Absenteeism Management Practices: A Study of Employees’ Perception in MNC’s

1. Absenteeism Management Practices: A Study of Employees’ Perception in
MNC’s
 Swasti Jaitley, Asstt. Professor, Dronacharya College of Engineering, Gurgaon
 Anil Kamalia, Head – HR, Kohler India Pvt. Limited, Gujrat
 Ajay Sharma, Training Manager, Kohler India Pvt. Limited, Gujrat
Abstract
Absenteeism in Indian industries is not a new phenomenon. It is the manifestation of a decision
by employees not to present themselves at their place of work, at a time when it is planned by
the management that they should be in attendance.
it is a habitual pattern of absence from a duty or obligation. For most companies, the
responsibility for managing absenteeism has fallen primarily on immediate supervisors. These
supervisors are often the only people who are aware that a certain employee is absent. High
rate of absenteeism is neither desirable to employers nor good for the employees. In majority
of organizations, high rate of absenteeism has an adverse effect on quality and quantity of
production, efficiency of workers and organization, organizational discipline and more
importantly on the organization's intention to fulfill the new market demands.
Introduction
In this study absenteeism is defined as: temporary, extended or permanent incapacity for work
as a result of sickness or infirmity. Temporary work incapacity refers to the first period of
absenteeism; in most countries limited to the first 52 weeks of disability. Absenteeism
according to Grifin, O’ laeary- Kelly and Collins (1998) is any failure to report for, or remain
at work as scheduled, regardless of reasons. To Schappi (1988) and Sikorki (2001) defines it
as not being present or attending, missing, lacking in an organization, while Yende (2005)
believes that absenteeism does not includes annual leave, maternity leave. What Jones means
here is that absenteeism simplify refers to the period the employee is not in workplace whether
authorized or not. Vander and Miller (1988) in Josias (2005) & Milkovich and Boudreau (1994)
defined absenteeism as “an unplanned, incident and can be seen as non-attendance when
employees do not come to work”. Casico (2003) & Josias (2005) define absenteeism as “any
failure or an employee to report for or to remain at work as schedule, regardless of the reason”.
According to Yende (2005), it has been indicated that a surprising number of large public
organizations have no idea as to the cost or cause of absenteeism in their organization. Plimmer

2. (2003), sees any absenteeism rate over 5% an indication of dissatisfaction among the
workforce, poor labour relations, and a lack of management leadership. The most
comprehensive study on absence rates shows the average absence rate in the US. For the
period 1980 to 1985 at about 4.7% (Klein, 1986: 26-30; Rhodes & Steers, 1990: 2. The cost
of employee absenteeism has been estimated a t between $26 and $46 billion and a loss
o f 400 million workdays a year in the United states alone (Steers & Rhodes, 1978: 391;
Rhodes & Steers, 1990: 6). The major focus of the research has been on the relationship
between absenteeism and employee attitudes. Such studies have generally investigated the
proposition that workers who are less satisfied with their jobs will be absent more than those
who experience job satisfaction (Hackett & Guion, 1985: 340; Hackett, 1989:235; I l g e n &
Hollenbeck, 1977: 148). Most absence research has concentrated on two main themes: (1)
the association of personal characteristics w i t h absence and (2) the association of job
satisfaction with absence (Johns,1978: 431). There are various ways to measure absenteeism,
the most commonly used are the “lost time rate” formula and the “individual frequency”
formula.
Lost Time Rate= (Number of Working Days Lost /Total Number of Working Days)* 100
Individual Frequency= (Number of Absent Employees/Average Number of Employees)*100
Objectives of the study:
 To Study the Awareness level of the employees about absenteeism policies and
practices in Indian and Multinational Organizations
 To Study the employees opinion regarding discipline factors of absenteeism policies
and practices in Indian and Multinational Organizations
 To Study the employees opinion regarding motivational and satisfaction factors of
absenteeism policies and practices in Indian and Multinational Organizations
 To Study the employees opinion regarding accuracy of absenteeism policies and
practices in Indian and Multinational Organizations
Methodology:

3. The study covers both primary and secondary data. The primary data was collected by
distributing questionnaire to the employees of Indian and multinational organizations in NCR
region. Secondary data was collected from various journals, magazines, research papers and
articles related to the relevant matter of the subject under study.
The center of attention of this paper is absenteeism management practices in Indian and
Multinational organizations. For the data collection, the questionnaire was distributed to 242
employees but only 182 returned it after filling and out of the 27 questionnaires were discarded
due to non fulfillment of the questionnaire appropriately. The final sample size of the paper
was 155. The statistical tools like descriptive statistics and Friedman’s test were applied for the
analysis purpose.
Analysis and Interpretation:
For analysis, questionnaire was divided in to four factors i.e. awareness factors, discipline
factors, motivational and satisfaction factors and accuracy related factors. Then for each factor,
one table was designed for descriptive statistics and another table was for the results of
Friedman’s test.
Awareness Wise Classification of the Respondents:
The following table classified the respondents on the basis of opinion related to awareness of
absenteeism management practices in Indian and Multinational Organizations.
Table-1: Awareness Related Factors Wise Classification of the Respondents
Awareness Factors Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
1.Explains the absenteeismpolicy to me 6 8 25 62 54
3.9 5.2 16.1 40.0 34.8
2. Regularly explain my department's
absenteeismfigure to us
8 10 23 58 56
5.2 6.5 14.8 37.4 36.1
7 16 36 63 33

4. 3. Displays our department's absenteeism
figures on a notice board where we can see it
4.5 10.3 23.2 40.6 21.3
4. Knows how labor laws apply to the
management of absenteeism
7 18 36 62 32
4.5 11.6 23.2 40.0 20.6
5. Makes us aware of how much overtime
results from absenteeism
10 12 34 48 51
6.5 7.7 21.9 31.0 32.9
Source: Primary Data
Table-1.1: Awareness Related Factors Wise Classification of the Respondents
Awareness Factors N Mean Std.
Deviation
Mean
Rank
Chi
square
value
df P value
1.Explains the absenteeismpolicy to
me
155 3.97 1.035 3.37
42.686 4 .000
2.Regularly explain my department's
absenteeismfigure to us
155 3.93 1.111 3.27
3. Displays our department's
absenteeismfigures on a notice board
where we can see it
155 3.64 1.068 2.64
4. Knows how labor laws apply to the
management of absenteeism
155 3.61 1.078 2.89
5. Makes us aware of how much
overtime results from absenteeism
155 3.76 1.179 2.83
Source: Primary Data
The Friedman’s Chi-square test results indicated that there is difference of opinion among the
respondents regarding awareness for absenteeism management practices (p<0.05). It could be
seen from the table that among all the factors, factor 1 is ranked first and factor 3 ranked last.
Table-2: Discipline Related Factors Wise Classification of the Respondents
Discipline Factors Strongly
Disagree
Disagree Neutral Agree Strongly
Agree

5. 1. Points out unacceptable attendance records
to the relevant employees
6 8 28 45 68
3.9 5.2 18.1 29.0 43.9
2. Institutes disciplinary action if an employee
abuses sick leave
2 8 30 70 45
1.3 5.2 19.4 45.2 29.0
3. Pay cuts sometimes is necessary when
employee get absent intentionally
2 12 26 42 73
1.3 7.7 16.8 27.1 47.1
4. Procedures for disciplinary action apply
only to culpable absenteeism
9 16 32 54 44
5.8 10.3 20.6 34.8 28.4
5. The employee's attendance should be closely
monitored until it has been reduced to
acceptable levels
8 15 26 43 63
5.2 9.7 16.8 27.7 40.6
Source: Primary Data
Table-2.1: Discipline Related Factors Wise Classification of the Respondents
Discipline Factors N Mean Std.
Deviation
Mean
Rank
Chi
square
value
df P value
1. Points out unacceptable attendance
records to the relevant employees
155 4.04 1.086 3.04
11.529 4 .021
2. Institutes disciplinary action if an
employee abuses sick leave
155 3.95 .900 3.01
3. Pay cuts sometimes is necessary
when employee get absent
intentionally
155 4.11 1.029 3.25
4. Procedures for disciplinary action
apply only to culpable absenteeism
155 3.70 1.159 2.76
5. The employee's attendance should
be closely monitored until it has been
reduced to acceptable levels
155 3.89 1.193 2.93
Source: Primary Data
The Friedman’s Chi-square test results indicated that there is difference of opinion among the
respondents regarding discipline related factors for absenteeism management practices

6. (p<0.05). It could be seen from the table that among all the factors, factor 3 is ranked first and
factor 4 ranked last.
Table-3: Motivational and Satisfaction Related Factors Wise Classification of the Respondents
Motivational and Satisfaction Factors Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Counsels absent employees when they return to
work
2 13 39 63 38
1.3 8.4 25.2 40.6 24.5
Encourages employees to solve personal problems
in order to reduce absenteeism
9 19 23 69 35
5.8 12.3 14.8 44.5 22.6
Management involves the trade unions in the
management of absenteeism
13 16 37 59 30
8.4 10.3 23.9 38.1 19.4
Provides incentives for excellent attendance
9 17 24 66 39
5.8 11.0 15.5 42.6 25.2
Regular employees feedback for attendance policy
is collected
10 17 43 56 29
6.5 11.0 27.7 36.1 18.7
Source: Primary Data
Table-3.1: Motivational and SatisfactionRelatedFactors Wise Classificationofthe Respondents
Motivational and Satisfaction
Factors
N Mean Std.
Deviation
Mean
Rank
Chi
square
value
df P value
Counsels absent employees when they
return to work
155 3.79 .953 3.27
35.157 4 .000
Encourages employees to solve personal
problems in order to reduce absenteeism
155 3.66 1.131 3.19
Management involves the trade unions in
the management of absenteeism
155 3.50 1.164 2.69
Provides incentives for excellent
attendance
155 3.70 1.135 3.17

7. Regular employees feedback for
attendance policy is collected
155 3.50 1.113 2.68
Source: Primary Data
The Friedman’s Chi-square test results indicated that there is difference of opinion among the
respondents regarding motivation and satisfaction related factors for absenteeism management
policies (p<0.05). It could be seen from the table that among all the factors, factor 1 is ranked
first and factor 5 ranked last.
Table 4: Accuracy Related Factors Wise Classification of the Respondents
Accuracy Related Factors Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Manager is well trained to deal with absenteeism
6 16 31 71 31
3.9 10.3 20.0 45.8 20.0
Accurately record absenteeism figures
4 8 28 74 41
2.6 5.2 18.1 47.7 26.5
Compares our department's absenteeism figures
with that of other departments
11 15 35 59 35
7.1 9.7 22.6 38.1 22.6
Deals effectively with absenteeism
9 19 39 48 40
5.8 12.3 25.2 31.0 25.8
Specific hours of operation and thelength of
breaks are calculated
5 12 23 68 47
3.2 7.7 14.8 43.9 30.3
Source: Primary Data
Table-4.1: Accuracy Related Factors Wise Classification of the Respondents
Accuracy Related Factors N Mean Std.
Deviation
Mean
Rank
Chi
square
value
df P value
Manager is well trained to deal with
absenteeism
155 3.68 1.032 2.90
Accurately record absenteeism figures
155 3.90 .938 3.39

8. Compares our department's absenteeism
figures with that of other departments
155 3.59 1.149 2.65
118.358 4 .000
Deals effectively with absenteeism
155 3.59 1.167 2.64
Specific hours of operation and the
length of breaks are calculated
155 3.90 1.024 3.43
Source: Primary Data
The Friedman’s Chi-square test results indicated that there is difference of opinion among the
respondents regarding awareness for absenteeism management policies (p<0.05). It could be
seen from the table that among all the factors, factor 5 is ranked first and factor 4 ranked last.
Suggestions:
 The company should conduct awareness programs related to absenteeism management
practices, it will definitely improve the understanding level of the employees about
absenteeism management policies and practices.
 The company must instill the disciplinary actions. The rules and regulations related to
absenteeism management must be reviewed and clearly stated to the employees. It plays
a dominating role in maintaining peace and harmony in the organization. It plays a
dominating role in maintaining peace and harmony in the organizations.
 Adequate motivational program must be provided to the employees. It will
automatically increase their satisfaction level.
 It is suggested that accuracy related matters must be consider carefully while implementing
absenteeism policies in the organization.
Conclusion:
The study reveals that 75% of the employees are satisfied with absenteeism management
policies and practices followed in the company. About the awareness factor, 80% of the
respondents were satisfied. In context of discipline related factors, 70% of the employees were
satisfied with the disciplinarily actions instilled in the organization. More than 70%of the
employees were satisfied with motivational and satisfaction factors and accuracy related factors

9. existed in the organization. The overall conclusion about the absenteeism management
practices and policies followed in Indian and Multinational companies is excellent. If the
company continues the same practices of absenteeism management in future it may achieve
high.
References
http://en.wikipedia.org/wiki/Absenteeism
http://humanresources.about.com/od/laborrelations/a/manage_absences.htm
http://www.citehr.com/233830-absenteeism-indian-industries.html
: http://www.citehr.com/233830-absenteeism-indian-industries.html#ixzz22xlof900
http://www.bayt.com/en/career-article-2821/