Absenteeism can be controlled without resorting to disciplinary action and may result in reduce costs to organization. There is no doubt that absenteeism can be controlled although it cannot be totally eradicated. When supervisory and management staff are trained to monitor and control absenteeism, the result is increase in productivity and cost saving.

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TABLE OF CONTENT
INTRODUCTION 3-5
Absenteeism
Work life Quality
RESEARCH METHODOLOGY 6
CONCEPTUAL FRAMEWORK
DATA COLLECTION
ANALYSIS
FINDINGS AND DISCUSSION 7-12
ABSENTEEISM LEVEL
WORK LIFE QUALITY FACTOR
Organizational culture
Leadership
Communication
Training and Development
Job Performance
Reward and Recognition
Teamwork
Job Identity
CONCLUSION 12-13
Recommendations
BUSINESS STRATEGY CARD 14

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INTRODUCTION
Malaysia has successful transformed from resources based economy (1950s- 1970s)
to production based (1980s-now) and now Malaysia is in the next phase of knowledge
development based economy where innovation and creativity is given great attention. In
order to achieve Malaysia Vision 2020 a fully developed and high income nation, Malaysia
government must ensure that the economy will continue to grow at a fastest pace where
manufacturing industry accounts for 30% increase in GDP. Malaysia government should
ensure the supply of local worker able to meet the demand from the manufacturing industry
instead of too much relying on foreign workers. This is because continued rapid infusion of
foreign workers will inevitably affect our society.
Manufacturing industry face the absenteeism problem of local worker especially those
below executive level. These groups of people majority are secondary school leaver, fresh
graduate and married women working as secondary income earners for the household. The
school leaver or fresh graduate normally are single and do not have high commitment,
therefore any absence from work will not cause any effect on their financial situation. In the
case of married women working as secondary income earners tend to take unscheduled leave
or absence to work due to family commitment such as taking care of children as well as older
family member. This situation has affected the Malaysia government effort to attract foreign
direct investment (FDI) to Malaysia.
Absenteeism
Most organizations are faced with the battle to reduce costs while trying to increase
productivity to improve the bottom-line figure. However, one area that is often overlooked by
the management is the paid time off and it is the one most expensive benefits provided to
employees. Industries studies shown that less than 20% of large organizations calculate the
costs of absence. Employee absence whether in public sector or private sector was an issue
which have been under discussion and research over a period of time. It has caused disruption
in the organization operations and the cost of absence whether direct cost or indirect cost
have badly affect the bottom line of the financial performance of the organization.
As result of the above, absenteeism has costs an organization billions of dollars and it can be
classified into three main categories:
1. Loss in productivity
An absent staff may place extra burden on the whole organization where time will be
incurred in the sourcing and training of new or replacement staff, as well as morale and
motivation issues can greatly affect the productivity of staff too. Organization has to bear the
direct cost (new recruitment, training cost and costs of replacement) and indirect cost (loss in
productivity and lower product quality).

4. 10
Communication
Organization should develop a channel of communication to convey the norms and
organization values to the employees so that it will be as crucial channel towards mutual
understanding and sharing common goal in the workplace. Therefore, an open
communication system will help employees to understand their current position in the
organization and a clearer picture of their contribution toward the success of the organization
goal and objectives.
Training and Development
Employees in the organization view it as a grow path in the career advancement. This
includes opportunities for learning, knowledge sharing and greater responsibility. Such
training and development is accruing benefits of individual short term competencies as well
as long term growth and may improve future organization operation efficiency
Communication Develop channel
Open communication system
Employee's
mutual understanding
current position
contribution
Training and Development opportunities for learning
knowledge sharing
greater responsibilty
Employee's
short term competencies
long term growth
operation efficiency