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EFFECT OF ABSENTEEISM
AND
TURNOVER IN ORGANIZATION
Prepare by:-
Abhisek Rout - 1461301047
Jaya Dev Sahoo - 1461301057
PREVIEW
 Organisations
 Absenteeism
 Types of Absenteeism
 Causes
 Effect of Absenteeism
 Controlling Absenteeism
 Turnover
 Causes
 Effects of Turnover
 Controlling Turnover
ORGANISATIONS
 A social unit of people that is structured and
managed to meet a need or to pursue collective
goals.
 All organizations have a management structure that
determines relationships between the different
activities and the members, and subdivides and
assigns roles, responsibilities, and authority to carry
out different tasks. Organizations are open
systems--they affect and are affected by their
environment.
ABSENTEEISM
 Absenteeism is a habitual pattern of absence
from a duty or obligation.

The practice of regularly staying away from
work or school without good reason
Absences
from work
Unplanned
absences
Industria
l
disputes
Health
incapacity
leave
Work related
injury/illness
Sick
leave
Short term Long
term
Medical
retirement
Special
leave
Family
Community
Military
service
Planned
absences
Recreat
ional
Study
leave
Long
service
TYPES OF ABSENTEEISM
• Voluntary
• Involuntary
VOLUNTARY
 An employee's deliberate or habitual
absence from work.
 Absence from the work,
without valid reason.
INVOLUNTARY
Employees can be absent from work for
several
reasons such as illness, death in the
family ,and the personal reasons for
absences are unavoidable and
understandable, many employers
have sick-leave policies that allow
employees a certain number of paid
absent days per year for these.
CAUSES
 Long hours of work.
 Bad working conditions.
 Lack of co-operation and
understanding between
management and workers.
 Sickness.
 Accidents.
 Occupational disease.
 Low wages.
 Lack of proper medical aid and health programs.
 Lack of canteen services, rest rooms, etc.
 Bad housing conditions.
 Evil of drinking.
 Lack of marketing facilities.
 Social or religious festivals.
 Marriages.
 Education of children.
 Problem of transport facilities.
EFFECT OF ABSENTEEISM
Labour absenteeism is a harmful to both the
employee and the worker as follow:
 Normal work – flow in the factory is
disturbed.
 Overall production in the factory goes down.
 Causal workers may have to be employed to
meet production schedules such worker is
not trained properly.
 Difficulty is faced in executing the order in
time.
CONTINUE….
 Overtime allowance will increases
considerably because of higher
absenteeism.
 When a number of workers absent
themselves, there is extra pressure of work
on their colleagues who are present.
 Workers lose wages for the unauthorized
absence from work.
 Habitual absentees may be removed from
service causing them great hardship.
CONTROLLING ABSENTEEISM
 Controlling voluntary absenteeism is easier if managers
understand its causes more clearly.
 A variety of approaches can be used to reduce voluntary
absenteeism.
 Disciplinary approach
 Positive reinforcement
 Combination approach
 No fault absenteeism
 Paid time-off(PTO) programs
DISCIPLINARY APPROACH:
 Many employees use a disciplinary approach
.People who are absent the first time receive
an oral warning, but subsequent absences
bring written warnings , suspensions and
finally dismissal.
POSITIVE REINFORCEMENT:
Positive reinforcement includes such
methods as giving cash, recognition, time off
or other rewards for meeting attendance
standards.
COMBINATION APPROACH:
 Combination approaches ideally reward
desired behaviors and punish undesired
behaviors. This approach uses policies and
discipline to punish offenders and develops
various programs and rewards for employees
with outstanding attendance.
“NO FAULT” ABSENTEEISM:
 Here, the reasons of absences do not matter but
the employees must manage their time rather
than having managers make decisions about
excused and unexcused absences.
 Once absenteeism exceeds normal limit, then
disciplinary action up to and including
termination of employment can occur.
PAID TIME-OFF(PTO) PROGRAMS:
 Some employers have a paid time-off (PTO)
program in which vacation time, holidays, and
sick leave for each employee are combined into a
PTO account .Employee use days from their
accounts at their discretion for illness, personal
time, or vacation.
 If employees run out of days in their accounts,
then they are not paid to for any additional days
missed.
TURNOVE
R
TURNOVER
Absentism and turnover in company
HIGH-TURNOVER CAUSES
 For the most part, high turnover is related to employee
dissatisfaction with the job. Some specific
reasons might include low pay, poor working
conditions, long hours, not enough benefits or a
negative atmosphere, especially from authority
figures.
 Businesses that hire seasonally will obviously have high
turnover because seasonal employees do not necessarily come
back the following year to work seasonally again. In addition,
businesses that hire students will suffer from high turnover as
students move or become too busy to work.
HIGH-TURNOVER EFFECTS
 High turnover is financially costly to the business because it needs
to spend time and resources filling the position and training the
new employee.
 In addition, high turnover can lower employee morale and cause a
flood of people leaving because they see their peers doing the
same thing.
 High turnover can also make the remaining employees more
stressed out because they have to fill in the gaps until a new
employee is hired and trained.
LOW-TURNOVER CAUSES
 Employees who have a positive working relationship with
their direct supervisors and co-workers are likely
to stay at their jobs. In addition, a company
that pays well compared with others offering
similar jobs is likely to see low turnover.
 Another cause of low turnover is having room for advancement so
employees feel like they can move up in their careers if they stay
at the company.
 Poor economic conditions can also contribute to low turnover
because employees fear not being able to find other work.
LOW-TURNOVER EFFECTS
 A company with low turnover is generally quite productive. This
is because the employees know and trust each other and are better
at their specific roles than a group of employees that sees more
turnover would be.
 Employees are likely to be more loyal to the company and more
willing to devote their personal energy to the job.
 Low turnover makes it easier for the company to focus its time
and energy on the business at hand rather than adapting to new
staff.
CAUSES
Rude behaviour.- Rudeness,
assigning blame, back-biting,
playing favorites and retaliations
are among reasons that aggravate
employee turnover. Feeling resentful and mistreated is
not an enticement for a good work environment.
 Work-life imbalance - Increasing with economic
pressures, organizations continue to demand that
one person do the work of two or more people.
This is especially true when an organization
downsizes or restructures, resulting in longer
hours and weekend work. Employees are forced
to choose between a personal life and a work life.
The job did not meet expectations.- When this
happens it can lead to mistrust. The employee starts to
think, “What else are they not being truthful about?”
When trust is missing, there can be no real employee
ownership.
People skills are inadequate.-Many managers were
promoted because they did their jobs very well and got
results. However, that doesn’t mean they know how to
lead. Leaders aren’t born—they are made. People skills
can be learned and developed, but it really helps if a
manager has a natural ability to get along with people
and motivate them. Managers should lead by example,
reward by deed.
Coaching and feedback are lacking- Ineffective
managers put off giving feedback to employees even
though they instinctively know that giving and getting
honest feedback is essential for growth and building
successful teams and organizations.
Growth opportunities not available-A lot of good
talent can be lost if the employees feel trapped in dead-
end positions. Often talented individuals are forced to
job-hop from one company to another in order to grow in
status and compensation
EFFECTS OF
TURNOVER
High Costs
Turnover is expensive for companies to
manage. Losing an employee may bring
costs such as severance pay and
administrative tasks such as exit
interviews. More critically, go through the recruitment,
selection and hiring process all over again. because a
new employee can't immediately deliver the same sales
or production results as the former one.
Poor Performance:-
The major challenge is that high turnover contributes to
a downward spiral that is tough to get out of, since poor
performance leads to poor business results, which often
forces your company to freeze salaries or cut back on
training.
Management Frustration:-
Managers quickly get frustrated with the constantly
revolving door of employees. In retail, for instance, a
manager finds himself spending so much time hiring and
training new employees he can't coach and develop
those who have been around. This contributes to longer-
term employees getting upset and leaving
Distractions:-
Some businesses hire consultants to help
get out of a turnover rut. As invest time,
money and resources to correct high
turnover, so take away from diversifying
business, marketing to new customers and
improving on performance.
CONTROLLING TURNOVER
 Make their jobs interesting
 Support their career goals
 Share information with
them.
 Get them connected
 Respect them
Absentism and turnover in company

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Absentism and turnover in company

  • 1. EFFECT OF ABSENTEEISM AND TURNOVER IN ORGANIZATION Prepare by:- Abhisek Rout - 1461301047 Jaya Dev Sahoo - 1461301057
  • 2. PREVIEW  Organisations  Absenteeism  Types of Absenteeism  Causes  Effect of Absenteeism  Controlling Absenteeism  Turnover  Causes  Effects of Turnover  Controlling Turnover
  • 3. ORGANISATIONS  A social unit of people that is structured and managed to meet a need or to pursue collective goals.  All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment.
  • 4. ABSENTEEISM  Absenteeism is a habitual pattern of absence from a duty or obligation.  The practice of regularly staying away from work or school without good reason
  • 5. Absences from work Unplanned absences Industria l disputes Health incapacity leave Work related injury/illness Sick leave Short term Long term Medical retirement Special leave Family Community Military service Planned absences Recreat ional Study leave Long service
  • 6. TYPES OF ABSENTEEISM • Voluntary • Involuntary
  • 7. VOLUNTARY  An employee's deliberate or habitual absence from work.  Absence from the work, without valid reason.
  • 8. INVOLUNTARY Employees can be absent from work for several reasons such as illness, death in the family ,and the personal reasons for absences are unavoidable and understandable, many employers have sick-leave policies that allow employees a certain number of paid absent days per year for these.
  • 9. CAUSES  Long hours of work.  Bad working conditions.  Lack of co-operation and understanding between management and workers.  Sickness.  Accidents.  Occupational disease.
  • 10.  Low wages.  Lack of proper medical aid and health programs.  Lack of canteen services, rest rooms, etc.  Bad housing conditions.  Evil of drinking.  Lack of marketing facilities.  Social or religious festivals.  Marriages.  Education of children.  Problem of transport facilities.
  • 11. EFFECT OF ABSENTEEISM Labour absenteeism is a harmful to both the employee and the worker as follow:  Normal work – flow in the factory is disturbed.  Overall production in the factory goes down.  Causal workers may have to be employed to meet production schedules such worker is not trained properly.  Difficulty is faced in executing the order in time.
  • 12. CONTINUE….  Overtime allowance will increases considerably because of higher absenteeism.  When a number of workers absent themselves, there is extra pressure of work on their colleagues who are present.  Workers lose wages for the unauthorized absence from work.  Habitual absentees may be removed from service causing them great hardship.
  • 13. CONTROLLING ABSENTEEISM  Controlling voluntary absenteeism is easier if managers understand its causes more clearly.  A variety of approaches can be used to reduce voluntary absenteeism.  Disciplinary approach  Positive reinforcement  Combination approach  No fault absenteeism  Paid time-off(PTO) programs
  • 14. DISCIPLINARY APPROACH:  Many employees use a disciplinary approach .People who are absent the first time receive an oral warning, but subsequent absences bring written warnings , suspensions and finally dismissal.
  • 15. POSITIVE REINFORCEMENT: Positive reinforcement includes such methods as giving cash, recognition, time off or other rewards for meeting attendance standards.
  • 16. COMBINATION APPROACH:  Combination approaches ideally reward desired behaviors and punish undesired behaviors. This approach uses policies and discipline to punish offenders and develops various programs and rewards for employees with outstanding attendance.
  • 17. “NO FAULT” ABSENTEEISM:  Here, the reasons of absences do not matter but the employees must manage their time rather than having managers make decisions about excused and unexcused absences.  Once absenteeism exceeds normal limit, then disciplinary action up to and including termination of employment can occur.
  • 18. PAID TIME-OFF(PTO) PROGRAMS:  Some employers have a paid time-off (PTO) program in which vacation time, holidays, and sick leave for each employee are combined into a PTO account .Employee use days from their accounts at their discretion for illness, personal time, or vacation.  If employees run out of days in their accounts, then they are not paid to for any additional days missed.
  • 22. HIGH-TURNOVER CAUSES  For the most part, high turnover is related to employee dissatisfaction with the job. Some specific reasons might include low pay, poor working conditions, long hours, not enough benefits or a negative atmosphere, especially from authority figures.  Businesses that hire seasonally will obviously have high turnover because seasonal employees do not necessarily come back the following year to work seasonally again. In addition, businesses that hire students will suffer from high turnover as students move or become too busy to work.
  • 23. HIGH-TURNOVER EFFECTS  High turnover is financially costly to the business because it needs to spend time and resources filling the position and training the new employee.  In addition, high turnover can lower employee morale and cause a flood of people leaving because they see their peers doing the same thing.  High turnover can also make the remaining employees more stressed out because they have to fill in the gaps until a new employee is hired and trained.
  • 24. LOW-TURNOVER CAUSES  Employees who have a positive working relationship with their direct supervisors and co-workers are likely to stay at their jobs. In addition, a company that pays well compared with others offering similar jobs is likely to see low turnover.  Another cause of low turnover is having room for advancement so employees feel like they can move up in their careers if they stay at the company.  Poor economic conditions can also contribute to low turnover because employees fear not being able to find other work.
  • 25. LOW-TURNOVER EFFECTS  A company with low turnover is generally quite productive. This is because the employees know and trust each other and are better at their specific roles than a group of employees that sees more turnover would be.  Employees are likely to be more loyal to the company and more willing to devote their personal energy to the job.  Low turnover makes it easier for the company to focus its time and energy on the business at hand rather than adapting to new staff.
  • 26. CAUSES Rude behaviour.- Rudeness, assigning blame, back-biting, playing favorites and retaliations are among reasons that aggravate employee turnover. Feeling resentful and mistreated is not an enticement for a good work environment.
  • 27.  Work-life imbalance - Increasing with economic pressures, organizations continue to demand that one person do the work of two or more people. This is especially true when an organization downsizes or restructures, resulting in longer hours and weekend work. Employees are forced to choose between a personal life and a work life.
  • 28. The job did not meet expectations.- When this happens it can lead to mistrust. The employee starts to think, “What else are they not being truthful about?” When trust is missing, there can be no real employee ownership. People skills are inadequate.-Many managers were promoted because they did their jobs very well and got results. However, that doesn’t mean they know how to lead. Leaders aren’t born—they are made. People skills can be learned and developed, but it really helps if a manager has a natural ability to get along with people and motivate them. Managers should lead by example, reward by deed.
  • 29. Coaching and feedback are lacking- Ineffective managers put off giving feedback to employees even though they instinctively know that giving and getting honest feedback is essential for growth and building successful teams and organizations. Growth opportunities not available-A lot of good talent can be lost if the employees feel trapped in dead- end positions. Often talented individuals are forced to job-hop from one company to another in order to grow in status and compensation
  • 30. EFFECTS OF TURNOVER High Costs Turnover is expensive for companies to manage. Losing an employee may bring costs such as severance pay and administrative tasks such as exit interviews. More critically, go through the recruitment, selection and hiring process all over again. because a new employee can't immediately deliver the same sales or production results as the former one.
  • 31. Poor Performance:- The major challenge is that high turnover contributes to a downward spiral that is tough to get out of, since poor performance leads to poor business results, which often forces your company to freeze salaries or cut back on training. Management Frustration:- Managers quickly get frustrated with the constantly revolving door of employees. In retail, for instance, a manager finds himself spending so much time hiring and training new employees he can't coach and develop those who have been around. This contributes to longer- term employees getting upset and leaving
  • 32. Distractions:- Some businesses hire consultants to help get out of a turnover rut. As invest time, money and resources to correct high turnover, so take away from diversifying business, marketing to new customers and improving on performance.
  • 33. CONTROLLING TURNOVER  Make their jobs interesting  Support their career goals  Share information with them.  Get them connected  Respect them