Report on Employee Absenteeism


No. – 107760592108Batch (2010-2012) UNDER THE GUIDANCE OF PROF. RAHUL DESAI Mr. ALOK DESAI Sigma institute – MBA programme Training officeDECLARATION I, Mukti Jadav hereby declare that all the information given in this project report is true and correct to the best of my knowledge. I am also declaring that all the work in this project is done by me and not copied from anywhere.

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Date: MUKTI JADAV Place: PREFACE There is a famous saying “The theory without practical is lame and practical without theory is blind. ” Absenteeism is a serious workplace problem and an expensive occurrence for both employers and employees seems unpredictable in nature.Human resource is an important part of any business and managing them is an important task. Summer training is an integral part of the PGDM and student of Management have to undergo training session in a business organization for 6 weeks to gain practical knowledge in their specialization and to gain some working experience. Our institution has come forward with the opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospective managers.

To the emphasis on practical aspect of management education the faculty of SIGMA INSTITUTE OF MANAGEMENT STUDIES has with a modern system of practical training of repute and following management technique to the student as integral part of PGDM. In accordance with the above obligation under going project in BARODA DAIRY. The title of my project is “Absenteeism of Employee” Certainly this analysis explores my abilities and strength to its fullest extent for the achievement of organization as well as my personal MUKTI JADAV ACKNOWLEDGEMENT Acknowledgement is an art, one can write glib stanzas without meaning a word, on the other hand one can make a simple expression of gratitude” Industrial training is an integral part of any PGDM program and for that purposes I had joined a private pharmaceutical company name BARODA DAIRY I take the opportunity to express my gratitude to all of them who in some or other way helped me to accomplish this challenging project in BARODA DAIRY. No amount of written expression is sufficient to show my deepest sense of gratitude to them. I am extremely thankful and pay my gratitude to Prof.

Rahul Desai for his valuable guidance and support on completion of this project in it’s presently. I am greatly obliged to Mr. Alok desai, training officer BARODA DAIRY who accommodated me for training in this esteemed organization. A special appreciative “Thank you” in accorded to all staff of “BARODA DAIRY, for their positive support. I also acknowledge with a deep sense of reverence, my gratitude towards my parents and member of my family, who has always supported me morally as well as economically. EXECUTIVE SUMMARY The report consists of the details on Baroda District Co-operative Milk Producers Union Ltd.

It is a co-operative society. The main aim of it is the welfare of the society by providing quality milk to its consumers at an affordable price. It has various functional departments such as the Production, Human Resource, Finance, Marketing, Purchase and Stores, Quality Assurance, Dispatch and Logistics. A detail study of all these departments have been made so as to get a clear view of the working of each of them. CONTENT ————————————————- SR NO.

PERTICULARS PAGE NO. 1. General information 7 2.About company 9 Company profile Research & Development Other information 3. Introduction 17 Reason to Choose this Project Absenteeism Measurement of Absenteeism Peculiar Features of Absenteeism Cause of AbsenteeismEffect of Absenteeism on Industrial Progress Analysis of Causes Absenteeism – Types & Their Control Guidelines & Measures for Control of Absenteeism The BRADFORD FACTOR & Absenteeism 4.

Research Methodology 52 Objectives Limitations of the Study 5. Analysis & Interpretation 54 6.Conclusion & Suggestion 66 7. Questionnaire 67 General Information Introduction: The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the State. During 1997-98, the State had 60 milk processing plants with an aggregate processing capacity of 5.

8 million liters per day.In addition to these processing plants, 123 Government and 33 co-operatives milk chilling centers operate in the State. Indian dairy industry: Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale. NATIONAL DAIRY DEVELOPMENT BOARD National Dairy Development Board (NDDB) was founded to replace..

. Exploitation with empowerment, Tradition with modernity,Stagnation with growth, An instrument for the development of India’s rural transforming dairying into an instrument for the development of India’s rural people. Prior to NDDB, the milk market was vastly governed by local private dairy and these dairies were neither producing milk nor they were animal breeders and hence law of demand and supply was unheard by those whose intentions were purely to make more money from both the sides – that is from producers of milk (farmers) and consumers at large. Establishment of NDDB broke that spell and traders were side lined in due course. About the CompanyThe Baroda District Cooperative Milk Producers’ Union Ltd.

Baroda Dairy is a prestigious popular co-operative organization of farmers of Vadodara District, providing good quality milk to the people of Sayaji Nagari since Last 52 Years. Baroda Dairy is a one of the leading dairies in INDIA having turnover of Rs. 4000 Million(2008-09) and has a 1300 member milk cooperative societies(2008-09), 800 Milk centers for distribution and sales of Milk, 500 Retailers for sales of milk products and 1300 dedicated employees. The mission is to help farmers of the district to grow ; improve life style of rural people.Introduction: Baroda District lies in the centre of Gujarat, a state of Western India, well-known for co-operative dairying. Baroda District co-operative Milk Producers’ union Ltd.

Is the full name of Baroda dairy. As the name suggests that it is a co-operative union. The company is engaged in the production of milk, flavored milk, butter and ghee, butter milk. The company also produces a wide variety of ice-cream, shrikhand, and many sweets through Sugam unit, a subsidiary of Baroda dairy. The plant is situated in Makarpura area, in the center of the city.

The plants of Baroda dairy are fully equipped with latest technology and modern facilities. Baroda dairy always work for welfare of society. Objective: The Milk Union was established on 24th December 1957 with a view to relieve the milk producers by the private milk venders and to give proper remuneration to them and to supply good milk to the citizens of Baroda City. Foundation of Dairy With the view to relieve the milk producer from the exploitation by the private vendors, and to give a remunerative price for their milk and to supply good quality of milk to the citizen of Baroda city, the milk union was established on 24th December, 1957.The milk union got guidance and help in all respect from the Neighboring milk union of “Amul” especially from the Founder Chairman of “Amul”, Shri T. K.

Patel and then the general manager, Dr. V. Kurien who supported and guided the Baroda Milk Union. This union has strong leadership of Shri Maganbhai Patel, Founder Chairman and Shri Jashvantlal Shah, Deputy Minister in the then state of Bombay. Under their dynamic leadership the foundation stone of this union was laid.

First six milk co-operative societies became founder members of this union from where the milk was brought for distribution, but, in the absence of adequate facilities for chilling and pasteurization it was thought best to postpone the rural milk collection. In turn, pasteurized hygienic milk from Amul Milk Union was brought for distribution to the consumers of the Baroda city. The foundation stone of 50,000 LPD Dairy Plant was laid on 24thAugust 1962, by Shri T. K. Patel, the Doyen of the Co-operative Dairy Movement in Gujarat.

In the year 1963-64 milk distribution through 21 Distribution centers were started in an organized way. In the year 1964-65, the union started its milk procurement from 120 milk co-operative societies. The dairy plant commissioned on25th April, 1965, was inaugurated by Shri Morarjibhai Desai, the then Finance Minister, and Government of India. Under the milk distribution system, pasteurized milk in the bottles was supplied to the city consumers. The bottling plant was set by UNICEF in collaboration with CARE to supply the reconstitutes milk to school children on matching contribution basis.

Vision and Mission:Baroda Dairy is a Co-operative society and it is not just a profit making unit but to serve the better worth to society. The main mission of the Baroda dairy is to assure and safeguard the interest of the both nominal consumer of milk in city area and supplier of rural areas. And for this the Baroda Dairy deals according to provide BEST QUALITY product at REASONALBE PRICE to their customers COMPANY PROFILE: UNIT NAME: Baroda District Co-operative Milk Producers Union Ltd. FORM OF ORGANIZATION: Co-operative Sector YEAR OF ESTABLISHMENT: 24th December, 1957REGISTERED OFFICE: Baroda dairy, Makarpura Road, Opp/ ONGC Regional office, BARODA SIZE OF THE UNIT: Large Scale Industry REGESTERED OFFICE NO. : Rg.

No. D 4/57 TOTAL UNITS: Baroda Dairy – Baroda Sugam Unit baroda Cattle Feed Category – Itola Milk Chilling Centre – Bodeli Veterinary Sub Unit – Savli Veterinary Sub Unit – Dabhoi MAN POWER: Permanent: 1378 Temporary: 475 Current Expansions: The dairy has started manufacturing bottled mineral water.Water from the river Narmada will be used for manufacturing mineral water, which will be marketed in bottles and pouches. A 12-km pipeline has been laid to pump water from the Narmada. The dairy has already got 90% subsidy from the Centre for the project. The project name is “NARMADA NEER”.

Future Expansions: Baroda Dairy, run by Baroda District Milk Cooperative Union, is all set to venture into manufacturing of tomato ketchup. The dairy has decided to take up a green field project for setting up a tomato ketchup manufacturing facility in central Gujarat. The dairy also plans to market the product at a later stage.Baroda dairy is currently giving final touches to the project report. According to top officials of the dairy, the proposed plant will come up in the Bodeli area. Around Rs 7-8 crore would be required to set up the new unit, for which the dairy has already acquired land.

“Bodeli is an ideal location for such a plant as its surrounding area such a Chhota Udaipur, Pavijetpur and Sankeda grow tomatoes on a large scale. Tomatoes will be procured from these areas, according to the dairy officials. Baroda Dairy is also going to introduce Idli-Dhosa centre after the success of Pizza.As per the latest news given in the local news paper dated 8th June, 2010 that Baroda Dairy has increased its turnover with Rs. 62 crores.

And also with the expenditure of Rs. 20 crores, the Dairy will launch a new plant with the capacity of 7 LAKH LITRES. Present Products Mix: Baroda Dairy is a unique place processing several products from the basic raw-material i. e. Milk, These products are as under and are immensely popular in and around city of Baroda.

* Milk * Butter Milk(Chhash) * Curd * Flavoured Milk * Butter * Cheese * Paneer * Ghee * Rajwadi Kadhi * Thickshake * Dry Sweets * Ice-cream Pizza * Shrikhand Environment Policy: We are committed to protect and preserve natural Environment for social welfare and co-existence. Baroda Dairy, A leading co-operative organization is engaged in manufacturing and marketing of milk and milk products in India and abroad. FOLLOWING ARE THE PRINCIPLES OF ENVIRONMENTAL POLICY ?Control our plant operations to prevent pollution. ?To conserve natural resources and energy. ?Comply with applicable environmental legislation and regulations.

?Applying greening of the earth within our premises. ?Continually improve our environmental performance. To minimize generation of waste and follow appropriate methods for it’s disposal ?Create awareness among employees on environmental issues and environmental management system. ?Keep our work environment clean and safe. This Environmental policy will be communicated to all employees, contractors and suppliers of Baroda Dairy.

Quality Policy: Baroda Dairy firmly believes to provide Milk and Milk products of quality to give total consumer satisfaction. In order to achieve this objective, Baroda Dairy has implemented Quality and Food safety Management Systems since May 2000.The dairy is certified for ISO 9001:2000 and HACCP by SAI Global, which is a wholly owned subsidiary of Standards Australia International Ltd. The implemented systems emphasize on ensuring and maintaining quality and Food safety at all stage of procurement, Production, Packaging, Storage and Distribution of Milk and Milk Products. Both the Quality and Food safety Management Systems are audited every six months by SAI Global to ensure the continuity and adequacy.

The product quality and safety is ensured at every stage of operation and does not merely relay on final product testing.There is a system in place to identify and assess the risk at every stage of product manufacturing, packaging storage and distribution. Appropriate control measures are implemented at the identified stage to eliminate the possible cause of risk. This ensures the quality and food safety at every stage. A high level of plant and personnel hygiene and housekeeping is maintained to avoid any cross contamination. The housekeeping audits are conducted periodically and employees are motivated to participate in good Housekeeping Competitions.

The dairy develops and maintains lawn and trees on open land within the premises. Baroda Dairy now, looks forward to implement ISO-14001:1996 Environmental management System with the objective to prevent pollution and protect environment through proper Management and control of its activities, products and services. Achievements: * Achievement of holding ISO 9002 HACCP 9000 certificate. * National Productivity Award for the best Productivity. * Jamnalal Bajaj Award in 1994-1995. * Award for good housekeeping at state level.

* Baroda Dairy was second achieving the award in Horticulture. Received International recognition ISO 14001 Certificate for the maintenance of Natural Environment. * Received second Prize for minimum accidents among drugs pharmaceuticals food and dairy Industry. Human Resource Department INTRODUCTION There is a well versed Quote saying that “Employees are the assets of any organization” Which depicts that they are most important tool of organization. Thus to maintain them for the organization, Personnel department (Human Resource Department) is kept for the well being of employees. The function of Human Resource Department can be seen in each and every department of any organization.

Thus it can be easily said that “The Human Resource Department” is the heart of any organization. The function of Human Resource Management is to manage the people working in the organization. It mainly focused on the intrapersonal relationship and interpersonal relationship of employees. Human Resource Management in simple words means planning, organizing, directing and controlling of procurement, recruitment, selection, training and development, compensation, integration, maintenance, appraisal, allocation and separation of Human ResourcesThus, Human Resource Management refers to set of programme, functions and activities designed and carried out in order to MAXIMIZE the employee’s as well as organizational efficiency and effectiveness. Human Resource Management at Baroda Dairy “Baroda Dairy is one of the leading Dairy” It shares collaborative and friendly relationship with preferred partners, employees, consumers and other workers involved to it.

It maintains a transparency in handling the above relations and stick to its standards. The HRM function or Personnel department function in Baroda Dairy is indeed vast.All major activities since working of a worker – from the time of his/her selection in to an organization until he/she resigns or get retired or leave job for any reason – comes under the preview of HRM. The HR planning in Dairy is very smooth and transparent. It made Baroda Dairy a HUGE BIG Family of approximately 1400 employees. In Baroda Dairy major attention is given on the welfare and Safety of employees.

They are also given different kind of incentives to increase their production effectiveness. Dairy also focuses on developing human value and potential through various bearing and development activities and provide favorable atmosphere.All these functions are performed by HR in Baroda Dairy. ORGANOGRAM OF PERSONNEL DEPARTMENT MANAGING DIRECTOR GENERAL MANAGER (P&A) MANAGER (ADMIN) SUPERINTENDENT (TELEPHONE) MANAGER TIME KEEPING MANAGER (PERSONNEL) SR. OFFICER OFFICER OFFICER OFFICER JR. OFFICER JR.


ASSISTANT (ADMIN) JR. ASSISTENT TIME KEEPER Human Resource Is Divided Into Different Parts The HR in Baroda Dairy in mainly divided into four sections: * Personnel Department * Recruitment, selection, training, industrial relations, negotiation with Union etc. Administration Department * Its handles canteen, security, welfare facilities, safety, Any theft or loss, Absenteeism , events, AGM meeting organizing, licensing work, hygiene of various dept, etc. * Time Keeping Department * It handles salary & wages, records of employees, provides benefit of statutory, ESS, Form fill up, punching System, provident fund, ESI etc. * Telephone Department & Computer Department * Maintains the connection of each department and provides facility of CUG to each employee to remain in contact while doing work.

So that if any query or problem occur they can contact each other easily.Computer system handles the whole MIS in Baroda Dairy. Trade Union in Dairy Trade unions are the voluntary collective group of employees or employers formed to promote and convey their interest through collective actions to the organization. At Baroda dairy, there are two unions. One for the workers & another for officers which are working for the following:- 1.

Baroda dairy Trade Union:- ( for officer) 2. Rastriya Majdoor Union:- ( for Workers) * To get adequate bonus * Strive for better working condition. * To secure better pay scale for employees in keeping with the prevailing standards of living in the country. To work for welfare and development of workers educational facilities and group benefit scheme for them. Recruitment Recruitment is a process of searching for prospective employees & stimulating them to apply for the job in the org. Recruitment of an employee is done on the bases of “Human Resource Planning” carried by Baroda dairy Mgt.

At Baroda dairy recruitment is done through both sources i. e. internal as well as external sources. * Internal Recruitment: Recruiting employees internally like promotion, transfers, etc. * External Recruitment:Recruiting employees form job portals, employment exchange, campus interview, advertisements.

Dairy uses External source of recruitment mostly. Selection Selection procedure includes the selecting Right candidate, at Right time, for right job. It is as follows: * Application form * Bio-data analysis * Short-listing. * Interviews * References/security screening * Ability tests * Aptitude, intelligence and personality * Work experience/short term contracts * Medical checkups. * Placement/Appointment.

REASON TO CHOOSE THE PROJECT When I joined the training at BARODA DAIRY, I have selected the project of “ABSENTEEISM OF EMPLOYEES”.Initially it appeared to me quite a simple project, but as I started working on it only then I understood its real significance. Absentism is a very serious term for employees as well as employers. Employees will get monetarily reward in terms of salary and employer will get output for production purpose individually. It is often easier for the organizations to make arrangement to cover staffs, which are going to be off for long periods.

However, employees taking odd days off here and there are more problematic, can have an immediate impact.If remain unchecked, this type of absence can send out the wrong signals to colleagues who, in some jobs, are likely to have to cover for those absent. If employers fail to take action, a ‘Baggins turn’ mentality may emerge. Frequent absence may have serious repercussions where staff are employed in customer-facing roles or employed on production lines. The impact of absence may be most directly felt and the need to arrange cover at short notice may be paramount. ABSENTEEISM CONCEPT OF ABSENTEEISM It refers to workers absence from their regular task when he is normally schedule to work.

The according to Webster’s dictionary “Absenteeism is the practice or habit of being an absentee and an absentee is one who habitually stays away from work. ” According to Labor Bureau of Shimla: – Absenteeism is the total man shifts lost because of absence as percentage of total number of man shifts scheduled to work. In other words, it signifies the absence of an employee from work when he is scheduled to be at work. Any employee may stay away from work if he has taken leave to which he is entitled or on ground of sickness or some accident or without any previous sanction of leave.Thus absence may be authorized or unauthorized, willful or caused by circumstances beyond one’s control.

Maybe even worse than absenteeism, it is obvious that people such as malingerers and those unwilling to play their part in the workplace can also have a decidedly negative impact. Such team members need individual attention from frontline supervisors and management. Indeed, as prevention is better than cure, where such a problem occurs, it is always important to review recruitment procedures to identify how such individuals came to be employed in the first place.For any business owner or manager, to cure excessive absenteeism, it is essential to find and then eliminate the causes of discontent among team members. If they find their supervisor or job unpleasant – really unpleasant – they look for legitimate excuses to stay home and find them with things such as upset stomachs or splitting headaches. Any effective absentee control program has to locate the causes of discontent and modify those causes or eliminate them entirely.

In other words, if we deal with the real reasons team members stay home it can become unnecessary for them to stay away.Any investigation into absenteeism needs to look at the real reasons for it. Sometimes team members call in sick when they really do not want to go to work. They would not call you up and say, “I’m not coming in today because my supervisor abuses me. ” Or, “I’m not coming in today because my chair is uncomfortable. ” Or, “I’m not coming in today because the bathrooms are so filthy; it makes me sick to walk into them.

” There are a few essential questions to consider at the outset if you want to make a measurable improvement to your absenteeism figures. Why is your present absenteeism policy ineffective?Where and when is excessive absenteeism occurring? In many cases, under- trained supervisors could be a contributing factor. What are the real causes for absences? It is commonly expected that low pay, poor benefits and high workloads will be the major causes. However, in numerous employee surveys absenteeism generally has been identified as a symptom of low job satisfaction, sub-standard working conditions and consistent negative and unfair treatment received by first-line supervisors. How much formal training have your supervisors received on absenteeism containment and reduction?If your answer is none or very little, maybe you have found the solution.

As with every other element within your organization, you cannot ask a person to do a job he or she has never been trained to do. Many human resources specialists have found that repetitive, boring jobs coupled with uncaring supervisors and/or physically unpleasant workplaces are likely to lead workers to make up excuses for not coming to work. If your team members perceive that your company is indifferent to their needs, they are less likely to be motivated, or even to clock on at all.One way to determine the causes of absenteeism is to question your supervisors about excessive absenteeism, including what causes it and how to reduce it. Of course, if your supervisors have made no efforts to get to know the team members in their respective departments, they may not be able to provide reasons. However, just the act of questioning may get the ball rolling and signal to your supervisors that their involvement is important.

Once a manager finds the real reasons for absenteeism there is another important step.Through open communication, you need to change the team member’s way of reacting and responding to discontent. Other problems will no doubt arise in the future. If the way of responding has not been reviewed, then the same cycle is likely to start all over again. So often absenteeism problems can be sheeted back to the supervisor level and to unsatisfactory working conditions. Without improvement in these areas, you can expect your high rate of absenteeism to continue.

PECULIAR FEATURES OF ABSENTEEISM On the basis of studies undertaken certain observations may be made: . The rate of absenteeism is lowest on payday; it increases considerably on the days following the payment of wages and bonus. The level of absenteeism is comparatively high immediately after payday. When worker either feel like having a good time or in some other cases return home to their villages family and after a holiday, has also been found to be higher than that on normal days. 2. Absenteeism is generally high workers below 25 years of age and those above 40.

“The younger employees are not regular and punctual”. Presumably because of the employment of a large no. f new comers among the younger age groups, while the older people are not able to withstand the strenuous nature of the work. 3. The percentage of absenteeism is higher in the night shift than in the day shift.

This is so because workers in the night shift experience great discomfort and uneasiness in the course of their work than they do during day time. 4. Absenteeism in India is seasonal in character. It is the highest during March-April-May, when land has to be prepared for monsoon, sowing and also in harvest season (Sept-Oct) when the rate goes as high as 40%.CAUSES OF ABSENTEEISM The Royal Commission Labor observed that high absenteeism among Indian labor is due to rural orientation and their frequent urge for rural exodus. According to Acharaya “In modern industrial establishment the incidence of industrial fatigue, mal nutrition and bad working conditions aggravate that feeling for change among industrial worker and some time impel them to visit their village home frequently for rest and relaxation.

” The general cause of absenteeism may be summarized as below:- MAL ADJUSTMENT WITH FACTORYIn factory the worker finds caught within factory walls, he is bewildered by heavy traffic, by strangers speaking different and subjected to strict discipline and is ordered by complete strangers to do things which he cannot understand. As a result he is under constant strain, which cause him serious distress and impairs his efficiency. All these factors tend to persuade him to maintain his contacts with village. SOCIAL AND RELIGIOUS CEREMONIES Social and religious ceremonies divert workers from workers to social activities.In large number of cases incidence of absenteeism due to religious ceremonies is more than due to any other reason. HOUSING CONDITION Workers also experience housing difficulties.

Around 95% of housing occupied by industrial workers in India is unsatisfactory for healthful habitations. This leads to loss the interest in work. INDUSTRIAL FATIGUE Low wages compel a worker to seek some part time job to earn some side income. This often result inconstant fatigue, which compels to remain absent for next day. UNHEALTY WORKING CONDITION Irritating and intolerable working conditions exist in a factory.

Heat, moisture, noise, vibration, bad lighting, dust fumes and overcrowding all these affect the workers health causing him to remain absent from work a long time. ABSENCE OF ADEQUATE WELFARE ACTIVITIES High rate absenteeism is also due to lack of adequate welfare facilities Welfare activities include clean drinking water, canteen, room shelter, rest rooms, washing and bathing facilities, first aid appliances etc. ALCOHOLISM Some of the habitual drunkards spend whole of their salary during first week of each month for drinking purpose. Therefore 2 or 3 weeks after getting their salary absent themselves from their work. INDEBTNESSAll those workers who undergo financial hardships usually borrow money lenders at interest rate which are very high, which often cumulates to more than 11 – 12 times their actual salaries. To avoid the moneylenders they usually absent themselves from work because they are unable to return the money in stipulated time.

IMPROPER & UNREALISTIC PERSONNEL POLICIES Due to favoritism and nepotism which are in the industry the workers generally become frustrated. This also results in low efficiency, low productivity, unfavourable relationship between employee and supervisor, which in turn leads to long period of absenteeism.INADEQUATE LEAVE FACILITIES Negligence on part of the employee to provide leave facility compel the worker to fall back on ESI leave. They are entitled to 50 days leave on half on pay. Instead of going without pay the worker avail themselves of ESI facility EFFECTS OF ABSENTEEISM ON INDUSTRIAL PROGRESS It is quite evident from the above figures that absenteeism is a common feature of industrial labor in India. It hinders industrial growth and its effect in two fold.

1) LOSS TO WORKER Firstly due to the habit of being absenting frequently worker’s income is reduced to a large extent.It is because there is a general principle of “no work – no pay”. Thus the time lost in terms of absenteeism is a loss of income to workers 2) LOSS TO EMPLOYERS On other hand, the employer has to suffer a greater loss due to absentees. It disturbs the efficiency and discipline of industries consequently, industrial production is reduced. In order to meet the emergency and strikes, an additional labour force is also maintain by the industries. On certain occasions, those workers are employed who present themselves at factory gates.

During strikes they are adjusted in place of absent workers.Their adjustment brings serious complications because such workers do not generally prove themselves up to work. Higher absenteeism is an evil both for workers and the employers and ultimately it adversely affects the production of industries. ANALYSIS OF CAUSES 1) FAMILY ORIENTED & RESPONSIBILITES It was observed that about 40% case absenteeism is family oriented and more responsibilities of workers. It increases in harvesting season.

2) SOCIAL CEREMONIES In 20 % cases it was found that social and religious functions divert worker from work. 3) HOUSING FACILITYIn about 30% cases, the workers remain absent because there is no housing facilities and the workers stay alone and great distance from factory. 4) SICKNESS AND ACCIDENT In 20% case the workers remain absent due to ill health and disease and in 15% cases workers remain absent due to accident. 5) TRANSPORTATION Most of the workers have to travel long distance to reach the work place. Most of the workers are not satisfied with transport facilities. 6) WELFARE FACILITES In 13% cases, the workers are not satisfied with welfare facilities.

7) WORKING CONDITIONSIn 21% cases, the workers feel that there is not good working condition, because they work in standing position which causes to remain absence for relaxation. 8) MANAGEMENT SYSTEM Near about 34% people are dissatisfied with management system because they feel that their work is not being recognized and promotions are biased. ABSENTEEISM – TYPES & THEIR CONTROL There are two types of absenteeism, each of which requires a different type of approach. 1. INNOCENT ABSENTEEISM Innocent absenteeism refers to employees who are absent for reasons beyond their control; like sickness and injury.Innocent absenteeism is not culpable which means that it is blameless.

In a labor relations context this means that it cannot be remedied or treated by disciplinary measures. 2. CULPABLE ABSENTEEISM Culpable absenteeism refers to employees who are absent without authorization for reasons which are within their control. For instance, an employee who is on 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 blameworthy. In a labor relations context this means that progressive discipline can be applied.

For the large majority of employees, absenteeism is legitimate, innocent absenteeism which occurs infrequently. Procedures for disciplinary action apply only to culpable absenteeism. Many organizations take the view that through the process of individual absentee counseling and treatment, the majority of employees will overcome their problems and return to an acceptable level of regular attendance. COUNSELLING INNOCENT ABSENTEEISM Innocent absenteeism is not blameworthy and therefore disciplinary action is not justified. It is obviously unfair to punish someone for conduct which is beyond his/her control.Absenteeism, no matter what the cause, imposes losses on the employer who is also not at fault.

The damage suffered by the employer must be weighed against the employee’s right to be sick. There is a point at which the employer’s right to expect the employee to attend regularly and fulfill the employment contract will outweigh the employee’s right to be sick. At such a point the termination of the employee may be justified, as will be discussed. The procedure an employer may take for innocent absenteeism is as follows: 1. Initial counseling(s) 2.

Written counseling(s) . Reduction(s) of hours and/or job reclassification 4. Discharge Initial Counseling Presuming you have communicated attendance expectations generally and have already identified an employee as a problem, you will have met with him or her as part of your attendance program and you should now continue to monitor the effect of these efforts on his or her attendance. If the absences are intermittent, meet with the employee each time he/she returns to work. If absence is prolonged, keep in touch with the employee regularly and stay updated on the status of his/her condition. Indicate your willingness to assist.

) You may require the employee to provide you with regular medical assessments. This will enable you to judge whether or not there is any likelihood of the employee providing regular attendance in future. Regular medical assessments will also give you an idea of what steps the employee is taking to seek medical or other assistance. Formal meetings in which verbal warnings are given should be given as appropriate and documented. If no improvement occurs written warning may be necessary.

Written CounselingIf the absences persist, you should meet with the employee formally and provide him/her with a letter of concern. If the absenteeism still continues to persist then the employee should be given a second letter of concern during another formal meeting. This letter would be stronger worded in that it would warn the employee that unless attendance improves, termination may be necessary. Reduction(S) of Hours and or Job Reclassification In between the first and second letters the employee may be given the option to reduce his/her hours to better fit his/her personal circumstances.This option must be voluntarily accepted by the employee and cannot be offered as an ultimatum, as a reduction in hours is a reduction in pay and therefore can be looked upon as discipline.

If the nature of the illness or injury is such that the employee is unable to fulfill the requirements of his/her job, but could for example benefit from modified work, counsel the employee to bid on jobs of such type if they become available. (N. B. It is inadvisable to “build” a job around an employee’s incapacitates particularly in a unionized environment. The onus should be on the employee to apply for an existing position within his/her capabilities.

Discharge Only when all the previously noted needs and conditions have been met and everything has been done to accommodate the employee can termination be considered. An Arbitrator would consider the following in ruling on an innocent absenteeism dismissal case. a) Has the employee done everything possible to regain their health and return to work? b) Has the employer provided every assistance possible? (i. e. counseling, support, time off.

) c) Has the employer informed the employee of the unworkable situation resulting from their sickness? ) Has the employer attempted to accommodate the employee by offering a more suitable position (if available) or a reduction of hours? e) Has enough time elapsed to allow for every possible chance of recovery? f) Has the employer treated the employee prejudicially in any way? As is evident, a great deal of time and effort must elapse before dismissal can take place. These points would be used to substantiate or disprove the following two fold test. 1. The absences must be shown to be clearly excessive. 2. It must be proven that the employee will be unable to attend work on a regular basis in the future.

CORRECTIVE ACTION FOR CULPABLE ABSENTEEISM As 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 attendance. Presuming you have communicated attendance expectations generally, have identified the employee as a problem, have met with him/her as part of your attendance program, made your concerns on his specific absenteeism known and have offered counseling as appropriate, with no improvement despite your positive efforts, disciplinary procedures may be appropriate.The procedures for corrective/progressive discipline for culpable absenteeism are generally the same as for other progressive discipline problems. The discipline should not be prejudicial in any way. The general procedure is as follows: [Utilizing counseling memorandum] 1.

Initial Warning(s) 2. Written Warning(s) 3. Suspension(s) 4. Discharge Verbal Warning Formally 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 attendance record must improve and be maintained at an improved level or further disciplinary action will result.Offer any counseling or guidance as is appropriate.

Give further verbal warnings as required. Review the employee’s income protection records at regular intervals. Where a marked improvement has been shown, commend the employee. Where there is no improvement a written warning should be issued. Written Warning Interview the employee again. Show him/her the statistics and point out that there has been no noticeable (or sufficient) improvement.

Listen to the employee to 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 warning. Be specific in your discussion with him/her and in the counseling memorandum as to the type of action to be taken and when it will be taken if the record 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 written warning should identify any noticeable pattern If the amount and/or pattern continue, the next step in progressive discipline may be a second, stronger written warning.Your decision to provide a second written warning as an alternative to proceeding to a higher level of discipline (i.

e. suspension) will depend on a number of factors. Such factors are, the severity of the problem, the credibility of the employee’s explanations, the employee’s general work performance and length of service. Suspension (only after consultation with the appropriate superiors) If the problem of culpable absenteeism persists, following the next interview period and immediately following an absence, the employee should be interviewed and 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 explanation, the employee’s general work performance and length of service. Subsequent suspensions are optional depending on the above condition.

Dismissal (only after consultation with the appropriate superiors) Dismissals should only be considered when all of the above conditions and procedures have been met. The employee, upon displaying no satisfactory improvement, would be dismissed on the grounds of his/her unwillingness to correct his/her absence record.GUIDELINES & MEASURES FOR CONTROL OF ABSNTEEISM Absenteeism is a disease that appears whenever a company fails to inoculate itself through the use of sound management practices. To cure excessive absenteeism, one has to know the exact causes and then examine the available, workable and proven solutions to apply against those causes. To embark upon a successful absenteeism reduction program, you need to make sure you have some basic information and facts about absenteeism in your company.

Consider the following four questions, which should help you further focus your ideas and put a plan into action.Q. Why is your present absenteeism policy ineffective? Absenteeism policies vary in effectiveness. Most ineffective policies I have reviewed have a common denominator: They allow “excused” absences, whereas those that do work are “no fault” policies. Q. Where and when is excessive absenteeism occurring? Numerous studies have concluded that under trained supervisors is one of the main causes of absenteeism.

Therefore, any company experiencing absenteeism of greater than 3 percent should consider supervisors as a potential contributor to the problem.Given that this may be the case, you first should check the percentage of employee absenteeism by supervisor to see if it is concentrated around one or two supervisors. If it is, you’ve begun to uncover the obvious–undertrained supervisors. If, however, your research reveals that the rate of absenteeism is almost equally distributed throughout your factory, you will need to investigate other possible causes. Q.

What are the real causes for absences? People-oriented companies are very sensitive to employee opinions.They often engage in formal mini-studies to solicit anonymous employee opinions on topics of mutual interest. These confidential worker surveys commonly ask for employee opinion regarding higher-than-normal absenteeism. In other words, employees revealed that repetitive, boring jobs coupled with uncaring supervisors and/or physically unpleasant workplaces led them to make up excuses for not coming to work, such as claiming to be sick. One way to determine the causes of absenteeism is to question your supervisors about their employees’ excessive absenteeism, including what causes it and how to reduce it.

Q. How much formal training have your supervisors received on absenteeism containment and reduction? If you find that your supervisors hesitate to provide meaningful answers to your questions, then you’re on the right track toward a solution. Ask yourself, “How much formal training have I given my supervisors in the areas of absenteeism reduction and human resources skills? ” If your answer is none or very little, your solution can’t be far behind. The fact of the matter is, you cannot ask a person to do a job he or she has never been trained to do. Following are the measures to control absenteeism:- ) ADOPTION OF A WELL DEFINED RECRUITMENT PROCEDURE The selection of employees on the basis of command, linguistic and family consideration should be avoided.

The management should look for aptitude and ability in the prospective employees and should not easily yield or pressure of personal likes and dislikes. Application blanks should invariably be used for a preliminary selection and tools for interviews. The personal officer should play more effective role as coordinator of information, provided that he has acquired job knowledge in the function of selection.Employers should also take into account the fact that selection should be for employee’s development, their reliance. They should as far as possible rely on employment exchange. .

2) PROVISION OF HEALTHFUL AND HYGENIC WORKING CONDITION In India, where the climate is warm and most of the work involves manual labor, it is essential that the workers should be provided with proper and healthy working conditions. The facilities of drinking water, canteens, lavatories, rest rooms, lighting and ventilation, need to be improved. Where any one of these facilities is not available, it should e provided and all these help in keeping the employee cheerful and increase productivity and the efficiency of operations throughout the plant. 3) PROVISION OF REASONABLE WAGES AND ALLOWANCE AND JOB SECURITY TO WOTRKERS The wages of an employee determine his as well as his family standard of living. This single factor is important for him than other. The management should, therefore pay reasonable wages and allowances, taking into account the capacity of the industry to pay.

3) MOTIVATORS WELFARE AND SOCIAL MEASURESThe management should consider the needs of workers and offer them adequate and cheap housing facilities, free of subsidized food, free medical and transport facilities, free education facilities for their children and other monetary benefits. As for social security is concern, the provision of Provident Fund, SBI facilities, Gratuity and Pension, all those need to be improved. 4) IMPROVED COMMUNICATION AND PROMPT REDRESSAL OF GRIEVANCES Since a majority of the workers are illiterate or not highly educated bulletins and written notices journals and booklets are not easily understood by them.Meetings and concealing are called for written communication becomes meaningful only when workers can readied understood them, too many notices should be avoided only the essential ones should be put on the boards, which should be placed near the entrance inside the canteen and in areas which are frequently visited by the workers so that they are aware of the policies of the company and any sort changes being made. 5) LIBERAL GRANT OF LEAVE The management’s strict attitude in granting leave and holidays even when the need for them is genuine, tempts workers to go on E.S.

I. leave for under this scheme, they can have 56 days leaves in years on half pay. An effective way of dealing with absenteeism is to liberalize leave rules. 6) SAFETY AND ACCIDENT PREVENTION Safety at work can be maintained and accidents can be prevented if the management tries to eliminate such personal factors as negligence, overconfidence, carelessness, vanity, etc and such material factorizes unguarded machinery and explosives, defective equipment and hand tools. Safe methods of operation should be taught.

In addition consistent and timely safely instruction, written instructions (manual) in the regional language of the area should be given to the work force. 7) CORDIAL RELATIONS BETWEEN SUPERVISORS AND WORKERS The supervisor should be recognize that industrial work is a groups task and cannot be properly done unless discipline is enforced and maintained. Cordial relations between the supervisors and these workers are therefore essential for without them, discipline cannot be increased. One of the consequences of unhealthy relations between supervisors and subordinates is absenteeism. ) DEVELOPMENT OF WORKERS BY TRAINING The system of worker’s education should be so designed as to take into account their educational needs as individuals for their personal evaluation, as operatives for their efficiency and advancement, as citizens for happy integrated life in the community, as members of a trade union for the protection of their interests. The educational programs according to their national commission on Labour should be to make a worker:- a) A responsible, committed and disciplines operative.

) Aware of his rights and obligations. c) Lead a calm, clean and health life, based on a firm ethical foundation. d) A responsible and alter citizen. THE BRADFORD FACTOR & ABSENTEEISM The Bradford Factor is a Human Resources tool used by many organizations to measure and identify areas of absenteeism. The theory is that short, frequent and unplanned absences are more disruptive than longer absences.

It is based on the fact that it is normally easier to make arrangements to cover for staffs who are going to be off for ong periods, and which are more likely to be suffering from a genuine illness. However, employees taking odd unplanned days off here and there actually cause more disruption to the business. If this pattern is repeated regularly, the employee will have a high Bradford Factor score; which may raise questions about how genuine the illness actually is. The formula for the Bradford Factor is: E x E x D = Bradford Factor Score , Where E is the number of episodes of absence and D is the total number of days absent in a rolling 52 week period.So, for employees with a total of 10 days absence in one year, the Bradford Factor score can vary enormously, depending on the number of episodes of absence involved. For example: One absence episode of 10 days is 10 points (i.

e. 1 x 1 x 10) Five absence episodes of two days each is 250 points (i. e. 5 x 5 x 10) Ten absence episodes of one day each is 100 points (i. e.

10 x 10 x 1) How do organizations use the Bradford Factor? There are no set rules for using the Bradford Factor; it is down to each organization to determine the ways in which it uses the score.However, used effectively, the Bradford Factor can reduce absenteeism dramatically, serving as a deterrent and a method for tackling persistent absenteeism. Studies have shown that by educating staff about the Bradford Factor, and then showing them their score on a regular basis, absenteeism can be reduced by over 20%. This is largely down to staff understanding that taking the odd day off here and there will quickly multiply their Bradford Factor score. The Bradford Factor places a value on the absence which an employee can clearly see.

Where the absence is not absolutely necessary, this can serve to deter absenteeism.When this is used in conjunction with a points system the Bradford Factor can be effectively utilized to deter unnecessary absenteeism. For example the Bradford Factor can be utilized by creating “triggers” whereby certain actions are taken when an employee’s Bradford score reaches a certain point. For example, the UK Prison Service has used the following triggers: * 51 points – verbal warning. * 201 points – written warning * 401 points – final warning * 601 points – dismissal Setting these triggers is entirely dependent on the organization using the Bradford Factor.

It is usually advisable to use the Bradford Factor as one of a number of absence policies. However, setting these triggers and making staff aware of them, in addition to taking action, resulted in the Prison Service reducing absenteeism by 18%. By implementing mandatory procedures for tackling absenteeism across an organization led by the Bradford Factor, an organization can remove the potential for differences across teams and management and remove the difficulties and reluctance that line managers often face when having to discipline a close staff member.The Bradford Factor can provide organizations with a two pronged method for tackling absence: proactively deterring absence in the first place and utilizing a set procedure to identify and tackle persistent absenteeism. Implementing the Bradford Factor Calculating the Bradford Factor for one member of staff over a given period is not a difficult proposition. However, calculating the Bradford Factor over a rolling 52 week period, across multiple teams and locations and considering different types of absence is a very difficult task.

As a result of the exponential nature of the formula {E x E x D}, even the slightest mistakes in calculation can result in a wide variance of an employee’s Bradford Factor score. For example: For an employee who has had 10 days off in a year in total, on two separate occasions: 2 X 2 X 10 = 40 {which does not trigger a warning – fewer than 50} However, if their absence is either not recorded correctly, or is calculated wrong by just one day: 3 X 3 X 10= 90 {which does trigger a warning – over 50} You can see that their score is more than double, despite the small mistake.Getting the formula the wrong way round can have even more significant results: 10 X 10 X 2 = 200 {which would trigger disciplinary proceedings – over 200} If an organization wants to tackle absenteeism effectively, using the Bradford Factor, including using an employee’s Bradford Factor score in potential disciplinary proceedings, then the process for calculating the Bradford Factor has to be full proof, consistent and equal. To achieve this, an organization will need to ensure: * Absence reporting and monitoring is consistent, equal and accurate both over time and across the whole organization. The calculation of an employee’s Bradford Factor score is based on these accurate, equal and updated absence records.

* Management and staff have access to updated Bradford Factor scores. Without these processes in place the calculation of the Bradford Factor is extremely difficult and time consuming. In addition to this; unequal processes for reporting and calculating the Bradford Factor could be discriminatory; everyone’s Bradford Factor score should be subject to the same, indisputable criteria. RESEARCH METHODOLOGY TITLE OF PROJECT : The topic of my project is ABSENTEEISM OF WORKERS IN BARODA DAIRY.OBJECTIVES OF RESEARCH i.

To identify the rate of absenteeism of “worker”. ii. To identify the causes of absenteeism. iii. To suggest any measures to reduce the rate of absenteeism RESEARCH DESIGN DESCRIPTIVE RESEARCH The study follows descriptive research method.

Descriptive research is concerned with describing the characteristics of a particular individual or a group. Here the researcher attempts to present the existing facts by collecting data. SOURCES OF DATA PRIMARY DATA Primary data was collected through questionnaire which was mainly Questionnaire and discussion with workers * SECONDARY DATASecondary data were collected from the company’s annual publications, memorandums of settlements, newspapers, journals, websites, and from library books TOOLS FOR ANALYSIS Percentage analysis is used SAMPLING METHOD Sampling technique used in this study is ‘Random sampling’. SAMPLE SIZE The sample size taken for this study is 60. LIMITATIONS OF THE STUDY a) The workers were busy with their work therefore they could not give enough time for the interview. b) The personal biases of the respondents might have entered into their response.

c) Some of the respondents give no answer to the questions which may affect the analysis. ) Respondents were reluctant to disclose complete and correct information ANALYSIS & INTERPRETATION Q. For how many yrs you are working with Baroda dairy? INTERPRETATION – It can be seen that 56% of the workers at Baroda dairy are working for more than 10 years whereas 36% are working for more than 5 yrs. Q. How often you remain absent in a month? INTERPRETATION- It can be seen that 96% of the workers do not remain absent. Q.

According to you what are the main reasons for employees absent? INTERPRETATION- According to 96% workers, personal problem is the reason for being absent. % think that stress can also be the reason. Q. Your views regarding present Absenteeism Policy of Baroda dairy? INTERPRETATION- It can be seen that 76% workers rate the present absenteeism policy as good whereas 22% rate it as excellent. Q. Are you clear about your work / job responsibilities? INTERPRETATION- It can be seen that 94% of the workers at baroda dairy are clear regarding their work responsibilities.

Q. Are you satisfied with your work? INTERPRETATION- 82% of the workers are fully satisfied with their work whereas 16% workers think their work as good.Q. Views regarding working environment of Baroda dairy? INTERPRETATION- 82% workers feel that the working environment at Baroda dairy is good & 14% feel it as excellent. Q.

Your relations with your superiors? INTERPRETATION- 76% workers have good relations with the superiors whereas 22% have excellent relations with the superiors. Q. Yours superiors behavior towards your problem? INTERPRETATION- 42% workers think that their superior’s behavior toward their problems is excellent & 56% workers consider it as good. Q.Yours views regarding facilities provided Baroda Dairy? INTERPRETATION– 86% workers consider that facilities provided to them are good whereas 10% consider them as excellent.

Conclusion & Suggestion FINDINGS Finding and analysis reveals the following conclusion 1) Almost 56% of the workers at Baroda dairy are working for more than 10 years whereas 36% are working for more than 5 yrs. 2) Almost 96% of the workers do not remain absent. 3) According to 96% workers, personal problem is the reason for being absent. 4% think that stress can also be the reason. ) Almost 76% workers rate the present absenteeism policy as good whereas 22% rate it as excellent.

5) Almost 94% of the workers at Baroda dairy are clear regarding their work responsibilities. 6) 82% of the workers are fully satisfied with their work whereas 16% workers think their work as good. 7) 76 % workers have good relations with the superiors whereas 22% have excellent relations with the superiors. 8) 42% workers think that their superior’s behavior towards their problems is excellent & 56% workers consider it as good. RECOMMENDATIONSAbsenteeism is a serious problem for management because it involves heavy additional expenses.

The management should take the following measures to reduce the rate of absenteeism:- 1) Provide Incentives- An incentive provides an employee with a boost to their motivation and avoid unnecessary absenteeism. Incentives like two hours of bonus pay for every month of perfect attendance can improve a lot. 2) Employee Assistance Program- If you confront an employee about his or her frequent absenteeism and you find out that it is due to personal problems refer them to EAP. ) Sickness Reporting – Tell employees that they must phone in as early as possible to advise why they are unable to make it to work and when they expect to return. 4) Return to Work Interview- When an employee returns to work then ensure that they have a ‘return to work interview’.

5) Bradford factor can also be used to identify and cure excessive absenteeism. CONCLUSION In the end to conclude this report I would like to specify that the project allotted to me on ABSENTEEISM was of immense help to me in understanding the working environment of an organization, thereby providing a firstha practical experience.In this project while identifying the reasons of absenteeism of the workers of Baroda DairyI got an opportunity to interact with workers to observe their behavior and attitude. In the end I would once again like to thank the people of Baroda Dairy who helped me in accomplishing this project and boosting my morale by appreciating and recognizing my efforts. QUESTIONNAIRE Personal Information Name ……………………………………………………………………….. Age…………………………. Sex……………………….. …… Job status……………………………………………………………………. 1. For how many years you are working with Baroda dairy? (a) 0-1 yr(b) 1-2 yr c) 2-5 yr(d) < 5 yr 2. How often you remain absent in a month? (a) Nil(b) Once (c)Twice(d) more than Twice 3. According to you what is the main reason for employees absent? (a) Health problem / domestic reasons (b) Stress (c)Work dissatisfaction (d) Working environment 4. Your views regarding the present Absenteeism Policy of Baroda dairy ? (a) Excellent (b) Good (c) Fair(d) Don’t know 5. Are you clear about your work / job responsibilities? (a) Well clear (b) Good (c) Fairly clear(d) Don’t know 6. Are you satisfied with your work? a) Well satisfied(b) Good (c) Fair(d) Not satisfied 7. Your views regarding the working environment of Baroda dairy & work place? (a) Excellent(b) Good (c) Fair(d) Poor 8. How are your relations with your superiors / co-workers? (a) Excellent(b) Good (c) Fair (d) Poor 9. Your superior’s behavior towards your problems? (a) Excellent(b) Good (c) Fair (d) Poor 10. Your views regarding the facilities provided to you by Baroda dairy? (a) Excellent(b) Good (c) Fair (d) Poor Any suggestions / Comments ____________________________________________________________ ___ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ________________________ Bibliography WEBSITES: www. Google. com www. ask. com www. wikipedia. com www. barodadairy. org www. money. com Annual report of Baroda Dairy