Professional Documents
Culture Documents
ON
ABSENTEEISM
CAUSES, EFFECTS & CONTROL
AT
KSB PUMPS Ltd.
BY
POORNIMA POOJARI
IN PARTIAL FULFILLMENT OF
MASTERS DEGREE IN BUSINESS MANAGEMENT,
UNIVERSITY OF PUNE, PUNE
A similar vote of thanks goes to Mr. Ranjit Mohite, Mr. Vivek Kunte,
Mr.Jade, Mr.Erande, Ms.Nita and Ms.Swati whose expertise in the field proved to
be of great value to me during my training.
I would like to thank Prof. Vandana Gote for her valuable guidance
in making my project successful. I also wish to thank Dr. Sharad Joshi and the
VIM staff whose contribution cannot be overemphasized. With all their
encouragement and well wishes, my project proved to be fruitful.
TO WHOMSOEVER IT MAY CONCERN
institute. She has successfully carried out her Summer Project titled Absenteeism
sources used by her have been acknowledged in her report. The report is
submitted in the partial fulfillment of two-year full time course Master in Business
10. Bibliography 66
4
CHAPTER: 1
I ntroduction Of Subject
5
CHAPTER: 2
6
CHAPTER: 3
Objectives Of TheProject
7
CHAPTER: 4
Research Methodology
8
CHAPTER: 5
9
Graphical Representation
10
CHAPTER: 6
11
CHAPTER: 7
Conclusion
12
CHAPTER: 8
Suggestions To Reduce
Absenteeism
13
14
INTRODUCTION OF THE SUBJECT
In these days, when the needs of the country require greater emphasis
upon increase of productivity and the economic and rational utilization of time and
materials at our disposal, it is necessary to minimize absenteeism to the maximum
possible extent.
1. The higher the rate of pay and the greater the length of service of the
employee, the fewer the absences.
2. As an organization grows, there is a tendency towards higher rates of
absenteeism.
3. Women are absent more frequently than men.
4. Single employees are absent more frequently than married employees.
5. Younger employees are absent more frequently than older employees but
the latter are absent for longer periods of time.
6. Unionized organizations have higher absenteeism rates than non-union
organizations.
15
The rate of absenteeism can be calculated by considering the number of
persons scheduled to work and the number actually present. Thus, the rate of
absenteeism can be estimated in the following way:
CAUSES:
Important factors leading to absenteeism can be summarized as follows:
1. Long hours of work.
2. Bad working conditions.
3. Boredom.
4. Lack of co-operation and understanding between management
and workers.
5. Sickness.
6. Accidents.
7. Occupational disease.
8. Problem of transport facilities.
9. Low wages.
10. Lack of proper medical aid and health programmes.
11. Lack of canteen services, rest rooms, etc.
12. Bad housing conditions.
13. Evil of drinking.
14. Lack of marketing facilities.
15. Social or religious festivals.
16. Harvest seasons.
17. Marriages.
18. Education of children.
19. Domestic problems and consequent worries, etc.
16
Among these causes, in the existing Indian conditions, wage level in
industries, has a direct bearing on absenteeism. Sickness on account of bad
housing conditions contributes highest to industrial absenteeism. Social and
religious causes can be accounted as the second important contributing factor for
absenteeism.
Absenteeism in industry varies from place to place, depending on the
festival, marriage, harvest season and other factors.
EFFECTS :
Absenteeism is one of the root causes of labour unrest. It affects the
worker s earnings as well as the company in the following manner:
1. Decrease in Productivity :
Employees may be carrying an extra workload or supporting new or
replacement staff.
Employees may be required to train and orient new or replacement
workers.
Staff morale and employee service may suffer.
2. Financial Costs :
Payment of overtime may result.
Cost of self-insured income protection plans must be borne plus the
wage costs of replacement employees.
Premium costs may rise for insured plans.
3. Administrative Costs :
Staff time is required to secure replacement employees or to re-
assign the remaining employees.
Staff time is required to maintain and control absenteeism.
The definition of absenteeism, its causes, its affects on productivity, and its
costs in terms of finances and administrative effectiveness are quite clear.
17
What is not as clear is how to take affirmative action to control
absenteeism in such a way as not to create mistrust, costly administration and
systems avoidance.
18
KSB PUMPS LTD.
19
COMPANY PROFILE
20
BRIEF HISTORY OF KSB
1896: KSB sets up a British subsidiary, its first venture outside Germany.
1941: Argentina becomes home to the first of ten current KSB Companies in
America.
.
1953: The foundation of a Pakistani subsidiary marks a move into the Asian-
Pacific market, where KSB today has 15 group companies.
1988: KSB acquires a majority interest in U.S. slurry pump manufacturer GIW
industries.
1994: The company acquires a majority stake in KSB Shanghai Pumps Co.
1995: Nashik was added to the growing list of KSB manufacturing centers.
1996: KSB becomes 100% share holder in GIW (Georgia Iron Works), one of
the world s largest manufacturers of slurry pumps.
21
KSB QUALITY CONTROL
QUALITY OBJECTIVES:
The needs of their customers set the standards for the work they do.
KSB s objective is to provide trend setting technology and high quality of their
products and services together with a demanding quality consciousness, which
ensure them of a position of market leadership. For its customers, KSB is liable
partner.
KSB s thinking and actions are profit and market oriented. Entrepreneurial
initiative at all levels ensures profitable growth, stability and independence, thus
securing the future of KSB and its employees.
When doing their work, KSB is committed to the goals, needs and laws of
the society it lives in. KSB wants to be an open and fair partner to all. While
manufacturing and during operation of their products, they try their best to protect
their environment and use natural resources as sparingly as possible.
22
KSB QUALITY POLICY:
KSB s customer sets the standards for the quality of their products and
services. KSB comprehensively and punctually fulfill his requirements.
23
PLANNED PROGRESS OF KSB IS AS FOLLOWS:
24
TYPES OF PUMPS:
In KSB PUMPS Ltd., many types of pumps are manufactured. Some of them
are listed below:
Handling.
25
DEPARTMENTS AT KSB:
WAREHOUSE & STORES: E/DITS, Excise & Dispatch, Import, Purchase &
Stores.
26
HUMAN RESOURCE DEPARTMENT ACTIVITIES
1. EMPLOYMENT
Man Power Planning
Recruitment and Selection
Induction
Promotion and Transfer
Separation
3. INDUSTRIAL RELATIONS
Communication
Collective bargaining
Employee discipline
5. EMPLOYEE SERVICES
Medical/Canteen services
Recreation
Safety, Security, Transport
27
ORGAN IZATION STRUCTURE OF HR
D EPARTMEN T:
Mr. M. S. Srinivas
General Manager
HRD Corporate
Mr. A. R. Bhilare Mr. R. S. Mohite Mr. Mohan Iyer Mr. Jade Dr. Bidve Mr. Erande
IR-IPO IR-IPO Security Canteen / Time Dispensary / Time Office
Dy. Manager IR Asst. Manager IR Office Ambulance Room
Mr. Vivek Kunte
HRD T & D
IPD
28
Mr. S. N. Makhale Mr. C. M. D silva Mr. Thomas
Manager -Personnel
PP IR-IPO Officer
Dy. Manager IR
K. V. Subramaniam
P & A CBE Phelics Joseph Ms. Jayanti S. Subramaniam V. Demasundaram
IR Welfare Time Office Secretary
Mr. A. S. Nanajkar
P & A Nasik T. D. Mairal V. S. Shinde R. D. Khele V. V. Verma M. G. Badhe
P&A P&A Security Ex. & Desp Ex & Desp
OBJECTIVES OF THE PROJECT
the company?
3. What are the current disciplinary actions taken by the HR dept. for
reducing absenteeism?
Thus, the above objectives have been observed and analyzed in a detailed
manner in this project report. I have made an attempt to go into root causes of the
29
RESEARCH METHODOLOGY
A project is like a journey and it is always better to have atleast the faintest
of ideas of the probable direction of our destination. Initially we have to decide
upon the general area of interest or the aspect of the subject to inquire into. This
decision is rather broad and not very precise. It is crude indication of the purpose
of the study and is of little help for further planning and organization of the study.
30
The secondary data was collected from:
Monthly absenteeism data.
Yearly absenteeism report.
Leave records of employees.
After the collection of data, the response of the 25 individuals were arranged in
a chronological pattern and then evaluated. Many inferences could be drawn from
both the primary as well as secondary data available which are put forth in the
analysis section.
31
ASSUMPTIONS IN EVALUATION OF THE
ABSENTEEISM DATA
1. As per the objectives of the project, the analysis is to be done to find out
the causes of absenteeism and also to know the disciplinary action taken
against them. The following data was referred to draw the inferences:
2. From the monthly and yearly data, the monthly trends of absenteeism can
be observed by division of leaves in the following 2 categories:
a. Paid Leave: Privilege Leave (PL), Casual Leave (CL), Sick Leave (SL).
b. Unpaid leave: Authorized Leave (AL), Certified Sickness Leave (CS),
and Unauthorized Absence (UA).
32
MANPOWER STRENGTH DURING YEAR 1994- 2004
265 591
295
1994
33
330
654 1995
348 1996
1997
1998
1999
2000
2001
350 2002
629 2003
402 2004
424 535
MANPOWER STRENGTH OF THE COMPANY DURING 1994-2004
700
654
629
600
591
535
500
34
424
402
400
350 348
330 STRENGTH
295
300
265
NO. OF EMPLOYEES
200
100
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
PL TREND DURING 1994-2004
6.00
4.00 3.97
35
3.00 3.00 PL
% OF DAYS
2.00
1.00
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
CL TREND DURING 1994-2004
2.50
2.23 2.26
2.22 2.21
2.15
2.09
2.14 2.10 2.12
2.00
1.95
36
1.59
1.50
CL
% OF DAYS
1.00
0.50
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
SL TREND DURING 1994-2004
3.50
3.22
2.49
2.50
2.44
2.29
37
2.00
1.81 SL
1.66
% OF DAYS
1.50
1.00
0.50
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
AL TREND DURING 1994-2004
0.50
0.47
0.45
0.40
0.35
38
0.30
0.25 AL
0.23 0.22
% OF DAYS
0.20
0.18
0.15
0.13
0.10
0.05
0.03 0.02 0.03 0.02
0.01 0.02
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
CS TREND DURING 1994-2004
2.50
2.29
2.13
2.00 1.98
39
1.59 1.54
1.50
CS
1.11
% OF DAYS
1.00
0.81
0.78 0.74
0.62
0.50
0.53
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
UA TREND DURING 1994-2004
25.00
20.65
20.00
40
15.00
UA
% OF DAYS
10.00
5.00
1.83
1.51 1.00 0.71
0.65 0.34 0.39 0.54 0.61 0.75
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
41
NO. OF DAYS
0
50000
100000
150000
200000
250000
178391
1994
22607.0
1995 198606
58286.0
169235
1996
23744.5
161805
1997
19449.0
125104
1998
13146.5
123078
1999
13666.0
YEARS
101914
2000
10745.5
106350
TOTAL MDA AND MDL DURING 1994-2004
2001
11682.0
98891
2002
11427.0
90266
2003
10448.5
81090
2004
9441.5
MDL
MDA
INFERENCES FROM THE MONTHLY DATA
1. The PL consumption % is high during the months of April, May and June as
the schools in our country have vacations during these months and this
period being the marriage season in India, the leave consumption varies
from 3.9% to 4.84%.
4. The rate of AL leave consumption is very low. i.e., 0.47% to 0.02%. This
leave is mostly consumed by the new comers or by the very rare cases of
the existing employees.
42
INFERENCES FROM THE YEARLY DATA
Calculation:
Average Leave = Average Strength x Leave p.a.
X 100
Available Mandays
Average PL = 9.8%
Average CL = 2.6%
Average SL = 3.2%
43
5. The graph of Certified Sickness shows a drastically downward trend. The
rate was 2.29% in 1994 which has dropped down to 0.74% in 2004. This
has been possible due to the efforts of the HR Department and the
Company Doctor.
7. Due to the above measures, the company has been successful in retaining
high Mandays.
8. The graph of manpower strength show declining trend as the company had
reduced or cut off manpower by implementing CRS and VRS scheme.
44
CONTROL THROUGH DISCIPLINARY ACTION
KSB has dealt with many cases and have brought about a very
uniform discipline in the employees.
45
PROCEDURE OF DISCIPLINARY ACTION:
46
EVALUATION OF THE QUESTIONNAIRE
1. My job in company is very interesting.
Options a b c d e Total
Response 0 5 7 9 4 25
% 0 20 28 36 16 100
a
e b
0%
16% 20%
a
b
c
d
d c e
36% 28%
Findings:
From the above chart, it can be seen that 86% of the workmen like their job
varying from average to a higher extent. Thus, their job interest levels are high.
47
2. Reason for taking employment:
To spend time.
Forced by family Members.
To take care of my family.
Liking of the work.
Options a b c d Total
Response 0 4 11 10 25
% 0 16 44 40 100
a
b
0%
16%
d a
40%
b
c
d
c
44%
Findings:
From the above chart, it is clear that 44% of the workmen come to the
company to support their family while 40% of workmen have a liking towards their
work.
48
3. Are you aware of the leave rules of the company?
Options a b c d Total
Response 2 5 7 11 25
% 8 20 28 44 100
a
8%
b
d 20% a
44% b
c
d
c
28%
Findings:
From the above chart, it is observed that 44% of the workmen are strongly
aware of the leave rules while 8% of the workmen are not at all aware of the leave
rules.
49
4. How many paid leaves are availed by you per annum?
Options a b c d Total
Response 1 2 13 9 25
% 4 8 52 36 100
a b
4% 8%
d
36% a
b
c
d
c
52%
Findings:
It can be seen that 52% of workmen take around 6 -10 days of paid leaves
while 36% of the workmen avail more than 10 days paid leave per annum.
50
5. How many unpaid leaves are availed by you per annum?
Options a b c d Total
Response 4 6 13 2 25
% 16 24 52 8 100
d a
8% 16%
a
b
b c
24%
c d
52%
Findings:
It can be observed that 52% of the workmen take 6-10 days of unpaid
leave while 24% of workmen avail 3-5 days leave per annum.
51
6. What is the percentage of your absenteeism in last one year?
Options a b c d e Total
Response 8 11 4 1 1 25
% 32 44 16 4 4 100
d e
4% 4%
c a
32% a
16%
b
c
d
e
b
44%
Findings:
From the above chart, it can be seen that 44% of the workmen quoted their
absenteeism in the percentage range of 21- 40% in the past one year while 32%
of workmen have reported 0 20% absenteeism last year.
52
7. Main reason behind high leave consumption:
Personal
Family related
Work related
Social
Addiction
Indebtness
Options a b c d e f Total
Response 2 10 4 2 5 2 25
% 8 40 16 8 20 8 100
f a
8% 8%
e a
20% b
c
b d
d 40% e
8% f
c
16%
Findings:
It can be observed that the main reason behind high leave consumption is
that 40% of the workmen have family related problems, while 20% of the workmen
have addiction problem.
53
8. My colleagues are highly supportive.
Options a b c d Total
Response 0 5 9 11 25
% 0 20 36 44 100
a
b
0%
20%
d a
44% b
c
d
c
36%
Findings:
From the above chart, 44% of the workmen feel that their colleagues are
supportive to a great extent. Thus, the working environment in the company is
very friendly and comfortable.
54
9. Disciplinary actions taken by management on absenteeism has reduced
absenteeism in our company.
Options a b c d Total
Response 0 4 12 9 25
% 0 16 48 36 100
a
b
0%
16%
d
36% a
b
c
d
c
48%
Findings:
It can be observed from the above chart that 48% of workmen accept that
disciplinary actions taken by management have reduced absenteeism to a very
great extent. The company has very strict rules policy. However those who have
breached the rules are given warnings, show cause notices or suspension.
55
10. In our company, real, genuine sickness cases claiming sick leave are
either:
Options a b c d e Total
Response 4 5 9 5 2 25
% 16 20 36 20 8 100
e a
8% 16%
d a
20% b
b c
20%
d
e
c
36%
Findings:
From the above chart, it can be seen that 36% of workmen have opted that
41- 60% of the cases are real, genuine ones who claim sick leave.
56
11. I interact with the company s management staff without hesitating.
Options a b c d Total
Response 3 7 11 4 25
% 12 28 44 16 100
d a
16% 12%
a
b b
28% c
d
c
44%
Findings:
It can be observed from the above chart that 44 % of the workmen are very
comfortable in interacting with the management staff. Thus, the management
subordinate relations are very clear and good without resistance.
57
12. How is your family condition and family atmosphere?
Options a b c Total
Response 10 9 6 25
% 40 36 24 100
c
24%
a
40% a
b
c
b
36%
Findings:
It can be observed that 40% of the workmen s family condition is
satisfactory while 24% of them are unsatisfied.
58
13. Is your salary structure adequate?
Yes No
Options a b Total
Response 13 12 25
% 52 48 100
b a
a
48% b
52%
Findings:
52% of the workmen are satisfied with their salary structure while 48% of
them are not happy about the present salary structure as it is not adequate for
them.
59
14. If No, are you and your family members engaged in some business?
Yes No
Options a b Total
Response 7 5 12
% 58 42 100
b
42% a
a b
58%
Findings:
From the 12 workmen, who are not satisfied with the salary structure, 58%
of workmen and their family are engaged in some business such as small shops
or providing mess facilities at home for the working people.
60
15. Is this involvement in business a cause of your absenteeism?
Options a b c Total
Response 5 3 4 12
% 42 25 33 100
c
33% a
a
42%
b
c
b
25%
Findings:
From the above chart, it is clear that involvement in some business is not
related to the absenteeism in the company. 42% of the workmen feel that
sometimes this involvement affects.
61
16. The cause of my absenteeism is taking alcohol.
Options a b c d Total
Response 11 8 5 1 25
% 44 32 20 4 100
d
c 4%
20%
a a
44% b
c
d
b
32%
Findings:
From the above chart, it can be seen that 32% of the workmen are addicted
to alcohol.
62
17. The cause of my absenteeism is taking smoking.
Options a b c d Total
Response 13 12 0 0 25
% 52 48 0 0 100
c
0%
d
0%
a
b a b
48% 52% c
d
Findings:
It is observed that 48% of workmen are addicted to smoking but it has no
relevance to their remaining absent at the company.
63
18. The cause of my absenteeism is taking chewing habits.
Options a b c d Total
Response 14 6 5 0 25
% 56 24 20 0 100
d
c 0%
20%
a
b
a c
b 56%
d
24%
Findings:
It can be seen from the above chart that 20% of workmen are addicted to
chewing habits to a great extent, but it does not directly affect their attendance in
the company.
64
19. The cause of my absenteeism is taking drugs.
Options a b c d Total
Response 15 10 0 0 25
% 60 40 0 0 100
c
0%
d
0%
b a
40% b
a c
60% d
Findings:
From the chart, it can be seen that 60% of the workmen are not involved in
any type of drug addiction, while 40% of workmen are taking drugs.
65
20. The cause of my absenteeism is regular health problems.
Options a b c d Total
Response 2 11 9 3 25
% 8 44 36 12 100
d a
12% 8%
a
b
c b c
36% 44% d
Findings:
It can be seen that to some extent, 44% of the workmen remain absent due
to their irregular health problems.
66
CONCLUSION
Only when the positive approach is unsuccessful does the company need
to use the remedial approach to deal with habitual abusers or with excessive
absentee cases. In all cases the company's actions must be fair and reasonable
and consistently applied.
67
SUGGESTIONS TO REDUCE ABSENTEEISM
68
6. Verification of Medical certificate: It is generally observed that
workers take unauthorized leave and then provide a medical certificate.
The leave then becomes authorized. Thus, the medical certificates
must be verified by the management for their authenticity.
69
ANNEXURE-I
1994 - 2004
70
71
% OF DAYS
0.00
5.00
10.00
15.00
20.00
25.00
3.97
1.95
2.49
0.47
1994
2.29
1.51
3.00
1.59
2.29
0.23
1995
1.59
20.65
4.48
2.14
3.22
0.22
1996
2.13
1.83
4.82
2.23
1.81
0.18
1997
1.98
1.00
4.48
2.26
1.66
0.13
1998
1.54
0.65
4.96
2.22
2.44
0.03
1999
1.11
YEARS
0.34
4.60
2.10
2.90
0.02
2000
0.53
0.39
ABSENTEEISM DURING 1994-2004
4.82
2.09
2.90
0.01
2001
0.62
0.54
4.97
2.15
3.03
0.02
2002
0.78
0.61
4.86
2.12
3.06
0.03
2003
0.81
0.71
4.84
2.21
3.08
2004
0.02 0.74
0.75
AL
SL
PL
CL
UA
CS
72
NO. OF DAYS
0
50000
100000
150000
200000
250000
178391
1994
22607.0
198606
1995
58286.0
169235
1996 23744.5
161805
1997
19449.0
125104
1998
13146.5
123078
1999
13666.0
YEARS
101914
2000
10745.5
106350
TOTAL MDA AND MDL DURING 1994-2004
2001
11682.0
98891
2002
11427.0
90266
2003
10448.5
81090
2004
9441.5
MDL
MDA
UA TREND DURING 1994-2004
25.00
20.65
20.00
15.00
73
UA
% OF DAYS
10.00
5.00
1.83
1.51 1.00 0.71
0.65 0.34 0.39 0.54 0.61 0.75
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
CS TREND DURING 1994-2004
2.50
2.29
2.13
2.00 1.98
1.59 1.54
1.50
74
CS
1.11
% OF DAYS
1.00
0.78 0.81
0.74
0.62
0.50
0.53
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
AL TREND DURING 1994-2004
0.50
0.47
0.45
0.40
0.35
0.30
75
0.25 AL
0.23 0.22
% OF DAYS
0.20
0.18
0.15
0.13
0.10
0.05
0.03 0.02 0.03 0.02
0.01 0.02
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
SL TREND DURING 1994-2004
3.50
3.22
2.49
2.50
2.44
2.29
2.00
76
1.81 SL
1.66
1.50
1.00
0.50
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
CL TREND DURING 1994-2004
2.50
2.23 2.26
2.22 2.21
2.15
2.09
2.14 2.10 2.12
2.00
1.95
1.59
1.50
77
CL
% OF DAYS
1.00
0.50
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
PL TREND DURING 1994-2004
6.00
4.00 3.97
78
3.00 3.00 PL
% OF DAYS
2.00
1.00
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
MANPOWER STRENGTH OF THE COMPANY DURING 1994-2004
700
654
629
600
591
535
500
424
402
400
79
350 348
330 STRENGTH
295
300
265
NO. OF EMPLOYEES
200
100
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
YEARS
MANPOWER STRENGTH DURING YEAR 1994- 2004
265 591
295
330 1994
1995
654
62
348 1996
1997
1998
1999
2000
2001
350 2002
629 2003
402 2004
424 535
63
QUESTIONNAIRE ON STUDY OF ABSENTEEISM
64
21. Main reason behind high leave consumption:
Personal
Family related
Work related
Social
Addiction
Indebtness
24. In our company, real, genuine sickness cases claiming sick leave are
either:
Yes No
28. If No, are you and your family members engaged in some business?
Yes No
65
29. Is this involvement in business a cause of your absenteeism?
66
ANNEXURE-II
67
BIBLIOGRAPHY
Books
Human Capital
Manual
Websites
www.ksbindia.co.in
www.google.com
www.employer-employee.com
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