143227629 employee-absentism

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CHAPTER I
INTRODUCTION
1.1 INTRODUCTION
Relevance of the project to MBA
Business research is a systematic inquiry with the objective of providing information
to solve managerial problems. The project work provides an opportunity for the student
researcher to train in a disciplined process for conducting an inquiry of a problem or
opportunity that requires a management decision. The purpose of this research is to find out
the causes of absenteeism in FLAKT (INDIA) PRIVATE LIMITED Private Limited and
to find out the attitude of the employees with regard to their job and management.
1.1 About the topic
Absenteeism is the term generally used to refer to unscheduled employee absences
from the workplace. Many causes of absenteeism are legitimate. Personal illness or family
issues, for example—but absenteeism also can often be traced to other factors such as a poor
work environment or workers who are not committed to their jobs.
The levels of absenteeism and reasons for its occurrence are dependent on many variables in
an organizational environment. Some factors are detailed as follows:
 Family circumstances
 Physical health of the worker
 Work Environment
 Degree of job stress
 Employer-employee relations
 Job dissatisfaction
 Lack of Motivation

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Absenteeism in Indian Industries:
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. The absenteeism becomes
a problem to organizational management particularly when employees absent from their
work environment without giving sufficient notice and by justifying their stand by furnishing
fake reasons. The reasons for absenteeism are many. The factors contributing to absenteeism
from work includes individual and environmental factors. These consists of sickness,
accidents, occupational diseases, poor production planning, bad working conditions and
inadequate welfare conditions, insecurity employment, lack of interest. The individual
reasons may vary from organization to organization depending upon the organizational
climate and employee's attitude.
The problem:
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. The absenteeism develops a considerable loss to organization because work
schedules gets upset and delayed and management has to provide overtime wages to meet the
delivery dates. Absenteeism has the potential to cause numerous impacts upon an
organization; these include lost productivity, poorer quality of product or service, decreased
customer satisfaction, and a negative effect on the performance of other employees. Other
operational consequences of absenteeism include greater financial costs to the employer, as
well as a greater employee workload.
Impact on productivity:
Absenteeism can have an enormous impact on productivity.
 lost productivity of the absent employee
 overtime for other employees who fill in
 decreased overall productivity for those employees
 possible loss of business or dissatisfied customers

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Absenteeism can defined as habitual absence from work, thought to reflect employee
demoralization or dissatisfaction. Employee absenteeism is a problem for almost all
employers, not to mention a costly one at that. The definition of absenteeism, its causes, its
affects on productivity, and its costs in terms of finances and administrative effectiveness are
quite clear, the challenge FLAKT (INDIA) private limited is in taking affirmative action to
control it. People can be absent from work for a number or reasons, some of them for a very
good reason, but whatever the reason, absence is costly and disruptive and needs to handled
with skill, understanding and confidence.
What causes the employee to skip work?
Absenteeism is one of the most serious problem facing employers in today’s
workplace. Employers must be able to identify what is causing their employees to miss work
in order for them to find a solution. The reasons for the absences can be divided amongst two
categories, internal (within the individual) and external (within the company). Internal causes
can include serious accidents and illnesses, transportation problems, stress, low morale, poor
physical fitness, inadequate nutrition, and personal problems. External causes FLAKT
(INDIA) private limited from poor working conditions, boredom on the job, low morale.
Conceptual framework:
CAUSES FACTOR COSEQUENCES
Poor working condition Low productivity
Job dissatisfaction Absenteeism Interruption of work flow
Lack of motivation Stop FLAKT (INDIA) private
limited of machines
Poor connection between Time taken for replacement
Pay and performance Financial Loss

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Job satisfaction:
Absenteeism is characterized by job dissatisfaction. Job satisfaction can be defined as
“a pleasurable or positive emotional state resulting from the appraisal of one’s job or job
experience”. Job satisfaction is a result of employees’ perception of what organizations
provide. Employee satisfaction will increase production, improve organizational functioning,
and develop the employee’s personal potential. Job satisfaction can be achieved by many
factors- the job itself, the work environment, employee demographic variables, which include
(age, gender, job classification, education, hourly wage, annual salary, tenure, and full-time
vs. part-time). Job satisfaction is an emotional response to a job situation. It cannot be seen,
only inferred. It is often determined by how well outcomes meet or exceed expectations. For
example, if organizational members feel that they are working harder than others in the
department but are receiving fewer rewards, they will probably have a negative attitude
toward the work, the boss, and co-workers. They will be dissatisfied. On the other hand, if
they feel they are being treated well and being paid well, they are likely to have a positive
attitude towards the job. They will be satisfied. Job satisfaction represents several related
attitudes. There are six job dimensions that represent the most important characteristics of a
job about which people have effective responses. They are:
 The work itself
 Compensation
 Career growth
 Supervision
 Co-workers
 Work environment
Motivation:
Motivation is the reason or reasons for engaging in a particular behavior, especially
human behavior as studied in psychology. These reasons may include basic needs such as
food or a desired object, hobbies, goal, state of being, or deal .Having a motivated workforce
is vital for most businesses, since it can lead to higher rates of productivity, better quality
output, and low rates of absenteeism and labor turnover. The main factors which affect the
motivation of workers are

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 Pay levels
 Job security
 Promotional prospects
 Being given responsibilities
 Working conditions
FLAKT (INDIA) private limited benefits and
 Participation in decision-making.
Since motivation influences productivity, supervisors need to understand what motivates
employees to reach peak performance. It is not an easy task to increase employee motivation
because employees respond in different ways to their jobs and their organization's practices.
Motivation is the set of processes that moves a person toward a goal. Thus, motivated
behaviors are voluntary choices controlled by the individual employee. The supervisor
(motivator) wants to influence the factors that motivate employees to higher levels of
productivity. Factors that affect work motivation include individual differences, job
characteristics, and organizational practices. Individual differences are the personal needs,
values, and attitudes, interests and abilities that people bring to their jobs. Job characteristics
are the aspects of the position that determine its limitations and challenges. Organizational
practices are the rules, human resources policies, managerial practices, and rewards systems
of an organization. Supervisors must consider how these factors interact to affect employee
job performance.
Definition and concepts:
Absenteeism:
Absenteeism can defined as habitual absence from work, thought to reflect
employee demoralization or dissatisfaction. Employee absenteeism is a problem for almost
all employers.
Satisfaction:
Job satisfaction can be defined as “a pleasurable or positive emotional state
resulting from the appraisal of one’s job or job experience”.

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Motivation:
Motivation represents the forces acting on or within a person that cause the person
to behave in a specific, goal- directed manner. Because the work motives of employees affect
their productivity, one of management’s jobs is to channel employee motivation effectively
toward achieving organizational goals.
1.1.1NEED OF THE IMPORTANCE:
A project titled “A Study On Employee Absenteeism at FLAKT(INDIA) private limited with
special reference to Poonamallee branch“. Most of the studies conducted were based on the
causes of absenteeism and its relation towards job satisfaction, economic conditions of the
workers. It hence, the present study deals with important reasons for absenteeism. The
necessary measures were taken to control absenteeism but there is no improvement in the
organization. In continuation to the above, the researches were undertaken to bring significant
change in the organization.
1.1.2 SCOPE OF THE STUDY:
This study shows the employees causes for absenteeism in FLAKT (INDIA)
PRIVATE LIMITED India Private Limited. This study implies that employees should be
motivated at their workplace .Only when they are motivated they will have an interest in their
work and will not absent from work unnecessarily.
1.1.3 PROBLEM DEFINITION:
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. The absenteeism develops a considerable loss to organization because work
schedules gets upset and delayed and management has to provide overtime wages to meet the
delivery dates. Absenteeism has the potential to cause numerous impacts upon an
organization; these include lost productivity, poorer quality of product or service, decreased
customer satisfaction, and a negative effect on the performance of other employees. Other
operational consequences of absenteeism include greater financial costs to the employer, as
well as a greater employee workload.

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1.1.4 OBJECTIVES OF THE STUDY:
Primary objective:
 To find out the causes for absenteeism.
Secondary objective:
To find out the satisfaction level of the employees.
To find out the ways and means to reduce absenteeism.
To find out the motivate employee and reduce absenteeism
To maintain the cordial relationship between management and employees.
To find out the leave attendances policy.
To find out the job responsibilities and production plan.

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1.1.5 RESEARCH METHODOLOGY:
1 Statement of the problem:
The organization wants to study the causes which are responsible for absenteeism and
also to find out the satisfaction level of the employees towards their job with regard to the
working conditions, working hours, pay structure and their position in Samsung.
2 Researchdesign:
A research design is an arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure.
Descriptive research studies are those studies which are concerned with describing the
characteristics of a particular individual, or of a group. Since I have studied about a particular
group of employees, it is a descriptive design.
3 Sampling:
3.1 Size:
The sample size is taken as 100 for this study.
3.2 Unit:
The unit for the research is Flakt(india)private limited.
3.3 Area:
Sampling area refers to the extent of area to which the sampling unit belongs. The
sampling area for the current research is poonamallee, chennai.

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3.4 Method:
The researcher has adopted convenience sampling. As its name implies convenience
sampling refers to the collection of information from members of the population who are
conveniently available to provide it. When the population elements are selected for inclusion
in the sample based on the ease of access.
4. Data collection:
4.1 Primary data:
The primary data are the first hand information, which are obtained by a study
specifically designed to fulfill the data needs of the problem at hand. They are original in
character.
Source:
Primary data were collected from the employees of Flakt woodsS Private Limited.
Method: The method of data collection was through questionnaire and direct interview.
4.2 Secondary data:
Secondary data are those, which had been already available. They refer to the data
which have already been collected and analyzed by someone else.
Source:
Organization records and website.
5.Questionnaire Construction
Questionnaire was designed to find out the employees cause for absenteeism and also
to find out their attitude towards their job, management, supervisor and co- workers.
Questions were also designed to find out whether employees were motivated at their
workplace. The construction of the Questionnaire is an important limiting criterion for

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collecting primary data. The Questionnaire was constructed for the purpose of evaluating the
responses of the respondents. The Questionnaire was constructed in English. Most of the
questions were closed ended Questions. Questions were included to find their satisfaction
level with respect to working conditions, canteen facilities, connection between pay and pack
a FLAKT (INDIA) private limited etc. One question was designed to find out their stress
level.
6. Tools of analysis:
The study required simple analysis. The purview of this study does not include any
advanced statistical analysis of the results. So, simple statistical tools like tabulation, percent
a FLAKT (INDIA) private limited analysis, and Chi-square test were done.
6.1 Tabulation
Tabulation was used for entering all results of the test conducted through
questionnaire. The tabulated data was used for further analysis.
6.2 Percentage
Percent a FLAKT (INDIA) private limited was used in one-way tables for analyzing
criteria considered for analysis.
6.3 Chart
Pie chart was used to represent statistical analysis
6.4 Chi-Square test

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Chi-square is used to analyze the significance of association between the variables
cross tabulated.
χ2 = ∑ (O – E)2 / E
Where,
O= observed frequency
E= Expected frequency
Analysis of varaince:
Anova is a satistical procedure for testing the difference among different groups of
data for homogenity .The essential of anova is that the total amount of variation ,in a set of
data is broken into two types ,that amount which can be attributed to specific causes .Anova
technique splits the variance for ananlytical purposes. It examines the variance to which a
response is subject into its various components corresponding to various ,sources of variation.
Correction factor = T2/N
Where,
T= Total number of respondents.
N=Number of fields.
ANOVA ONE WAY:
In one way classification ,the data calssify according to only one criteria (i.e) different
levels of the single is controlled in the experiment .
The Null Hypothesis is
H0= U1 =U 2=U 3=U4....=UK.
H1=U1 =U2 =U3 =U4....=UK .
The arithmetic means of population from which the k sample were randomly drawn are equal
to one another.

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The variance ratio is
F= Between column variance Greater varince
-------------------------------- or --------------------
With in column variance smaller variance
ANALYSIS OF VARIANCE
Sources of variation
Sum
Square
Degree of
freedom
Mean square Variane ratio
Between Samples SSB C-1 MSB=SSB/C-1 F=MSB/MSW
With in Samples SSW N-C MSW=SSW/N-C
where,
SSB= Sum square of between samples.
SSW=Sum square of with in samples.
MSB= Mean square of between samples.
MSW=Mean square of with in samples.

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1.1.6 LIMITATIONS OF THE STUDY:
Temporal:
The period of the current research is limited from March to April 2013.
Hence all data and their temporal content would be limited to the above mentioned period
only.
Geographical:
The study is limited to FLAKT (INDIA) PRIVATE LIMITED only.
Analytical:
Since the purview of the current research are limited by the researcher in such a way that it
requires only minimal analysis to be done, the results of the project are limited to these
analytical limitations.
Procedural:
All the data collected are generally limited by the method adopted. In the research, the
method of data collection being questionnaires, data is limited to the extent of data generation
available through this method.
Specific:
False response expressed by the respondents may affect the quality of result obtained
from the study.
Due to time constraint an in-depth analysis was not possible.

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1.1.7 CHAPTERISATION:
Chapter I:
Chapter I consists of Introduction about the project, Need of the study, Objective of the study,
Research methodology, Research instruments
Chapter II
Chapter II consists of Review of literature about the project.
Chapter III
Chapter III Consists of Analysis and interpretation of data that are collected from employees
of Flakt(India) Industries using questionnaire, percentage analysis is done for the data,
statistical analysis like anova test is done to compare the datas.
Chapter IV
Chapter IV Consists of Findings from the project and suggestion is given to the organization
to improve their strategy to satisfy their dealers. Conclusion of the project is also given in this
chapter

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1.2INDUSTRY PROFILE:
India is the fifth largest economy in the world and has the second largest GDP among
emerging economies. Owing to its large population, the potential consumer demand is
almost unlimited and consequently under appropriate conditions, strong growth
performance can be expected. In fact, the liberalization of the economy in 1991 has
led to rapid growth. The electronics industry, in particular, is emerging as one of the
most important industry in the Indian market.
The electronics industry in India dates back to the early 1960s. Electronics was
initially restricted to the development and maintenance of fundamental
communication systems including radio-broadcasting, telephonic and telegraphic
communication, and augmentation of defense capabilities. Until 1984, the electronics
sector was primarily government owned. The late 1980s witnessed a rapid growth of
the electronics industry due to sweeping economic changes, resulting in the
liberalization and globalization of the economy. The economic transformation was
motivated by two compelling factors - the determination to boost economic growth,
and to accelerate the development of export-oriented industries, like the electronics
industry.
The electronics industry has recorded very high growth in subsequent years. By 1991,
private investments - both foreign and domestic - were encouraged. The easing of
foreign investment norms, allowance of 100 percent foreign equity, reduction in
custom tariffs, and delicensing of several consumer electronic products attracted
remarkable amount of foreign collaboration and investment. The domestic industry
also responded favorably to the politic policies of the government. The opening of the
electronics field to private sector enabled entrepreneurs to establish industries to meet
hitherto suppressed demand.
Improvements in the electronics industry have not been limited to a particular
segment, but encompass all its sectors. Strides have been made in the areas of
commercial electronics, software, telecommunications, instrumentation, positioning
and networking systems, and defense. The result has been a significant trade growth
that began in the late 1990s.

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Despite commendable achievements in the sphere of electronics, considerable
infrastructural improvements remain a priority. Water, power, telecommunications,
and transportation sectors must still be augmented so that high economic growth can
be sustained.
The Indian Electronics Industry is a text for investors who are considering India as a
potential investment opportunity. The book is designed to cover various segments of
India's electronics industry, which include telecommunications, consumer electronics,
computer hardware and software, and medical electronic systems. The authors have
examined the roles of government, major companies in electronics including the
multinationals, research organizations, and educational institutions in establishing the
infrastructure.

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COMPANY PROFILE
Name : FLAKT(INDIA)PRIVATE LIMITED
ADDRESS : 147,Poonamallee High Road,
Vill-numbal,chennai.
DISTRICT - 600077
TELE FAX : + 91 (0) 44 - 26793500
Industry : Electrical, Electronics
Company Type : Industry Best
Phone No : 26792606
Est. No. of Emp. : 500
Website :www.flaktwoods.com
Sector : Private Sector
Type :Public Company
Industry :Electrical/Electronic Manufacturing

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At the chennai manufacturing units we product heavy duty industrial fans for the
process industrial. our sales and marketing offices are located at kolkata, chennai,
delhi ,mumbai, ahmedabad and pune.
There company was established in the year 1983, manufacturing company named 'FLAKT
(INDIA) LIMITED' also called as "FLAKT WOODS". It is a Sweden based multinational
(MNC) there are two manufacturing sector one is at Chennai and another is at Kolkata.
FLAKT INDIA LIMITED is the legal entity of FLAKT WOODS group in India, both
'FLAKT and WOODS' brands are famous in India for more than 50 years. FLAKT woods
was created by bringing together these two world's leading playing in the air managerial
business. FLAKT has broad technology base covering ventilation system; Industrial air
movement and cooling applications. Woods is the world's largest leader in Axial fan
technology. The group has operation in more than 50 countries and managers leading brand
name including solyvent-ventee and American fan.
FLAKT (India) Ltd manufacturers a wide range of Axial fans and centrifugal fans at
its two modern and well equipped plans at Kolkata for light and medium duty fans) & at
Chennai (for heavy duty fans).

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HISTORY OF THE COMPANY:
The history of FLAKT woods has its root in a number of companies with old
traditions including Svenska Flaktfabriken, Woods of Colchester, Bovent, Solyvent Ventec
and Bahco, to mention a few. In the short history below the main milestones of Svenska Flakt
and Woods fans are presented.
1 February 2002: The FLAKT woods group is formed. The new group brings together two of
the world's leading names in the 'Air Movement and Treatment' industry, namely Flakt and
Woods Air movement. The group also owns other important brands including, for example,
Solyvent Ventec and American fan.

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1.4 PRODUCT PROFILE
Engineered Fans Solutions Centrifugal Fans, Axial Fans, Compressor & Turbo Fans, Mixed
Flow Fans, Fans in motion, Fans for the Nuclear Industry, Composite Technology
Certified Products ATEX Products and High Temperature & Smoke Extraction
Cooling Systems Oil Coolers for Power Static Transformers, Oil Coolers for Mobile Power
Stations and Diesel engines cooling solutions
Configured Light Fans For Industry Centrifugal fans and Axial fans

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Certified Products
ATEX Products Fläkt Solyvent Ventec is the leader in the industrial ventilation field. We
design and manufacture ATEX complying to the standard EN 14986 since its publication in
May 2007. Our ISO 9001(2000 version certification ensures the entire compliance to this
standard and to the Atex directive 94/9/CE.
High Temperature & Smoke Extraction From 315 mm to 2800 mm we provide axial
flow fan solutions, certified for 300°C / 1 hour or 400°C / 2 hours against EN12101-3
Cooling Systems
Oil Coolers for Power Static Transformers Oil-Coolers for Static Power
Transformers solutions are characterized by: » Low noise levels » Low energy
consumption » On-request dimensions » Easy Maintenance » Corrosion resistance »
Highly proven design
Oil Coolers for Mobile Power Stations Oil-Coolers for Mobile Power Stations are
characterized by: » Low noise levels » Low energy consumption » On-request
dimensions » Easy Maintenance » Shocks Resistance » Highly proven design

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CHAPTER II
REVIEW OF LITERATURE
Review 1
Source: Josias(1992), The relationship between job satisfaction and
absenteeism,” Human Relations”, Vol. 45, No. 2, FLAKT (INDIA) private limited no.
190
Absenteeism can be a major problem for organizations. As pressures increase on the
budgets and competitiveness of companies, more attention is being given to reduce
workplace absenteeism and its cost. Job satisfaction has been noted as one of the factors
influencing an employee's motivation to attend. Studies on the relationship between
absenteeism and job satisfaction seem to be inconsistent. Some research has found no
correlation between these two variables whereas other studies indicate a weak to moderate
relationship between these two variables.
Review 2
Source: Adrain Furnham (1994), “Personality at work”, Volume1, Part 9- Pages 250-
258.
Personality at work examines the increasingly controversial role of individual differences in
predicting and determining behavior at work. It asks whether psychological tests measuring
personality traits can predict behavior at work, such as job satisfaction, productivity, as well
as absenteeism and turnover. Importantly, it is a critical and comprehensive review of that
literature from psychology, sociology and management science which lies at the interface of
.personality theory, occupational psychology and organizational behavior. Personality at
Work is the only exhaustive and incisive multi-disciplinary work to assess the role of
psychological testing in the management of the work place.

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Review 3
Source: Peter Bycio (2006), Job performance and absenteeism,” Journal of Leadership
& Organizational Studies, Vol. 13, No. 2, Pages 42-60
The relationship between individual employee performance and absenteeism revealed
a modest but significant tendency for frequently absent employees to be poor performers on
many rating and non-rating indices. Importantly though, the associated credibility intervals
were wide, and statistical artifacts did not account for all the variance among the studies.
Several alternative theoretical mechanisms were identified, e.g., supervisor annoyance with
frequent absences, employee disposition toward delinquency, progressive withdrawal, and
stress coping, that could account for the remaining variation.
Review 4
Source: David (2004), Motivation and absenteeism, Human Relations Vol. 13, No. 1,
FLAKT (INDIA) private limitedno.33-46
Every organization, irrespective of size and composition, is plagued by the problem of
absenteeism. Managers know that employees are not always genuinely sick when they fail to
turn up for work, yet they cannot stop them from calling in sick or saying that they have to
attend to some personal work. There could be hordes of reasons for absenteeism. Sometimes
an employee may not simply turn up for work because his morale is low or he is just not
motivated to work. It is observed that if employees were happy doing their work, they would
be less inclined to take even a day off. Many employers think that paying their workers
handsomely or providing better working conditions or improving job security can reduce
absenteeism. But such benefits do not guarantee a reduction in employee absenteeism. The
solution actually lies in understanding and meeting the emotional needs of workers and trying
to find out what really motivates them to come to work and give their best. The most
important step to counter absenteeism is for the manager to constantly give the employees
feedback and motivate them to perform better. But most are woefully lacking in this ability,
they simply are not comfortable telling their staff about their performance.

143227629 employee-absentism

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