Ashish Chaudhary 08516603910 GH BATCH

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A PROJECT REPORT

ON

“EMPLOYEE ABSENTEEISM“EMPLOYEE ABSENTEEISM

WITH RESPECT TOWITH RESPECT TO NTPC Ltd”NTPC Ltd”

REPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF

MASTER OF BUSINESS ADMINISTRATION (M.B.A.) AFFILIATED TO

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

(2010-2012)

SUBMITTED TO SUBMITTED BY

MR. SANJAY DHINGRA ASHISH KUMAR

CHAUDHARY

PROFESSOR MBA (III SEM)

ROLL. NO.: 08516603910



UNIVERSITY SCHOOL OF MANAGEMENT STUDIES,

DWARKA, NEW DELHI-110078



CERTIFICATE

This is to certify that Mr. Ashish Kumar Chaudhary , s tudent of MBA

(II I Sem), Rol l No . 08516603910, has successfully completed his

project under my supervision. During this period (13 June 2011-29 July

2011) ,he worked on the p ro ject t i t led “Employee Absenteeism with

respect to NTPC Ltd.” in partial fulfillment for the award of the MBA.

This Project Study is his original work and has not been submitted to

any other Institute.

Date:



ACKNOWLEDGEMENT

There are a few things that come in the life of a person, may be for a short span of time, but leaves on ever shining impression in to the mind. My summer training is one

of the events, which will be evergreen in my life.

As I have been placed in NTPC, Noida, Sec- 24. I shared the real operational skills

and knowledge from their experienced, enthusiastic and cordial executives, without

whom I would have not been able to achieve my aim.

First of all I would like to express my thanks to Mr. Suresh Kumar Mehrotra

(Manager) of NTPC ( Consultancy Wing ) for permitting me to do the training at his

concern. I am also very grateful to Mr. A. K. Aggarwal for sharing valuable

experience and suggestions regarding training and preparation of report.

Further I would also like to extend my sincere ‘Thanks’ to Prof. Sanjay Dhingra

University School of Management Studies , GGSIPU for his valuable guidance,

suggestions and outstanding mentorship, during the course of my project without

which this project would have been a difficult task.



TABLE OF CONTENTS

S

Nos. Topic

Page

Nos.

1 ABSTRACT 2

2 COMPANY PROFILE 4

3 RESEARCH OBJECTIVE 13

4 INTRODUCTION 15

5 ADVERSE EFFECT OF ABSENTEEISM 20

6 TRENDS IN ABSENTEEISM 247 REMEDIAL MEASURES 25

8 RESEARCH METHODOLOGY 31

9 FINDINGS 33

10 ANALYSIS 45

11 CONCLUSION 47

12 RECOMMENDATION 49

13 LIMITATION 52

14 BIBLIOGRAPHY 53

15 ANNEXURE 54



ABSTRACT

“No men can tell what the future may bring forth and small opportunities

are often the beginnings of great enterprise.”



The importance of business management is being increasing realized in the industrial

and non-industrial areas both in India. This realization has come about because of

increasing importance of management evolved, just because to make their function

easy. As we know that a person having management degree works more efficiently

than the person not having any professional qualification does. To meet the problem

we know the different functions in any organization like functioning of HR deptt,

marketing and finance deptt .The main aim of this research project is to study

thoroughly the existing absenteeism problems in the organization. “Absenteeism is

the failure of a worker to report for work when he is scheduled to work.” To find out

the areas which require special concern of management and to equip the management

with latest trend in absenteeism? Absenteeism is a major barometer of employee

morale, absenteeism above 5% per week is very serious (3% is the standard goal of

industry). Left unchecked, high absenteeism usually develops into very serious

business problems including morale issues and high turnover. Absenteeism is a

universal problem in Industry and is not peculiar to Indian industry. But the rate of

Absenteeism has been relatively higher in India. What are the reasons for high rates of

Absenteeism and the increasing man-day lost? If the worker is committed to his job,

why does he stay away? Why is the labour force like a nuclear dump waiting for a

match to set it aflame? What are the adverse effects of abseentism? what are basic

causes like personal problems, socio-cultural problems, regarding job i.e. job

satisfaction, unawareness of rules and standing orders of absenteeism in the

organization.

Through interviews, questionnaire I came to know the problems, effects and find out

the new trends of absenteeism in the organizations.

Thus, Absenteeism affects the organization from the multiple angles. It affects

severely the production process and the business. The effect of unauthorized

absenteeism is more than the other types of absenteeism. However, it is difficult to

completely avoid absenteeism, but it can be minimized & controlled using various

measures. In NTPC, attendance management system is best and favorable for the

employees.



COMPANY

PROFILE



INTRODUCTIONINTRODUCTION

NTPC Limited (Formerly National Thermal Power Corporation) is the largest

power generation company in India. Forbes Global 2000 for 2009 ranked it 317th

inthe world. It is an Indian public sector company listed on the Bombay Stock Exchange

although at present the Government of India holds 84.5%(after divestment the stake

by Indian government on 19 October 2009) of its equity. With a current generating

capacity of 31134 MW, NTPC has embarked on plans to become a 75,000 MW

company by 2017. It was founded on November 7, 1975. NTPC's core business is

engineering, construction and operation of power generating plants and providing

consultancy to power utilities in India and abroad. The total installed capacity of the

company is 31134 MW (including JVs) with 15 coal based and 7 gas based stations,

located across the country. In addition under JVs, 3 stations are coal based & another

station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is expected

to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000

MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear

sources and around 1000 MW from Renewable Energy Sources (RES). NTPC has

adopted a multi-pronged growth strategy which includes capacity addition through

green field projects, expansion of existing stations, joint ventures, subsidiaries and

takeover of stations.

NTPC Limited (NTPC) was incorporated on November 7, 1975 as a wholly owned

PSE by the Government of India with the objective of planning, promoting and

organizing integrated development of thermal power plants to meet the power

requirements of the country. Within a span of 35 years, NTPC has emerged as a truly

national power company, with power generating facilities in all the major regions of

the country. NTPC became a ‘public limited’ company in September 1985.

The Core business of NTPC is engineering, construction and operation of power

plants and it also provides consultancy to power utilities in India and abroad. The

corporation began its operation by undertaking four green field projects to install four

thermal power stations in various locations. The locations were Korba (Chattisgarh),

Farakka (West Bengal), Singrauli (Uttar Pradesh) and Ramagundam (Andhra

Pradesh). The first Unit at Singrauli was synchronized in February 1982 and the unit

http://en.wikipedia.org/wiki/India


http://en.wikipedia.org/wiki/Forbes_Global_2000




http://en.wikipedia.org/wiki/Public_sector

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange




http://en.wikipedia.org/wiki/Public_sector

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange



commenced commercial operations from June 1982. Presently, NTPC is the largest

thermal power generating company in India. NTPC accounts for 18.79% in the total

installed capacity of the country and contributed 28.60% of the total power generation

of the country.

CORPORATE MISSION

“Develop and provide reliable power, related products and services at competitive

prices, integrating multiple energy sources with innovative and eco-friendly

technologies and contribute to society.”

CORPORATE VISION

"A world class integrated power major, powering India’s growth, with increasing

global presence."

CORE VALUES – BCOMIT

B -Business Ethics

C -Customer Focus

O -Organisational & Professional Pride

M -Mutual Respect & Trust

I -Innovation & Speed

T -Total Quality for Excellence



CHAIRMAN AND MANAGING DIRECTOR, NTPC LTD.

Shri Arup Roy Choudhury, Chairman & Managing Director since September 01,

2010, has an illustrious career spanning over 32 years of outstanding contribution in

the fields of engineering, general management, strategic management and business

leadership. He is a Graduate in Civil Engineering from Birla Institute of Technology,

Mesra and a Post-Graduate in Management and Systems from IIT-Delhi. A keen

learner of the latest professional developments, he is currently pursuing a doctorate in

‘Select Study of Project Performance Metrics in Indian Construction Industry’ from

IIT-Delhi.

Shri Choudhury brings to NTPC the dynamism of a leader with proven abilities to

achieve transformational changes. He seeks to position the Maharatna enterprise on

course to become the largest and best power producer in the world.

Shri Choudhury has the distinction of becoming the youngest Chief Executive Officer

of a Central Public Sector Enterprise (CPSE) at the age of 44 years when he joined as

Chairman & Managing Director, National Buildings Construction Corporation

Limited (NBCC) on April 03, 2001. Prior to that he had worked in prominent public

and private sector companies since 1979, when he started his career.

Shri Choudhury’s rich and varied contribution of over 32 years has been recognized

by prestigious professional, academic and Government institutions, both national and

international.

His vision, leadership and industriousness transformed NBCC, which was a sick

company with negative net-worth and salary back-log in 2001, into a blue-chipenterprise having Schedule ‘A’ and ‘Miniratna’ status bestowed upon it by the

Government of India. The stunning turnaround of the Company brought about by him

has enabled NBCC’s turnover grow about 10 times and net-worth over 500 times

during his tenure of nine-and-a-half years at the helm. He pulled NBCC out of the

abyss and catapulted it into the distinguished league of ‘Top Ten CPSEs’. Under him,

NBCC broadened its business horizons. Its entry into power project development

dovetails very productively with his new role as CMD, NTPC.



As Chairman, Standing Conference of Public Enterprises (SCOPE), the apex body of

central public sector enterprises (CPSEs), Shri Choudhury has been effectively

leading policy advocacy for greater empowerment of these enterprises. He is also

promoting the cause of greater professionalism, competitiveness, societal

commitment, transparency and global-benchmarking among the CPSEs.

Shri Choudhury believes in growth and excellence through proactive approach and his

dictum is “Sankalp Shuddha Hi Siddha” i.e. if your intentions are pure, you are bound

to succeed.

Shri Choudhury has a strong commitment for the well-being of the society at large.

His sharp focus on corporate governance and environmentally sustainable growth has been demonstrated in concrete actions and substantial benefits.



INDUSTRY PROFILE

India’s largest power company, NTPC was set up in 1975 to accelerate power

development in India. NTPC is emerging as a diversified power major with presence

in the entire value chain of the power generation business. Apart from power

generation, which is the mainstay of the company, NTPC has already ventured into

consultancy, power trading, ash utilisation and coal mining. NTPC ranked 341 st in the

‘2010, Forbes Global 2000’ ranking of the World’s biggest companies. NTPC became

a Maharatna company in May, 2010, one of the only four companies to be awarded

this status.

The total installed capacity of the company is 35,354 MW (including JVs) with 15

coal based and 7 gas based stations, located across the country. In addition under JVs,

5 stations are coal based & another station uses naptha/LNG as fuel. The company

has set a target to have an installed power generating capacity of 1,28,000 MW by the

year 2032. The capacity will have a diversified fuel mix comprising 56% coal, 16%

Gas, 11% Nuclear and 17% Renewable Energy Sources(RES) including hydro. By2032, non fossil fuel based generation capacity shall make up nearly 28% of NTPC’s

portfolio.

NTPC has been operating its plants at high efficiency levels. Although the company

has 17.75% of the total national capacity, it contributes 27.40% of total power

generation due to its focus on high efficiency.



In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25%

as fresh issue and 5.25% as offer for sale by Government of India. NTPC thus became

a listed company in November 2004 with the Government holding 89.5% of the

equity share capital. In February 2010, the Shareholding of Government of India was

reduced from 89.5% to 84.5% through Further Public Offer. The rest is held by

Institutional Investors and the Public.



At NTPC, People before Plant Load Factor is the mantra that guides all HR related

policies. NTPC has been awarded No.1, Best Workplace in India among large

organisations and the best PSU for the year 2010, by the Great Places to Work

Institute, India Chapter in collaboration with The Economic Times.

The concept of Corporate Social Responsibility is deeply ingrained in NTPC's culture.

Through its expansive CSR initiatives, NTPC strives to develop mutual trust with the

communities that surround its power stations.

GROWTH OF NTPC

Presently, NTPC generates power from Coal and Gas. With an installed capacity of

30,144 MW, NTPC is the largest power generating major in the country. It has

also diversified into hydro power, coal mining, power equipment manufacturing, oil &

gas exploration, power trading & distribution. With an increasing presence in the

power value chain, NTPC is well on its way to becoming an “Integrated Power

Major.”

Installed Capacity

http://www.ntpc.co.in/index.php?view=article&id=96:installed-capacity&tmpl=component&print=1&layout=default&page=&option=com_content&Itemid=175&lang=en



Be it the generating capacity or plant performance or operational efficiency, NTPC’s

Installed Capacity and performance depicts the company’s outstanding performance

across a number of parametres.

NO. OF PLANTS CAPACITY (MW)

NTPC Owned

Coal 15 23,895

Gas/Liquid Fuel 7 3,955

Total 22 27,850

Owned By JVs

Coal & Gas 4 2,294

Total 26 30,144

Regional Spread of Generating Facilities

REGION COAL GAS TOTAL

Northern 7,035 2,312 9,347

Western 6,360 1,293 7,653

Southern 3,600 350 3,950

Eastern 6,900 - 6,900JVs 8,14 1,480 2,294

Total 24,709 5,435 30,144



RESEARCHRESEARCH

OBJECTIVEOBJECTIVE



“To study the problem of Absenteeism & identifying the possible

main causes of the same”

With above objective I have under considered the following…

• To explore the possibilities of improvements in the current attendance

management system.

• To find out the areas which require special concern of management?

• To study the trends of absenteeism in the organization.

• To provide the suggestions in controlling & reducing absenteeism.



INTRODUCTIONINTRODUCTION



bsenteeism is a major barometer of employee morale, absenteeism above 5%

per week is very serious (3% is the standard goal of industry). Left unchecked, high

absenteeism usually develops into very serious business problems including morale

issues and high turnover. To reduce absenteeism, first check the percentage of

employee absenteeism by supervisor. Next you need to look at absenteeism a little

more closely, in terms of the principal reason given for it. Sometimes employees call

in sick when they really do not want to go to work. The answer to eliminate thosetypes of absentees is to develop an effective program that strikes at the core of the

issues.

Any program intended to cut down on absenteeism has to move along two parallel

paths. For example:

1. Find the causes of worker discontent and eliminate them.

If workers find their supervisor or job unpleasant - really unpleasant -

the worker looks for legitimate excuses to stay home and finds them

with upset stomachs, splitting headaches, aching wrists, etc. Any

effective absentee control program has to locate the causes of worker

discontent and modify them or eliminate them entirely. In other words,

if we deal with the real reasons workers stay home it becomes

unnecessary for them to look for those sickness excuses they actually

use.

2. Change the worker’s way of reacting and responding to

discontent.

Well, what are the real causes for worker discontent? Management

must try to change the worker’s ways of reacting & responding to

discontent as there is some fascinating correlations between types of

worker discontent and rates of absenteeism. Is the employee who

thinks they are underpaid more likely to miss a day here and there than



the employee who can’t stand their supervisor? Or is it the other way

around?

So, to bring the problem to the lowest, it is required to have a two way

communication, as both the needs of the employees & management must be met if

good attendance is to be achieved…

Research studies conducted by Shri Ram Centre for Industrial Relation, Employers

Federation of India and the National Council reveal the following peculiarities of

Absenteeism in India:

1) The rate of Absenteeism in India is more than 10%

2) A small percentage of employee (15%) account for a large percentage

(70%) of the total Absenteeism. These chronic absentees have negative

perceptions and attitude. For e.g. - the company is neither fair nor just;

supervisors are production centered; workgroup is unhelpful and

grievance handling, suggestions schemes & joint committees are more

formalities.

3) There has been a seasonal bias in the causes making for Absenteeism.

For e.g.- absenteeism due to sickness are high in July, September and

lowest in April and June.

4) Absenteeism has been greater in night shift then in days shift.

5) Absenteeism is higher in departments where supervisors are work

oriented and careless for employee welfare.

6) The rate of Absenteeism is likely to be higher in days before and after

a holiday.

7) Women tends to be absent more then men.

8) Workers tend to be absent more frequently then supervisors and

managers.

9) Absenteeism is generally higher in large organization then in small

organizations

10) Absenteeism is lowest on pay day and highest after payday.

11) There is tremendous scope for reducing Absenteeism through union

leadership within an organization.



ABSENTEEISM- What?ABSENTEEISM- What?

Absenteeism is in fact, merely the Symptoms of a “Disease” & not,

disease by themselves

Absenteeism has been defined under the factories act as: “the failure of worker to

report for work when they are scheduled to work.” Employees who are away from

work on recognized holidays, vacations, approved leaves of absence, or leaves of

absence allowed for under the collective agreement provisions is not included.

Absenteeism has been defined differently by various eminent authors…

“Absenteeism is the total man shifts lost because of absence as a percentage of the

total number of man shifts scheduled to work.”

LABOR

BUREAU

“Absenteeism is the failure of a worker to report for work when he is scheduled to

work.”

LABOR BUREAU (Govt. of India), Simla

Absenteeism could be further explained as-

“…unauthorized, unexplained, avoidable and willful absence from work”

“….the temporary cessation of work, for not less than one whole working day, on the

initiative of the worker, when his presence is expected”

Thus, Absenteeism is the temporary cessation of work, for not less than one whole

working day, on the initiative of the worker, when his presence is expected. At last, it



can be said that an employee is to be considered as scheduled to work when the

employer has work available for him and the employee is aware of it and the

employer has no reason to expect well in advance that the employee will not be

available for work at the specified time/day.

MEASURING CRITERIAMEASURING CRITERIA

Measurement of Absenteeism is very important because it facilitates analysis, forecast

the trends, find out reasons & suggest remedial measures.

Absenteeism cab be measured using following Formulae- By K.K. Vaid

Absence rate =

[Persons not working due to unauthorized leave + unauthorized absence] * 100

Man shifts actually worked

By Baldev R. Sharma

Absence ratio =

Number of days actually worked * 100

Man shifts actually worked

By US Employment Services

Absenteeism rate =

Number of employees days lost through absence *100

Average number of employees * Number of working days



ADVERSE EFFECT OFADVERSE EFFECT OF

ABSENTEEISMABSENTEEISM



Adverse effects of absenteeism are too many on both the Industry & the Workers



ON INDUSTRY

Absenteeism in industry

Stops machine,

Disrupts processes,

Hurdles in production,

Upsets production targets,

Production losses,

Increased direct overhead costs,

Increased workload of inexperienced or substandard worker as substitutes,

Problem of recruitment, training, job- adjustment, morale, attitude,

Idle machine hours,

Rise in production cost,

Delay in supply,

Deprives reputation of the company.



ON WORKERS

Ill-effects of absenteeism on those who cause it are equally baneful. Effect of

absenteeism on workers-

Adverse effect on economy of the worker himself;

Reduced earning;

Adds to indebtedness;

Decreased purchasing power;

Problem of attitude & low morale;

Loss of employment (in some cases).

.



TRENDS IN ABSENTEEISMTRENDS IN ABSENTEEISM

Recent surveys indicate the following trends in absenteeism.

• 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

• Women are absent more frequently than men

• 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

• The incidence of absenteeism is usually higher in the night shift than in the

day shifts.



Remedial Measures for Reducing Absenteeism

The definition of absenteeism, its causes, its effects on productivity, and its costs in

terms of finances and administrative effectiveness are quite clear. What is not as clear is how to take affirmative action to control absenteeism in such a way as not to create

mistrust, costly administration and systems avoidance (game players). Traditional

methods of absenteeism control based only on disciplinary procedures have proven to

be ineffective. It is almost impossible to create a fair disciplinary procedure because

even well run disciplinary systems, which treat similar actions in consistently similar

ways, are usually seen as unfair. The reason for this is discipline alone usually does

not identify or address the root causes of absenteeism. Every employee who takes

time off in defiance of company regulations has reasons, right or wrong, which justify

to themselves the legitimacy of their actions. Unless a management attendance

program identifies and addresses the causes of employee absenteeism it will be

ineffective and unfair. Traditional disciplinary programs alone can, at best, give the

illusion of control. It is no secret that there are ways to beat even the best systems.

The fear of discipline often only increases the desire to avoid management systems.

If absenteeism is to be controlled, the physical and emotional needs of employees

must be addressed. In a 1985 study on "Rates of Absence among Nurses" it was found

that 50% of absenteeism could be controlled through attending to employees physical

and emotional needs. It is required to develop a willingness on the part of all

employees to attend work regularly and to assist them in motivating their coworkers

to attend work regularly. This can be done through;

1. addressing the physical and emotional needs of employees

2. communicating the attendance goals of the organization so employees can

understand and identify with them

3. dealing with cases of excessive absenteeism effectively and fairly so

deterrence can occur

It is required to create work environments in which the following can be actualized.



1. The greater the extent to which individuals identify their goals with the goals

of the organization and care what happens to it, the greater their motivation to

be regular in attendance.

2. The more people find their jobs meaningful to them, the greater their

motivation to be regular in attendance.

3. As employee’s workload increases due to the absence of a co-worker, peer

pressure is exerted on the absent co-worker to attend work on a regular basis.

4. The more people like working for the organization the higher their motivation

to attend regularly. Recognition of good employee attendance helps improve

attendance.

5. Employees will have a lower absence ratio if they feel free to discuss their on-

the-job problems with their immediate supervisor.

6. Employees with a low absence ratio have attitudes of confidence and "team"

spirit.

7. Low absence ratio employees are found to be more satisfied with their

opportunity for promotion and upgrading.

Remedial measures could be taken for each causes of absenteeism.

These remedies can be classified as-

1) ORGANIZATIONAL REMEDIES:

Each organization is unique. Hence, suggestions based on certain broad assumptions

are-

Carry out periodic collection of data on absenteeism & analyze them to find

out the trend of absenteeism ( trade wise, sex wise and age wise for further

studies).

Find out

- Causes & correlation of absenteeism

- Gap between employee’s expectation & reality



- Level of job satisfaction of employees on the basis of attitude

survey.

Introduce suggestion scheme and obtain employees view points for reducing

absenteeism.

Improve supervision & communication.

Introduce incentive scheme like “Attendance Bonus”

Improve working conditions

Improve welfare, safety & health schemes

Impose penalty/punishment/fines for absence

Improve organizational climate/culture.

Increase Quality of Work life (QWL) of employees

Introduce flexi-timing, if feasible.

2) ENVIRONMENTAL REMEDIES:

Provide campus/quarters & housing facilities on hire or hire-purchase

basis

Improve hygiene of living quarters

Provide reasonable health care/hospital facilities

Provide services like subsidised canteens, transport & schools

Organize religious/cultural festivals & facilities including temples etc.

Propagate family welfare schemes & virtues of maintaining small

family.

Organize sports & other recreational and entertainment facilities

3) PERSONAL REMEDIES:

Increase intrinsic motivation

Identify “Chronic absentees” and attend them individually



Carry out counseling of individuals (chronic absentees)

Introduce participative management system by discussing problems regarding

absenteeism & arriving at remedial steps in consultation with employees

Introduce both positive steps (incentive bonus for better attendance) &

negative steps (disciplinary actions like fine)

Take preventive steps to avoid accidents & alcoholism

Provide permanent counselors to carryout individual counseling

So managers must take critical look at their policies, corporate culture as absence

policies are often not used for the purposes they are intended. Before employers can

determine the best way to combat absenteeism, they must identify the organizational

and individual factors that contribute to the problem.

Among the most common potential problem areas employers need to explore are-

Job Satisfaction: Employees who like their job are more likely to come to

work than those who find work unstimulating.

Work Attitude: Some employees come to work no matter how sick they feel,

while others call in sick no matter how well they feel.

Company Culture: If management’s attitude is lax and absenteeism is accepted

as a normal practice, the organization’s culture may have to be changed before

attendance can be improved.

Excessive rates of sick leave: As some insurance companies are now are

doing, employers need to monitor sick leave rates and reward employees whouse fewer sick leaves.

Thus, Absenteeism affects the organization from the multiple angles. It affects

severely the production process and the business. The effect of unauthorized

absenteeism is more than the other types of absenteeism. However, it is difficult to

completely avoid absenteeism, but it can be minimized & controlled using various

measures…



Selecting the employees by testing them thoroughly regarding their aspirations

value system, responsibility and sensitiveness.

Adopting humanistic approach in dealing with the personal problems of

employees.

Following proactive approach in identifying and redressing employee

grievances.

Providing hygienic working conditions.

Providing welfare measures and fringe benefits balancing the need for the

employees and the ability of the organization.

Providing high wages and allowances based on the organizational financial

position.

Improving the communication network, particularly, the upward

communication.

Providing leave facility based on the needs of the employees and

organizational requirement.

Providing safety and health measures.

Providing cordial human relation and industrial relations.

Educating the workers.

Counseling the worker about their career, income and expenditure habits and

culture.

Free-flow of information, exchanging of ideas, problems etc. between

subordinate and superior.

Granting leave and financial assistance liberally in case of sickness of

employee and his family members.

Offering attendance bonus and inducements.

Providing extensive training, special allowances in case of technological

advancements



Once you know the cause of absenteeism in the organization, it become easy to

correct, or minimize, the problem. It requires insight into the special dynamics present in

your work place. It will require two-way communication, as both the needs of the

employees and of management must be met if good attendance is to be achieved.

Attendance is not an expectation. It is a right of employers to have good attendance. Each

and every employee has a contractual obligation to attend work regularly. All levels of

management must believe in, be committed to, and communicate their expectations of

good attendance. If a specific number of sick days are considered acceptable per

employee, at best that will be the result. Employees will live up or down to expectations.

Expectations must be clear to both management and employees in order to bring

absenteeism to the lowest. Attendance expectations must be clearly communicated and

followed.



RESEARCHRESEARCH METHODOLOGYMETHODOLOGY



RESEARCH DESIGN

The nature of this research report is both Descriptive & Exploratory. The study was

conducted through the use of Questionnaire method & Opinion survey method. These

questionnaires were distributed to the sample selected randomly from the entire Noida

unit. Total sample size was 50 employees.

These questionnaires were distributed among the permanent employees of NTPC

Noida having a history of absenteeism.

DATA COLLECTION METHOD

Two methods of data collection have been followed in the research:

1- Primary method

In this method questionnaires were distributed among trained employees &

direct interview has been taken, to collect the data.

2- Secondary method

Under this method help of different books, journals & web sites was taken to

gather the information.

SAMPLING

The sampling is based on probability i.e. a sample size of 50 employees have been

selected randomly from Noida unit of NTPC to study the problem of

ABSENTEEISM. Probability sampling has been used as it is the only sampling

method that provides essentially unbiased estimates having measurable precision.

SAMPLE UNIT:



The employees, having the history of absenteeism have been taken as sample unit.

SAMPLE SIZE: 50 employees having history of absenteeism have been selected as

sample size i.e. the total sample size was 50 employees.

FINDINGS



Age group of absentees

Younger employees were found absent more frequently

than the older employees but latter get absent for longer

periods of time.

MEAN: 1740/50 =35

MEDIAN: 35

MODE: 35



Gender of absentees

Female employees were found more frequently absent

than their male counterpart.

FREQUENCY C.F

MALE (20%) 10 10

FEMALE (80%) 40 50

MEAN: 50/2 =25



MEDIAN: (50+1)/2 =25.5TH ITEM, Median class is

female

MODE: female have high frequency

Location/Residence

It was found that employees those who were residing

outside the NTPC campus get absent more frequently.

Reason may be the Conveyance problem, so management

must provide the conveyance to the employees who reside

outside the campus. This will to an extent help in

controlling the absenteeism problem.

FREQUENCY C.F



NTPC CAMPUS (34%) 17 17

OUTSIDE (66%) 33 50

MEAN: 50/2 =25

MEDIAN: (50+1)/2=25.5TH ITEM, Median class isoutside.

MODE: frequency of outside is highest, so mode is

outside campus

Absentees having side business

40% of absentees were found having engaged in side

business..

FREQUENCY C.F

YES (40%) 20 20

NO (60%) 30 50



MEAN: 50/2 = 25

MEDIAN: 51/2 =25.5TH ITEM, Median class is no.

MODE: mode lies in no, as frequency of employees

having side business is less.

Job Satisfaction

Usually job dissatisfaction is considered to be a root cause

of absenteeism. But surprisingly, there was no apparent

connection found in between job satisfaction &

absenteeism.

As 94% of absentees were totally satisfied with their job.



FREQUENCY

C.F

NOT SATISFIED (6%) 33

SATISFIED (94%) 47

50

MEAN: 50/2 =25

MEDIAN: (50+1)/2 =25.5TH ITEM as, 94% absentees are

satisfied from the job

MODE: Frequency of satisfied employees is more

Satisfaction level regarding job environment

The answer revealed that there was no apparent

connection between the absenteeism & the job

environment.



Here we are talking about the actual physical working

conditions at work….heat, light, air, conditioning etc.

Many of workers, who said they were satisfied with their

job environment, had poor attendance records. Manyother who said they were unsatisfied; were never absent.

So, no doubt, this factor has a great bearing on

absenteeism. The result shows why there is not a serious

of absenteeism in NTPC.

FREQUENCY

C.F

NOT GOOD (14%) 7

7

GOOD (86%) 43

50

MEAN: 50/2=25

MEDIAN: (50+1)/2=25.5, Satisfactory level regarding

job environment is good.



MODE: frequency of the employees regarding job

environment is good and more.

Awareness regarding leave rules

In the answer to this question, there was a dramatic switch

over. As 84% of employees (absentees) were found

unaware of the leave rules.

This gives the impression that there is a partial awareness

or unawareness among employees.

So, there is a need to take various steps to make

employees aware of leave rules & procedure through

various tools & introductory programmes.

FREQUENCY

C.F

FULLY AWARE (16%) 8

8

UNAWARE (84%) 42

50



MEAN: 50/2= 25

MEDIAN: (50+1)/2 =25.5, unwareness regarding leave

rules is more.

MODE: more frequency of unawareness is more.

Relationship with colleagues

88% of absentees enjoy a good relationship with their

colleagues. Though this factor plays a deciding role & has

an impact on the rate of absenteeism. But the data shows

that, at least at NTPC Noida, this factor has no or very

negligible correlation with the absenteeism.

FRQEUENCY C.F

NOT GOOD (12%) 6 6

GOOD (88%) 44 50

MEAN: 50/2=25



MEDIAN: (50+1)/2=25.5TH ITEM, Relationship with

colleagues is good.

MODE: As frequency is more.

Feeling about company

Here that identifiable thing called “company image” was

questioned.

Everyone was given 5 answers to choose from

….excellent, good, fair, not so good, or very poor.

The feeling of most of the employees or absentees was

excellent & good. Once again no connection at all.



FREQUENCY C.F

FAIR (10%) 5

5

EXCELLENT (40%) 2025

GOOD (50%) 20

50

MEAN: 50/3= 16.6

MEDIAN: (50+1)/2 =25.5TH ITEM, feeling about

company is good, as 25.5th item lies in good category.

MODE: Frequency of good is more.

Awareness regarding standing orders

The answer of this question “Are you aware of the

“Standing Order”, the findings were very

alarming/shocking. A major portion of about 76%

employees were found unaware of these orders.

This is a major backdrop and defect on the part of

management. Management must strictly work towards



developing awareness among employees regarding the

Standing Orders.

FREQUENCY C.F

YES (24%) 12 12

NO (76%) 38 50

MEAN: 50/2= 25

MEDIAN: (50+1)/2 =25.5TH ITEM, as awareness

regarding standing orders lies in no category.

MODE: frequency is more in no category.

Main causes of absenteeism

There are many factors that contribute to absenteeism.

The absence from job may be both authorized &

unauthorized. The figure enunciates/reveals that it was

due to…

• Sickness, Accidents or Maternity: these factorsaccounted for about 22% of absenteeism



• Social & Religious Causes: under these factors

are clubbed such issues like visiting villages for

attending marriages and other social ceremonies,

besides regular attendance at home town at the

time of religious festivals. Such factors were

found causing as high as 30% of total absenteeism.• Job Dissatisfaction: as the level of job satisfaction

is quite good at NTPC but 8% of employees

accounted the problem of absenteeism to Job

Dissatisfaction.

• Other causes: like visiting villages for attending

litigation, matters, rest, recreation & other causes

was accounted for 40% of absenteeism.

FREQUENCY

C.F

JOB DISSATSIFACTION (8%) 4

4

SICKNESS (22%) 11

15

SOCIAL& RELIGIOUS (30%) 1530

OTHER (40%) 20

50

MEAN: 50/2 =25

MEDIAN: (50+1)/2= 25.5TH ITEM, as main cause of

absenteeism lies in others category.

MODE: Frequency is more in others category.



ANALYSISANALYSIS



• Social & Religious Causes (30%) and Sickness,

Accidents or Maternity (22%) has been revealed

as the main cause for Absenteeism by most of the

employees. While other causes- like visitingvillages for attending litigation, matters, rest,

recreation etc. was accounted for absenteeism by a

majority of (40%) employees.

• Younger employees of less than 25yrs of age were

found absent more frequently than older

employees but the latter are absent for longer

periods of time

• A majority of employees were found unaware of

Leave Rules (76%)

• 84% employees were not familiar of Standing

Orders.

• It was found that female employees get employees

get more frequently absent as compared to their

male counterpart.

• Employees who live outside the NTPC campus

were found frequently absent then local

employees. A majority of employees of about 66%

who get absent were found to be from outside the

NTPC campus.



• 40% of absentees/employees were found running

their side business.

• Their has been found no correlation between job

dissatisfaction & absenteeism at NTPC Noida as

most of the absentees were fully satisfied with

their job & work environment.

CONCLUSIONCONCLUSION



No doubt Absenteeism is a universal problem in the

industry & is not peculiar to Indian industry. It has been

observed that the phenomenon of Absenteeism does not

exist only in Indian industry; it is a universal fact. The

difference is only in terms of magnitude. The rate of

Absenteeism varies from industry to industry, place to

place, occupation to occupation. It differ according to the

make-up of the work force.

It as a major barometer of employee morale, absenteeism

above 5% per week is very serious (3% is the standard

goal of industry). Left unchecked, high absenteeism

usually develops into very serious business problems

including morale issues and high turnover.

If absenteeism is to be controlled. - The physical and

emotional needs of employees must be addressed. Insight

into the special dynamics present in work place & two-

way communication is required, as both the needs of the

employees and of management must be met if good

attendance is to be achieved



From the study conducted in NTPC Noida, it is concluded

that the attendance management system is such good; the

facilities, work environment are best of its kind, that the

rate of Absenteeism is almost negligible.

NTPC strongly believes in achieving organizational

excellence through Human Resources and follows

“People First” approach. The success can largely be

attributed to the continuous fulfillment of all the corporate

objectives, one of which seeks to adopt an appropriate

Human Resource Development policy. It has taken a

number of steps and measures, small or big, which

together have contributed in evolving an integral Human

Resource Management approach in NTPC. An in depth

analysis of HR related problems like Absenteeism and

their causes, is done time to time to lay down appropriate

policies, rules and norms for the complete well being of

its employees. It considers HR as the most valuable

resource and the company is committed to provide all

possible facilities & opportunities to keep the employees

committed to attendance.

So, In order to develop willingness on the part of all

employees to attend work regularly & to assist them in

motivating their co-workers the company is taking all

possible steps.



RECOMMENDARECOMMENDA

TIONSTIONS



No doubt there is no serious absenteeism problem in the

Noida unit of NTPC & it is working hard towards

bringing it to its lowest. The Attendance Management

System of this unit is really best and need to be applauded

but it still require a little bit of perfection in areas…

Affirmative action need to be taken to control

absenteeism in such a way as not to create

mistrust, costly administration & systems avoidance.

Employees need to be made aware of leave rules

& standing orders.

The physical & emotional needs of employees

must be addressed.

Management must try hard to develop a

willingness on the part of all employees to attend

work regularly & to assist them in motivating their

co-workers to attend work regularly.

Management must work towards the successful

administration of an attendance management

program

Absence policies need to be critically looked upon

as these are often not used for the purposes they were

intended.

Management must explore the most common

potential problem areas like job satisfaction, work



attitude, company culture, and excessive rates of sick

leaves.

Management must strictly work towards findingout the causes of worker discontent & eliminate them.

Management must & need to look at absenteeism

a little more closely, in terms of the principal

reason (sickness…) for it.

Worker’s way of reacting & responding to

discontent need to be changed.

The organization should make employees aware of

& understand the loss by abseentism to them.

The practice of participative management should

be preferred.

The organization should provide various health

(physical & mental) schemes not only for the

employees but also for their family members.

Cultural programmes should be organized to relive

the job stress.

Various programmes should be organized to

reduce alcoholism & drugs use among workers.

100% attendance award must be introduced.



LIMITATIONSLIMITATIONS

Time Constraint

Some respondents were biased.

Some refused to cooperate at all.

Management refused to disclose some of the

relevant data/information.



BIBLIOGRAPH

Y

BOOKS

Personnel management- “V.S.P. Rao”

Research methodology- C.R.Kothari

Journals and magazines

: Human potential,

: Times of India

: Human resource capital magazine Article-

“absenteeism problems in today scenario”

WEBSITE

• www.google.com

• www.citehr.com

• www.hrtools.com

http://www.google.com/

http://www.hrtools.com/

http://www.google.com/

http://www.hrtools.com/



• www.humanresources.com

• www.hrguide.com

http://www.humanresources.com/

http://www.hrguide.com/

http://www.humanresources.com/

http://www.hrguide.com/



QUESTIONNAI

RE

Q 1.What is the age group of absentees?

a.25 b.25-35 c.35-45

d.above

Q 2.Which gender is mostly found absent?

a. male

b.female

Q 3.What is the location/residence of the absentees?



………………………………………………………

……………………………………

Q 4.Are the absentees having a side business?

a.Yes

b.No

Q 5.What is the satisfaction level among absenteeism?

a. Satisfied

b. not satisfied

Q 6.What level of satisfaction do the absentees have

regarding environment?

a.Good

b.Not Good

Q 7.Are absentees aware about the regarding policy

regarding leaves?

a.Fully aware

b.Unaware

Q 8.What type of relationship do the absentees have with

there colleagues?

a.Good

b.Not Good

Q 9.What do they feel about the company?



a.Excellent b.Good

c. Fair

Q 10.How much awareness do absentees have regarding

standing orders?

a.Yes b.No

Q 11.What is the major causes of absenteeism?

a. sickness b.social and religious c.job

dissatisfaction d.others

Ashish Chaudhary 08516603910 GH BATCH

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