Introduction Absenteeism

Chapter I Introduction

1.1 Meaning:

Today the success of industrial development in a country is largely

determined by the efficiency and experience of its labour force. In this

regard, the problems of absenteeism and labour turnover are of great

significance. It is the efficiency and experience of workers that would

ultimately decide the success of an industry, while the experience and ability

of workers largely depend on the elimination of the problem of absenteeism

of workers in the industry.

Absenteeism is a major problem that uproots the economic prosperity

of any industry or an organization. It can be reduced but not completely

eradicated. It is an ever-existing problem of the industrial sector. Throughout

the world absence from work has generally been considered on the increase,

even though many companies have positive programmes attempting control

absenteeism. In spite of the absence control programmes absentees continue

to hurt corporate profits severely. In general, the absent rate indicates the

relative cost to a given company, because production worker simply cannot

produce as much annually when absent rates are high as they can when

absent rates are low.

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Absenteeism is a huge, but largely neglected, problem for employees.

Labour costs spring first to mind when a company wants to reduce

overheads. But while initial attempts to control these almost always focus on

direct costs such as wages and benefits or employee numbers, other costs

remain hidden. One of those is absenteeism; companies lose hundreds of

rupees each year through absenteeism.

Absenteeism is one of the most widespread obstacles to productivity,

profitability and competitiveness. It causes overtime, late deliveries,

dissatisfied customers and a decline in morale among workers expected to

cover for absent colleagues. The indirect costs often exceed the direct while

the absenteeism cause considerable losses to the company. It also affects its

operations in terms of achieving its ultimate objectives.

No organization can afford to neglect such costs due to worker

unnecessarily abstaining from work. The company has to tackle not only

production problem but at the same time they have to keep a vigil on the

causes of absenteeism and introduce a system to effectively control this

problem.

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If all factors of production, human factor plays a decisive role in

achieving the end results. But when this human factor in itself is not

functioning properly, the adverse effects will be felt in every other aspect.

Thus the problem of absenteeism assumes importance as a subject of priority

for discussion.

Absenteeism is also found to be sensitive to a number of economic variables

including earnings and work length. Absenteeism also is found to be more

pronounced in workplaces with large proportions of blue-collar workers and

when there is a large amount of discontent with working conditions;

Absence levels are affected by the age profile of the workforce. The highest

levels are found amongst the youngest and oldest workers. The absence

pattern for young employees showed a predominance of single-day

absences. Older employees tended to have fewer absence spells, but spells of

longer duration, suggesting serious illness as an outcome of aging;

Small minorities of employees are responsible for a substantial proportion of

absence in any organization (the chronic absentees); and Absenteeism is

influenced by management practices. Such practices begin with monitoring

the problem followed by feedback, employee counselling, maintenance of

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rigorous safety procedures, and incentive systems. More generally,

absenteeism was lowest in environments where employee morale was high.

1.2 Definitions:

Absenteeism has been variously defined by different authorities.

According to Webster’s dictionary, “absenteeism is the practice or

habit of being an ‘absentee,’ and an ‘absentee’ is one who habitually stays

away.”

According to Sri J.D. Hackett, “Absenteeism means temporary

cessation of work, for not less than one whole working day, on the initiative

of the worker, when his presence is expected.”

According Labour Bureau, Simla, “absenteeism is the total man shifts

lost because of absences as a percentage of the total number of man shifts

scheduled to work.”

So, we can define absenteeism as to be the manifestation of a decision

by an employee not to present himself at his place of work at a time when it

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is planned by the management that he should be in attendance and when he

has been notified of such expectation.

1.3 Measurement of Absenteeism

Absenteeism is a workers trend to stay away from work, when

he is scheduled to work. As a matter of fact, it is unauthorized, unexplained,

avoidable and willful absence from work. Lack of uniform method and

precise definition of absenteeism have created measurement and

interpretational problem. Each method of measurement and definition of

absenteeism adopted by different agencies will cater to their individual

purpose and requirements.

1.4 Rate of Absenteeism

The absenteeism rate is defined as the total man-shifts lost because of

absences as a percentage of the total number of man-shifts scheduled. For

calculating rate of absenteeism we require the number of persons scheduled

to work and the number actually present. Thus, we can estimate the rate of

absenteeism in the following manner.

Rate of Absenteeism = No. of total man-shifts lost X 100

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No. of man-shift scheduled

It has also been made clear in the circular of the Labour Department,

Government of India that, if a worker reports for any part of a shift, he

should be considered as present. An employee is to be considered scheduled

to work when the employer has work available and the employee is aware of

it, and when employer has no reason to expect, well in advance, that the

employer will not be available for at the specified time. The circular further

clarified the application of the above principle with the help of the following

example. A worker on a regularly scheduled vacation should not be

considered as scheduled lay-off. On the other hand, an employee who

request time-off, at other than a regular vacation period , should be

considered as absent from the scheduled work until the returns, or until it is

determined that the absence will be of such a duration that his name

removed from the least of active employees. After this date he should be

considered as neither scheduled to work nor absent. Similarly an employee

who quits without notice should be considered as absent from scheduled

work until his name is dropped from the active list, but preferably this period

should not exceed one week in either case. If a strike is in progress workers

on strike should be considered as neither scheduled to work nor absent, since

data on time lost because of strikes are collected by other means.

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Thus for the purpose of calculating the rate of absenteeism, the term

“absence” has been defined as, “the failure of a worker to report for work

when he was scheduled to work. A worker is considered to be scheduled to

work when the employer has work available for him and the worker is aware

of it. Authorized the absence is also treated as absence while presence for a

part of the day or shift is treated as presence for the whole day or the shift.

Absence on account of strike, lock out or lay of is excluded.”1

1.5 Absenteeism Trends in Indian Industry

The trends and patterns of absenteeism in Indian industries can be

studied by collecting, analyzing and interpreting absenteeism statistics.

Certain state government and employees association of Northern India

collects these statistics from the various units on important industries on a

monthly basis. The Director General of Mine Safety (DGMS) also collects

these statistics statutorily from all coalmines.

For calculating the rate of absenteeism we require the number of

persons scheduled to work and the number of actually present and “absence

rate” as indicating total time-loss due to all reasons whether authorized or

unauthorized.

1B. P. Tyagi, Labour Economics and Social Welfare, Jai Prakash Nath & Co., Educational Publishers,

Meerut (UP), Eighth Edition 1999/2000, pp. 63-64

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The studies on absenteeism in India integrated some important trends

such as;

1. The rate of absenteeism is the lowest on pay day; it increases

considerably on the days following the payment of wages and bonus.

2. Absenteeism is generally high among workers below25 years of age

and those above 40.

3. The rate of absenteeism varies from department to department within

a unit.

4. The percentage of absenteeism is generally higher in the night shifts

than in the day shifts.

5. The percentage of absenteeism is much higher in coal and mica

mining industries than in organized industries.

6. 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 the harvest season (September-October), when the rate

goes as high as 40 percent.

7. Female workers tend to remain absent more than male workers.

8. As the size of the group increases, rate of absenteeism also increases.2

2 Dr. C. B. Memoria and S. V. Gankar, Personnel Management – Text & Cases, Himalaya

Publishing House, New Delhi, Reprint Edition: 2002, pp. 264-265

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1.6 Types of Absenteeism:

There are mainly two types of absence. They are;

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

labour 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 labour

relations context this means that progressive discipline can be applied.

Dr. K. N. Vaid classifies chronic absentees into five categories:

Entrepreneurs;

Status-seekers;

Epicureans;

Family-oriented; and

The sick and the old.

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The entrepreneurs are those absentees who consider their jobs to be very

small for their total interests. They are simultaneously engaged in several

economic and social activities. The motive force behind all such activities is

the desire for more money, status, power, and the satisfaction arising out of

achievement and social recognition.

The status-seeking absentees are those who enjoy or perceive a higher

ascribed social status and are keen on maintaining it. The shop floor status

achieved by them is much lower than the one they enjoy outside. The

discrepancy between the ascribed and the achieved status is the primary

cause of deviant work behavior.

The epicureans are disinclined to undertake activities which call for

initiative, responsibility, discipline, and physical discomfort. They desire

money, status, and power, but are unwilling to work for their achievement.

The family-oriented become chronic absentees because of their over-

identification with family affairs. The lack of balance between family

involvement and job responsibility is the principal cause of their deviant

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work behavior. Chronic illness of one or other family member, litigation,

delinquency, working wife, etc, impels them to be absent from work.

The sick and old type remains absent from work by reason of ill health,

weak constitution, chronic disease or old age.

1.7 Causes of Absenteeism

There are several factors responsible for workers to remain absent

from work. It varies from department to department within an organization,

industry to industry within the economy. Place to place and also time to

time.

i. Maladjustment with Factory Conditions: As a worker

continues to live in the city, urban life becomes distasteful to him because of

the insanitary conditions prevailing there. He finds himself caught within

great factory walls; he is bewildered by heavy traffic, by jostling, by

strangers speaking different languages; he is confused by different religions

and tastes; and he is weary of the misery of slums and of toiling for long

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hours. He is subject to strict discipline and is ordered by complete strangers

to do the things which he cannot understand.

ii. Social and Religious Ceremonies: Social and religious

functions divert workers from work to social activities. In a large number of

cases, the proportion of absenteeism due to sickness, accident or maternity is

not as high as it is due to other causes, including social and religious causes.

iii. Unsatisfactory Housing Conditions: The workers who

come to towns usually find that they are not wanted and they swell the

number of unemployed and casual workers. They also experience housing

difficulties.

iv. Industrial Fatigue: Low wages compel a worker to

seek some part-time job to earn some side income. But this often results in

constant fatigue, which compels him to remain absent for the next day; and

if fatigue affects him seriously, his absence may continue for quite some

time.

v. Unhealthy Working Conditions: Irritating and

intolerable working conditions exist in factories. Heat and moisture (which

rapidly exhaust the worker), noise and vibrations in the factory (which affect

his hearing), bad lighting conditions (which cause eye-strain), dust, fumes

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and over-crowding all of these affect the workers health, causing him to

remain absent for a long time.

vi. Absence of Adequate Welfare Facilities: Absenteeism

is also due to the inadequate welfare facilities available to workers, for a vast

majority if industrialists in India still look upon welfare work as a barren

liability rather than a wise investment.

vii. Alcoholism: The habit of alcoholism among workers is

a significant cause of absenteeism, which is high in the first week of each

month, when workers receive their wages. They rush to liquor shops and

drink to forget their immediate worries. Once indulged in drink, the habit

continues. Hangover the next day leads to absenteeism.

viii. Indebtedness: Most of the workers suffer from high

degree of indebtedness.

ix. Improper and Unrealistic Personnel Policies: In most

cases, unskilled, untrained, illiterate and inexperienced workers are recruited

who fail to cope with, and adapt themselves to their jobs and to their

industrial environment.

x. Inadequate Leave Facilities: Negligence on the part of

the employer to provide adequate leave facilities compels the workers to fall

back on E.S.I. leave.

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The forgoing analysis influencing absenteeism concludes that almost

all the causes of absenteeism behavior are directly from socio-

economic, demographic, cultural and behavioral profile of employees

and the prevailing organizational climate in each individual

establishment.

1.8 Effects of Absenteeism

The effects of absenteeism are too many to be listed. We can describe

them under four broad categories.

A. Losses in productivity & production:

It causes production losses in terms of quantity and quality.

Earnings of the organization are reduced.

Work schedule is disturbed, dislocation of work is caused

due to machine idleness, and production capacity is lost or

under utilized due to under-staffing.

Absenteeism could at critical points put the whole

machinery out of gear, due to inter-dependence systems in

modern industry. It creates bottlenecks in production.

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B. Increased loss to the Industry:

It results in loss of manpower, a day lost is resource lost.

Labour lost is increased by employing additional labour and

providing of leave reserve etc.

Overtime payment may become necessary for the worker,

who is doing the job for the missing worker.

As machines remain idle in highly capital

intensive industries, it results in low degree of capital

utilization.

Absenteeism results in increase in direct

over-heads such as training of employees in other trades

clerical efforts in recording, absentee increased cost of

administration in finding substitutes etc.

It causes an additional strain on those who

are present.

The loss in terms of difference between potential and actual

profile may be considerable.

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C. Losses to workers:

It also results in losses to workers i.e., financial loss in terms of

reduced wages, bonus, lesser incentives payment and consequent

hardships to the families of the employees.

Loss in skill and efficiency of the absentee worker.

To habitual absentees it causes general morale degeneration.

Stability of work performance at high place is affected.

The effects of habitual absentees on the average attendance

and general discipline are very bad.

D. General:

Any absence weakens the company’s goals and productivity.

The loss due to absenteeism is two fold. To start with, there is a

distinct loss to workers because the irregularity in absence –

reduces their income when no work, no pay is the general rule.

On the other hand the loss to the employers is still greater as on

both discipline and efficiency suffers and production goes down.

Moreover, either additional complement has to be maintained

throughout the year to meet the emergency or the industries have

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to depend solely on workers who present themselves at the gates

and who are generally not up to the mark.

The maintenance of an extra complement of workers leads to

serious complications and evils. Hence absenteeism is an evil

both for the employers and the employees as well.

1.9 Measures for Control of Absenteeism

Absenteeism is a serious problem for a management because it

involves heavy additional expenses. The management is generally uncertain

about the probable duration of an employee’s absence and cannot take

appropriate measures to fill the gap.

1. Adoption of well defined recruitment procedure:

The selection of employees on the basis of communal,

linguistic and family considerations should be discouraged. The

management should look for aptitude and ability in the prospective

employees and should not easily to yield to pressure or personal likes

or dislikes. The personnel officer should play a more effective role as

a co-ordinator of Information, provided the he has acquired job

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knowledge in the function of selection. Selection should be for

employees development, their reliance, therefore, on intermediaries

for the recruitment of employees should be entirely done away with

they should as far as possible, rely on employment exchanges.

2. Provision of Healthful and Hygienic Working Conditions:

In India, where the climate is warm and most of the work involves

manual labour, it is essential that 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 be provided.

3. Provision of Reasonable Wages and Allowances and job

Security for Workers:

Some of the wages of an employee determine his as well as his

family’s standard of living, this single factory is important for him

than any other. The management should, therefore, pay reasonable

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wages and allowances, taking into account the capacity of the industry

to pay, the level of wages prevailing in different units of the same

industry in the same area in neighbouring areas, the productivity of

labour and the general effect of rising wages in neighbouring

industries.

4. Welfare and Social Measures:

The management should recognize the needs of workers and

offer them adequate and cheap housing facilities, free or subsidized

food, free medical aid and transportation facilities to and from their

residence, free educational facilities for their children, and other

monetary and non-monetary benefits.

5. Improved Communication and Prompt Redressal of

Grievances:

Since a majority of the workers are illiterate, bulletins and

written notices, journals and booklets are not understood by them.

Therefore, timely illustrations and instructions, meetings and

counseling, are called for. As for grievance settlement, the

management should recognize that a delayed grievance might become

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a complicated case. A procedure for fair and prompt redressal of

grievances is, therefore, essential.

6. Liberal Grant or 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,

7. 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, over-confidence, carelessness, vanity, etc., and such

material factors as unguarded machinery and explosives, defective

equipment and hand tools.

8. Cordial Relations Between Supervisors and Workers:

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The supervisor should recognize that industrial work is a group

task and cannot be properly done unless discipline is enforced and

maintained. The problem of industrial discipline become serious when

“the end is not accepted as necessary or desirable, when there is no

common aim between the discipliners and the disciplined; and

discipline then becomes a mere frustration of the human purpose,

stunts the development of the human personality and embitters human

relations, for it is then a denial of freedom to the individual.”

9. Development of Worker’s Education:

The system of workers 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 a happy integrated life in the community.

10. Other Measures:

a. There should be clear and definite rules and regulations on

authorized and unauthorized leave.

b. The rules and regulations relating to attendance must be

explained to workers.

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c. A proper record of each worker’s attendance should be

maintained n a special daily attendance card.

d. A supervisor should not be regarded as “another worker” and

should be given definite authority to take action in all cases of

absenteeism.

The employer, the employee and the State have a definite role to play.

If each performs it properly and harmoniously, the problems of

inefficiency, undesired conflict, low productivity, dissatisfaction on

the part of workers and their low morale resulting in frequent

absenteeism can be largely eliminated.

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Introduction Absenteeism

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