treated the employee prejudicially in any way?
As is evident, a great deal of time and effort must elapse before dismissal can take
place.
36. RESEARCH ARTICLE
IMPACT OF ABSENTEEISM AND LABOUR TURNOVER ON
ORGANISATIONAL PERFORMANCE AT ITI, NANI, ALLAHABAD, INDIA
Dr. Usha Tiwari Lecturer, APS University, Rewa (M.P.), India
ABSTRACT
Absenteeism is a type of unscheduled activity which threatens the organization to fall
in danger as it leads to the disruption of the daily process. Absenteeism converts the
organization into deviant work place behaviour. It makes the employees to violate the norms
of the organization leading to a disastrous output. Such effect of absenteeism affects the
turnover of the organization leading to decreased selection and training cost.
Absenteeism also affects the level of satisfaction among the employees and
organisational performance. This shows the relationship between absenteeism and job
satisfaction. The present study is an attempt made to investigate the impact of absenteeism
and labour turnover on organisational performance at Iti, Naini, Allahabad, India. The result
indicate that 3 item is very good, 5 item is good, 3 item is average, 2 item is poor and 3 item
is extremely poor score. Conclusively the impact of absenteeism and labour turnover on
organisational performance appear to be average.
CONCLUSION
The management and the workers are satisfied with the job conditions and think that
the healthful and hygienic working conditions are available at the workplace. The wage and
allowances provided are reasonable and there is job security among the employees. The
potentials are fully utilized in the organisation. The adequate welfare facilities are provided
which give a sense of belonging to the worker. Still some improvements can be made to
make the workplace more comfortable. There are adequate housing and transport facilities
available.
The employer's behaviour towards its employees is affectionate and mild. There is
presence of strict discipline. There is open communication between the management and the
workers, so most of them are satisfied with it and their grievances are solved by the higher
authorities. The management has positive attitude and cordial relationship exist between the
management and the worker.
37. The leave rules are fixed and in case of any .emergency the leave is provided without
any delay. But some workers are not satisfied with the leave rules. The worker's participation
in decision making process is less which should be increased. Most of the worker is aware
about the personnel policies and their rights and obligations.
The safety instructions and safe methods of operation are followed during the course
of work and the accidents are prevented up to the greater extent but still it requires more
attention by the management. The absenteeism is less as most of the employees and workers
belong to the local area only. The management also thinks that absenteeism has a great
impact on the achievement of organizational goals and productivity. At last all these factors
help in reduction in absenteeism and the fulfilment of the organizational goals and increase in
productivity.
38. RESEARCH METHADOLOGY
INTRODUCTION
In research methodology we study the various steps that are generally adopted by a researcher
in studying his research problem along with the logic behind them. It is necessary for the
researcher to know not only the research methods or techniques but also the methodology.
The various steps that are generally adopted by a research in studying researcher problem are
the main function of research methodology.
It consist of three steps
I. Pose a question
2. Collect data to answer the question
3. Present an answer to the question
RESEARCH Research in common parlance refers to a search for knowledge. Research is a
careful investigation of especially through search for new fact in any branch of knowledge.
Once can also define research as a scientific and systematic search for pertinent information
on a specific topic. DEFNITION “Research is a systematized effort to gain new knowledge”
Redman and Mary “Research is a careful investigation or inquiry Specially through search
for new facts in any branch of knowledge”
The Advanced Learners Dictionary of Current English
METHODOLOGY
Methodology is the systematic, theoretical analysis of the methods applied to a field of
study. It comprises the theoretical analysis of the body of methods and principles associated
with a branch of knowledge.
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research methods/techniques but also the methodology.
39. RESEARCH DESIGN
A research design will typically include how data is to be collected, what instruments will be
employed, how the instruments will be used and the intended means for analysing data
collected. Some examples of research designs include descriptive, correlation, and
experimental.
Type of research RESEARCH DESIGN
1)DISCRIPTIVE STUDY
A descriptive study is one in which information is collected without changing the
environment (i.e., nothing is manipulated). Sometimes these are referred to as
“correlational” or “observational ” studies.
2) EXPERIMENTAL STUDY
An experimental study is a study in which a treatment, procedure, or program is
intentionally introduced and a result or outcome is observed.
The research designs under taken for the study is in descriptive one. The methodology
involved in this design is mostly qualitative in a nature.
3) EXPLORATORY RESEARCH DESIGN
The main purpose of such studies is that of formulating a problem for more precise
investigation or of developing the working hypothesis from an operational point of View. It
helps in producing a sharper design of the studies and clear designation of the problem at the
research. It involves in getting a face of the situation and emphasizes discovering of ideas and
possible insights that may help in relative are of further rigorous studies.
DATA COLLECTIONMETHOD
1. PRIMARY DATA
The primary data are these which collected a fresh and for the first times and thus happen to
be original character in primary data do no already exist in publications. The primary data is
collected by questionnaire. The questionnaire was handed over to the various respondents and
the purpose of the study was explained to them.
40. METHODS/SOURCES FOR COLLECTIONOF PRIMARYDATA
1.Questionnaire: A questionnaire is a schedule consisting of a number of coherent and
formulate desires of questions related to the various aspects of the under study, a printed list
of questions is arranged in a sequence and is used to elicit response from the respondents.
The following are the type 01 questions, which are in used to research.
Open ended and close ended question: An open ended question gives the respondents
the complete freedom to decide the form length and detail of the firm. The close
ended question is of two types they are a: follows
Dichotomous questions: This type has only two answers in the for YES OR NO
Multiple choice questions: In this case the respondents are offered twr or more
choices and the respondents have to indicate which ii applicable in the following case.
2. Interviews: It is probably the most used selection tool. Interview is a faceto face interaction
between two persons for a particular purpose. It is a method by which an idea about an
applicant’s personality (including his intelligence, interests and attitudes in life) It be
obtained by face to face contact.
3. Observation: The observation is the most commonly used method especially in studies
relating to behavioural sciences. Observation become scientific tool and the method of data
collection for the researcher, when it serves a formulated research purpose, is systematically
planned and is subjected to checks and controls on validity and reliability.
2. SECONDAY DATA
The secondary data are collected from the company records and magazines, journals, internet
etc.
1) INTERNAL
Secondary data is collected from internal sources. It includes
a) Company records
b) Brochures
c) Official websites
41. 2) EXTERNAL
The data collected from the outside sources. It includes
a. Magazines and publications
b. Journals
UNIVERSE
The researcher collected the data from TRACO CABLE COMPANY
LIMITIED,THIRUVALLA . The total number of employees in the organization 150 workers
is the universe of the study.
SAMPLE SIZE
The sample size of the study is 50 handed over to the various respondents and the purpose of
the study was explained to them.
SAMPLING TECHNIQUE
There are different types of sample design based on two factors namely the representation
and the element selection technique. On the representation hams. The sample may be
probability sampling or it may be non-probability sampling Probability sampling is based on
the concept of random selection. Whereas non probability sampling is based on non-random
sampling. In clement selection basis the sample may be restricted or unrestricted. When each
sample so drawn as Unrestricted sampling whereas all other forms of sampling are covered
under the term restricted sample. Sample design suggests how many items are to be included
in the sample that is, it gives about the size of the sample. The sample design basically of two
types:
l. PROBABILITY (RANDOM or CHANCE) SAMPLING
It is also known as random sampling. Under this sampling design, every item of the universe
has an equal chance of inclusion in the sample. Probability sampling is based on the concept
of random selection; the sample may be either unrestricted. The most frequency used
probability sample is:
42. Simple random sampling: A simple random sample is a sample selected from a
population in such a way that every member of the population has an equal chance of
being selected and the selection of any other. it consist of two methods:
1) Lottery method
2) Table of random numbers
Stratified sampling: In this method, population is divided in to different sub
populations known as strata such items in each stratum are homogeneous.
Systematic sampling: This method is popularly used where complete list of the
population from which sample is to be drawn is available. Under this method the
items in the population are include in intervals of magnitude K. From each interval
select an item by simple random sampling method.
Cluster sampling: In this, sample is chosen from the population in groups or clusters
rather than singly
Area sampling: under this, total geographical area (when it is large ) is divided in to a
number of smaller no overlapping areas and then some of the smaller areas are
selected areas constitute the sample.
Quota sampling: In this method, the investigator engaged the primary collection of
data is assigned a quota for investigation.
Multi stage sampling: Sample procedure is conducted in several stages
Sequential sampling: This method is adopted in acceptance with sample plans in
statistical quality control.
1. NONPROBABILITY SAMPLING
It is that sampling procedure which' does not afford any basis for estimating the probability
that each item in the population has of being included in the sample.
Purposive (Judgment/deliberate) sampling: Under this method, the investigators
exercise his direction in the matter of selecting the items that are to be included in the
sample.
Convenience (accidental) sampling: It is based on the convenience of the researcher
who is to select a sample. This type of sampling is also called ‘accidental sampling’.
No stratified sample: A sampling technique where a group of subjects (a sample) for
the study is selected from a larger group. Each individual is chosen entirely by chance
43. and each member of the population has an equal chance of being included in the
sample.
Haphazard sampling: In this method, the investigator selects the sample without
following a structured technique. In this research, convenience sampling is used to
form a sample for conducting the study.
TOOLS AND TECHNIQUES.
Statistical tools used for data analysis and interpretations are: TABLES: It consists of
information of the number of respondents.
PERCENTAGE ANALYSIS:
It is used to find out the % of total number of respondents, responded to each question.
PIE CHART:
It is a circular chart divided into sectors, illustrating numerical proportion. In pie charts, the
length of each sector is proportional to the quantity it represents.
SIMPLE BAR DIAGRAM:
A bar chart is a way of summarizing a set of categorical data. A bar chart or bar graph is a
chart with rectangular bars with lengths proportional to the values that they represent. The
bars can be plotted vertically or horizontally. A vertical chart is sometimes called as a column
chart.
44. FINDINGS
Most of the employees in the Traco Cable company limited are graduates.
Majority of the employees are age 40-50.
Majority respondents are aware about the value of turnover and absenteeism in the
organization.
The company is providing a good working environment to the workers.
An average absenteeism policy is maintained by the organization.
There is a good relationship with supervisors/co-workers.
Supervisors have a positive approach towards the problem and difficulties of
employees in the organization.
Majority of the respondent have agree with salary package and monitory incentive.
The organization is providing poor employees opportunities to people.
Health problem of employees training program that get for the job at hand in on the
job training.
Majority of the respondents agree that there is no discrimination among employees.
Most of the respondents are sometimes feel stressed at work.
Majority of the respondents agree with freedom while working.
Majority of the respondents have good opinion about their nature of work.
45. SUGGESTIONS
Company many adopt better absenteeism policy in the organization may reduced
absenteeism and labour turnover.
An improved arrangement of working hours in the corporation leads to better
satisfaction and reduce absenteeism.
A much more concentration on salary packages and incentives will reduce the
satisfaction of employees.
Company may take adequate steps to reduce works stress felt by the employees.
Company may adopt better health packages to employees to maintain their health.
46. CONCLUSION
The study on “labour turnover and absenteeism” at Traco cable company Ltd
Thiruvalla reveals that the main reason for absenteeism are factors associated with
work experience, an adequate reward system, health problems of employees, and
inconsistent policy application of the labour turnover and absenteeism. Factors on
which there were difference of opinion between specified groups of respondents
were also identified.
To conclude, the Traco cable company is trying to make up the absenteeism rate
of employees. It had succeeded in preventing the rate of absenteeism growing to
labour turnover. The company may adopt better stratagies to avoid the growing
concern of absenteeism that may leads to serious consequences in future.
