A study on talent management in it copy

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(All Rights Reserved)
A STUDY ON
PERFORMANCE
MANAGEMENT
TOWARDS
MANAGING
ABSENTEEISM OF
EMPLOYEES IN
TEXTILE SPINNING
(Regd. No. AAI-1261)
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MILLS IN
TAMILNADU
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ABSTRACT
The Indian textile industry is an oldest industry and has a
substantial contribution to growth of nation by its share in GDP. The textile
sector in Tamil Nadu contributes well over one fourth of the country’s total
textile manufacturing meant for domestic consumption as well as for
exports. Due to its nature of evolution and the protection by the
government the industry suffers technology obsolesce and labour problems.
Absenteeism is an inherent problem in the textile industry.
Absenteeism means failure of a worker to report for work when he is
scheduled to work. Because of absenteeism, regular flow of work in the
factory is disturbed and orders are delayed. Quality of work suffers because
casual workers employed to maintain work schedules are not properly
trained. Work pressure on employees who are present increases. Repairs
and maintenance cost increases due to frequent break down of machinery
operated by inexperienced workers. Incidence of industrial accidents
increases. Workers loose wages for unauthorized absence from duty.
Reduction in earnings increases indebtedness of workers. Absenteeism is
harmful to both the factory and its workers.
Performance management is a scientifically based, data-oriented
management system. It consists of three primary elements-measurement,
feedback and positive reinforcement. In essence, performance management
is a shared process of the day-to-day management of employees based on
their agreement of objectives, knowledge, skills and competence
requirements. Managing employee or system performance and aligning
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iv
their objectives facilitates the effective delivery of strategic and operational
goals. Performance Management includes activities which ensure that goals
are consistently being met in an effective and efficient manner.
Performance management can focus on the performance of an
organization, a department, employee, or even the processes to build a
product of service, as well as many other areas. PM is also known as a
process by which organizations align their resources, systems and
employees to strategic objectives and priorities. Performance management
is the process of creating a work environment or setting in which people
are enabled to perform to the best of their abilities. Performance
management is a whole work system that begins when a job is defined as
needed. It ends when an employee leaves your organization. Many writers
and consultants are using the term “performance management” as a
substitution for the traditional appraisal system.
Textile and clothing industry is fragmented and is highly
unstructured. There is a lack of management practices. This makes the
textile units difficult in controlling absenteeism. Therefore, this study is
required to understand the relationship between the performance
management and the absenteeism. Recent studies have identified trends in
effective performance management systems and determined the impact of
these systems on organizational success. Therefore, this study is required to
understand the effectiveness of performance management in the textile
industry and to understand the relationship between the performance
management and the absenteeism.
The research methodology adopted for this study is of a
descriptive research. The instrument for the survey will be a questionnaire.
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500 employees were approached. The data collected through the
questionnaire were checked for its reliability and validity and then they are
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v
analyzed using SPSS (Statistical Software Package for Social Sciences)
and AMOS. The analysis of the data is carried over with various tools like
percentage analysis, confirmative factor analysis and ANOVA. The study
has contributed to the domain of knowledge on performance management
and employee behaviour. The study also contributes to the practice by
providing a model to predict the absenteeism from the efficiency of
performance management, organisational justice and working conditions.
The study revealed that effectiveness of PMS has an influence on
organisational justice; Effectiveness of Performance Management System
has an influence on withdrawal behavior; Organisational justice has an
influence on withdrawal behavior; Working conditions does not have an
influence on withdrawal behavior; Withdrawal behaviour has an influence
on absenteeism. Based on the research study, recommendations were given
for the textile mills in Tamil Nadu for effective performance management
and managing absenteeism.
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1
CHAPTER 1
INTRODUCTION AND DESIGN OF THE STUDY
The Indian textile industry has a long tradition of over 5000
years. The industry had come to prominence during the British rule and is
still the important contributor to Indian economy next only to agriculture.
The textile industry accounts for 14% of industrial production which is 4%
of GDP; employs 45 million people and accounts for 11% share of the
country’s total exports basket. The Indian textile industries have a fairly
complex structure. At one end of the spectrum is the hand spinning, hand
loom, power loom and on the other end a highly sophisticated capital
intensive and high speed manufacturing activity. Within the two extreme
phases, the industry produced a staging range of fabrics, fascinating dress
materials and floor coverings made ups and textile spinnings. The Indian
textile are predominantly cotton based with 70% of raw materials
consumed being cotton.
After suffering for a long time on the technology obsolesce, the
schemes like Technology Upgradation Fund Scheme (TUFS) has given a
new lease of life to the textile industry. However, after the phase-out of
Multifibre agreement and subsequent quota removal, the industry faces
high competition from China, Bangladesh, Sri Lanka, Pakistan etc. Earlier
India had an advantage on the low cost labour and had price advantage
over other countries. However, today the industry suffers from a low labour
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productivity. Though there are many reasons for a low labour
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productivity like poor skill, labour laws, attrition etc., and absenteeism is
an inherent problem in the textile industry. The absenteeism affects the
optimum utilization of human resources it is an industrial malady affecting
productivity profits and investments. An increasing rate of absence adds
considerable cost to the industry and social loss occurring from
Absenteeism cannot be determined accurately. The unpredictable
absenteeism leaves the production planning very difficult. There is always
a fluctuation in the rate of absenteeism. There is normally high rate of
absenteeism and this shoots up just after the monthly pay is given.
Handling absenteeism is a difficult task for the management and
it can be considered as an art and science. Applying scientific methods in
managing absenteeism is important because of the need for predictability
and successful repetition of the strategy. Beyond the coercive means of
controlling the absenteeism, creating self regulation and motivating
employees by setting objectives can be the best way of reducing
absenteeism. Setting objectives and managing performance of the
employees has been a practice since 1954 (Drucker 1954). Performance
Management (PM) is a process that includes activities which ensure that
goals are consistently being met in an effective and efficient manner.
product or service, as well as many other areas. However, the question is
can performance management can reduce the absenteeism. This study is
therefore proposed to find the effect of performance management on the
absenteeism in textile industry. The study will help to answer whether
performance management can be an effective method to reduce the
absenteeism in the textile industry and make it competitive and help it to
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strive for increase in yarn export revenue.
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1.1 TEXTILE INDUSTRY IN TAMILNADU
The global textile and apparel industry is worth over US$ 4,395
billion, with clothing accounting for 60 per cent of the market and apparel,
the balance 40 per cent. Global trade in this industry is now at US$ 350
billion and is expected to be in the range of US$ 800 billion by 2014.
India’s textiles and clothing industry is one of the largest contributing
sectors of India’s yarn exports worldwide. The report of Working Group
constituted by the Planning Commission on boosting India’s yarn
manufacturing exports during 12
th
Five Year Plan (2012-17), envisages
India’s yarn exports of Textiles and Clothing at USD 64.11 billion by the
end of March 2017. The textiles industry accounts for nearly 11% share of
the country’s total yarn exports basket.
More than 70 textile and clothing clusters account for about
80% of total production in the country. There are nearly 40 powerloom
clusters in the country. Major states with a number of clusters are
Maharashtra, Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Uttar
Pradesh. The textiles industry is extremely diversified with hand-spun and
hand-woven sectors at one end and the capital-intensive, sophisticated mill
sector at the other.
Due to the Khadi movement during freedom fight and
subsequent reservation of textile to Small and Medium Sector (SME) to
protect them, predominantly the Indian textile industry is fragmented. Only
a few large players and numerous small and medium-size companies are
present. The textiles sector in India comprises both organised and
unorganised segments. The de-centralised powerloom/hosiery and knitting
sectors form the largest section of the textiles industry. Major sub-sectors
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of the textiles sector are organised cotton/man-made fibre textiles mills,
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man-made fibre/filament yarn, wool and woollen textiles, sericulture and
silk textiles, handlooms, handicrafts, jute and jute textiles and textiles yarn
exports.
The textile and clothing industry is process hectic and maximum
value addition happens in the clothing sector which is the final stage of the
value chain. The industry is also labour intensive and provides 6 to 8 jobs
for every 0.1 million investments. Clothing sector mainly consists of
knitted and woven textile spinning segments. The apparel industry is
concentrated mainly in eight clusters: Tirupur, Ludhiana, Bengaluru, Delhi/
Noida/ Gurgaon, Mumbai, Kolkata, Jaipur and Indore. While Tirupur,
Ludhiana and Kolkata are major centres for knitwear, Bengaluru, Delhi/
Noida/ Gurgaon, Mumbai, Jaipur and Indore are major hubs for woven
textile spinnings.
Exporting over US 1.2 billion, the Textile Industry of Tamil
Nadu has its significant presence in the National and State economy. It is
the forerunner in Industrial development. Handloom, Power loom,
Spinning, Processing, Textile spinning and Hosiery are the various sectors
of the Textile Industry in Tamil Nadu and known for the largest economic
activity next only to Agriculture in providing direct and indirect
employment. Tamil Nadu has a strong production base and accounts for
about 1/3 rd of Textiles production in the country. The net value addition in
Textile industry in Tamil Nadu is about 37.5 per cent, the highest in the
country. Tamil Nadu has the largest cotton textile industry cluster in India
which contributes to 39 per cent of the total production in the country.
Tamil Nadu accounts for 47 per cent of yarn production in the country with
more than 1,000 small-scale spinning mills and 959 larger mills. The
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Textile mills are concentrated in Coimbatore, Tirupur, Salem, Palladam,
Karur and Erode. Tamil Nadu has around 3,50,000 power looms
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manufacturing cotton fabric. The Erode district in Tamil Nadu is well
known for marketing of textile products of handloom, powerloom and
textile spinnings. Chennai is another large cluster for woven textile
spinnings. The country’s largest textile cluster, Tirupur, is also situated in
Tamil Nadu. This cluster accounts for 90 per cent of the country’s cotton
yarn exports. Tirupur with over 3000 Textile yarn exporters has made US$
1400 million in 2013-14.
1.2 SWOT ANALYSIS OF THE TEXTILE
MANUFACTURING IN TAMIL NADU
1.2.1 Strengths
Tamilnadu has large number of cotton based spinning mills
which provides the supply for fabric manufactures and clothing sector. The
state has a base of handloom and powerloom, which are expanding in
recent times. Infrastructure required for the industry like transportation
(Good connectivity by roads, railways and ports) and support industry like
engineering (manufacture of textile machines) forms the backbone of the
textile industry. Availability of skilled labour at lower cost, well
established processing units of dyeing and printing industry provide
strength to the textile industry. The small and medium sizes of units make
short run and high fashion combined export orders more viable.
1.2.2 Weaknesses
The reservation of textile and clothing sector to SME for a very
long time has fragmented the industry. The majority of the SMEs are tiny
and cottage type units without sufficient capital back-up. Therefore they
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are unable to have sophisticated technology and are still being performed
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6
manually on hand processors and traditional methods. The processing units
face scarcity of water and also are pressurised by pollution control norms.
The industry is predominantly cotton based and there is a huge fluctuation
in the cotton prices. Diversification of the raw material from cotton to
synthetic material and technical textiles are not significant. Recently the
state also faces power shortage, increase in power tariff and fuel cost which
has forced productivity losses
1.2.3 Opportunities
With country’s market share at 3 to 4%, there is huge potential
to scale up the market. New markets in Eastern countries such as Japan
need to be explored. Also increase in European and other markets may
benefit the powerloom industry and can expand substantially. There is a
growth potential in yarn export segment for cotton made-ups and textile
spinnings along with processed fabrics. Grey fabric export is continuing to
grow and will show increasing trends. Value added products and traditional
designs and craftsmanship will have greater demand and can command a
greater market share for niche products.
1.2.4 Threats
The abolition of quota system has lead to fluctuations in the
yarn export demand. The competition in spinning yarn exports from
neighbouring countries like Pakistan and Sri Lanka has a direct impact on
yarn exports from Tirupur. Increasing competition from other states/centres
(like Surat) will be a major problem where the industries have come up
afresh and are well developed and technologically more advanced.
Neighbouring states like Andhra Pradesh, Karnataka and Kerala are
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capitalising on the power problem and the pollution control norms in the
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state and are attracting Tamilnadu’s entrepreneurs to start units in their
states. Marketing will be the most problematic area where improvements
are called for. Continuous quality improvement will be the need of the hour
for which urgent measures are called for from all stakeholders.
1.3 NEED FOR THE STUDY
The textile sector in Tamilnadu contributes well over one fourth
of the country’s total textile manufacturing meant for domestic
consumption as well as for yarn exports. As the strength of the Indian
textile industry lies in cotton textiles, the performance of the Tamilnadu
powerloom sector has a direct bearing on the textile economy in particular
and country’s economy in general. Absenteeism is an indicator of
employee’s morale, commitment and level of job satisfaction which have a
direct bearing on productivity. The effects of high levels of absenteeism are
wide ranging and affect everyone in the organisation. It cannot be purely
regarded as a management problem. Employers, workers and their
representatives have an obligation towards the organisation in ensuring that
absence of workers do not jeopardise their prosperity or job satisfaction
and or committed level of output.
As per the Annual Survey of Industries published in 2013, it is
observed that the rate of absenteeism at all India level increased to 8.75 per
cent during 2009 from 8.65 per cent during 2008. Out of 32 States/Union
Territories, the rate of absenteeism was higher in 11 States than the
absenteeism rating at all-India level during 2009. Absenteeism rate in
Tamilnadu has also increased from 6.20% in 2008 to 6.26% in 2009.
Though it is lesser than the Indian average, this more than the global
average. However, the concern is on the increasing absenteeism rate.
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Industry-wise absenteeism rate amongst the directly employed regular
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workers during 2009 shows that out of 79 industry groups, absenteeism
rate was higher than at the all-India level in 33 industry groups.
textile units difficult in controlling absenteeism. Therefore this study is
management and the absenteeism.
1.4 STATEMENT OF THE RESEARCH PROBLEM
The rate of absenteeism varies from industry to industry
depending upon various factors. After globalization variety of companies
organized and also multinational companies established their centres
wherever possible. The opportunities for the workers have also enriched
providing competitive wages, perks and benefits. Employees use the
demand for their advantage. Particularly in the textile industry the labour
turnover is significant and also absenteeism is increasing tremendously day
by day.
Absenteeism is a concern for the management. However, the
question is that, what management does to reduce the absenteeism.
Unorganised sectors lack proper organisational structure. Small enterprises
have mostly owner- manager structure. They lack exposure to modern
management systems and do not appreciate the benefits of the practices.
Performance management is an important business system; it makes a
difference in organizational performance; approaches to performance
management are changing; and senior managers must be attentive to the
performance management systems in their organizations. Recent studies
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have identified trends in effective performance management systems and
determined the impact of these systems on organizational success.
Performance management to be effective will require a great
amount of planning, monitoring, measuring and feedback. A good
performance management system influences many aspects of business.
Performance management systems directly influence five critical
organizational outcomes: financial performance, productivity, product or
service quality, customer satisfaction, and employee job satisfaction.
This raises the question,
Does performance management have an influence on employee
absenteeism in the textile industry of Tamilnadu ?
1.5 ABSENTEEISM
(Kim & Garman 2003) highlighted that absenteeism has
received a lot of attention in scholarly research and a number of theories
and models have attempted to explain absenteeism. They argued that Steers
& Rhodes model (Steers & Rhodes 1978) is the most cited model for
employee attendance. They presented that various studies found that
attendance was directly influenced by both employee motivation to attend
and the ability to come to work. Attendance motivation was indirectly
affected by pressure to attend and the job situation, including such factors
as economic conditions, incentives, work group norms, personal work
ethic, and organizational commitment. Personal characteristics, such as
education, tenure, age, gender, and family size, indirectly affect one’s
ability to attend work. Ability to attend work variables included illness and
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accidents, family responsibilities, and transportation problems.
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(Kim & Garman 2003) discussed about the causal model of
absenteeism developed by (Brooke & Price 1989). The empirical model
offered the following as determinants of absenteeism: routinization,
centralization, pay, distributive justice, work involvement, role ambiguity,
conflict and overload, kinship responsibility, organizational
permissiveness, job satisfaction, job involvement, organizational
commitment, health status, and alcohol involvement. Results indicated that
of these variables, kinship responsibility, organizational permissiveness,
role ambiguity, alcohol involvement, negative direct effects of
centralization, pay and job satisfaction had direct effects on absenteeism.
Job satisfaction mediated the effects of routinization, work involvement,
centralization, and role ambiguity.
Absenteeism refers to the workers absence from his regular task
where he is normally scheduled to work. (Watkins 1985).
Absenteeism means the failure of a worker to report for work
when he is scheduled to work. Absenteeism is unauthorized, avoidable and
willful absence from duty (Gupta 1998).
When a worker does not report for work after obtaining prior
permission it is not absenteeism.
 Number of man days

lost due to absence

Rate of Absenteeism =

*100
Number of man 

scheduled to work

 
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Vaid (1967) classifies chronic absentees into five categories
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The entrepreneurs are those absentees who consider their jobs
to be very small for their total interests. They are simultaneously engaged
in several economic and social activities. The motive force behind all such
activities is the desire for more money, status, power and the satisfaction
arising out of achievement and social recognition. Dissatisfied with the
status quo, and gifted with an energetic spirit and originality of thought,
they are ever ready to assume risks, undertake the tasks of management and
coordination of processes that are necessary for the improvement of the
existing conditions.
The status-seeking absentees are those who enjoy or perceive a
higher ascribed social status and are keen on maintain it. The shop floor
status achieved by them is much lower than the one they enjoy outside. The
discrepancy between the ascribed and the achieved status is the primary
cause of deviant work behavior. Attitudinally, they draw satisfaction from
their identification with need-oriented social groups. Their goal is to
remain or to become and appear as men of status. They makeup for the loss
of status arising from working in a mill by intensifying activities which
help them to regain it. Work, job and money are no doubt important for
them, but they are significant only to extent to which they help them to
achieve their goal.
The epicureans are disinclined to undertake activities which
call for initiative, responsibility, discipline and physical discomfort. They
desire money, status and power but are unwilling to work for their
achievement. The discrepancy between their aspirations and their
concomitant abilities invariably results in belly-aches, withdrawals, or
make believe. Their intrinsic dislike to work and the pressure of meeting
their pecuniary needs make for an ambivalent attitude towards their job.
They strive to organize their pecuniary activities and social roles in a

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manner which brings them unavoidable trouble. Work is a frustrating
experience and they seek to avoid it to the maximum possible extent.
The family-oriented become chronic absentees of their over
identification with family affairs. The lack of balance between family
involvement and job responsibility is the principle cause of their deviant
work behavior. Chronic illness of one or other family member, litigation,
delinquency, working wife, etc. impel them to be absent from work.
The sick and old type remains absent from work by reason of ill
health, weak constitution, chronic disease or old age.
Within this broad classification, there can be some deeper
causes for the high rate of absenteeism.
 Causes of Absenteeism
Employees remain absent due to several factors (Gupta 1998)
such as a) Nature of work, b) unhealthy working conditions, c) Sickness, d)
unsatisfactory housing and transport facilities, e) Industrial fatigue, f)
Social and religious ceremonies, g) Alcoholism, h) indebtedness,
i) Poor management system, j) Lack of regular leave arrangement, k) lack
of interest, l) rural ties, and m) Other miscellaneous causes like bad
weather, other income earning activities, family responsibilities, religious
and social functions, hobbies and sports etc and such factors.
 Effects of Absenteeism
Absenteeism has the following effects on the factory and its
employees. Regular flow of work in the factory is disturbed. Orders cannot
be executed in time as the production schedule are upset and delayed.

13
Overall production declines as a result of absenteeism. There is a
considerable increase in the overtime bill. Quality of work suffers because
casual workers employed to maintain work schedules are not properly
trained. Work pressure on employees who are present increases. Repairs
and maintenance cost increases due to frequent break down of machinery
Reduction in earnings increases indebtedness of workers. Workers who are
habitually absent may be removed from services causing a great hardship
to them and their families. Thus absenteeism is harmful to both the Factory
and its workers.
1.6 PERFORMANCE MANAGEMENT
Performance appraisal and performance management were one
of the emerging issues since last decade. Many organizations have shifted
from employee’s performance appraisal system to employee’s performance
management system (Leena & Twinkle 2012). The term ‘Performance
Management’ was coined by Aubrey Daniels in late1970’s (Aubrey 1982)
to indicate a science imbedded in application methods for managing both
behaviour and results within an organization. Behaviour and results are the
two critical elements of what is known as performance. A formal definition
of performance management, according to Daniels' (Aubrey 1982) is "a
scientifically based, data-oriented management system. It consists of three
primary elements-measurement, feedback and positive reinforcement".
Performance Management is a strategic and integrated approach
to delivering sustained success to organizations by improving the
performance of the people who work in them and developing capabilities
of teams and individual contributors Armstrong (2009). Performance

14
management is concerned with agreeing expectations, making and
implementing plans to meet them, and monitoring and reviewing outcomes.
In essence, performance management is a shared process of the
day-to-day management of employees based on their agreement of
objectives, knowledge, skills and competence requirements. The traditional
performance management system was focused on ‘what gets measured gets
done’. It was based on cost and accounting management techniques. It was
carried out to meet the needs of expanding manufacturing industries during
the 1980’s. Lately, enormous changes have taken place in technology and
production techniques that have made traditional performance
measurement systems obsolete. There has been a shift in focus on ‘how to
manage what is measured’. This shift was caused for the need of new
performance management system, which would assist in catering to the
changing needs of the manufacturing sector (Sahoo & Jena 2012).
Bititci (1995) asserted that performance management should be
viewed as a key business process which is central to the future well being
and prosperity of any manufacturing enterprise. In this paper this view is
further elaborated and a clear distinction is made between performance
measurement and performance management. The performance
measurement system is seen as the information system which enables the
performance management process to function effectively and efficiently.
(Bititci, et al., 1997) argued that that the Performance
Management Process defines how an organisation uses various systems to
manage its performance. They identified Strategy Development and
Review, Management Accounting, Management by Objectives, Non-
financial performance measures - informal, Non-financial performance

15
measures - formal, Incentive / Bonus Scheme, Personnel Appraisal and
Review as some of the systems.
THE PERFORMANCE
MANAGEMENT PROCESS
BEHAVIORAL INFORMATION
ISSUES
THE PERFORMANCE
TECHNOLOGY
CULTURAL
MEASUREMENT SYSTEM
WHAT IS
Strategy THEISSUES MEASURED?
Environment INFORMATION
Structure SYSTEM
ATTITUDES Processes WHO USES THE
Relationships MEASURES?
REPORTING RESPONSIBILITIES
STRUCTURE
HOW SYSTEMS
ARE USED TO MANAGE
PERFORMANCE?
(Source: Bititci, et al., 1997)
Figure 1.1 The performance management process and the position
of the performance measurement system
(Bititci, et al., 1997) described that at the heart of the
performance management process; there is an information system which
enables the closed loop deployment and feedback system. This information
system is the Performance Measurement System which should integrate all
relevant information from the relevant systems. Figure 1.1 summarises this
view of the Performance Management Process.
1.7 OBJECTIVES OF THE STUDY
The principal objectives of the study are:
 To explore the genesis of the performance management and its
benefits to the organisation

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 To examine the insight into perception of performance
management in textile industry
 To measure the effectiveness of performance management in
textile industry
 To examine the causes for the absenteeism and measure the
effects of absenteeism in the selected industry
 To develop a model for influence of performance management
on absenteeism in textile industry
1.8 HYPOTHESIS OF THE STUDY
Given this study framework, the study specifically tested the
following hypotheses:
H1 : There is a likelihood of reduced absenteeism when there
is increase in favourable perceptions on performance
management practices.
H2 : Work Place Conditions will alter the influence of
Performance management on absenteeism.
H3 : Organisational Justice and Withdrawal Behaviour have
an influence on the relationship between performance
management and absenteeism.
Additional hypotheses will be framed to test the sub dimension
of the constructs.

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1.9 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 said that research methodology has many
dimensions and research methods do constitute a part of the research
methodology. Research design is a detailed outline of how an investigation
is carried over. A research design typically includes how data is to be
collected, what instruments will be employed, how the instruments will be
used and the intended means for analyzing data collected.
1.9.1 Operational Design
descriptive research. The major purpose of this research is description of
the state of affairs as it exists at present. The method of research included
in descriptive research is survey methods of all kinds, including
comparative and correlation methods. In a descriptive research
phenomenon study is not controlled or modified and is just measured and
reported. In addition, the association between the studied variables can be
tested and the relationships or causal effects can also be described. To
measure the phenomenon of the study appropriate observation techniques
has to be chosen. Interview or survey technique is the widely used
technique for data collection when many numbers of samples are included.
The questionnaire had been used as instrument in the present research and
standard measures had been adopted for series of interviews with industry
experts to validate the instrument. Five point Likert Techniques had been
used for the analysis of the study.

18
A pilot survey is a methodological test intended to ensure that
proposed methods and procedures are used before being applied in a large
and expensive investigation. Pilot study provide an opportunity to make
adjustments and revisions before investing in, and incurring, the heavy
costs associated with a large study. The pilot study is carried over for a
sample of 50 respondents. The pilot survey helped to reconstruct the
questionnaire with slight changes as the respondents couldn’t understand
few questions clearly, so those questions were reframed for easy
understanding. Thus after pilot survey the final questionnaire was designed
which comprises of six subsections with reference to objectives with a
procedural flow.
1.9.2 Sampling Design
Sampling is a means of selecting a subset of units from a target
population for the purpose of collecting information. This information is
used to draw inferences about the population as a whole. Sampling design
refers to a set of rules or procedures that specify how a sample is to be
selected. The sample design encompasses all aspects of how to group units
on the frame, determine the sample size, allocate the sample to the various
classifications of frame units, and finally, select the sample.
1.9.2.1 Universe / Population
The universe or population of the study is the textile units in
Tamilnadu. There are 3069 large, medium and small spinning mills in
India, of which, 1889 are located in Tamil Nadu. The spinning mills in the
State comprise 18 Cooperative Spinning Mills (5 functioning), 17 National
Textile Corporation Mills (7 functioning) and 1854 Private Mills (including
23 Composite Mills). Those spinning mills provide

19
employment for around 2.40 lakh persons (http://www.investingin
tamilnadu.com/tamilnadu/opportunities/textiles.php). The employees of the
spinning mills were considered as the population for the study.
1.9.2.2 Sampling unit
The sampling unit taken for the study are employees working in
Textile Spinning Mills in Tamil Nadu who are registered under South India
Mills Association (SIMA), South India Spinners Association (SISPA) and
Tamil Nadu Spinning Mills Association (TASMA). The address of each
firm was obtained from the SIMA, SISPA and TASMA. As per the
statistics, there were 1020 Textile Mills registered with them as on
30.06.2013. The details were received and a database created which was
the sample framework from which the sample firms were picked.
1.9.2.3 Sampling method
A simple random sampling method was used for this study. The
information about the textile firms obtained from SIMA, SISPA and
TASMA were made into a database. Each record was given a unique
number. Using the random number function in the MS Excel program,
required number of random number was generated and the corresponding
company was selected as the sample firm. In each of the sample firm,
questionnaire was distributed through the competent authority and the
response was obtained from the employees. To reduce the bias, employees
within the sampled firm were asked to volunteer for the study.
1.9.2.4 Sample size
The sample size is the number of respondents who reply back to
the questionnaire. In this research the population size is

20
2.4 lakhs and hence the following formula was used for finding the sample
size with a standard deviation of 0.5 with 95 percent of confidence level (Z
=1.96) and 3.77 percent as margin of error (Margin of Error is computed
using sample size calculator from the following link,
ttp://www.raosoft.com/ samplesize.html) and thus the sample size
computed was 384 which is explained as follows :
Sample Size (n) =
Z2
* p * q* N
(1.1)
e2
* (N − 1) + Z2
* p * q
where
Z = Corresponding Z score for 95 percent of confidence level
(1.96)
P = Sample Defective Population (0.5)
q = 1 - p (0.5)
N = No. of sample (240000)
E = Margin of Error (0.05)
 (1.96) 2
* (0.5) 

* (0.5) * 240000

 
The Re quired Sample Size (n) =  (0.05) 2
* (240000 −1)
 
2


+
(1.96) * (0.5) * (0.5)
n = 384

21
1.9.3 Data Collection Method
The data collection was divided into two types as primary and
secondary. Answer for certain research questions were explored through
secondary sources which were already available in the form of annual
reports of the company, industry and the government. Concepts and
theories were referred from text books and research journals. Current
industry scenario and trends were collected from magazines, websites and
newspapers.
There arises certain situation where secondary data alone is not sufficient
to handle the study. At this juncture the primary data gave a helping hand.
Primary data regarding the opinion and the views of the textile mills were
collected through the questionnaire. Thus the study was carried over with
the available primary and secondary data and analysed using appropriate
techniques to fill the existing research gap.
1.9.4 Tools for Data Collection
The primary tool for data collection was questionnaire in which
the questions are of open ended, closed ended and ranking method. The
questionnaire was broadly classified into six sections, in which the first
section was about personal information that investigate details about the
respondent’s designation and educational qualification. The next section
collected the organizational information which consisted of questions to get
information like company ownership, organisational size etc. The section
three comprised of the measurement of the availability of various
performance management programmes. Section four measured the opinion
on the effectiveness of performance management system. Section five
collected the details about working conditions, Organisational Justice,

22
withdrawal behaviour in the textile units. Section six collected the self
reported absenteeism.
1.9.5 Tools for Data Analysis
The data collected through the questionnaire were checked for
its reliability and validity and then they were analyzed using SPSS
(Statistical software Package for Social Sciences) and VPLS (Visual Partial
Least Square). The analysis of the data is carried over with various tools
like Percentage Analysis, Chi-square test, Partial Least Square Regression,
Confirmative Factor Analysis, ANOVA, Jackknife Bootstrapping
Technique and Path Analysis.
1.10 SCOPE OF THE STUDY
The leading scope of this research study was to emphasise the
importance of absenteeism in the textile units in Tamil Nadu. The study
focused on exploring the relationship between the performance
management and absenteeism. The outcome of the study was development
of a model for influence of effectiveness of performance management on
reducing the absenteeism in the textile firms.
1.11 LIMITATIONS OF THE STUDY
The main limitation of the study was that it was confined to
textile spinning mills located in Tamil Nadu and particularly registered
under South India Mills Association (SIMA), South India Spinners
Association (SISPA) and Tamil Nadu Spinning Mills Association
(TASMA) only. Though the textile clusters are similar in business nature
there may be specific factors like location, political climate etc. and
therefore the findings of the study has to be carefully generalised to other

23
textile clusters across the country. The data collection was through
questionnaire thus the researcher cannot bring the entire idea of the study.
The survey method using questionnaire is prone to lower response rates.
Few companies hesitated to give sensitive data such as financial data and
employee information due to pressure from regulatory and compliance
agencies. Therefore absenteeism and other performance variables were
captured only through interval scales. The study was a cross sectional study
and does not measure any trend.
1.12 CHAPTER SCHEME
This chapter has provided an introduction to the study and
explains the need for the study. A detail about the textile industry in which
the study is being conducted is presented and a SWOT analysis is done.
This chapter also describes the research problem and then leads to the
research question and objectives of the study. The research design is also
presented. The Scope and limitations of the study are also set.
Chapter 2 depicts the review of literature in the field of Textiles
Industry, absenteeism, performance management etc. The chapter
comprises of both Indian and foreign studies which analyzes about the
advantages of performance management systems, problems in reinforcing
the system and the opportunity for global market.
Chapter 3 comprises the theoretical explanation about the study;
the concepts and terminologies related to the topic, importance of
performance management, their effect on economy. The chapter also
explains the potentiality of managing absenteeism in textile spinning
industries and the importance of integrating it with business processes.

24
Chapter 4 represents the results of data analysis; initially the
analysis starts with the personal information and organizational
information. The case summary of the study variables are also presented.
This is followed by the validation of the data for normality, linearity,
outliers, convergence, divergence and reliability. The inferential statistics
are selected and are applied to fulfil the research objectives.
Chapter 5 begins with the findings for the primary data collected
and the corresponding suggestions were given to the textile mills to revamp
their performance management systems, reduce absenteeism and increase
business performance and thereby improving the economy of the nation;
the chapter ends with the conclusion and future enhancements of the study.
Appendix comprises of list of textile mills who have registered
under SIMA, SISPA and TASMA, the questionnaire used for primary data
collection and the source code for proposed model.

207
CHAPTER 5
SUMMARY, CONCLUSIONS
AND RECOMMENDATIONS
This chapter provides a summary of the key issues that have
been addressed by the research and how the research was constructed. The
implementation of the survey and the findings are presented in a narrative
form. This chapter also includes the contributions to knowledge, practice,
and methodology. The limitations of the study are explained and a possible
direction for the further research is set. Finally, the chapter is concluded
with a short summary.
5.1 SUMMARY OF RESEARCH
The Indian textile industry is an oldest industry and has a
substantial contribution to growth of nation by its share in GDP,
employment and exports. Due to its nature of evolution and the protection
by the government the industry suffers technology obsolesce and labour
problems. Competition with neighbouring countries in export market and
lack of promotion within domestic market makes the industry more
concerned about productivity. Though there are many reasons for a low
labour productivity like poor skill, labour laws, attrition etc., and
absenteeism is an inherent problem in the textile industry. Even though the
absenteeism in textile industry is low when compared to any other industry,
the worry is because of the cutthroat competition. The absenteeism affects

208
the optimum utilization of human resources. It is an industrial malady
affecting productivity profits and investments. Managing absenteeism has
become a difficult task to managers and they are looking at various human
resource management practices to bring down the absenteeism rates.
Coercive methods of controlling absenteeism can only aggravate
the problem. Newer management techniques that use scientific methods are
tested for high probable success and repeated outcome in managing
absenteeism. Performance Management (PM) includes activities that
ensure goals are consistently met in an effective and efficient manner.
product of service, as well as many other areas.
Textile Industry of Tamil Nadu has its significant presence in
the National and State economy. The textile sector in Tamilnadu
contributes well over one fourth of the country’s total textile manufacturing
meant for domestic consumption as well as for exports. It is the forerunner
in Industrial development. Handloom, Power loom, Spinning, Processing,
Garment and Hosiery are the various sectors of the Textile Industry in
Tamil Nadu and known for the largest economic activity next only to
Agriculture in providing direct and indirect employment.
Employee attendance is found to be directly influenced by both
employee motivation to attend and the ability to come to work. Attendance
motivation was indirectly affected by pressure to attend and the job
Situation, including such factors as economic conditions, incentives, work
group norms, personal work ethic and organizational commitment.
Personal characteristics, such as education, tenure, age, gender and family
size, indirectly affect one’s ability to attend work. Ability to attend work

209
variables included illness and accidents, family responsibilities, and
transportation problems.
Employees remain absent due to several factors such as a)
Nature of work, b) unhealthy working conditions, c) Sickness,
& unsatisfactory housing and transport facilities, e) Industrial fatigue,
 Social and religious ceremonies, g) Alcoholism, h) indebtedness, i) Poor
management system, j) Lack of regular leave arrangement, k) lack of
interest, l) rural ties. Other miscellaneous causes like bad weather, other
income earning activities, family responsibilities, religious and social
functions, hobbies, sports etc are also reasons for absenteeism. Causal
model of absenteeism developed by Brooke & Price (1989) identifies
routinization, centralization, pay, distributive justice, work involvement,
role ambiguity, conflict and overload, kinship responsibility, organizational
permissiveness, job satisfaction, job involvement, organizational
commitment, health status and alcohol involvement as determinants of
absenteeism.
Because of absenteeism, regular flow of work in the factory is
disturbed and orders are delayed. Quality of work suffers because casual
workers employed to maintain work schedules are not properly trained.
Work pressure on employees who are present increases. Repairs and
maintenance cost increases due to frequent break down of machinery
Reduction in earnings increases indebtedness of workers. Absenteeism is
harmful to both the Factory and its workers.
Absenteeism is an indicator of employee’s morale, commitment
and level of job satisfaction, which have a direct bearing on productivity.

210
The effects of high levels of absenteeism are wide ranging and affect
everyone in the organisation. It cannot be purely regarded as a management
problem. Employers, workers and their representatives have an obligation
towards the organisation in ensuring that absence of workers do not
jeopardise their prosperity or job satisfaction and or committed level of
output.
The term ‘Performance Management’ according to Daniels' is "a
scientifically based, data-oriented management system. It consists of three
primary elements-measurement, feedback and positive reinforcement". In
essence, performance management is a shared process of the day-to-day
management of employees based on their agreement of objectives,
knowledge, skills and competence requirements. Strategy Development
and Review, Management Accounting, Management by Objectives, Non-
financial performance measures - informal, Non-financial performance
measures - formal, Incentive / Bonus Scheme, Personnel Appraisal and
Review as some of the systems used in performance management.
textile units difficult in controlling absenteeism. Therefore, this study is
management and the absenteeism. However, the question is can
performance management can reduce the absenteeism. This study is
therefore proposed to find the effect of performance management on the
absenteeism in textile industry. The study will help to answer whether
performance management can be an effective method to reduce the
absenteeism in the textile industry, make it competitive and help it to strive
for increase in export revenue.

211
5.1.1 Statement of the Research Problem
The rate of absenteeism is different between industries. Though
compared to other industries the absenteeism in textile industry is low, the
productivity and the labour cost has been the major concern of the industry
to compete with the neighbouring countries. High labour orientation and
many opportunities being available for employees because of the cluster
structure of the textile units has made the employees have an easy mobility
from one organisation to the other. Since most of the textile units are
unorganised and lack proper management practices, the means of
controlling absenteeism is not effective. Recent studies have identified
trends in effective performance management systems and determined the
impact of these systems on organizational success.
This leads to the following research question.
Does performance management have an influence on employee
absenteeism in the textile industry of Tamilnadu?
To answer the above research question the following objectives
were framed:
ii) To explore the genesis of the performance management and its
benefits to the organisation
iii) To examine the insight into perception of performance
management in textile industry
iv) To measure the effectiveness of performance management in
textile industry

212
 To examine the causes for the absenteeism and measure the
effects of absenteeism in the selected industry
 To develop a model for influence of performance management
on absenteeism in textile industry
The following hypotheses were framed for the study:
H10 : Effectiveness of PMS does not influence organisational
justice.
H20 : Effectiveness of PMS does not have an influence on
withdrawal behaviour.
H30 : Organisational justice does not have an influence on
H40 : Working conditions does not have an influence on
H50 : Withdrawal behaviour does not influence absenteeism.
H60 : The opinion on various factors does not vary among the
respondents with different educational level.
H70 : The opinion on various factors does not vary among the
respondents of different designation.
H80 : There is no difference in the opinion on various factors
among the organisations of different size.

213
among respondents of different departments.
among the respondents from different type of
organisation.
among the respondents of different age group.
among the respondents of different years of experience.
among the men and women.
5.1.2 Research Methodology
descriptive research. In a descriptive research phenomenon, study is not
controlled or modified and is just measured and reported. The method of
observation technique included in descriptive research is survey methods.
The instrument for the survey was a questionnaire, and standard measures
were adopted. Five point Likert Techniques were used for the scale.
A pilot survey was carried over for a sample of 50 respondents.
After pilot survey the final questionnaire was designed that comprised of
six subsections with reference to objectives with a procedural flow. The
questionnaire was designed to collect personal information, organizational,
measurement of the availability of various performance management
programmes, opinion on the effectiveness of performance

214
management system, details about working conditions, Organisational
Justice, Withdrawal behaviour and finally the self-reported absenteeism.
The Universe or population of the study is employees in the
textile units in Tamilnadu. There were 2.40 lakh persons employed in 1889
spinning mills in the State of Tamilnadu. Two level random sampling was
done to pick the respondents for the study. First, sample firms were
selected from the member database obtained from SIMA, SISPA and
TASMA were made into a database. In each of the sample firm,
questionnaire was distributed through the competent authority and the
response was obtained from the employees. Using sample size calculator
and considering the population as 2.4 lakh, standard deviation of 0.5 with
95 percent of confidence level (Z = 1.96) and 3.77 percent as margin of
error, the number of sample required is computed as 384. Adding to the
response bias 500 employees were approached. The data collected through
the questionnaire were checked for its reliability and validity and then they
are analyzed using SPSS (Statistical software Package for Social Sciences)
and AMOS. The analysis of the data is carried over with various tools like
percentage analysis, confirmative factor analysis, and ANOVA.
5.1.3 Scope of the Study
The leading scope of this research study is to emphasise the
importance of absenteeism in the textile units in Tamilnadu. The study
focuses on exploring the relationship between the performance
management and absenteeism. The outcome of the study develops a model
for influence of effectiveness of performance management on reducing the
absenteeism in the textile firms.

215
5.1.4 Summary of Findings
In total 406 responses were received from employees of textile
mills. Majority of the respondents (54.4%) are male. The educational levels
reveal that majority of the respondents (22.4%) have completed school
level. 30.8% of the respondents are aged between 26 to 35 years, who are
the majority age group. The designations of the respondents show that,
39.2% of the respondents are operators. This reveals that predominantly the
respondents are operators. Experience of the respondents reveal that
majority of the respondents had 16 to 25 years experience closely followed
by those who have 6 to 15 years experience. Among the 406 employees,
majority of them had no shifts. There were almost equal respondents from
various departments.
Categories of the organizations from where the respondents
were drawn for the study had 35.2% belonging to Small Sized
Organizations. Out of the 406 respondents who participated in the study,
majority of the respondents belong to Domestic Organizations.
Case summary of Planning in PMS reveal that majority of the
respondents feel that the PMS should be able to clearly define the priority
of each job responsibility and goal. Many respondents are of the opinion
that PMS will support the developing and administering of coaching and
improvement plans if employees are not meeting expectations. Majority of
the respondents also believe that PMS will help define performance
standards for key components of the job. Many respondents feel that a well
laid out PMS will support the defining of performance goals with
measurable outcomes and PMS will help define the purpose of the job,
duties and responsibilities.

216
To analyse the availability of measurement, the result reveal that
the most of the respondents agree that maintaining a record of performance
through critical incident report is considered important. Most of them agree
that monitoring work related performance of employees is important. They
have the perception that measurement will increase the staff ability to
perform is developed and enhanced. In addition, the performance
measurement system can rate or measure the performance and at the end
summarize the individual performance.
Many consider that PMS to be very effective and helps in
holding interim discussion and provide feedback about employee
performances. However, on the opinion that they get positive and
constructive feedback, majority are they agree. In addition, many agree that
the PMS provide the opportunity for broader feedback. Many respondents
agree that top performance is rewarded and the increment and promotion
are mostly based on performance.
The respondents agree to large extent that PMS help them in
providing useful performance feedback, PMS is integral part of supporting
firm’s strategy, that performance related outcome in PMS helps in
developing a performance oriented culture, it supports the change effort
and link individual performance to unit performance.
However, respondents disagree that the PMS motivates the
performance of the employees, support to achieve set goals, provide
accurate assessment of performance, ensuring the staff commitment to
firm’s objectives.
It is evident that many employees agree that PMS help in
managing the poor performing staff, PMS helps in identifying the poor

217
performing staff and also keep track of their performance by ensuring staff
time is used efficiently.
Many respondents disagree that PMS helps in addressing the
concerns of staff, PMS identify the talented employees, PMS reward the
talented staff and PMS develop the individuals’ skill and knowledge.
Interpreting the case summary of distributive justice reveal that
majority of the respondents agree that the work schedule is fair, that
rewards for their achievement is also fair enough, have fair distribution of
the work load, have a fair opinion towards the job responsibilities, and their
level of pay is fair with the job responsibility they have.
Case summary of procedural justice highlight that respondent
agree that the procedures uphold ethical and moral standards, manager
clarifies decisions and provide additional information when requested by
the employees and that they also agree that job decision are made by the
manger in an unbiased manner.
The results also show that majority of the respondents disagree
that manager make sure that all employee concerns are heard before job
decision are made, that they are not sure whether all job decision are
applied consistently across all the organisation and employees are allowed
to appeal job decision made by the manager.
Case summary of interactional justice reveal that the majority of
respondents agree that the managers are sensitive towards the employees
personal needs. They also agree that managers are concerned about
employee’s rights while making decision about the work and that the
manager is trustworthy, Many also agree that manager offer adequate

218
justification for the decision made about employees jobs and also the
manger discuss the implication of the job with the employees.
The results also reveal that most of the employees disagree on
the fact that the manager keeps them in the loop and explain them
regarding any decision he makes about their job. Many also disagree that it
makes some sense to them, and that manager treats them with
consideration while making decision about his job.
The case summary of working condition reveals that cleanliness
and hygiene of rest room, work place ventilation, comfort of dust level at
workplace and comfort of temperature at the workplace are all perceived to
be high. Lighting at the work place, adequate supply of cool, safe drinking
water near the workplace, safety of material handling and storing, comfort
of noise level at the work place room, machine layout and control on work
place fatigue are perceived low. Flexible working-time arrangements are
perceived neutral. Overall opinion on the working condition is found to be
neutral.
Case summary of withdrawal behaviour reveal that many agree
that they thought of being absent for work, chatting with their co-workers
about non-work related topics, thought of leaving the work situation by
giving unnecessary reason, and spend time on personal matter. The study
reveals that many either agree or disagree that they are daydreamers.
The most prominent behaviour observed in the employees about
the withdrawal from work is that they put very less effort in the job than
required and the thought of quitting the job. In addition, many respondents
feel that others will do their work.

219
The response of the absenteeism in terms of total numbers of
days was little high with majority of them having 6 to 10 days. The data
shows that many of the respondents had taken 6 to 10 days as maximum
length of absent during last 6 month and also the majority of them had
taken 6 to 10 times they were absent for their work.
First, the measurement model of organisational justice theorised
as three constructs; Distributive Justice, Procedural Justice and
Interactional Justice were tested. The factor loading of all the items are
found to be more than 0.5 Overall, the results show a good convergent
validity. Considering the various goodness of fit values, the model is
considered to have an adequate fit and considered for further structural
analysis.
The measurement model of Effectiveness of PMS has two latent
constructs: Performance related outcomes and Staff related outcomes. The
standardised estimates of all the variables on the first order constructs are
above 0.7. This indicates that each variable reflect the latent content
largely, showing a high discriminant and convergent validity. Considering
the various goodness of fit values, the model is considered to have an
adequate fit and considered for further structural analysis.
The results show that the Cronbach’s alpha for all the constructs
with more than three items are above 0.7. The construct with only two
items was tested for correlation and found to be high. Therefore it is
concluded that the all the multi-items that measure the constructs are
having internal consistency and the measures are reliable.
After the measurement model is tested, the complete structural
model is tested. The results of the hypothesised model show that the

220
regression weight of the paths between effectiveness of PMS and
withdrawal behaviour, between organisational justice and withdrawal
behaviour are found to be negative and significant. The regression weights
of path between effectiveness of PMS and organisational justice, between
withdrawal behaviour and absenteeism are found to be positive and
significant. The regression weight of paths between working condition and
withdrawal behaviour is found to be insignificant. The results show that
organisational justice explained by effectiveness of PMS to an extent of
18.3%. Withdrawal behaviour is explained by effectiveness of PMS and
organisational justice to an extent of 32.4%. Absenteeism was explained by
withdrawal behaviour to an extent of 10.6%. Considering the various fit
measures, the model can be said to be valid and perfectly fit the data i.e.,
the model is proved empirically true.
The model reveals that:
 Effectiveness of PMS has an influence on organisational justice
 Effectiveness of PMS has an influence on withdrawal behaviour
 Organisational justice has an influence on withdrawal behaviour
 Working conditions does not have an influence on withdrawal
behaviour
 Withdrawal behaviour has an influence on absenteeism

221
The ANOVA tests reveal the difference in the opinion on the
various study factors among the respondents of different categories of the
personal and organisational characteristics.
The results highlight that there is no significant difference
among the respondents of different education levels in their opinion about
the planning for PMS, measurement for PMS, feedback system in PMS and
reward system in PMS. There is also no difference in reporting
absenteeism among respondents of different educational background.
However, there is difference among the employees with different
educational background on performance related outcome and staff related
outcomes. In addition, there is difference among the employees with
different educational background on distributive justice, procedural justice
and interactional justice. There is also difference among the employees
with different educational background on the working condition of the
organisation and withdrawal behaviour.
The results reveal that there is significant difference in opinion
about measurement in PMS, feedback, distributive justice and interactional
justice among the respondents of different designation levels.
The results highlight that planning in PMS, reward systems in
PMS are equally perceived by respondents from different designation
levels. Similarly, there is no difference in the perception of performance
related outcome and Staff related outcomes among respondents from
different designation levels. The procedural justice, working condition of
the organisation, withdrawal behaviour of the employees and absenteeism
in employees does not vary with the different designation level of the
employees.

222
The study proves that there is significant difference in opinion
among the respondents from organisations of different size on factors such
as planning in PMS, Measurement in PMS, feedback system and the
reward systems in PMS. However, there is no difference in the perception
of other factors among the respondents from organisations of different size.
Performance related outcome, Staff related outcomes are equally perceived
among the respondents from organisations of different size. The
distributive justice, procedural justice and interactional justice do not vary
on the size of the organisation. The working condition of the organisation
withdrawal behaviour of the employees and the absenteeism are also not
different in the different organisations.
The study revealed that opinion on planning, measure, feedback,
reward, performance related outcome, staff related outcome, distributive
justice, procedural justice, interactional justice, working condition,
withdrawal behaviour, and absenteeism do not vary or differ in the
different departments of the organisation.
The study highlights that there is significant difference in the
opinion on all factors among the respondents from different organisation
type. The planning in PMS, measurement in PMS, feedback system in
PMS and reward systems in PMS are perceived differently among
respondents from different organisation type. Similarly, there is no
significant difference in the perception of performance related outcome and
Staff related outcomes. The distributive justice procedural justice and
interactional justice are so differently perceived by respondents from
different organisation type. The working condition of the organisation,
withdrawal behaviour of the employees and the absenteeism are almost
independent of the type of organisations.

223
The study reveals that there is significantly difference in their
opinion about distributive justice, procedural justice and interactional
justice among the respondents of various age groups. The working
condition of the organisation withdrawal behaviour of the employees and
the absenteeism are also different among the respondents of various age
groups.
The study also reveal that there is no difference in the opinion
on planning in PMS, Measurements in PMS, Feedback system in PMS and
rewarding systems in PMS among the respondents of various age groups.
Similarly, there is no difference in the perception of performance related
outcome and staff related outcomes among the respondents of various age
groups.
The study justified that significant difference can be found in
opinion on distributive justice, procedural justice and interactional justice
among the respondents with different experience. Similarly, withdrawal
behaviour of the employees and the absenteeism are different among the
respondents of different experience.
The study supported that planning in PMS, Measurement in
PMS, feedback system in PMS and the reward systems in PMS is
perceived to be same by respondents of different experience. Similarly,
performance related outcome, staff related outcomes and the working
condition are not perceived different by respondents of different
experience.
The study reveal that is no significant difference between male
and female respondents with each of the factors namely Planning,
Measurement, Feedback, Rewards. Similarly, there is no significant

224
difference in the male and female on factors such as Performance Related
Outcomes, Staff Related Outcomes and Working Condition. However, the
study proves that that there is significant difference between male and
female respondents for factors namely Distributive Justice, Procedural
Justice, Interactive Justice. There is a significant difference between male
and female respondents for Withdrawal Behaviour and Absenteeism also.
5.1.5 Summary of Hypotheses Testing
The summary of the results of the hypotheses testing is
presented in Table 5.1.
Table 5.1 Summary of results of the hypotheses testing
Hypothesis Results
H1
Effectiveness of PMS does not influence
Rejected
organisational justice
H2
Effectiveness of PMS does not have an influence on
Rejected
H3
Organisational justice does not have an influence on
Rejected
withdrawal behaviour
H4
Working conditions does not have an influence on
Accepted
withdrawal behaviour
H5
Withdrawal behaviour does not influence
Rejected
absenteeism.
H6
The opinion on various factors does not vary among
Rejected
the respondents with different educational level.
H7
The opinion on various factors does not vary among
Rejected
the respondents of different designation.

225
Table 5.1 (continued)
Hypothesis Results
H8
H9
H10
H11
H12
H13
There is no difference in the opinion on various
factors among the organisations of different size.
factors among respondents of different departments.
factors among the respondents from different type of
organisation.
factors among the respondents of different age group.
factors among the respondents of different years of
experience.
factors among the men and women.
Rejected
Accepted
Rejected
Rejected
Rejected
Rejected
5.2 RECOMMENDATIONS
In mass production industries like textile, almost every
production process is dependent upon other processes and an unexpected
absence of an employee in a particular department may result in a drastic
dislocation of production in another department or even in the entire plant
(Rao, Vijaya & Sheela Rani 2012). Many studies have identified the
reasons for absenteeism from organisational reasons to personal reasons
and have suggested management techniques. Studies have highlighted that
personal reasons like family responsibilities and work life balance can
cause absenteeism. Organisational factors such as job scope, job level, role

226
stress, work-group size, leader style, co-worker relations and opportunity
for advancement can also influence employee absenteeism. Various
absence control policies such as return to work interviews, disciplinary
action, employee health promotions, attendance bonus, family friendly
initiatives, employee assistance programmes and job redesign and team
work has been proposed for managers. Flexible working and family
friendly initiatives can reduce absenteeism only if the employee has
problem in attending because of family responsibilities. Organisational
problems lead to disappointment and withdrawal behaviour leading to
absenteeism. In such cases, previous studies recommend that attendance
bonus; disciplinary action and employee assistance programmes are more
effective. However, disciplinary action can aggravate absenteeism if the
employee is already in withdrawal. Similarly, Economic and market
conditions can lead to constraint in employee moving to other organisation.
Personal work ethics and organisational commitment will also be altered
when employee is frustrated and moves into withdrawal behaviour.
Controlling absenteeism is a difficult task for managers because
of interaction of different factors and employee characteristics.
This study recommends that in cases where organisational
factors influence the employee’s commitment, the performance
management can be a best strategy. Motivating factors that make an
employee to be present are incentive and reward systems, work-group
norms, managements concern towards employees etc. These factors will
require recording of absence and the analysis of the reasons for absence for
managing the absenteeism. Careful assessment and analysis of absence
problems are essential for effective solutions. It requires characterisation of
the absence problem within an organisation and identification of the causes

227
before designing and implementing strategies suited to the organisation
(Huczynski & Fitzpatrick 1989).
Performance management is an information system based
method that includes multidimensional performance outcomes beyond the
financial measures. Performance management includes planning,
measuring, feedback and reward systems. These activities will provide
procedure for not only recording absenteeism and analyse the reasons but
also provides objective based goals to employee, feedback system that has
concern to employees, and reward system that motivates them
continuously.
However, the study recommends that mere presence of
performance management is not enough. The effectiveness of the PMS is
important in dealing with employee and motivating them. Studies have
proved that among the measures of effectiveness of PMS, the staff related
outcomes have more influence than the performance related outcomes.
Similarly, this study also recommends that staff related outcome reflects
the effectiveness of PMS more.
Earlier studies have identified organisational justice as one of
the factors that directly influence employee absenteeism. Similarly, many
studies have identified organisational justice to influence performance
appraisal system. The uniqueness of this study is that it connects
performance management, organisational justice and absenteeism. In order
to eliminate the genuine absence of employees due to illness or family
responsibilities, which are unpredictable, this study links absenteeism
through withdrawal behaviour to account for planned absenteeism of the
employee that can be predicted from other factors. This study recommends
that the predictable absence can be managed and it can be reduced by

228
performance management. The study also recommends that the
effectiveness of performance system will only be recognised by employees
when they feel that there is an organisational justice. Previous studies of
organisational politics and organisational justice in performance appraisal
show that when appraisal does not relate to promotion or increment, or
there is rater bias employees lose faith in the system. Therefore, the
organisation should ensure that performance management is active by
entrusting faith among employees.
5.3 RESEARCH CONTRIBUTION
The study has contributed to the domain of knowledge on
performance management and employee behaviour. The study also
contributes to the practice by providing a model to predict the absenteeism
from the efficiency of performance management, organisational justice,
and working conditions.
5.3.1 Contribution to Knowledge
This study has contributed to the empirical validation of the
model on performance management and absenteeism. Many studies have
tried to relate the performance management to the firm performance and
have been looking at implementing performance management at a strategic
level. However, the results of the study reveal the performance
management system can also help at the operational level such as
managing the absenteeism. The relationship between performance
management and absenteeism is new contribution to the knowledge. The
study also adds that the effectiveness of performance management to
reduce absenteeism is also linked to the employee’s perception towards the
organisational justice. This relationship adds to the knowledge by

229
highlighting that any intervention and management system will be
successful only when the employee trusts and believes that it will provide
an equal opportunity or benefit to him.
Though the working condition is an important aspect that the
management has to look at maintaining, the main reason why the
organisations focus on it is for compliance. The study proves that the
connection between working condition and absenteeism is meagre.
5.3.2 Contribution to Practice
This research contributes to the practice by identifying the
relationships between performance management, organisational justice,
working conditions on the behaviour of employees leading to absenteeism.
The study gains importance due to the current situation of the textile
industry. On one side has a huge opportunity in textile exports and
domestic consumption. However, on the other side is challenged by the
recession, layoff, employee morale and absenteeism. Management of
absence of employees are always a tactical problem that managers face.
During the opening of the shift when an employee is absent, managers are
stressed in organising the required workforce. This study tries to throw
light on one factor, performance management. The study explains how
employees will feel on the performance management and their
dissatisfaction leading to absenteeism.
The link between the employee absence and the working
condition is not established. Though the working condition in textile
industry is noisy, dust prone, and hot and humid, employees understand
that the condition will be the same in any textile firm. Therefore, the

230
working condition does not lead to their withdrawal behaviour which
results in absenteeism.
This study reiterates that though the performance management
can have a direct influence on the withdrawal behaviour, employees also
look at performance management positively or negatively based on their
perception towards the organisational justice. This highlights to the
managerial practice that mere performance system may not help in
reducing the absenteeism. The organisation should ensure and create a trust
among the employees that they are being treated equally. The transparency
in the organisational practice will help any type of interventions to be
successful.
The contribution of the study to practice is the prediction model
of withdrawal behaviour of the employees and the absenteeism.
Understanding the model will the managers to look at the factors that lead
to withdrawal behaviour. Looking at the withdrawal behaviour managers
will be able to predict the absenteeism of the employees and manage the
problem before hand.
5.4 LIMITATIONS
Many factors influence the absenteeism of the employees in a
textile firm. This study takes a micro view to understand how performance
management and employees perception on organisational justice can
influence absenteeism. The conceptual model was arrived at after the
analysis of literatures that could be accessed. Data were collected from the
employees of textile firm. The model was statistically tested by SEM
technique using AMOS. SEM technique was the only choice for analysis

231
because of the second order latent construct and multiple paths leading to
one variable.
The main limitation of the study is the sample framework. The
samples were confined to textile spinning mills located in Tamil Nadu and
particularly registered under South India Mills Association (SIMA), South
India Spinners Association (SISPA) and Tamil Nadu Spinning Mills
Association (TASMA) only. The textile units not members of the above
said associations are left off (Chance error).
The other limitation is that the study was conducted in the
textile industry and the findings can only be generalised to this particular
industry. However, the textile clusters are similar in business nature there
may be specific factors like location, political climate etc. and therefore the
findings of the study has to be carefully generalised to other textile clusters
across the country. The study was done at only one instance (Cross-
sectional study) due to time and cost restrictions.
The data collection is through questionnaire thus the researcher
cannot bring the entire idea of the study. The survey method using
questionnaire is prone to lower response rates. Collecting responses during
working hours were difficult because of the hectic process and employees
cannot stop for our request. Therefore, the responses could only be
collected during rest room break, or before and after the shift. This limited
the access and the response rate. Few companies hesitate to give sensitive
data such as employee information due to pressure from regulatory and
compliance agencies. Therefore, absenteeism and other performance
variables are captured only through self-reported interval scales.

232
5.5 FUTURE DIRECTION
Absenteeism is an outcome that is caused by many factors. This
study focused on whether performance management can influence
absenteeism and reduce it. The study did not consider the situation of an
individual that may influence the absence behaviour such as family
background, work life balance and individuals health conditions. Future
studies can extend in controlling these factors and look at the effect of
performance management on absenteeism. This empirical study designed
as a descriptive study collected data through survey to validate the
conceptual model developed through extant of literature available.
However, the in depth understanding is not possible with a descriptive
study. Future studies could also try to answer why questions by
approaching the same research model by more qualitative study and bring
about more in depth connections between the concepts. Further studies can
also focus on describing more on the type of performance management
system adopted by textile firms.
The study was restricted to a small region. The study can be
replicated in the textile industry in different geography and different sector
within textile industry such as weaving, knitting, readymade and clothing
sectors. The model can also tested in related industry like leather, footwear
and similar process hectic industry such as automobile.
5.6 CONCLUSION
Performance appraisals, developing competency models,
organisational developments, employee engagements and leadership have
been found only to increase business value by increasing the return on
investment only to a few multiples. However, performance management

233
and goal alignments are found to give substantial business improvements.
This study relates performance management at a micro level to employee
absenteeism. Reduction in employee absenteeism can directly drive
business transformations and business value. The study models the
connection between the perceptions on the effectiveness of performance
management, withdrawal behaviour and absenteeism.

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