ANNEXURE

EMPLOYEES ABSENTEEISM IN CPCL

QUESTIONNAIRE

a) 20-30 b) 3 1-40 c) 41-50 d) above 50

1. Age:

a) School Level I b) ITIIDiploma I c) UG d) PG

2. Education:

a) Technical b) Non Technical

4. Job status (Nature of Job) I

a) Less than b) 5-10 c) 11-15 years d) More than

5. Experience
5 years years 16 years

a) Single I b) Married c) Separated d) Divorce

6. Marital status

b) Nuclear Family
7. Nature of family: a) Joint Family

a) 2 b) 3-5 c) above
8. No. of Members in the family

1
 ABSENTEEISM FACTORS

Please mark the suitable scale

(SA- strongly agree, A- agree, N-neither agree nor disagree, DA-disagree, SDA
strongly disagree)

SI. DESCRIPTION SAIAINiDAISDA

No.
MANAGEMENT POLICIES ON EMPLOYEES
1 Management introduced new policies for the
improvement of employees in the organization
2 They want to extract best from women
3 National policies of reservation for employees is

4 In each department employees are given responsible

position
5 Top level executives are always in favour of
potentiality of women
6 Management emphasis on awareness of women's
role in the organization
7 Environment of the organization is successful in
women's development
8 Profound system are introduced to involve the
employees in all key activities
Top executives believe that the success can be
obtained through more efforts of women's

10 Trust and opennt ss are shown towards

DEVELOPMENT OF EMPLOYEESPOTENTIALITY

11 Talents of employees are identified.

12 Assessing the employees in terms of their highest
level of work.
13 Future plans are appraised to them.
14 Managerial skills are developed.
15 Periodic evaluation is done in the organization.
16 Employees are made to with stand future challenges
17 Psychological test are conducted.
18 Personal interactions with executives is useful to
share their views
19 Employees are posted in suitable departments
20 Potential development gives more satisfaction to
employees.

11
 ORGANIZATIONAL DEVELOPMENT AND EMPLOYEES
EMPOWERMENT.

Changes have been done in favour of women

22 Systematic application of mind is taught to

23 Innovative changes exposed to good technological

skills to employees
24 Employees attitudes about the organization are
positive and optimistic in approach.
25 Structures of the organization is highly encouraging
26 A psychological conducive climate for the
development of employees is prevailing.
27 Employees teams are effectively encouraged.
28 Climate problems are taught to solve
29 Team management are taught for the involvement
30 Employees in inter dependent units are taught to
share their ideas

GOAL ACHIEVING

31 Employees are allotted to achieve the suitable goals

32 Colleagues are assisting achieve the needs
33 Superiors are kind enough in teaching the process of
achievement
34 Departmental and organizational objectives are

REWARDS AND FACILITIES

35 Special facilities are given to employees for job

involvement
strategies to remove family stress of

37 Child care units are opened in the organization

38 Maternity and other leaves are given with out any
hesitation.
39 Income is suitable for hard work.
40 Over time and other extra works give more
emoluments

ROLE OF WOMEN

41 Participation and discussion are frequently taken

place to achieve the target.
42 Role in the organization is encouraging
43 Role analysis gives involvement and responsibilities
44 Women's potential properly channelised

111
45 1 Inter personal relation ship helped to realize the

46 1 Employees are placed in the key performance area.

1DVD1flP14 ANCF, (iF VMPLOYEES

CAREER DEVELOPMENT

4j Organization follows job rotation.

55 Employees strongly believe that they are suitable for
all the job.
56 Promotion policy of the organization makes to
involve more in all the works
57 Employees are requested to specialize all the areas.
58 Career and individual efficiency are directly related
in the view of organization
59 Senior employees are given proper elevation.

TRAINING

60 Women's development needs are identified

61 Detailed reports of potentiality of employees are
given by the organization.
62 Key areas of poor performance are concentrated
63 Employees are taught to with stand against heavy
competition
64 Training are given according changing of technology
and management system
65 Case studies and audio visuals are used for training
66 Work environment is made place for performance
9 and learning.
67 Separate incentives and OD are given to attend the
training.
68 Organization initiates all the measures for women's
learning.
69 Innovative methods of training are given at the cost
of organization

iv
IMPACT ON ORGANIZATION
)LUME No. 1(2011), ISSUE No.2 (JUNE) 1SSN2231-4245

A
ftDI M (3W1M
CONTENTS
r. No. TITLE & NAME OF THE AUTHOR (S) Page No.
INTERNATIONAL FINANCIAL REPORTING STANDARD ADOPTION, IMPLICATION ON MANAGEMENT ACCOUNTING AND TAXATION IN
NIGERIAN ECONOMY
FOLAJIMI FESTUS ADEGBIE
MODERN PORTFIOLIO THEORY (MPT) AND FINANCIAL ECONOMICS: A THEORY OF LESSER TURF? 6
DR. ANDREY I. ARTEMENKOV
THE IMPACT OF STOCK MARKET OPERATIONS ON THE NIGERIA ECONOMY:A TIME SERIES ANALYSIS (1981-2008) 13
DR. OFURUM CLIFFORD OB!YO & TORBIRA, LEZAASI LENEE
PERFORMANCE APPRAISAL SYSTEM ON COMPANY PAY ROLL EMPLOY, SENIOR, MIDDLE & LOWER MANAGEMENT (A STUDY WITH 18
REFERENCE TO INTERNATIONAL TOBACO COMPANY LTD., GHAZIABAD)
DR. RAGHVENDRA 0 WI VED! & KUSH KUMAR
S. CREDIT POLICY AND ITS EFFECT ON LIQUIDITY: A STUDY OF SELECTED MANUFACTURING COMPANIES IN NIGERIA 25
STEPHEN A. OJEKA
CREDIT RISK MANAGEMENT IN STATE BANK OF INDIA - A STUDY ON PERCEPTION OF SBI MANAGER'S IN VISAKHAPATNAM ZONE 31
DR. P. VEN! & P. SREE 0EV!
THE ARCHAEOLOGY OF RECESSION: DILEMMA BETWEEN CIVILIZATION AND CULTURE - TWO DIFFERENT APPROACHES OF WEST 38
AND EAST WHILE COMBATING GREAT DEPRESSION
DR. V. L. DHARURKAR & DR. MEENA CHANDAVARKAR
TRANSFORMING A RETAIL CENTRE INTO A BRAND THROUGH PROFESSIONAL MALL MANAGEMENT 42
DR. N. H. MULLICK & DR. M. ALTAF KHAN
IMPACT OF EXCHANGE RATE VOLATILITY ON REVENUES: A CASE STUDY OF SELECTED IT COMPANIES FROM 2005 -2009 47
K. B. NALINA & DR. B. SN! VARAJ
10. DETERMINING WORKING CAPITAL SOLVENCY LEVEL AND ITS EFFECT ON PROFITABILITY IN SELECTED INDIAN MANUFACTURING 52
FIRMS
KARAMJEETSINGH & FIREW CHEKOL ASRESS
11 FUTURE NUTRITION & FOOD OF INDIA - THE AQUA-CULTURE: AN ENVIRONMENTAL MANAGEMENT & CULINARY PARADIGM 57
PERSPECTIVE STUDY FOR A SUSTAINABLE NATIONAL STRATEGY
DR, S. P. PATH, PROF. BISWAJIT DAS, PROF. SAT!SH JAYARAM & CHEF SUPPANA SAHA
12. A STUDY OF NON-FUND BASED ACTIVITIES OF MPFC - WITH SPECIAL REFRENCE TO CAUSES OF FAILURE AND PROBLEMS 65
DR. UTTAMJAGTAP& MANOHARKAPSE
13. CRM IN BANKING: PERSPECTIVES AND INSIGHTS FROM INDIAN RURAL CUSTOMERS 69
ARUN KUMAR, DEEPAL! S!NGH & P. ACHARYA
14. DETERMINANTS OF INCOME GENERATION OF WOMEN ENTREPRENEURS THROUGH SHGS 78
REVA TN! PANDIAN
15. AGRICULTURAL CREDIT: IMPACT ASSESSMENT 81
DR. RAMESH. 0. OLEKAR
16. MICRO FINANCE AND SELF- HELP GROUPS - AN EXPLORATORY STUDY OF SHIVAMOGA DISTRICT 87
- MAHESHA. V& DR. S. B. AKASH
17. INFORMAL SMALL SCALE BRICK-KILN ENTERPRISES IN GULBARGA URBAN AREA - AN ECONOMIC ANALYSIS 91
SHARANAPPA SAIDAPUR
18. EXTENT OF UNEMPLOYMENT AMONG THE TRIBAL AND NON-TRIBAL HOUSEHOLDS IN THE RURAL AREAS OF HIMACHAL PRADESH: 98
A MULTI-DIMENSIONAL APPROACH
DR. SARBJEETSINGH
19. WOMEN SELF HELP GROUPS IN THE UPLIFTMENT OF TSUNAMI VICTIMS IN KANYAKUMARI DISTRICT 106
OR. C. S/VA MURUGAN & S. SHAKESPEARE !SREAL
20. FOREIGN BANKS IN INDIA EMERGING LEADER IN BANKING SECTOR 110
- DR. C. PARAMAS! VAN
21. AN EMPIRICAL EVALUATION OF FINANCIAL HEALTH OF FERTILIZER INDUSTRY IN INDIA 114
SARBA PR! VA RAY
22. A STUDY ON EMPLOYEE ABSENTEEISM IN INDIAN INDUSTRY: AN OVERVIEW 119
R. SURESHEABU& DR. D. VENKAIRAMARAJU
- LONG MEMORY MODELLING OF RUPEE-DOLLAR EXCHANGE RATE RETURNS: A ROBUST ANALYSIS 124
23. PUNEET KLJMAR
- THE US ECONOMY IN THE POST CRISIS SCENARIO - HOLDING LITTLE CAUSE FOR CHEER 131
24.
C. BARATH! & S. PRA VEEN KUMAR
- IMPLEMENTATION OF SS IN BANKS 135
25. YADUVEER YADAV, GAURA V YADAV& SWAT! CHAUHAN
- REQUEST FOR FEEDBACK 149

rtinn nn H flire.tc.rea
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LUME No: 1(2011), ISSUE NO. 2 (JUNE) 1SSN2231-4245

MEE pTqogr
PROF. K. K. AGGARWAL
Chancellor, Lingaya's University, Delhi
Founder Vice-Chancellor, Guru Gobind Singh Indraprastha University, Delhi
Ex. Pro Vice-Chancellor, Guru Jambheshwar University, 1-lisar

SH. RAM BHAJAN AGGARWAL

Ex. State Minister for Home & Tourism, Government of Haryana
Vice-President, Dadri Education Society, Charkhi Dadri
President, Chinar Syntex Ltd. (Textile Mills), Bhiwani

co-0I5vj4qOR.
Faculty, M. M. Institute of Management, Maharishi Markandeshwar University, Muilana, Ambala, Haryana

fiqyI2ISORS
vRO
Director A. C. D., School of Mana g ement Studies, .N.O.U., New Delhi

Chairman, M.B.A., Haryana Colt-ge nIT dnoLoy & Management, Kaithal

PROr f

Principal (Retd ), Maha raja Agaei College, .iagadhri

i1 F
Dean (Academics), Tecnia Institute of Advanced Studies, Delhi

Faculty, M. M. Institute of Management, Maharishi Markandeshwar University, Mullana, Ambala, Haryana

Eq Iq 'oqw4L ISoYBOJ4V
r

Faculty, School of Management & Market. i ng, Deakin University, Australia

i;': VJt " ',
Faculty Lomar University, U.S.A.
DR. RAJESH-MODI P
Faculty, Yanbu Industrial College, Kingdom of Saudi Arabia
PROF. SIKANDER KUMAR
Chairman, Department of Economics, Himachal Pradesh University, Shimla, Himachal Pradesh
PROF. SANJV MFFTAL
University School of Management Studies, Guru Gobind Singh I. P. University, Delhi
PROF. RAJENDER GUPTA
Convener, Board of Studies in Economics, University of Jammu, Jammu

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)LUME No: 1(2011), ISSUE NO.2 (JUNE) 1SSN2231-4245

A STUDY ON EMPLOYEE ABSENTEEISM IN INDIAN INDUSTRY: AN OVERVIEW

SUSH bABU
RESEARCH SCHOLAR
BOTH INTERNAL, EXTERNAL & EXTERNAL (R/N/G) PROGRAM
DEPARTMENT OF COMMERCE, MANONMANAM SUNDARANAR UNIVERSITY
TRUNELVEU - 627 012

DR, U. VENKATRAMARAJU
ASSOCIATE PROFESSOR
POST GRADUATE AND RESEARCH DEPARTMENT OF COMMERCE
PACHAWAPPAS COLLEGE
CHFNNA

ABSTRACT
bsenteeism is a serious workplace problem and an expensive occurrence for both employers and employees seemingly unpredictable in nature. A satisfactory
'yel of attendance by employees at work is necessary to allow the achievement of objectives and targets by a department. Employee Absenteeism is the absence
fan employee from work. It is a major problem faced by almost all employers of today. Employees are absent from work and thus the work suffers. Absenteeism
F employees from work leads to back logs, piling of work and thus work delay. These articles mainly focus on employee chronic absenteeism where the factors
Dntributing to absenteeism from work include individual and environmentalfactors, and the remedial measure taken for such absenteeism in Indian industries.

:EYw0RD
lotivation, Job Satisfaction, commitment.

NITRODUCTION
bsenteeism is the term generally used to refer to unscheduled employee absences from the workplace. Many causes of absenteeism are legitimate
personal illness or family issues, for examplebut absenteeism also can often be traced to other factors such as a poor work environment or workers
are not committed to their jobs. If such absences become excessive, they can have a seriously adverse impact on a business's operations and,
iltimately, its profitability Absenteeism means an individual remain absent without any information or intimation to his superior. Whether it is one day or more.
ibsenteeism can at mass level also. Normally, 6-8 % absenteeism found in all industry. If it beyond consecutively, then the matter is serious. If any individual is
in paid leave or outdoor, how can this absenteeism. It's only about unauthorized absenteeism. If individual remain absent beyond 3 times in period of 12
eonths without intimation, then he called as Habitual absent case, Or any individual remain absent more than 10 consecutive days also serious. In this case, we
an issue Charge sheet to workmen who is habitual or 10 days absent.
ibsenteeism in Indian industries is not a new phenomenon. It is the manifestation of a decision by employees not to present themselves at their place of work,
it a time when it is planned by the management that they should be in attendance. Many research reports reveal that there has been a phenomenal increase in
ibsenteeism in some industrial sectors. The absenteeism becomes a problem to organizational management particularly when employees absent from their
cork environment without giving sufficient notice and by justifying their stand by furnishing fake reasons. The reasons for absenteeism are many. The factors
:ontributing to absenteeism from work includes individual and environmental factors. These consists of sickness, accidents, occupational diseases, poor
)roduction planning (flow of work), bad working conditions and inadequate welfare conditions, lack of trained laborers, insecurity in employment, collective
Dargaining process, rigid control system, lack of supervisory support, lack of interest, lack of cohesive and cordial culture and so on. The individual reasons may
,ary from organization to organization depending upon the organizational climate, employee's attitude and influence of external organizational factors (market
lorces, social activities that influence the industrial culture prevailing in geographical zone etc.).

NEED FOR THE STUDY

. To find out the detrimental to industries in respect to the increased costs associated with high instances of absenteeism.

STATEMENT OF THE PROBLEM

To Study the existing literature an factors influencing employee Absenteeism
To find out the various personal factors affecting absenteeism

OBJECTIVES OF THE STUDY

To analyze the firm are highly influenced on financially burdened due to the lost productivity and increased costs associated with finding and paying for
temporary replacements Absenteeism is positively correlated with turnover.
This resulting turnover also financially impacts a business because of the costs associated with finding and a permanent replacement.

METHODOLOGY
DATA ANALYSIS
The Investigation used both qualitative and quantitative research methods. The initial quantitative study (100 respondents) aimed at identifying the important
variables that drive the factors influencing absenteeism from the employees. The main research instrument used was a well structured questionnaire that was
administered among the respondents mainly through personal contacts. Sampling population included the employee from all age groups and different financial
backgrounds. It was found in our study that 70% of the responses were obtained from people of moderate family and 30% from elite family with respect to per
capita income. The sample frame consisted of people from different fields. Individual respondents were the sampling element. Some of the respondents were
also interviewed in order to have an in-depth analysis and find out the main reason behind their absence. The above generated pie chart shows the percentage
of respondents.

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'POTHESIS
There is no association between age of employee and attitude of employee towards absenteeism
There is association between age of employee and attitude of employee towards absenteeism
There is no association between factors affecting employee absenteeism and working condition
There is association between factors affecting employee absenteeism and working condition

RCENTAGES OF RESPONDENT
Chronically ill?
tal respondent = 100 (Men 50 and Women 50
= 75% (Men 40% & Women 35%)
= 25% (MenlO% & Women 15%)

Chronically ILL

DYes-75%
No-25%

I. How often do they apply for leave?

otal respondent = 100 (Men 50 and Women 50)
i(lnaweek =10
>( In a fortnight = 20
In a month = 30
)Ina six month =20
s)Inayear =20

Apply for leave

20 10

20

20
30
Eli-a' In a week D b) In a fortnight U c) In a month
[ D d In a six rn e)Inayear
C: Require leave for which of the following reason?
Total respondent = 100 (Men 50 and Women 50)
= 27
1) Marriage
=5
2) Agricultural works
= 35
3) Sickness
= 1.0
4) Going around with friends
=5
5) Fear from internal people
=8
6) No interest in work
=5
7) Not good relation with departmental colleague & supervisor
8( Fear from accident =5

Reason for leayLB

10 5j
355

I 5 27

CHRONIC ABSENTEEISM
A person who is a habitual absentee worker is called a chronic absentee worker. Such a person as compared to regular employee is absent from work not so
much because of job or environment factors. Some of the following factors involves chronic absenteeism are
ENTREPRENEURS
Such chronic absentees were found to be engaged in several social and cultural activities for status, power, recognition and money and the millwork was too
meager to satisfy al these interests. Yet most of them wanted to preserve their job because if provided security, fringe benefits, like housing, purchases at mill
shop, loans and provident fund contribution. They had no complaints against work, company or supervisors and were found to belong to landowner and artisan
families. They also changed jobs frequency to improve their status and occasionally gambled and drank.

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tTUS SEEKER
sy enjoyed the ascribed status and were keen to achieve and maintain it. Since they undertook many social activities they were mostly absent from work.
sy were vocal and provided counseling and guidance to others. Hence, they carried more weight with other employees.
CUREANS
primary objective of epicureans was comfort and pleasure. They were characterized by excessive concern for physical comforts at the cost of money, did not
urge job yet had no involvement with the work. Except for the present job they did not involve themselves in any other economic activity. They were
erally passive and took no responsibility.
MILY ORIENTED
ey desired to be good family providers, regular employees and respectable citizens. However, over involvement with family distracted them from the very
ad of being a regular employee and good citizen. They were found to be withdrawn and disorganized.
K AND OLD
me chronic absentees stayed away from work because of ill health, weak constitution, chronic illness and just old age. Yet they were compelled to hold on to
uk for economic reasons. However, their physical conditions made them less responsive to work.

LJIDELINES FOR ABSENTEEISM CONTROL

ere are two types of absenteeism, each of which requires a different type of approach.
NOCENT ABSENTEEISM
nocent absenteeism refers to employees who are absent for reasons beyond their control; like sickness and injury. Innocent absenteeism is not culpable which
eans that it is blameless. In a labour relations context this means that it can not be remedied or treated by disciplinary measures.
JLPABLE ABSENTEEISM
ilpable absenteeism refers to employees who are absent without authorization for reasons, which are within their control. For instance, an employee who is
sick leave even though he/she is not sick, and it can be proven that the employee was not sick, is guilty of culpable absenteeism. To be culpable is to be
ameworthy. In a labour relations context this means that progressive discipline can be applied. For the large majority of employees, absenteeism is legitimate,
nocent absenteeism, which occurs infrequently. Procedures for disciplinary action apply only to culpable absenteeism. Many organizations take the view that
rough the process of individual absentee counselling and treatment, the majority of employees will overcome their problems and return to an acceptable level
regular attendance.

)ENTIFYING EXCESSIVE ABSENTEEISM

ttendance records should be reviewed regularly to be sure that an employee's sick-leave days are excessive compared to other employees. If a supervisor
ispects that an employee is excessively absent, this can be confirmed through reviewing the attendance records. If all indications show that an employee is
xcessively absent, the nest step is to gather as much information as possible in order to get a clearer picture of the situation. The employees' files should be
rviewed and the employee's immediate supervisor should document all available information on the particular employee's history.
IDIVIDUAL COMMUNICATION
fter all available information has been gathered, the administrator or supervisor should individually meet with each employee whom has been identified as
aving higher than average or questionable (or pattern) absences. This first meeting should be used to bring concerns regarding attendance to the employee's
Stention. It is also an opportunity to discuss with the employee, in some depth, the causes of his or her attendance problem and possible steps he or she can
ske to remedy or control the absences. Listen carefully to the employee's responses.
he tone of the meeting should not be adversarial, but a major purpose of the interview is to let the employee know that management treats attendance as a
ery important component of overall work performance. Keep your comments non-threatening and work-oriented. Stick to the facts (i.e. patters, profiles, rates
tc.). The employee should be given a copy of there attendance report with absences highlighted for discussion.
his interview will give the opportunity to explore in depth with the employee the reasons for his or her absence. Gather facts - do not make any assumptions.
rovide support and counselling and offer guidance as the occasion demands to assist the employee to deal with the specific cause of the absence. Often, after
he initial meeting employees reduce their absenteeism. The meeting shows that you are concerned and that absenteeism is taken seriously. The employee's
tteridance should be closely monitored until it has been reduced to acceptable levels. Appropriate counselling should take place as is thought necessary. If a
narked improvement has been shown, commend the employee. The meeting should be documented and a copy placed in the employee's file.

)ROOF OF ILLNESS
;ometimes it is helpful in counselling employees with excessive innocent or culpable absenteeism to inquire or verify the nature and reasons of their absence.
[he extent to which an employer may inquire into the nature of and reasons for an employee's absence from the workplace is a delicate issue. The concepts of
in employee's privacy and an employer's need for information affecting the workplace often come into conflict. Seldom is the conflict more difficult to resolve
than where personal medical information is involved Unions will often strong l y object to any efforts by management to inquire more deeply into the nature of
in employees illness You will need to consider the restraints of any language in collective agreements in relation to this issue
g enerally speaking, however, the following "rules of thumb" can be derived from the existing jurisprudence:
1. There is a prevailing right to privacy on the part of an employee unless the employer can demonstrate that its legitimate business interests necessitate
some intrusion into the employee's personal affairs.
2 When such intrusion is justified it should be strictly limited to the degree of intrusion necessitated by the employers rnterests
3 An employee has a duty to notify his employer of an intended absence the cause of the absence and its expected duration This information is required by
the employer to meet its legitimate concerns to have at its disposal facts which will enable it to schedule work and organize its operation
4 An absent employee has an obligation to provide his employer with information regarding any change to he condition or circumstances relating to it which
may affect the employers needs As such the interest of the employer in having this information outweighs the individual employees right to privacy.
S. An employer rule requiring proof for every absence is unreasonable if an absenteeism problem does not exist
6 A mere assertion by the person claiming to be sick is not satisfactory proof.
7. The obligation to prove sickness, where the employer requires proof, rests with the employee.
8. An employer is entitled upon reasonable and probable grounds to refuse to accept a physician's certificate until it contains sufficient information to satisfy
the employer's reservations. (i.e. seen by physician, some indication of return to work, etc.). Non-production of a required medical certificate could result
in loss of pay until the certificate is produced.
9. Where a medical certificate is rejected by an employer (as in #8 above( the employer must state the grounds for rejection and must point out to the
employee what it requires to satisfy the onus of proof.
10 An employer may require an employee to prove fitness for work where it has reasonable grounds to do so. In a health care setting the nature of the
employer's business gives it a reasonably irresistible interest in this personal information for the purpose of assessing fitness.
11. Where any unusual circumstances raise reasonable suspicion that an employee might have committed an abuse of an income protection program an
employer may require an employee to explain such circumstances. For example, an employer may require responses as to whether the illness confined an
employee to his/her bed or home; whether an employee engaged in any outside activity and the reasons for the activity.

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)RRECTIVE ACTIONS FOR CULPABLE ABSENTEEISM

already indicated, culpable absenteeism Consists of absences where it can be demonstrated that the employee is not actually ill and is able to improve his/her
tendance. Presuming you have Communicated attendance expectations generally, have identified the employee as a problem, have met with him/her as part
your attendance program, made your concerns on his specific absenteeism known and have offered counselling as appropriate, with no improvement despite
ur positive efforts, disciplinary procedures may be appropriate. The procedures for corrective/progressive discipline for culpable absenteeism are generally
e same as for other progressive discipline problems. The discipline should not be prejudicial in any way. The general procedure is as follows: [Utilizing
unselling memorandum]
Initial Warning(s)
Written Warning(s)
Suspension(s)
Discharge
ERBAL WARNING
rmally meet with the employee and explain that income protection is to be used only when an employee is legitimately ill. Advice the employee that his/her
tendance record must improve and be maintained at an improved level or further disciplinary action will result. Offer any counselling or guidance as is
propriate. Give further verbal warnings as required. Review the employee's income protection records at regular intervals. Where a marked improvement has
sen shown, commend the employee. Where there is no improvement a written warning should be issued.
MITTEN WARNING
iterview the employee again. Show him/her the statistics and point Out that there has been no noticeable (or sufficient) improvement. Listen to the employee
see if there is a valid reason and offer any assistance you can. If no satisfactory explanation is given, advise the employee that he/she will be given a written
iarning. Be specific in your discussion with him/her and in the counselling memorandum as to the type of action to be taken and when it will be taken if the
scord does not improve. As soon as possible after this meeting provide the employee personally with the written warning and place a copy of his/her file. The
mitten warning should identify any noticeable pattern
U SPE N S ION
'the problem of culpable absenteeism persists, following the next interview period and immediately following an absence, the employee should be interviewed
nd advised that he/she is to be suspended. The length of the suspension will depend again on the severity of the problem, the credibility of the employee's
.xplanation, the employee's general work performance and length of service. Subsequent suspensions are optional depending on the above condition.
IISMISSAL
)ismissals should only be considered when all of the above conditions and procedures have been met. The employee, upon displaying no satisfactory
mprovement, would be dismissed on the grounds of his/her unwillingness to correct his/her absence record.

BSENTEEISM AMONG MALE AND FEMALE EMPLOYEES

EX STRUCTURE
n a way it is true that female employees take more leave than male workers i.e. the rate of absenteeism for female is 15.19% and for males 13.47%. but if we
:onsider that maternity leave is an essential and unavoidable part of a female employee life and if we do not consider maternity leave of female employee, the
ate of absenteeism on male and female employee becomes 13.47% and 13.51% respectively, which is about the same.
EDUCATION
n male employee, the higher the education the less the amount of leave taken whereas in female workers, the higher the education, the higher the rate of
3bsenteeism unless there is very high level of education i.e., the female employee is post graduate or a Ph.D.
MARTIAL STATUS
Absenteeism increases in female employees when they are married whereas in male employee the opposite is true.
REASON FOR TAKING LEAVE
For most of the female employee the main reasons for taking leave are family responsibilities, domestic and household work etc. In male employee, personal
work, family responsibilities, visit to native place, entertainment etc, are the reason for taking leave.

SCOPE OF THE STUDY

The higher the rate of pay and the greater the length of service of the employee, the fewer the absences.
As an organization grows, there is a tendency towards higher rates of absenteeism
Absenteeism is generally higher in the night shift than in the day shift.
The rate of Absenteeism is the lowest on pay day; it increases considerably on the following the payment of wages and bonus.
Single employees are absent more frequently than married employees
Younger employees are absent more frequently than older employees but the latter are absent for longer periods of time.
Unionized organizations have higher absenteeism rates than non-union organizations
Absenteeism is higher during the sowing (March - April May) and harvesting season.

ANALYSIS is
Enhance job satisfaction.
Reward and discipline employees for increased or decreased absenteeism.
Implement a job rotation or job enlargement strategy.
Motivation
Management training program
Teambuilding
Incentive program

FINDINGS AND SUGGESTION

Many studies suggest that most of employee absenteeism, roughly between 60% and 70%, is due to reasons other than employee illness. The following are the
most common reasons employees tend to miss work.
Employees are stressed or preoccupied by personal matters, such as parental concerns, marital problems, community involvement, family well-being, care
for elderly relatives, care for severely ill immediate family members, and so on.
Employees are overwhelmed with their current working situation, or they are overworked due to workforce reductions and voluntary turnover.
Employees are dissatisfied with their current working conditions, position, supervisor, or overall organization.
Employees are not committed to their team, department, or organization.
INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, ECONOMICS & MANAGEMENT 122
A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www.ijrcm.org.in
OLUME No: 1(2011), ISSUE NO.2 (JUNE) 1SSN2231-4245

Employees are not challenged by their position and have increased feelings of burnout.

DNCLUSION
senteeism can be extremely difficult, but with the proper understanding of what causes absenteeism and how to reduce it, firm can limit the negative side
fects of employee attendance Issues. In addition to lowered workplace morale, less team cohesion, and decreased organizational commitment, employee
>senteeism is detrimental to businesses in respect to the increased costs associated with high instances of absenteeism.

EFERENCE
www.researchover.com: 'Title: Understanding and Controlling Worker Absenteeism'http://ideas.repec.org: 'ILR Review, ILR School, Cornell University, vol.
50(2), pages 304-323'
www.busrep.co.za: 'Presenteeism causes greatest loss to companies' February 7, 2005
Health Management, Book 2, Dr Susan Steinman, 1st Edition, published by Services SETA,pages 32-48
Health Management, Book 2, Or Susan Steinman, 1st Edition, published by Services SETA,pages 32-48
Human Resource Management, PS Nel et al, 6th Edition, published by Oxford Press, Southern Africa, pages 548-553.
http://www.cch.com/absenteeism2007
p
Moore, E. (1977) 'Industrial Relations and the Social Order', p504 in Blennerhassett, E and Gorman, (1986) 'Absenteeism in the Public Service -
Information Systems and Control Strategies' Dublin: IPA

I
s,

INTERNATIONAL JOURNAL OF RESEARCH N COMMERCE, ECONOMICS & MANAGEMEN T 123

A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories
www.ijrcm.org.in


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VOL. - II alSSUE - VI a December -2010

Refereed

Editor
Advisory Board
Dr. Anukrati Sharma Prof. (Dr.) Nawab Ah Khan
Department of Commerce,
Aligarh Muslim University, Aligarh (INDIA)
Managing Editor
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Professor of Ethics & FCA,
Business, Univ. of Charleston, Jain Chowdhary & Co.,
Charleston (USA) Mumbai (INDIA)

rDecember, 2010 II
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 .1

Letter From t-h-e-----

Editor
As the organizations grow and progress, their responsibility towards
society and humanity at large acquires greater significance. In the
present scenario social, environmental and humanitarian issues in
wake of industrial growth and advancement are drawing serious
attention. This issue focuses on some such industry and management
generated concerns that are directly affecting society and human life.
The first paper by Dr. Dileep Singh, "Retailing- An Overview"
describes the prospects of retail sector in present scenario. The
research paper 'An Empirical Study on the Role of Human
Resource" by Parul Garg, Gaurav Agarwal and Ankit Goel talks about
the role and importance of Human Resource Management for
corporate employees, management faculties and management
students. The third paper titled "The Influence of Service Quality on
Customer Satisfaction and Trust" by Sandip Ghosh Hazra is also a
research paper that examines the relationship of service quality and
customer satisfaction and trust in Indian Banking System from the
customer's perspective. "Yield Management in Indian Hotel and
Airlines Industry" by Dr. Atul Barisal throws light on the importance
of yield management, which is also known as revenue management
specifically in Hotel and Airlines Industry. The next paper is a case
study "From Superhero to Villain ?" byJashiwniJ.Narayan. The sixth
paper, 'Work Life Balance The Need of the Hour" by Dr. T.
Ramadevi and VN. Sailaja emphasizes the need for balance between
work and life. The paper "Green Business Practices" by Charu Bharti
andJatinder Kumar deals with the green environment issues.
The last paper, "Factors Influencing Employee Absenteeism in
Industries" by Dr. D. Venkatramaraju and R. Suresh Babu attempts to
highlight the causes for employees' absenteeism and its impact on the
individual as well as on the organization.
We wish an enriching reading experience to our esteemed readers!

Anukrati Sharma
Editor

D
 VOL. - II ISSUE - VI December -2010
Refereed

Contents

Retailing: An Overview
Dr. Dileep Singh 1-5
An Empirical Study of The Role of Human Resource
Management in Developing Human Capital for
Achieving Global Excellence
Parul Garg, Gaurav Agrawal, Ankit Goel
6-17
The Influence of Service Quality on Customer
Satisfaction and Trust in Indian Banking Sector
Sandip Ghosh Nazar 18-29
Yield Management in Indian Hotel and Airlines
Industry
Dr. Atul Bonsai 30-39
From Superhero To Villain? The Case of an Exemplary
MD (CEO)
Jashiwini J.Narayan
40-49
Work-Life Balance The Need of The Hour
Dr. T.Rcimadevi, V.N. Sailaja
50-59
Green Business Practices
Charu Bharti, Jatinder Kumar
60-65
Factors Influencing Employee Absenteeism in
Industries
Dr. D. Venkaframaralu, R. Suresh Babu
66-77

IV December, 2OJb
7

Influencing Employee
Absenteeism in Industries
he term absenteeism refers to the failure to attend
to work. It is one of the major problems faced by
T the firms across the globe today. Unscheduled
absenteeism badly hurts the progress of an organization
resulting in loss of productivity, increased costs in hiring
additional staff and low morale among the workers. It is
high time that employers address this problem on
priority basis. Employees can be absent for a variety of
reasons including sickness, lethargic attitude, family
emergencies, too much workload and stress, monotonous
work or a general dissatisfaction with the job. A sales
professional cites some other reasons like workplace
politics, long commute, strained relationship with the
immediate supervisor and lack of belongingness
towards the organization as reasons for being absent
from work. Whatever be the reason, absenteeism is not

December, 2010
 Factors Influencing Employee Absenteeism In Industries

at all a healthy practice and steps should be discusses some common factors across the
taken to manage it effectively. This article influence of employee's absence. The findings
discusses workplace absenteeism, which is have been used to derive the influencing
defined as unscheduled employee absences variable with respect to absence. The study
from the workplace. It describes the different uses these frameworks to draw the managerial
types of absenteeism that exist and the implications regarding the benefits given for
problems that it causes, such as how it cuts the employee. It finally identifies the gaps in
into a company's efficiency, profitability and the existing literature with suggestion for
sometimes even workplace harmony and future research direction.

bsenteeism is generally measured in the problems of recruitment, training, job

form of absenteeism rate. Absenteeism
A rate is the percentage of man days lost
due to voluntary absence (both authorized and un
authorized) to the corresponding total of man
days scheduled to work. Absenteeism in firm
stops machines; disrupts processes; creates
production bottle necks; hampers smooth flow or
continuity of work; upsets production targets;
results in production losses; increases work load
of the inexperienced, less experienced or sub
standard workers as substitutes, in turn creates
adjustments, morale and attitudes. Man power
planning is rendered impossible. Casual or
substandard employees increase machine down
time, rejection of finished goods, break down of
machinery and consequent idle machine hours.
Absenteeism directly contributes to the rise in
production costs. Absenteeism is defined as the
failure of a worker to report for work when he is
scheduled to work. A worker is considered to be
scheduled to work when the employer has work
available for him and the worker is aware of it.

67

1
 TM
Froficient
Authorized absence is also treated as absence
while presence even for a part of the shift is
treated as presence for whole shift. Absence on
account of strikes, lockout, layoff, weekly rests or
suspension is not taken into account. Various
authorities have variously defined absenteeism.
The Encyclopedia of Social Science (Vol. I,
378) defines absenteeism as "the time lost by
avoidable or unavoidable absence of employees,
but the time lost by strikes, or lateness amounting
to an hour is not included" The labour
departments, Government of India define
absenteeism as "the total man-shifts lost because
of absentees as a percentage to the total number
of man shifts scheduled" (Singh and Singh, 1966).
This definition does not include absence on
account of authorized leave, layoff, retrenchment,
strikes, etc. More specifically absenteeism refers to
unauthorized absence from work. Unauthorized
absence includes all cases where work is available;
the worker knows about it but fails to report for
duty and the employer has no prior information
on workers not reporting for work.
Absence control can often be an important
step in the process of reducing firm costs.
Because of competitive pressures, firm can no
longer afford to carry unnecessary absence that
they may have tolerated in the past. Therefore,
many firms are focusing on the issue of
eliminating, or at least reducing, unnecessary
levels of absence. Absence affects more than
just the person who is absent. Employers are
affected by direct costs such as sick pay,
overtime and staff replacement costs, plus the
indirect costs associated with the effects of
absence on, for example, production and quality,
management time and the potential loss of
customers. The co-workers of an absent
employee may have to work under increased
pressure, in order to meet deadlines. In literature
on absenteeism, a distinction is often made
between "absence "and "absenteeism.' The
term absence refers to all "stay away "from work
whether authorized or unauthorized while
absenteeism refer to only unauthorized absence
(Vaid, 1966). The two rates are calculated by
using the following methods
68
authorized leave + unauthorized leave
Absence rate x 100
= Man shifts actually worked
unauthorized absence
Absenteeism rate = X 100
Man-shifts actually worked
There are 100 employees working in Pvt. Ltd.
on an average 1 employee remains absent 3
times in a year. Employee's average salary is
150 per day.
Total employees = 100
Average work days lost per year = 100
(employees) *3 (days in year) = 300 days
Average salary per employee = 150
Annual cost of absenteeism per year = 300 days *
150 (salary per day) =Rs. 45,000
Absenteeism in states
State-wise absenteeism rate amongst the
directly employed regular workers during the year
2009. It has been observed that the rate of
absenteeism in Census Sector at all India level
during the year 2009 has been recorded at 10.43
percent as compared to that of 10.79 percent
during the year 2008. Out of 31 States/Union
Territories, the rate of absenteeism was higher in 9
States than that of the national average. The
highest absenteeism rate of 17.30 percent
reported in Himachal Pradesh, followed by
Maharashtra (14.48 percent) and Goa (14.30
percent); whereas the lowest absenteeism rate
recorded in Nagaland at 1.98 percent, shows the
State-wise and Sector-wise absenteeism rates
during the year 2009. For the purpose of
studying absenteeism by type of ownership,
units have been divided into three sectors, viz.,
Public, Joint and Private Sectors. It has been
observed that at all India level, the absenteeism
rate was 10.48 percent in Public Sector, 11.25
percent in Joint Sector and 10.33 percent in
Private Sector. In public sector, the rate of
absenteeism varied between the highest rate of
17.40 percent in Chandigarh to the lowest rate
of 0.41 percent in Nagaland. In Joint Sector, the
absenteeism rate varied between the highest rate
of 14.90 percent in Delhi to the lowest rate of
2.70 percent in Dadar & Nagar Haveli. In Private
Sector, the absenteeism rate varied between the
December, 2010
 FadorsInfIuencin Employee Absenteeism Indtrie

highest rate of 17.53 percent in Himachal Vacation Absenteeism.

Pradesh to the lowest rate of 1.98 percent in So far as Vacation is concerned, workers
Nagaland. normally visit their native places during summer
vacation of their children
True Absenteeism
Table: Man-days lost due to Industrial It means out of the above
Disputes in India, 2003-2009 causes, the following absences
Number of disputes Number of man days lost (is are to be excluded absence for
millions)
which works are not directly or
personally responsible. It
Year Strikes Lockout S t i. i k e s includes lay-off, lock-outs,
Lockouts strikes and hartals. The absence
2003 732 334 5.7 10.6 due to availing casual and
2004 763 403 7.8 12.5 privilege leave is also excluded
2005 793 512 6.3 10.7 because it is the legitimate right
of the workers to enjoy these
2006 665 432 9.4 12.7
leaves.
2007 540 387 10.6 16.2 So from the above we can
Source: Economic Survey2003 to 2009 summarize different types of
Absenteeism as follows:
I Authorized Absenteeism
Types of Absenteeism
Economists have classified the concept of 2 Unauthorized Absenteeism
Absenteeism in catagorie according to their 3 Innocent Absenteeism
philosophy and logic. Kerr classified Absenteeism 4 Culpable Absenteeism
in the following categories: Authorized Absenteeism
1. Total Absenteeism. If a worker is absent from work by taking
2. Excused Absenteeism. permission from his superior and applying for
3. Un-excused Absenteeism. leave, such Absenteeism is called as Authorized
4. Vacation Absenteeism Absenteeism.
Total Absenteeism Unauthorized Absenteeism
It indicates absence of workers at a given time If a worker is absent from work without
who are scheduled to work but remain absent for informing or taking permission and without
any reason whatsoever excluding lay-off and lock- applying for leave, such Absenteeism is called
out. Unauthorized Absenteeism.
Excused Absenteeism. Innocent Absenteeism
Kerr stated that excused Absenteeism means Innocent absenteeism refers to employees
absence of work for a bonafide cause. It may be who are absent for reasons beyond their control;
because of self-illness or due to accident in the Eke sickness and injury. Innocent absenteeism is
course of employment. not culpable which means it is blameless. In
Un-excused Absenteeism. labour relations context, this means that it cannot
It means an absence as a habit and not as a be remedied or treated by disciplinary measures.
necessity. For example, a worker proceeded on 10 Culpable Absenteeism
days leave out of his earned leave with prior Culpable absenteeism refers to employees
sanction but overstayed for a month, then this who are absent without authorization for reasons,
overstayed period can be classified as un-excused which are within their control. For instance, an
absenteeism. employee who is on sick leave even though he/she

December, 2010 69
......... rroficient
.............
0
is not sick, and it can be proven that the employee
was not sick, is guilty of culpable absenteeism. To
be culpable is to be blameworthy. In labour
relations context, this means that progressive
discipline can be applied.
Objectives
A Questionnaire was prepared to study the
Objectives and Hypothesis and it was circulated
among 100 respondents (employees) in the
Selected Industry.
The objeetives are:-
To Study the existing literature on factors
influencing employee Absenteeism
To find out the various personal factors
affecting absenteeism.
To find out the association among the various
factors.
To design and conduct a suitable interview to
know the 'values' of the various personal
factors for the employees.
Using some statistical methods develop an
empirical relation to know the relative
importance of each personal factors affecting
absenteeism.
After turnover, absenteeism can be one of
the most critical human resource issues for firm.
Observing, evaluating, and attempting to improve
absenteeism can be extremely difficult, but with
proper understanding of what causes
absenteeism and how to reduce it, firm can limit
the negative side effects of employee attendance
issues. In addition to lowered workplace morale,
less team cohesion, and decreased organizational
commitment, employee absenteeism is
detrimental to businesses in respect to the
increased costs associated with high instances of
absenteeism. When employees do not come to
work, firm are financially burdened due to the lost
productivity and increased costs associated with
finding and paying for temporary replacements.
Additionally, absenteeism is positively correlated
with turnover, which means that the more an
employee misses work, the more likely he or she is
to eventually leave the company. This resulting
turnover also financially impacts a business
because of the costs associated with finding and
paying a permanent replacement.
70
Methodology
The Investigation used was both qualitative
and quantitative research methods. The initial
quantitative study (100 respondents) aimed at
identifying the important variables that drive the
factors influencing absenteeism from the
employees. The main research instrument used
was a well structured questionnaire that was
administered among the respondents mainly
through personal contact. Sampling population
included the employees from all age groups and
different financial backgrounds. It was found in
our study that 70% of the responses were
obtained from people of moderate family and
30% from elite family with respect to per capita
income. The sample frame consisted of people
from different fields. Individual respondents were
the sampling elements. Some of the respondents
were also interviewed in order to have an in-depth
analysis and find out the main reason behind their
absence. The below generated pie charts show the
percentage of respondents.
Percentages of respondent
A Chronically iLL?
Total respondents 100
Yes =75
No =25
Chronically iLL
I Yes-75%
I No-25%
B) Reasons leave?
Total respondents = 100
1)Marriage =25
2)Sickness 35
3)Going around with friends =8
4)Fear from internal people = 6
5)No interest in work = 14
IN(1fllTI'LIllh1
 Factors Influencing Employee Absenteeism In Industries I

6) Not good relation with E) Other sources of income?
Total respondents =100
departmental colleague
Yes =25
and supervisor 12
No 75
Reason for Leave Required Other Sources Of Income
Marriage-25%
Sick -35%
Going With
Friends -8%
Fear - 6%
No Interest in
work -14% R Yes-25%
I Not Good
Relation- 12% I No-75%

C) Visit to the native place?

Total respondents =100
Monthly 18
Quarterly = 23 F) Willingness' for the job?
Half yearly =24 Total respondents = 100
Yearly 35 Yes 70
No 30
Visit to the Native Place
Willingness for the Job
Mon6ly-18%
Quarterly-23%
Half Yearly-24%
Yearly-35%
Yes-70%
NO-30%
D) Frequency of applying for leave?
Total respondents = 100
a)Inaweek =15
b)Ina fortnight =20
c)Inamonth 16
Factor Analysis
d) In a six month =23 The following data were taken from the
e)Inayear =26 Garment industry in Chennai Respected to Raj
Frequency of applying for leave Garments Pvt Ltd to analyse the statistical tools
for the Employee Absenteeism.
Week -15/i Let X denotes total absenteeism rate (in
Fortnight-20%
percentage) and Y the loss of production. Let, us
change the origin of X and Y to 13.59 and
Month-16%
1,00,000 respectively and also the scale of Y to
Six month-23% 10,000 and let us write
Year-26% xX13.59 and y, (Y 1 100000) / 10000

[December, 2010 11


rroficient
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.December, 2010j

.nno of pairs of observation.
Thdyi - (Thd yi)/n
rxy.2 - (/)2) (yi
(i ( 2 - (El)2)
- 352.212 - (-11.06 * - 92.06)
- 747*7101
- 146.717
- 530.4447
= 0.276
Since the correlation co-efficient between
two variables is not affected with the choice of
origin and scale, thus
= r = 0.276
It indicates that there is a very low degree of
positive relationship between the two variables.
In other words loss of production (Y) tends
not to be influenced by increase or decrease in
absenteeism rate (X) in H.N.G.
To find out whether our computed value of
r=0.276 is significant value or not, a Null
Hypothesis as H0 and an alternative Hypothesis as
H1 as a device of Testing of Hypothesis have
been applied to the pursuit.
To test, H0 : p0
H1 : p>0
where p population co-efficient.
Here we use test statistics
.r v'n-2
vI -r2
Here t follows t distribution with (n-2) degree of
freedom (d.f)
0.276v(5-2)
t.=
vi (0.276)2
0.4780
t.=
0.4880
= 0.979 <t.05,
I "M*"*
1li1I
Factors
Tabulated Value (TV) of t.053=2.35
Calculated Value (C.V) <TV
We reject H0 at 5% level of significance and
conclude that r0.276 is not a significant value. So
the effect of absenteeism on production loss is
statically not significant.
Productivity and Absenteeism
Absenteeism caused in additional manpower
or its leads to decrease in production. The study
group of productivity and incentive set up by the
National Commission on labour defined
productivity in this terms; " Productivity is the
measure of the extent to which the resources are
utilized to produce goods and services It
measures this through determining the ratio
between the output of wealth or net result and the
input of resources It can be measured between
any two stages in a production process. In other
words we can measure productivity for a single
operation in a process or the entire process or the
entire plant, or the industry or the economy as a
whole. It can be measured for each resource, i.e.
for a man, for a group of men, a major material,
capital, power, etc. Two productivity values will,
however, be comparable if both of them are for
the same resource, are in terms of the same unit,
and are for the same stages of a productive
process"
If we look at every organization, very much
successful in production department, having large
number of employees with high Job Satisfaction
and low absenteeism rate because productivity of
an employee depends upon their satisfaction and
if a worker is satisfied then he will be less absent
from work. An organization is productive if it
achieves its goals and does so by transferring
inputs to outputs at the lowest cost. As such,
productivity implies a concern for both
effectiveness and efficiency and this will arise
when the maximum number of employees will be
present and simultaneously satisfied with their
work. . If a worker remains absent due to self-
sickness or for some family problems, there would
be a slackness and carelessness in the work. It
breeds instability and frittering away of energy.
The productivity of that worker will be reduced.
Low productivity affects industrial production,
73
 TM
rrofiioient i...........................................

which is the base of development and growth of Steps taken by Management to

the industry. Thus absenteeism reduces the
productivity of labour that ultimately hampers the minimize absenteeism
growth and development of the industry. Enhance job satisfaction
Prokopenko of the I.L.O. converts the total Job satisfaction is influenced by many
productivity of a firm into the following formula; employment factors. However, the best way to
improve is to reduce workplace stress or to make
working conditions more enjoyable and
Pt= consistently provide honest and meaningful
C+R+O feedback and praise.
Reward /punishments for increased or
Where, decreased absenteeism
Pt total productivity Although this may seem elementary, the
L = Labour input factor reward/punishment motive is still an effective
C = Capital input factor way to influence absenteeism rates in firm. If a
R = Raw material and purchased parts financial or recognition-based reward is attached
input:. to instances of decreased absenteeism, employees
O = Other miscellaneous goods and that are motivated to receive the reward will have
services input factor (including fewer instances of absenteeism and strive to
management) achieve attendance goals. Furthermore,
Ot = Total output employees that are motivated to avoid
"A proper productivity index for consequences positively react to this type of
management use, however is dependent not only strategy.
on considering all factors, but also on how the Implementing a job rotation or job
factors are defined and used" enlargement strategy
The system concept is very important in
the area of productivity; how the various factors One of the reasons, employees are frequently
of production interact and make up an integrated absent is lack of challenging work due to
whole. repetition, boredom, and burnout. A way that HR
can improve an employee's perspective of his or
Causes of Absenteeism her position is to provide opportunities for job
Serious accidents and illness rotation and for gaining more skills and
Low morale knowledge in an area of personal and professional
Poor working conditions interest.
Boredom on the job
Lack of job satisfaction : The employees receive motivation from their
Inadequate leadership and poor supervision job if the production goals are more realistic,
Personal problems (financial, marital, there are morl desirable job responsibilities, and
substance abuse, child care etc.) : good working conditions. An HR can also
Poor physical fitness increase extrinsic motivation by implementing a
type of recognition or reward program.
Inadequate nutrition
Transportation problems
Teambuilding helps to eliminate negative
The existence of income protection plans
actions by fostering respect among employees.
(collective agreement)
Such teams should be created that give team
Provisions, which continue income during : members the responsibility and power to solve
periods of illness or accident, problems, plan, and make decisions. Solving
Stress 1I1cI1Iuc1
C1 i, - .1
nice tney are

74 Dece m ber,
 Factors Influencing Employee Absenteeism In Industries

needed, while planning helps members learn employees

techniques to implement various solutions. The Check from time to time that no employee is
power to make decisions helps employees realize treated badly by seniors.
their importance to the company. This feeling of Bring a few changes in working conditions
importance increases morale. It also improves and give incentives to employees to motivate
attendance rates because this feeling of them to work.
importance makes the employees feel that the 4 After taking all the measures, if an employee
company really needs their presence. In order to is not motivated and still remains absent from
set up a Team, HR has to facilitate as a leader as it work take the matter seriously.
helps the team members feel empowered, think Confront the employee and give him
things through thoroughly and utilize such warnings orally as well as in writing and at last
employees in effective manner. dismiss the employee from work.
Developed incentive Program in Absenteeism
Well formed incentive programs can improve Recent surveys in different organizations
both attitude and attendance rates. This works for indicate the following trends in absenteeism.
several reasons. Some employees may lack the The higher the rate of pay, the greater the
internal motivation necessary to keep their spirits length of service of the employee, the fewer
up and give them the drive and desire to show up the absences.
to work every day. These people may need the As an organization grows, there is a tendency
external motivation that incentives provide. The towards higher rates of absenteeism
company can create an incentive program that is Absenteeism is generally
specifically linked to attendance including: shift. higher in the night
shift than in the day
The ability to cash-in unused sick days at the The rate of Absenteeism is the lowest on pay
end of a specific period day; it increases considerably on the days
Permission to the employees to leave early : following the payment of wages and bonus.
one Friday per month of perfect attendance Single employees are absent more frequently
Bonus pay for periods of perfect attendance than married employees
Gifts such as savings bonds or gift cards for Younger employees are absent more
periods of perfect attendance frequently than older employees but the latter
Various measures to be taken by HR to are absent for longer periods of time.
reduce absenteelsM Unionized organizations have higher
Talk to employees who are absent and find absenteeism rates than non-union
out the problem organizations
Absenteeism is higher during the sowing
4 Device measures to protect the interest of : '4

Toecember, 2010nill
 rroficient .
arch April May) and harvesting season.
Findings and Recommendations
Absenteeism is one of the action-oriented
parameters that is caused not only due to workers'
initiation but also due to organization's fault.
Absenteeism restricts proper utilization of all
resources. So proper utilization of physical and
financial resource requires human resource.
Therefore, for effective utilization of human
resource, management should make its
absenteeism policy in such a way that it helps the
organization to utilize human resource's ability
and potential effectively. In the light of
observation and findings, some
recommendations have been suggested for the
improvement of workers attendance and
production in Industry.
The management should take proper steps
in order to control. absenteeism among workers.
In the factory, absenteeism is caused particularly
due to leave taken by employees according to the
rules and regulation. They should introduce
attendance bonus for the unavailed or
surrendered portion of casual leave so that a
part casual leave can be converted into working
days.
The management should also introduce
"Monetary and non-monetary benefits
scheme" that will be linked with attendance so
that workers feel reluctant to take leave and
become conscious regarding their regular
attendance. This will bring down the
absenteeism rate. The management should
introduce a scheme where "The Best
Employee" with respect to absenteeism,
performance and discipline will be rewarded
with cash( Rs 500/- or Rs 1000/-) at the end of
the year by top management and their respective
photograph (big size painted) will be pasted at
the entry and exit gates of the factory premises.
The joint committee of workers and
management should take the decision and judge
the winner. This will work, as motivator and
every employee will want his/her photograph to
be pasted at the gate. If the condition of
worker's canteen is very unhygienic and food
supplied in the canteen is very low graded and
without subsidized rate workers need to go
home for their lunch and some time they don't
return for work. This leads to decrease in
productivity and simultaneously increase in
workload of other workers. This whole process
leads to increase in cost of production.
Workload in some departments is very high
and in the others it is very low; so management
should take necessary steps to balance tb
number of workers in all department
Management should take some steps to redu
the workload of workers. Training an
orientation programmes help to attain se
development. They should not only be arranged
but also evaluated from time to time to know the
effect of training on the performance so that
useful feedback can be obtained from the
evaluation of the training and development
programmes. Further, in order to provide relief
to the workers engaged in monotonous job, job
rotation should be arranged.
The rate of absenteeism during the
months May-June and November-December
remains very high because during these month
workers go to native places either for the
purpose of marriage or agriculture works. The
management should introduce special
incentives during these months so that workers
feel reluctant to go to their native place. Hot
weather during the month of May and June is
also reason for high absenteeism rate. So
management should provide clean water,
lemon water, glucose water and cooling facility
to workers. Side business of workers is also a
reason for absenteeism. Workers have their
own side business along with work in industry.
The management should take strict action
against those proven workers who remains
absent from work because of their side
business. Finally, to develop work culture, it is
imperative to nurture and motivate team spirit to
perform the assigned jobs confidently and
efficiently. The attitude of cooperation to join
hands is essential for improving performance. It
is also necessary to improve the " sense of
belongingness" among the employees so as to
improve the morale of the workers.
ES Deember, 20J0
 Factors Influencing Employee Absenteeism In Industries I

Conclusion /
ising absenteeism continues to plague today's employers! The increased costs of overtime,
medical premiums, compensation, and support programmes are having an incredibly
egative impact on profits and productivity Absenteeism is forcing management to deal
with a wide range of problems from low morale, increased turnover, and disciplinary issues to
production quality and stress related illnesses. The result of the present study will help the industries
streamline their thoughts to the factors influencing employee absenteeism. Observing, evaluating,
and attempting to improve absenteeism can be extremely difficult, but with the proper
understanding of what causes absenteeism and how it can be reduced, the firms can limit the
negative side effects of employee attendance issues. In addition to lowered workplace morale, less
team cohesion, and decreased organizational commitment, employee absenteeism is detrimental to
businesses in respect to the increased costs associated with high instances of absenteeism. When
employees do not come to work, firms get financially burdened due to the lost productivity and
increased costs associated with finding and paying for temporary replacements. Additionally,
absenteeism is positively correlated with turnover, which means that the more an employee misses
work, the more likely he or she is to eventually leave the company. This resulting turnover also
financially impacts a business because of the costs associated with finding and paying a permanent
replacement.

;!iit ILIDE'

wwwresearchover.com: 'Title: Understanding and Controlling Worker

Absenteeism'http://ideas.repec.org: 'ILR Review, ILR School, Cornell University, vol. 50(2),
pages 304-323'
www.labourlawhandbook.co.za
www.busrep.co.za: 'Business leaders must catch up to HIV/Aids effects in workplace' February
14, 2008
wwwbusrep.co.za: 'Presenteeism causes greatest loss to companies' February 7, 2005
Health Management, Book 2, Dr Susan Steinman, 1st Edition, published by Services SETA,pages
32-48
Human Resource Management, PS Nel et al, 6th Edition, published by Oxford Press,
Southern Africa, pages 548 - 553.
http://www.cch.com/absenteeism2007
Moore, E. (1977) 'Industrial Relations and the Social Order', p504 in Blennerhassett, E and
Gorman, P (1986) 'Absenteeism in the Public Service - Information Systems and Control
Strategies' Dublin: IPA
Human Resource Management- C.B.Gupta.

December, 2010 _J
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IJIVIMR Volume 2, Issue 2 (February, 2011) ISSN 2229-6883

EMPLOYEE ABSENTEEISM IN BPO INDUSTRY:

A KEY HR ISSUE

Dr. D. VENKATRAMARAJU
M.B.A., M.Com . M.A., M.Ed., M.Phil., Ph.D., A.C.S.INTER
Associate Professor and Research Guide
Post Graduate and Research Dept of Commerce
Pachaiyappa' s College, Chennai, Tamilnadu, India
&
R. SURESH BABU
M.Com . M.Phil., M.B.A., PGDMA., (PhD)
PART TIME RESEARCH SCHOLAR
DEPARTMENT OF COMMERCE
MANONMANIAM SUNDARANAR UNIVERSITY
TIRUNELVELI, TAMILNADU, INDIA.

ABSTRACT
The term absenteeism refers to the failure to attend to work. It is one of the major
problems faced by BPO firm across the globe today. Unscheduled absenteeism badly
hurts the progress of an organization resulting in loss of productivity, increased costs in
hiring additional staff and low morale among the workers. This Article discusses
workplace absenteeism, which is defined as unscheduled employee absences from the
workplace. It describes the different types of absenteeism that exist and the problems that
it causes, such as how it cuts into a company's efficiency, profitability and sometimes
even workplace harmony and discusses some common factors across the influence of

employee absence

94
IJMIMR Volume 2, Issue 2 (February, 2011) ISSN 2229-6883

INTRODUCTION

Absenteeism is generally measured in the form of absenteeism rate.

Absenteeism rate is the percentage of man days lost due to voluntary absence (both
authorized and un authorized) to the corresponding total of man days scheduled to
work. Absenteeism is defined as the failure of a worker to report for work when he is

scheduled to work. Absence control can often be an important step in the process of
reducing firm costs. Because of competitive pressures, firm can no longer afford to
carry unnecessary absence that they may have tolerated in the past. Therefore, many
BPO firms are focusing on the issue of eliminating, or at least reducing, unnecessary
levels of absence. It is high time that employers address this problem on a priority
basis. Employees can be absent for a variety of reasons including sickness, lethargic
attitude, family emergencies, too much workload and stress, monotonous work or a
general dissatisfaction with the job. Whatever be the reason absenteeism is not at all a
healthy practice and steps should be taken to manage it effectively.. The findings have
been used to derive the influencing variable with respect to absence. This study uses
these frameworks to draw the managerial implications regarding the benefits given for
employee. It finally identifies the gaps in the existing literature with suggestion for
future research direction. After turnover, absenteeism can be one of the most critical
human resource issues for firm. Observing, evaluating, and attempting to improve
absenteeism can be extremely difficult, but with the proper understanding of what
causes absenteeism and how to reduce it, firm can limit the negative side effects of
employee attendance issues. In addition to lowered workplace morale, less team
cohesion, and decreased organizational commitment, employee absenteeism is
detrimental to businesses in respect to the increased costs associated with high
instances of absenteeism. When employees do not come to work, firm are financially
burdened due to the lost productivity and increased costs associated with finding and
paying for temporary replacements. Additionally, absenteeism is positively correlated
with turnover, which means that the more an employee misses work, the more likely
he or she is to eventually leave the company. This resulting turnover also financially
impacts a business because of the costs associated with finding and a permanent
replacement.

95
IJIVIMIR Volume 2, Issue 2 (February, 2011) ISSN 2229-6883

Causes of Absenteeism

. Serious accidents and illness

Low morale
Poor working conditions
Boredom on the job
Lack of job satisfaction
Inadequate leadership and poor supervision
Personal problems (financial, marital, substance abuse, child care etc.)
Poor physical fitness
Inadequate nutrition
Transportation problems
The existence of income protection plans (collective agreement)
Provisions, which continue income during periods of illness or accident. \
Stress
OBJECTIVES
. To find out the various organizational factors affecting absenteeism.
To find out the various Personal factors affecting absenteeism
A Questionnaire is prepared to study the Objectives and Hypothesis and it is
circulated among 100 were respondent (employees) in the Selected BPO
Industry.
To Study the existing literature on factors influencing employee
Absenteeism
METHODOLOGY
The Investigation used both qualitative and quantitative research methods. The initial
quantitative study (100 respondents- 50 are Men and 50 are Women) aimed at
identifying the important variables that drive the factors influencing absenteeism from
the employees. The main research instrument used was a well structured questionnaire
that was administered among the respondents mainly through personal contacts.
Sampling population included the employee from all age groups and different
financial backgrounds. It was found in our study that 70% of the responses were
IJMMR Volume 2, Issue 2 (February, 2011) ISSN 2229-6883

obtained from people of moderate family and 30% from elite family with respect to
per capita income. The sample frame consisted of people from different fields.
Individual respondents were the sampling element. Some of the respondent were also
interviewed in order to have an in-depth analysis and find out the main reason behind
their absence. The above generated pie chart shows the percentage of respondents.
Percentages of respondent
A: Chronically ill?
Total respondent
100 (Men 50 and Women 50)

Yes 75% (Men 40% & Women 35%)

No 25% (MenlO% & Women 15%)

Chronically iLL

DYes-75%

No-25%

97
IJMIIvIR Volume 2, Issue 2 (February, 2011) ISSN 2229-6883

B) Require leave for which of the following reason?

Total respondent 100 (Men 50 and Women 50)

25% (Men 12% and Women 13%)
Marriage
35 %( Men 15% and Women 20%)
Sickness
8% (Men 5% and Women 3%)
Going around with friends
6% (Men 2% and Women 4%)
Fear from internal people
14% (Men 7% and Women 7%)
No interest in work
Not good relation with departmental 12% (Men 7% and Women 5%)
colleague and supervisor

Reason for Leave Required

I
UMarriage-25%
U Sick -35%
DGoing With Friends -8%
W!4 DFear - 6%
No Interest in work 44%
ONot Good Relation- 12%

C Visit native place?

Total respondent - 100 (Men 50 and Women 50)
Monthly 18% (Men 10% and Women 8%)
Quarterly 23% (Men 15% and Women 8%)
Half yearly 24% (Men 14% and Women 10%)

Yearly 35% (Men 20% and Women 15%)

98
IJMJVIIR Volume 2, Issue 2 (February, 2011) ISSN 2229-6883

Visit Native Place

OMonthly-18%
Quarterly-23%
Cl Half Yearly-24%

OYearly-35%

D) How often do they apply for leave?

Total respondent 100 (Men 50 and Women 50)
a) In a week
15% (Men 9% and Women 6%)
b) In a fortnight
20% (Men 10% and Women 10%)
c) In a month
= 16% (Men 8% and Women 8%)
d) In a six month
23% (Men 13% and Women 10%)
e) In a year
(Men 16% and Women 10%)

Often Apply For Leave r

L
aWeek -15%
UFortnight.20%
O Month-I 6%

OSix month-23%
Year-26%

E) Other source of income?

Total respondent 100 (Men 50 and Women 50)

Yes
(Men 1 and Women )
No (Men 50%
IJMMIR Volume 2, Issue 2 (February, 2011) ISSN 2229-6883

Other Source Of Income

25%.NO75%

F) Like job or not?

Total respondent 100 (Men 50 and Women 50)

Yes 70% (Men 35% and Women 35%)

No 30% (Men 20% and Women 10%)

Willingness of Job

7O%NO.3O0Io

Findings
Absenteeism is one of the action-oriented parameters in BPO Industry that not
only caused due to workers initiation but also organization, some way or other,
are also help to flourish this unwanted evil.
Absenteeism restricts proper utilization of all resources. So proper utilization
of physical and financial resource requires human resource. Therefore, for
effective utilization of human resource, management should make its
absenteeism policy in such a way that it would help the organization to utilize
human resource's ability and potential effectively.

100
 Volume 2, Issue 2 (Fe ,2011) ISSN 2229-6883

In the light of observation and findings, some recommendations have been

suggested for the improvement of workers attendance and production in
Industry. The management should take proper steps in order to control
absenteeism among workers
The management should also introduce "Monetary and non-monetary
benefits scheme that will be linked with attendance so that workers feel

reluctant to take leave and become conspicuous regarding their regular

attendance and as a result absenteeism rate can be reduced. The management
should introduce a scheme where "The Best Employe"
with respect to
absenteeism, performance and discipline will be rewarded with cash( Rs 5001-
or Rs 1000/-) at the end of the year by top management and their respective
photograph (big size painted ) will be pasted at the entry and exit gate of the
BPO premises..

The condition of worker's canteen is very unhygienic and food supplied in the
canteen is very low graded and without subsidized rate. Due to this unhygienic
condition and low graded food, workers need to go home for their lunch and
some time they don't return back for work. This leads to decrease in
productivity and simultaneously increase workload to other workers. This
whole process leads to increase in cost of production.
Workload in some department is very high and in some of the department is
very low, so management should take necessary steps to balance the number of
workers in all departments. Management should take some steps so that
workload of workers can be reduced. Training and orientation programmes
helps to attain self-development, should not only be arranged but also
evaluation of these programmes should be made from time to time to know the
effect of training on the performance so that useful feedback can be available
from the evaluation of the training and development programmes. Further, in
order to provide relief to the workers engaged in monotonous job, job rotation
should be arranged.

The rate of absenteeism during the month May-June and November-December

remains very high because during these month workers used to go to native

101
IJMMR Volume 2, Issue 2 (February, 2011) ISSN 2229-6883

place either for the purpose of marriage or agriculture works. The management
should introduce special incentives during these months so that workers will
feel reluctant to go to native place. Hot weather during the month of May and
June is also reason for high absenteeism rate. So management should provide
clean water, lemon water, glucose water and cooling facility to workers.
Side business of workers is also a reason for absenteeism. Workers have their
own side business along with work in management should take strict action
against those proven workers who remains absent from work because of their
side business.
Finally, to develop work culture, it is imperative to nurture and motivate team
spirit to perform the assigned jobs confidently and efficiently. The attitude of
cooperation to join hands is essential for improving performance. It is also
necessary to improve the " sense of belongingness" among the employees so as
to improve the morale of the workers.
Conclusion
Rising absenteeism continues to plague today's employers! The increased costs of
overtime, medical premiums, compensation, and support programs are having an
incredibly negative impact on profits and productivity. Absenteeism is forcing
Management to deal with a wide range of problems from low morale, increased turnover,
and disciplinary issues to production quality and stress related illnesses. The result of the
present study will help the BPO industries streamline their thoughts to the factors
influencing employee absenteeism. Observing, evaluating, and attempting to improve
absenteeism can be extremely difficult, but with the proper understanding of what causes
absenteeism and how to reduce it, firm can limit the negative side effects of employee
attendance issues. In addition to lowered workplace morale, less team cohesion, and
decreased organizational commitment, employee absenteeism is detrimental to businesses
in respect to the increased costs associated with high instances of absenteeism. When
employees do not come to work, firm are financially burdened due to the lost
productivity and increased costs associated with finding and paying for temporary
replacements. Additionally, absenteeism is positively correlated with turnover, which
means that the more an employee misses work, the more likely he or she is to eventually

102
 IJMMR Volume 2, Issue 2 (February, 2011) ISSN 2229-6883

leave the company. This resulting turnover also financially impacts a business because of
the costs associated with finding and a permanent replacement.
Suggestion
Talk to employees who are absent and find out the problem
Take measures to protect the interest of employees
Check from time to time that no employee is treated badly by seniors.
The firm can bring few changes in working conditions and give incentives to
employees to motivate them to work.
After taking all the measures if an employee is not motivated and still remains
absent from work then matters have to be taken seriously.
HR can confront the employees and give him warnings in verbal as well as in
writing and at last dismiss the employee from work.
REFERENCE
www.researchover.com: 'Title: Understanding and Controlling Worker
Absenteeism'http://ideas.repec.org: 'ILR Review, ILR School, Cornell University, vol.
50(2), pages 304-323'
www.labourlawhandbook.co.za
www.busrep.co.za: 'Business leaders must catch up to HIV/Aids effects in workplace'
February 14, 2008
www.busrep.co.za: 'Presenteeism causes greatest loss to companies' February 7, 2005
Health Management, Book 2, Dr Susan Steinman, 1st Edition, published by Services
SETA,pages 32 - 48
Human Resource Management, PS Nel et al, 6th Edition, published by Oxford Press,
Southern Africa, pages 548 - 553.
http://www.cch.com]absenteeism2007
Moore, E. (1977) 'Industrial Relations and the Social Order', p504 in Blennerhassett,
E and Gorman, P (1986) 'Absenteeism inthe Public Service - Information Systems
and Control Strategies' Dublin: IPA
Human Resource Management- C.B.Gupta.

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Greener Advertising

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Emerging Trends in Advertising
VoI-XI Issue-03 March 2011
elcome to this issue on hand of your favorite magazine, the
EDITOR WAdvertising Express. This issue has articles that cover contempo-
E N Murthy rary themes on one hand, and classic ideas on the other.

MANAGING EDITOR
With India hosting two major cricketing events, the fight among
GRK Murty
brands to capture the target audience is heating up. But which of the
two events will the brands go for. The cover page article "IPL 4 or ICC
CONSULTING EDITOR World Cup 2011" tries to address the dilemma faced by corporate houses
G Suresh and advertising agencies when it comes to choosing which event to
sponsor.
EDITORIAL TEAM
SV Srirama Rao (Associate Editor) The 'Advertising' section has two articles, one of which is about
I Sri Jyothi "Emerging Trends in Advertising". The world of advertising is in a
M Gayathri dynamic phase due to changes in macroeconomic environment as well
as due to cut-throat competition in the market. Newer and creative
ART DEPARTMENT tools are being used to attract attention, engage minds, trigger emo-
Bangaru Babu A (Chief Visualizer) tions, and change the perception of consumers. Such efforts have led to
S Ganesh the emergence of various new concepts and trends in advertising sec-
PRV Prasad tor and this article is an attempt to discuss the same. Out-of-home
Vinod Kumar Kasukurthi advertising, popularly known as outdoor advertising, is becoming more
popular in India. Studying the pattern and trends of OOH in India, it is
DIRECTOR (PRODUCTION) noticed that the paradigms are generally adapted from the west. The
H Sitaram article "Present Scenario of Outdoor Advertising in India: New Emerg-
ing Trends" presents a few examples to bring forth the analysis as to
how the western ideas are influencing the creative minds of Indian
Send your feedback/articles to: market.
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Advertising: Future of Television Advertisement", and two, a survey-
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education as the most important cause an organization can associate
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Focusing on nvironment
A Key Role of Greener Advertising
Green products are composed
of renewable resources. These
products are environmentally
accountable because their
impact is preferred over their
environment product life.
Through advertisements
businesses are responding to
the same by incorporating
green elements in their
products. It is hoped that
green products would consti-
tute a significant part of the
total market in future. This
article discusses the key role
played by advertising in this
direction thereby, focusing on
the environment.

R Suresh Bcibu
Research Scholar
(Part-time External)
Department of Commerce
Manonmaniam Sundaronar University
Tirunelveli, Tamil Nadu.
The author can be reached at
swisssuresh@gmail.com
Dr. D Venkatramaraju
Associate Professor & Research Guide
Post Graduate and Research Deportment
of Commerce, Pachalyappa's College
Chennai, Tamil Nadu.
The author can be reached at
prof.raiu@gmail.com
ince time immemorial, green
has been the symbol of fertil
S ity, birth, prosperity and joy.
Environmental pollution has been
our concern over the last few de-
cades, which had a devastating ef -
fect on the atmosphere and even-
tually disturbed our ecological bal-
ance. The basic objective of green
advertising is to minimize the ad-
verse effects that affect the natural
environment. The Surf Excel adver-
tisement that captions Do bucket
paani roz bachana, creates an aware-
ness to conserve the natural ele-
ment, water. Advertisements that
promote green products convey a
relationship between the product,
user's benefit and the environment.
In a way such promotional cam-
paigns reflect the principle of an
eco-friendly and socially respon-
sible organization. In an effort to
create the importance of ecology and
maintenance of its balance, Aircel
has "Save the Tiger" campaign ad-
vertisement celebrities' promotion
for the cause. Recently, green adver-
tising is considered to have a grow-
ing prominence in providing envi-
ronmental awareness to a number
of consumers who are willing to
back their environmental con-
sciousness with their money. It is a
marketing strategy to help our eco-
nomic resources. But this is possible
only when it is done in a right way.
Some important factors related to
green advertising are:
Educating customers through
green advertising campaigns.
Participation of customers
through environmental-friendly
action.
Genuine products.
Perceive environmental mar-
kets.
Green Penetration
We cannot definitely say how much
the green products have penetrated
the traditional market. For ex-

(0 2011 IUP All Rights Reserved.

mple, the market penetration of
iofuels can grow over 21% by 2030,
i auto and energy sectors, green
roducts penetration has been on a
riass scale. Green products are not
nly essential for the environment,
Ut are also necessary for business
xpansion. Green GDP is an index
f economic growth with all envi-
onmental consequences of that
rowth being factored in some en-
ironmental indicators like waste
er capita and CO emissions per
nnum, which can be aggregated
iito a sustainable development in-
[ex.
As demand for organic food and
ustainable products increases,
ome big companies are reinvest-
rig their products for capturing a
hare in the growing green market.
nnovative green advertising pro-
notes like fair-trade coffee, re-
.ycled furniture, organic clothing,
tc., have left the decision to the
uyer or the consumer. Green con-
umerism has resulted in various
onsumer products to be certified
vith a 'green label'.
reen Consumer
consumer who uses products free
rom non-green chemicals, or one
vho uses completely natural prod-
cts, can be considered as green.
/hat percentage of the purchas-
rig public can be identified as
'reen? An example is Philips en-
rgy efficient lighting. These are en-
ironmentally-oriented and corn-
nand brand loyalty "reuse, reduce
nd recycle" is a popular slogan as-
ociated with plastics and also
/aste materials (Exhibit). When-
ver we reuse a product instead of
sing virgin raw material to pro-
uce a new one, we save resources
nd energy. Products using low en-
rgy and water may be considered
s green products. Products that are
aturally processed which use less
rtising Express - March 2011 20
energy, are less perilous, which
avoid toxic emissions, eliminate
pesticides, save and conserve en-
ergy, contribute to a healthy envi-
ronment, reduce in door contami-
nations and avoid noise are con-
sidered as green products.
Green marketing activities in-
clude the use of appropriate raw
materials in the manufacture of
products. Companies can change
the raw materials from chemicals to
natural resources. For example, bath
soaps, washing soaps, toothpaste,
edible salt, etc., we observe that the
manufacturers claim that their prod-
ucts contain natural materials like
neem, tulsi, clove oil, sea salt, water
from Ganges, milk and milk cream,
natural flowers for fragrances, etc.,
instead of harmful chemicals.
Green advertising further incor-
porated Integrated Waste Manage,
ment, which involves strategies to
prevent environmental pollution
and resource conservation. It also
controls the ultimate release of resi-
dues into the ecosys t em. It also fo-
cuses on the identification of waste
which will be generated at each stage
of production, and whether it can
be of any further use. It also involves
identification of the final disposal
process. The analysis regarding the
manufacture of green product with
least waste, and that too biodegrad-
able waste, is the key to the success
of identifying waste management
system.
Promotion of green products
and pricing are very important. It is
important to understand what is to
be greened and how firms should
disclose environmental claims. It is
also a part and parcel of corporate
strategy. Green advertising covers
industrial ecology, environmental
sustainability, resource flows, eco-
efficiency and material use. Thus,
green advertising has important
gI- Pr'ducts
-,
ON
-1
implications for business strategy
and public policy.
Green Advertising Concept
Maintaining an ecological balance
is a major issue confronting the cor-
porate world today. Environmental
damage has already crossed the
threshold and has reached alarm-
ing limits. Green advertising is one
such initiative towards environ-
ment protection. Green advertising
is a broad term covering all aspects
of marketing that keep the ecology
and environment in focus. There
are basically two issues in green ad-
vertising. The first one is to check
the misuse of natural resource; and
the second is to control wastage.
Green advertising incorporates
an array of activities including prod-
uct modification, changes in pro-
duction processes, change in pack-
aging material, etc., which lead to
green products and green consum-
ers. Green advertising tackles the
issues related to environmentally-
safe production, distribution, con-
sumption, disposal, etc., of the prod-
ucts and the packaging material on
the marketing front in order to
make marketing activities eco-
friendly.
Green advertising is gaining im-
portance day by day due to increas-
ing awareness about environmen-
tal conservation. Green marketing
utilizes natural resources as raw
material. It adopts production pro-
cedures which result in the least
amount of waste products. It fo-
cuses on using such material in
packaging, which are biodegradable
and do not cause harm to other liv-
ing organisms or the environment.
Many advertisers are adopting
green marketing as their unique
selling proposition, and are becom-
ing consumer-friendly and gaining
recognition.
Green advertising refers to mar-
keting where ecological issues are
the focal points of marketing deci-
sion making. It includes change in
packaging materials, change of prod-
uct by another, encompasses dis-
posal of waste generated during pro-
duction and distribution, the dis-
posal of surplus or expired products
and even the disposal of packaging
material after the use of product.
There is ample scope for green ad-
vertising at both the manufactur-
ers' and the marketers' end.
Green advertising is catching on
in a big way. Marketers as well as con-
sumers are slowly but strongly rec-
ognizing it. Awareness is being cre-
ated through advertisements about
the use of such materials, which are
eco-friendly and help in environ-
ment conservation. Though green
products are a bit costlier compared
to their non-green counterparts,
they are beneficial from the view-
point of environment conservation,
which will definitely prove advanta-
geous in the long run. Green adver-
tising is gaining prominence across
the world and in India too.
Why is Green Advertising
Chosen by Most Marketers?
Social Responsibility
+ Realization that they must
behave in an environment- factured with recycled paper.
friendly fashion. + Walt Disney has a rigorous and
+ Environmental and profit-re- extensive waste management
lated objective. program.
Many countries have banned the
Opportunity
use of plastic bags and in reality
+ Reduce the impact on human have been strictly implemented.
health and environment
through better design, construc- + The other remarkable promo-
tions, operation, maintenance tional campaigns that serve to
and waste disposal. conserve power by using solar
energy are sponsored by the gov-
Imperatives in Green Products ernment.
which Flow Through + The Xerox Corporation
Advertising Campaign launched 100% recycled paper.
The term environment-friendly re-
In India, a recent awareness cam-
flects the notion of recycled prod-
paign was promoted for the green
ucts, biodegradable products, eco-
causeit was called
friendly products, green products
GREEN ATHON, a green initia-
and the like. Some
________ tive by NDTV, in
promotional causes
collaboration with
of the green ele-
Toyota for the green
ment markets Green adver- entity. The website
which flow through
tising refers green.ndtv.com is
advertisements are:
to marketing meant to encourage
+ LG energy star where eco- donation towards
series of prod- logical issues 'Lighting a Billion
ucts which are the focal Lives' (Lighting
promise better points of with the aid of solar
viewing at low marketing lighting devices),
energy con- decision with the initiative
sumption. making of The Energy and
The new con- Resources Institute
cept of scooters (TERI).
that run on bat- Ca
tery power supported by solar manufacturing giant, Maruti
energy. Suzuki, has managed to lower the
+ Nokia latest promotion to ini- energy consumption per car over
tiate recycling of mobile phones. the last few years.
+ The "Save Fuel Yaani Save Problems with Green
Money" campaign of Hindustan Advertising
Petroleum helps the company to When firms attempt to became so-
position itself as a green entity. cially responsible, they may face risks
+ The setting up of the Green since their environmentally respon-
Industrial Park by the Confed- sible action of today may be harm-
eration of Indian Industry was ful in the future. Government regu-
lation does not address all environ-
done for this noble cause.
+ The napkin and bags that are mental issues. The pressure to re-
used by McDonald's are manu- duce cost or increase profit may not
Advertising Express March 2011
 rce firms to address the important
;sues of environment degradation.
'herefore, firms must bear much of
esponsibility for environmental
egradation, but consumers who de-
-land goods also create environmen-
al problems.
Green advertising requires that
onsumers should need cleaner en-
ironment, should be willing to pay
r it, and modify their individual
festyles. Toyota's prices may be the
Lrst major consumer product that
Lits nearly all of the criteria for suc-
ess in the green consumer market
lace. A good example is Toyota's
010 global vision. There are num-
er of practical problems involved in
etting products or constructing
teen advertising in India they are:
Cost-based
Performance and quality
Competition
ustainabilily in Green Brands
A Role of Corporate
responsibility
ntegrated
;ustainability can only be inte-
rated into the brand when it is at
he core of business, and this takes
ang-term planning. Any integra-
ion needs to apply both environ-
aental and social factors to busi-
Less operations that can be trans,
ated through customer 'touch
oints'. For example, Nike has
penly committed to reach an en-
ironmental standard across 100%
fits footwear range by 2011.
ommunicat ion Must be Relevant
nd Appropriate
t the moment, there is pressure
n brands to talk about their
ustainability credentials, and this
ommunjcatjon can be delivered in
arious waysonline, through part-
ership or on packaging, for ex-
mple. There is plenty of scope for
rtising Express a March 2011 22
innovation around communication environmental-friendly action.
and marketing but this must be sup-
ported by real action. Be aware that Genuine
big green corporate announce- Advertising products should be re-
mentssuch as carbon neutrality liable and pure. Operating a green
make little impact now. business is not only good for the en-
vironment, but also for the firm's
Price
business bottom line because con-
It is still unclear as to whether people, serving resources and cutting down
will pay more for sustainable prod- waste saves money. -
ucts, and it may be sector dependent.
However, consumers are thinking in Conclusion
terms of 'smart spending' i.e., if they The aim of green advertising is to
pay more for a product (including act in good faith, with the inten-
ethical products) then it must de- tion of helping the society as a
liver. The other pitfall is to assume whole. It is time to get more safe and
that people will 'purchase' secure future, free of all environ-
sustainability. In reality, immediate mental impacts in all activities of
return on investment is likely to be the market. So the policy makers of
reputation-based, as our country have
responsibility may -- to take immediate
align a consumer steps to save the
with a company environment, by
Advertising
value, but this may directing all the in-
products should be
not necessarily dustries to use-en-
reliable and pure.
translate into pur- v i r o n me n t a I -
Operating a green
chase. friendly products
business is not only
Factors Related to good for the and services. For
Green Advertising environment, but example, all means
Recently, green ad- also for the firm's of transport system
vertising is growing business bottom in India need to use
rapidly as increasing CNG (Compressed
number of consum- Natural Gas) to
ers are willing to curb pollution and
back their environ- SSI units may be
mental consciousness with their advised to avoid
money. It is a strategy that can help to non-degradable plastics. The objec-
tive is to create awareness in the
get more profit to firms. But it is pos-
market about the growing concern
sible only when advertising does it in
over the environment, as well as to
a right way. Some of its factors are:
promote the effective use of green
Educating Customers products. It also keeps in mind the
Firstly, the customer has to be edu- society's long-term interest, for a
better future. The outlook and com-
cated about how the product pro-
tects the environment. This can be munication should be wholly con-
done only through green advertis- sumer-oriented and it must become
ing campaign. the duty of every green advertiser
to create that level of awareness and
Customers' Participation consciousness about saving our en-
Giving an opportunity to custom- vironment.
ers on personalizing the benefits of Reference # 18M-2011-03-04-01