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ANALYSIS OF EMPLOYEE SATISFACTION & ITS IMPACT ON ABSENTEEISM AT

FAIRFIELD ATLAS

CHAPTER I

INTRODUCTION

Title of the project: Analysis Employee satisfaction & its impact on

Absenteeism at FAIRFIELD ATLAS.

LITERATURE REVIEW

Absenteeism is referred to as failure of employees 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 would not be included.

Since absenteeism is a major barometer of employee morale, absenteeism

above 5 percent has to be considered as very serious (across most industries 3 percent

is considered standard).

Left unchecked, high absenteeism can rapidly develop into serious business

problems including morale issues and high turnover.

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.

Belgaum Institute Of Management Studies--------------------------------------------------------------------------------------------------------------

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---------------------------------------------------------------------------------------------------------------------------Absenteeism is calculated using the formula:-

Absenteeism Rate = Number of lost working days due to absence /(Number of

employees) x (Number of Workdays) x 100

Employee satisfaction is referred to as encompassing employee’s overall

attitude and feelings about their job and their work environment.

STATEMENT OF THE PROBLEM

This particular topic is selected because the management of attendance is an

important aspect of supervision in the workplace and it is necessary for the

smooth functioning of an organization. Effective supervisory efforts in attendance

management will affect a relatively small percentage of employees but will

generate substantial savings, increased morale and productivity. This research

proposes to explore the effects of employees satisfaction in the workplace on

absenteeism.


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---------------------------------------------------------------------------------------------------------------------------MANAGEMENT PROBLEM

FAL intends to be a model employer & an important element in reaching this

goal is to encourage employee complete attendance.

As they are facing high rate of absenteeism, therefore the management wants

to know the causes for their high rate of absenteeism.

RESEARCH PROBLEM

To analyse employee satisfaction and its impact on absenteeism.

PURPOSE OF THE STUDY

FAL intends to be a model employer & an important element in reaching this goal

is to encourage employee complete attendance. In order to understand the perception

of the employees in this regard, I have designed a questionnaire.

SCOPE OF THE STUDY

The survey was conducted on worker grades of Fairfield Atlas division. The

questionnaire for this survey was framed considering those factors where

corrective action can be taken at Fairfield Atlas. From the result of the survey the

HR department can take corrective action to decrease absenteeism rate and

thereby increase their productivity and efficiency.


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---------------------------------------------------------------------------------------------------------------------------OBJECTIVES OF THE STUDY

The following are the important objectives of the study:

1. To analyze the absenteeism rate in the organisation.

2. To study reasons for absenteeism.

3. To analyse the measures taken by the company to reduce absenteeism rate.

4. To suggest suitable measures for controlling absenteeism.

5. To analyze the importance of reducing absenteeism.

6. To analyze the impact of employee satisfaction on absenteeism.


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---------------------------------------------------------------------------------------------------------------------------CHAPTER II

ORGANIZATION PROFILE

History

ATLAS GEARS Pvt. Ltd. was set up in 1991. In the year 1992 it became

ATLAS GEARS Ltd. In the year September 2000 it had a joint venture (76%: 24%)

with parent company FAIRFIELD MANUFACTURING COMPANY.

Introduction

The company is located in Belgaum, India, and has 16,000 square meters

(172,223-sq. ft) of land. Atlas facility offers the same high – quality, engineered

products and services that have become associated with the Fairfield name for over 80

years.

Fairfield Atlas offers a broad range of gear manufacturing capabilities as well

as heat - treating and final assembly capabilities.

Internal and external spur and helical gears.

Internal spline and splined / spur shafts.

Gear shaving.

Machining: O.D. and I.D. grinding, turning.

Complete inspection capabilities.


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--------------------------------------------------------------------------------------------------------------------------- Heat treatment: seal quench carbonizing, induction hardening, press

quenching.

Wide range of assembly capabilities.

Heat treatment Shop floor

Products

Custom Gears/ Assemblies

Fairfield offers both quality and competitive price, along with unmatched

service before and after the sale.

The company has the broadest range of capabilities offered in the industry,

coupled with an advanced approach to engineering, and the right custom gear or

custom assembly for your application. With well over 1,000 machine tools at our

fingertips, it offers the following gear manufacturing services:

Spur gears (straight and helical).

Bevel gears - straight, helical, and spiral.

Ground tooth gearing; spur and helical / internal or external.

Hypoid gears – standard and high ratio.

Zerol gears.


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--------------------------------------------------------------------------------------------------------------------------- Shafts of all types including plain, keyed, splined, or spur.

Differentials and differential carrier assemblies.

Housings and custom drive assemblies.

Tapered serrations.

In –House heat treat facility covering all types of heat treatment.

And it’s not just about gears; they also offer a full range of services including:

Contract machining.

Custom manufacturing.

Design and Build.

Special projects.

Regardless of the need, the customers don’t have to settle for a “catalog

product”, or develop their own production line and processes. With Fairfield’s custom

capabilities the company can put a solution in motion whether it’s gears, assemblies,

or dedicated manufacturing.


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Quality

Fairfield Quality Policy: Fairfield is committed to deliver quality engineered

products on time, fully satisfying our customer requirements through a process of

continuous improvement.

All of our processes are governed by procedures that are certified for QS9000

and ISO9001 controls and measurements. These internationally recognized systems

assure you of products that are consistent, reliable and delivered to your

specifications. The company has got:

QS 9000 3rd Edition Certificate.

ISO9001:2000 Certificate.


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Fairfield Atlas is trying for TS-16949: 2002, which is the latest version of

QS9000. The pre-audit for the same was over in the month of March. The Fairfield

Atlas quality policy & Health - safety policy are as follows:

FAIRFIELD

GEARED FOR EXCELLENCE

Fairfield Atlas Limited

QUALITY POLICY

Fairfield Atlas is committed to deliver quality engineered products on

time, fully satisfying our customer requirements.

We shall comply with the requirements of TS 16949:2002 and monitor

defined objectives at company and functional levels to bring about

continual improvement in all our operations.

(A.K. Kaul)

Chief Operating Officer

Date: 01 Sept. 03


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FAIRFIELD

GEARED FOR EXCELLENCE

Fairfield Atlas Ltd.

HEALTH SAFETY POLICY

The focus of Fairfield Atlas safety policy is the safety and occupational

health of all employees.

This shall be achieved by having a well-defined safety organization,

which will address all issues concerning safety and occupational health.

Fairfield Atlas shall strive to meet the safety standards comparable to

the best in the industry and to provide a safe working environment.

(A.K. Kaul)

Chief Operating Officer

Date: 01-Sept-03

Before the joint venture DTA (Domestic Tariff Area) existed. DTA has a work

force of 568 employees including permanent staff, permanent workers, Temporary &

casual labors.


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---------------------------------------------------------------------------------------------------------------------------After the joint venture new plant EOU (Export Oriented Unit) was built. It has

a work force of 359 employees including permanent staff associates (DME’s) and

contract labors.

The turnover of the company is 60 + crores per year i.e. 5 crores per month.

Employee turnover is 2 to 3%.

Suppliers

At present the company is supplying manufactured products to the parent

company & later marketed from there to the European markets. The list of suppliers

is:

1. Kadvani Forge, Rajkot.

2. Elf gas, Mangalore.

3. Trinity Engineers, Pune.

Customers

The major customers of the company are:

1. M & M (Mahindra & Mahindra) - Tractor division, Nagpur.

2. M & M - Tractor division, Kandivali.

3. M & M – Jeep division, Kandivali.

4. M & M – EUV, Igatpuri.

5. 3- Wheeler, Kerala.

6. KAMCO (Kerala Agro Machinery Co-Operation), Kerala.

7. FMC (Fairfield Manufacturing Company), USA.

8. Samey Greaves, Chennai.

9. John Deere, Pune.

10. Carraro India, Pune.


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Development process: The companies TELCO & L & T are in the new product

development stage process.

Special Features:

The special features of the FAL are:

In the year September 2000 it had a joint venture (76%: 24%) with parent

company FAIRFIELD MANUFACTURING COMPANY.

It is in the process of ERP (Enterprise Resource Planning) implementation.

They have successfully implemented in Materials & Finance departments &

modification is also being carried out in the same departments. In the process

to implement in the HRD.

They are undergoing through the various requirements of TS-16949: 2002

certification. The empowerment project is one of the activities carried out

under this.

Board of directors

Mr. Riad Fyze.

Mr. Gerry Lehman.

Mr. Richard A. Bush.

Mr. Clement L. Strimel.

Mr. Mark D. Gustus.

Mr. Jack M. Dykhuizen.

Mr. William P. Dykhuizen.

Mr. J. M. Mapgaonkar.


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Company Secretary

Mr. Marcel T. Rebello.

Bankers

H. D. F. C. bank Ltd.

United Western Bank.

Important company addresses

Auditors

Price Waterhouse

Chartered Accountants

Mumbai.

Register office & Domestic Unit

Survey No. 157,

Devarwadi,

Chandagad Taluka,

Post Shinoli, Dist. Kolhapur

Maharashtra-416507

Export Oriented Unit

Survey No. 116 & 119,

Shinoli (Budruk)

Chandagad Taluka,

Post Shinoli, Dist. Kolhapur

Maharashtra-416507


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Corporate Office

114, Mittal Towers,

C wing, Nariman point,

Mumbai-400021.

Tel. 2029410.

Registrars & share transfer Agents

Sharex (India) Pvt. Ltd.

17-B, Dena bank building II floor,

Hariniman circle, Fort,

Mumbai- 400001.

Tel. 2641376, 2702485.

Fax. 2641349.


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---------------------------------------------------------------------------------------------------------------------------Departmental Study

The company has 18 departments namely:

1. Blanking.

2. Grinding.

3. Plant I.

4. Plant II.

5. Plant III.

6. Heat treatment.

7. PPC.

8. Engineering.

9. New-product development.

10. Tool room.

11. Quality-control.

12. Maintenance.

13. Marketing / sales.

14. Finance.

15. Excise.

16. HRD-and-Administration.

17. Materials/purchase /stores.

18. MIS.


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---------------------------------------------------------------------------------------------------------------------------There are two processes in the company:

1) Manufacturing Process:-

The raw material consists of alloy steel, forges & castings. This is

procured from various steel mills, forge shops & foundries. The raw material

then is turned in the Blanking section to the required dimensions & further

sends to broaching for internal gear cutting operation as per requirement. After

broaching or directly after blanking the components are sent to gear cutting

where the required gear teeth’s cutting is done. At times on requirement after

blanking the components are sent to outside units for further operations. Once

the gear cutting operation is done, the component is sent for heat treatment.

Heat treated parts are sent for grinding, and then inspection on clearance from

inspection on final products are sent to packing followed by dispatch.

2) Heat Treatment Process:-

The heat treatment process in the company comprises of heating the

jobs in an electrically heated furnaces which is equipment consisting of a

stainless steel vessel heated by electrically heated coils. The temperature in the

furnaces is about 920 C & as the furnace is electrically heated no fumes are

given out.

After heating the jobs in the furnaces & the desired carbon case depth

is achieved the jobs are then dipped in quenching oil. After quenching the jobs

are held over the oil so that all the oil sticking to the jobs dips back to the oil

tank. After this the jobs are washed in the water tank, the water in the water

tank is about 80 to 90 C due to the warm water the oil gets loosened from the

Belgaum Institute Of Management StudiesMBA II Sem

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Final inspectionDispatch to customer

---------------------------------------------------------------------------------------------------------------------------job & floats on the water after which the oil is skimmed & stored in barrels

which is sold.

After washing, the jobs are once again heated to about 120 C for 1 to

1.5 hours & then cooled in air.

Human Resource Department

I am carrying out my project in HR Department. Thus would like to

discuss some things about this department. The important functions of HRD

are:

Framing Personnel policies

Evolving personal policies in tune with the corporate objectives.

Developing, reviewing, updating & ensuring continuous

implementation of personal policies, systems & procedures.

Manpower planning

Coordination with heads of the department to prepare a manpower blue

print for the company from year to year.

Overseeing the recruitment activities for executives.

Performance management system

Designing & developing a performance review system.

Evolving employee remuneration packages, incentive schemes, labour

welfare measures etc.


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---------------------------------------------------------------------------------------------------------------------------Training & Development

Carrying out assessment of training needs of various levels and

preparing a perspective plan for training on a yearly basis.

Implementing the training calendar by coordinating in-house and

external training programs.

Design & implementation of indication.

Listed below are the activities carried out by the HRD of Fairfield Atlas Pvt.

Ltd.

Selection of the employees

This is done through:

1. Campus interview.

2. Advertisements.

3. Placement cells.

4. References.

Leave facility

The leave facility is distributed among the staff and the workers.

Workers:

There are 3 types of leaves namely:

i) Casual – 6 days for 1 year.

ii) Sick leaves- 6 days.


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---------------------------------------------------------------------------------------------------------------------------iii) Privileged leaves- These leaves are basically earn leaves. For every

240 days the workers get 12 leaves that is for every 20 days they

get 1 leave (240/12=20). After 240 days the workers get 1 leave for

every 7 days.

Staff:

There are 3 types of leaves namely:

i) Casual – 6 days for 1 year.

ii) Sick leaves- 6 days.

iii) a) Senior executives get 30 days leaves in year which is called

as the privileged leave.

b) Junior staff gets 25 days leave in year, which is called as

earned leave.

Rewards

The reward system of the company is as follows:

1. Staggering allowance for Heat Treatment Operators.

2. Attendance incentive: The workers get 2 days payment for every month for

being physically present for all working days.

3. Attendance award: The workers get 500 Rs. for every 6 months for working

continuously for all working days.


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Annual increment

There is an employee settlement with the union for every 3 years wherein the

incentives for workers are fixed.

A committee is formed & also Performance Appraisal is carried out in order to

cater to the needs of annual increment to the staff.

Training & Development

There is submission of training needs every December, decided by HOD. Also

the workers training needs are discussed during the employee settlement. Their

superiors give internal training to the workers. Also the internal or external training

needs of the staff are found out & training programs arranged in that way.


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ORGANISATION CHART


V.P (mfg) G.M (MSD & MIS)

D.G.M (Finance)

G.M (QC)

Dy Mgr (P.P.C)

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Director & CEO

DGM (Personal)

Sr G.M (mfg)

Sr MGR (Prod DTA)

Sr MGR (Prod EOU)

Maintenance Mgr (DTA)

Maintenance Mgr (EOU)

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SAMPLING

The study assumes that the workers that are participating in the study are

similar in expectations and attitudes to workers at large.

The study assumes that the work environment in which the research is done is

an average work environment typical of its industry.

The study assumes that all worker responses will be honest and given without

ulterior motives.

The study assumes that a potential workplace to study has already been

selected and that this workplace has approximately 40 workers.

RESEARCH DESIGN

a) The research design used is descriptive. The primary information is collected

through questionnaire and personal interaction with the workers.

b) Data collection Method – the information necessary for this survey is collected

by tapping primary sources.

Primary sources:-

Questionnaire

Personal interaction


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DATA COLLECTION METHODS

1) Literature survey: In this method I went through the documents & files given to

me by the company.

2) Observational method: I carried out this method to get the first hand

information. I observed what is carried out in the company.

3) Individual interviews: This is a time consuming method. I called the samples

individually & interviewed them about their work life as well as their personal

life. This gave me a clear overview of their attitude towards their company, their

respective jobs, towards their supervisors, their colleagues and their subordinates.

4) Questionnaire: This is a structured method where set of questions are listed & the

samples are asked to fill in the questionnaire. I prepared a questionnaire with

reference to the Dy. General Manager (HRD & Admin.), Mr. Kadam. It includes

33 descriptive questions, which bring out the level of communication between the

employees, their superiors & their colleagues. It also tests the level of knowledge

& awareness they have about their departments & company. The questionnaire

also includes questions that show what is the decision making power of the

individual employee & what training he has received & needs. It also highlights

their expectations from the management of the company.


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SWOT ANALYSIS

Strengths

1. Superior product quality.

2. Research and development backup.

3. Brand loyalty.

4. Company has national presence. It is stronger in eastern region.

5. High man power rate.

6. Excellent administration.

Weaknesses

1. The management lacks the skills of interacting with the workers and

continuous Counselling and bringing awareness of the policies of the

Organisation by providing better communication channels.

Opportunities

1. Company has got strong infrastructure, financial backup.

2. Whenever needed company has to open up to prove its presence.

Threats

1. The company is being bought by an Italian company. Therefore implementing

management style of the new company may not be readily acceptable by the

current workers and employees of the company.


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---------------------------------------------------------------------------------------------------------------------------PROJECT OVERVIEW

Definition:

Absenteeism is referred to as failure of employees to report for work when

they are scheduled to work.

Many organizations set aside approximately 3% of budget for absenteeism.

This makes an average of about eight (8) days a year per employee.

If absenteeism is above the budgeted figure or certain employees exceed the

average in the organization then this could indicate that there is an absenteeism

problem. However, even if absenteeism is below budgeted or average days per year a

problem may still exist for individual employees or for individual departments. A

focused effort will likely yield improved attendance.

An absence from the workplace refers to time a team member is not on the job

during scheduled working hours, except for a granted leave of absence or holiday

time.

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.


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---------------------------------------------------------------------------------------------------------------------------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.

Importance of Employee Satisfaction

Employees are one of, if not the most important and fundamental resources of

an organization. Their performance is an integral part of the organization and its

overall success. This being the case, it is crucial that employees are put in a working

environment that maximizes their performance. An employee’s satisfaction has a

significant connection with their overall attitude--how content they feel in their

position, their loyalty toward the organization and its members, and similar factors.

There is the likelihood that these factors could affect an employee’s

productivity levels, absenteeism, and turnover. An improvement in one area may

potentially result in improvements in other related areas. It can turn into a chain

reaction where the result of one action or attitude causes a reaction. That result or

reaction causes an additional change or new action to occur. This process continues

on and repeats itself.

It should be helpful to study the different factors that may have an impact on

employees. The amount of optimism they are exposed to in the workplace, the


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---------------------------------------------------------------------------------------------------------------------------tendency for positive or negative thinking among their coworkers, and the amount of

motivational communication they are exposed to may all have a significant effect on

employees and their amount of job satisfaction. The results from such a study could

be used in the development of better training programs, as well as leadership and

management training.

The Causes of Absenteeism

The causes of absenteeism are many and include:

Serious accidents and illness.

Low morale.

Poor working conditions.

Boredom on the job.

Lack of job satisfaction.

Inadequate leadership and poor supervision.

Personal problems (financial, marital, substance abuse, child care etc).

Poor physical fitness.

Inadequate nutrition.

Favoritism done by the supervisors leading to alienation of workmen.

The existence of income protection plans (collective agreement).

Provisions which continue income during periods of illness or accident.

Stress and Workload.

Employee discontent with a collective bargaining process and/or its results.

A failure to respect individuals and be concerned with their needs.

A failure of teamwork, leading to feelings of alienation or even bullying.

Over supervision, leading to stress or the feeling of not being trusted.


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--------------------------------------------------------------------------------------------------------------------------- Inappropriate tasks, leading to stress as workers are unable to complete their

tasks satisfactorily.

Pay rates that the employees feel are too low for their skills.

The following leave category hierarchy summarises the relationship between

various types of absence.

The Cost of Absenteeism


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Absence from work

Unplanned absences Planned absences

Industrial disputes

Health Incapacity

Leave

Special leave Recreational Study leave

Long service

Work relatedInjuries/illness

Sick leave Family-bereavement-parenting-maternity

Community MilitaryService

Short term Long term MedicalRetirement

---------------------------------------------------------------------------------------------------------------------------The cost of absenteeism is greater than the direct payment of wages and

benefits paid durance the absence. Organizations must also consider the indirect cost

of staffing, scheduling, re-training, lost productivity, diminished moral, turnover,

opportunity cost. The indirect costs often exceed the direct cost of absenteeism.

For a firm the costs of absenteeism can be very high:

Lost production as the worker is unable to catch up with the wok that was

missed.

It maybe necessary to offer extra overtime in order to complete an order on

time. This will increase the costs of the firm and lower their overall profits

unless they can raise the price to compensate.

If workers sense that there is a trend of absenteeism, they will tend to take

more days off themselves, this will lead to the problem snowballing.

Decrease in Productivity

Employees may be carrying an extra workload or supporting new or

replacement staff.

Employees may be required to train and orientate new or replacement workers.

Staff morale and employee service may suffer.

The main direct impacts of absenteeism on productivity are:

Time spent by crew members (others) waiting for replacements.

Time spent moving replacements to and from other work locations.

Lost time by supervisory personnel in reassignment of work activities and

locating replacements.


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---------------------------------------------------------------------------------------------------------------------------Financial Costs

Payment of overtime may result.

Cost of self-insured income protection plans must be borne plus the wage

costs of replacement employees.

Premium costs may rise for insured plans.

Administrative Costs

Staff time is required to secure replacement employees or to re-assign the

remaining employees.

Staff time is required to maintain and control absenteeism.

Benefits

Being away from work for “legitimate” reasons can be beneficial for the

workplace and the individual. Award provisions serve a function in providing workers

with the right not to attend work when physical or psychological capacity is

diminished. This reduces the risk of injury not only to themselves but also possibly to

others and allows a productive workforce to operate. Employees who fail to take time

off appropriately may represent a health and safety hazard. Taking of sick leave may

act as a safety valve mitigating personal, external and workplace factors. Workers

may utilise sporadic sick leave for workplace conditions, particularly “cumulative

trauma disorders” or workplace stress. In a survey of Commonwealth Government

workers, 49% of interviewed staff reported that they experienced an episode of illness

or injury that had some association (in their view) with work. Only one of the staff

had lodged a claim, with the majority dealing with such problems through accessing

sick pay if leave was required. There are also legitimate reasons for employees to be


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---------------------------------------------------------------------------------------------------------------------------absent unrelated to personal illness. This may include emergency childcare for well

children; care for sick children; care for adult relatives; or the performance of

important personal business.

Potential benefits of work absence include:

Legitimate exemption from work.

Reduces injury risk.

Maximizes rate of recovery.

Reduced transmission of infectious disease.

Maintains productive workforce.

Maintains workplace safety.

Impact of absenteeism at workplace.

Affects employee morale – additional stress may be placed on employees who

must act as replacements or assume additional tasks.

Causes disruption in the workplace.

May create a perception of unfairness.

Affects the “team”.

May be the expression of other problems.

Sources of Absenteeism Statistics


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---------------------------------------------------------------------------------------------------------------------------A good source of paid sick leave statistics because of their frequency of

issuance is the Labour Reports. Another source is Workers' Compensation Board

Statistics.

Trends 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 greater 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.

Guidelines for Bona Fide Absence

1. Reporting Absences

Employees must personally notify, either by telephone, or in person, their

immediate supervisor or designated person-in-charge before the start of their shift if

they anticipate being absent from work. Employees should be encouraged to give as

much notice as possible for anticipated absences. Employees should give a minimum

(1) hour notice or the minimum notice if stated in their collective agreement.


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---------------------------------------------------------------------------------------------------------------------------2. Contact with Employees

Absent employees should be requested to keep contact with their employer.

The employer should be informed of any changes in the employee's health status.

Employees should be called if they are not keeping contact with the employer. The

purpose is to show concern and desire for the employee to regain a healthy status and

return to work. It is important that the employee does not feel imposed on. Refer to

collective agreement provisions regarding sick leave reporting.

3. Reporting Back to Work

In order to avoid duplicate coverage of a scheduled shift, an employee who

has been absent from work must give as much notice as possible of their intention to

return to work. Before returning to work employees should be notified of the amount

of notice which is necessary to re-schedule them back to work. If they must produce a

physician's certificate it should be handed in upon their return to work. Most

collective agreements have provisions for return to work notification.


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Guidelines for Absenteeism 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 labour relations context this means that it can not 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.

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 Counselling and treatment, the majority of employees will

overcome their problems and return to an acceptable level of regular attendance.


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---------------------------------------------------------------------------------------------------------------------------Identifying Excessive Absenteeism

Attendance records should be reviewed regularly to be sure that an employee's

sick-leave days are excessive compared to other employees. If a supervisor suspects

that an employee is excessively absent, this can be confirmed through reviewing the

attendance records and sending him for Medical check up to the Company’s Doctor.

If all indications show that an employee is excessively absent, the next step is

to gather as much information as possible in order to get a clearer picture of the

situation. The employees' files should be reviewed and the employee’s immediate

supervisor should document all available information on the particular employee's

history.

Individual Communication

After all available information has been gathered, the administrator or

supervisor should individually meet with each employee whom has been identified as

having higher than average or questionable (or pattern) absences. This first meeting

should be used to bring concerns regarding attendance to the employee's attention. It

is also an opportunity to discuss with the employee, in some depth, the causes of his

or her attendance problem and possible steps he or she can take to remedy or control

the absences. Listen carefully to the employee's responses.

The tone of the meeting should not be adversarial, but a major purpose of the

interview is to let the employee know that management treats attendance as a very

important component of overall work performance. Keep your comments non-

threatening and work-oriented. Stick to the facts (i.e. patters, profiles, rates etc). The

employee should be given a copy of there attendance report with absences highlighted

for discussion.


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---------------------------------------------------------------------------------------------------------------------------This interview will give you the opportunity to explore in depth with the

employee the reasons for his or her absence. Gather facts - do not make any

assumptions. Provide support and Counselling and offer guidance as the occasion

demands to assist the employee to deal with the specific cause of the absence.

Often, after the initial meeting employees reduce their absenteeism. The

meeting shows that you are concerned and that absenteeism is taken seriously. The

employee's attendance should be closely monitored until it has been reduced to

acceptable levels. Appropriate Counselling should take place as is thought necessary.

If a marked improvement has been shown, commend the employee. The meeting

should be documented and a copy placed in the employee's file.

Proof of Illness

Sometimes it is helpful in Counselling employees with excessive innocent or

culpable absenteeism to inquire or verify the nature and reasons of their absence.

The extent to which an employer may inquire into the nature of and reasons

for an employee's absence from the workplace is a delicate issue. The concepts of an

employee's privacy and an employer's need for information affecting the workplace

often come into conflict. Seldom is the conflict more difficult to resolve than where

personal medical information is involved.

Unions will often strongly object to any efforts by management to inquire

more deeply into the nature of an employee's illness. You will need to consider the

restraints of any language in collective agreements in relation to this issue.


36

---------------------------------------------------------------------------------------------------------------------------

After the Initial Interview

If after the initial interview, enough time and Counselling efforts, as

appropriate, have passed and the employee's absenteeism has not improved, it may be

necessary to take further action. Further action must be handled with extreme caution

- a mistake in approach, timing or severity can be crippling from both an

administration and labour relation's point of view.

Determining whether counselling or disciplinary action is appropriate,

depends on whether the employee's absences are innocent or culpable. If the

employee's absenteeism is made up of both innocent and culpable absences, then each

type must be dealt with as a separate issue. In a labour relation's context innocent

absenteeism and culpable absenteeism are mutually exclusive. One in no way affects

the other.

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.


37

---------------------------------------------------------------------------------------------------------------------------The procedure an employer may take for innocent absenteeism is as follows:

1. Initial counselling(s).

2. Written counselling(s).

3. Reduction(s) of hours and/or job reclassification(s).

4. Discharge.

Initial Counselling

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 Counselling

If 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


38

---------------------------------------------------------------------------------------------------------------------------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 can not 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.

1. Has the employee done everything possible to regain their health and return to

work?


39

---------------------------------------------------------------------------------------------------------------------------2. Has the employer provided every assistance possible? (i.e., counselling,

support, time off.)

3. Has the employer informed the employee of the unworkable situation resulting

from their sickness?

4. Has the employer attempted to accommodate the employee by offering a more

suitable position (if available) or a reduction of hours?

5. Has enough time elapsed to allow for every possible chance of recovery?

6. 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 counselling as appropriate, with no improvement despite your positive efforts,

disciplinary procedures may be appropriate.


40

---------------------------------------------------------------------------------------------------------------------------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

counselling 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 counselling 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 counselling 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


41

---------------------------------------------------------------------------------------------------------------------------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 supervisors.)

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.

Chapter III


42

---------------------------------------------------------------------------------------------------------------------------ANALYSIS AND INTERPRETATION OF THE STUDY

Question No 10:-

Yes No

30 10

Have you been trained with safety measures by the company?

75%

25%

Yes

No

Once Twice Thrice

21 8 1

No of times Training Received

70%

27%

3%

Once

Twice

Thrice

Interpretation: - We can see that 75% of the workers have been trained with safety

measures by the company. But the number of times training received by them differs

by a substantial amount.

Question No 14:-


43

---------------------------------------------------------------------------------------------------------------------------I shift II shift III shift

37 24 4

Under which shift are you comfortable in?

I shift

II shift

III shift

Interpretation: - The above graph shows that 92.5% of the workers are comfortable

in working in first shift, 60% of the workers are comfortable in working in second

shift and only 10% of the workers are comfortable in working in third shift.

Question No 16

Independently As a Team Under Supervision17 25 12

Efficiency of workers

0

5

10

15

20

25

30

independently As a Team UnderSupervision

No of respondents

Interpretation: - The above graph shows that 62.5% of the workers work efficiently

as a team which is the majority of the sample size whereas 42.5% work best

independently & 30% of the sample work best under supervision.


44

---------------------------------------------------------------------------------------------------------------------------Question No 18

SA A U D SD28 6 1 2 3

sufficient support received from supervisors

0

5

10

15

20

25

30

SA A U D SD

No of respondents

Interpretation: - The above graph shows that 85% of the sample gets sufficient

support and attention from their respective supervisors, whereas 12.5% of the sample

disagrees with the above statement. The remaining 2.5% of the sample are neutral.

Question No 19

SA A U D SD9 14 7 10 0

Working conditions are favourable in this company

02468

10121416

SA A U D SD

No ofrespondents


45

---------------------------------------------------------------------------------------------------------------------------Interpretation: - The above graph shows that 57.5% of the sample agrees that the

working conditions of the company are favourable whereas 25% of the workers feel

that the conditions are not favourable for them to work in the company. So the

management should take proper measures to improve the working conditions of the

company to achieve total satisfaction of the workers.

Question No 20

Never 1 to 4 5 to 8 9 to 12 13 to 20 More than 209 23 5 0 0 0

how many times your work interrupted because of an equipment failure?

0

5

10

15

20

25

Never 1 to 4 5 to 8 9 to 12 13 to 20 morethan 20

No of times equipment failedin a month(hours)

Interpretation: - The above graph shows that maximum of the equipments fail for

about 1 – 4 times in a month, so the company should take measures to reduce the

failure rate of the equipments.

Question No 21

SA A U D SD3 6 3 13 15


46

---------------------------------------------------------------------------------------------------------------------------

my pay is adequate

0

2

4

6

8

10

12

14

16

SA A U D SD

No of respondents

Interpretation: - The above graph shows that 70% of the workers are not satisfied

with their pay, whereas only 22.5% of the workers are satisfied. The remaining 7.5%

of the workers are neutral.

Question No 22

SA A U D SD3 17 13 7 0

I find myself completely exhausted/drained at the end of each

day

0

5

10

15

20

SA A U D SD

No of respondents

Interpretation: - The above graph shows that 50% of the workers agree that they are

completely exhausted after a days work, whereas only 17.5% of the workers disagree

that they are not.


47

---------------------------------------------------------------------------------------------------------------------------Question No 23

SA A U D SD6 32 1 1 0

our salary is not depending upon how hard we work

0

5

10

15

20

25

30

35

SA A U D SD

No of respondents


not paid depending upon their hard work, whereas only 2.5% of the workers feel that

they are paid depending upon their work.

Question No 24

SA A U D SD1 15 3 13 8

My absence from job is not going to adversely affect the overall efficiency of the work in hand

0

2

4

6

8

10

12

14

16

SA A U D SD

No of respondents

Interpretation: - The above graph shows that 40% of the workers agree that their

absence from work is not going to affect the overall efficiency of the work in hand,


48

---------------------------------------------------------------------------------------------------------------------------whereas 52.5% of the workers feel that their absence will affect the efficiency of the

work in hand. Therefore management should make efforts to change the perception of

the workers and make them aware of the importance of their presence at workplace.

Question No 25

SA A U D SD5 5 19 10 1

It often seems like I have too much work for one person to do.

0

2

4

6

8

10

12

14

16

18

20

SA A U D SD

No of respondents

Interpretation: - The above graph shows that 25% of the workers feel that they have

been given lot of work for a single person, 27.5% of the workers feel that they have

been given sufficient and adequate amount of work. The remaining 47.5% of the

workers are uncertain about it. I can conclude that the company is successful in

maintaining the amount of work to be given per worker which should not be excess.

Question No 26

SA A U D SD8 26 5 1 0


49

---------------------------------------------------------------------------------------------------------------------------

Our promotion is independent of how hard we are working

0

5

10

15

20

25

30

SA A U D SD

No of respondents

Interpretation: - The above graph shows that 85% of the workers feel that their

promotion is not dependent on their hard work, only 2.5% feel that they are promoted

based upon their working ability. So the management should make efforts to

recognize the working ability of the workers to increase their morale.

Question No 27

SA A U D SD19 17 4 0 0

There is hardly any recognition associated with how hard one is working

0

2

4

6

8

10

12

14

16

18

20

SA A U D SD

No of respondents

Interpretation: - The above graph shows that 90% of the workers feel that their hard

work is not recognized by the company, whereas the remaining 10% of the workers

are not certain about this. This shows that the workers are not getting proper


50

---------------------------------------------------------------------------------------------------------------------------recognition in the company. So the company should recognize the hard work of the

workers which will increase their morale and efficiency.

Question No 28

SA A U D SD0 0 4 34 2

In this job if one is working more he is gaining(reward) more.

0

5

10

15

20

25

30

35

40

SA A U D SD

No of respondents


not gaining anything even if they are working very hard. The remaining 10% of the

workers are not certain about it. Therefore the company should take measures to

reward the workers who work hard.

Question No 29

SA A U D SD1 9 7 19 4


51

---------------------------------------------------------------------------------------------------------------------------

I feel guilty about neglecting my family due to job demands.

0

2

4

6

8

10

12

14

16

18

20

SA A U D SD

No of respondents

Interpretation: - The above graph shows that 25% of the workers agree that they

neglect their family due to their job, 57.5% of the workers disagree that they neglect

their family due to their job.

Question No 30

SA A U D SD22 4 12 2 0

My job does not provide me with opportunities for career development.

0

5

10

15

20

25

SA A U D SD

No of respondents

Interpretation: - The above graph shows that 65% of the workers agree that their job

does not provide with opportunities for career development, 30% of the workers are

uncertain about it, and the remaining 5% disagree with the statement. Therefore the


52

---------------------------------------------------------------------------------------------------------------------------company should provide with opportunities for career development for workers who

are interested in further development of their career.

Question No 31

SA A U D SD1 12 23 4 0

The demand of my job makes it difficult to be relaxed all the time at home.

0

5

10

15

20

25

SA A U D SD

No of respondents

Interpretation: - The above graph shows that 32.5% of the workers agree that their

job makes it difficult for them to be relaxed all the time at home, 57.5% of the

workers are not certain about it and the remaining 10% of the workers disagree with

the above statement.

Question No 32

SA A U D SD3 10 6 19 2


53

---------------------------------------------------------------------------------------------------------------------------

At times I feel that I cannot strike a balance between work and family demands.

0

2

4

6

8

10

12

14

16

18

20

SA A U D SD

No of respondents

Interpretation: - The above graph shows that only 32.5% of the workers agree that

they cannot manage their time properly with their job and family, 15% of the workers

are not certain about it, and the remaining 52.5% of the workers disagree with the

above statement. I can conclude that majority of the workers can balance their work

life and family life properly.

Question No 33

SA A U D SD1 0 8 22 9

I do not enjoy my work since my training and expertise are not being utilized.

0

5

10

15

20

25

SA A U D SD

No of respondents

Interpretation: - The above graph shows that only 2.5% of the workers agree that

their training has not been utilized in the company, 20% of the workers are not certain


54

---------------------------------------------------------------------------------------------------------------------------about it, and the remaining 77.5% of the workers disagree that their training and

expertise is not being utilized in the company. Therefore I can conclude that the

company is successful in making use of the training and expertise of the workers.

Year 2002 2003 2004 2005

Percentage 8.76% 11.05% 7.61% 9.23%

Absenteeism Percentage DTA

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2002 2003 2004 2005

Year

Per

cen

t

Percentage

FINDINGS

75% of the workers have been trained with safety measures by the company.

But the number of times training received by them differs by a substantial

amount.

92.5% of the workers are comfortable in working in first shift, 60% of the

workers are comfortable in working in second shift and only 10% of the

workers are comfortable in working in third shift.


55

--------------------------------------------------------------------------------------------------------------------------- 85% of the workers get sufficient support and attention from their respective

supervisors, whereas 12.5% of the workers feel that they do not sufficient

support and attention from their supervisors.

57.5% of the workers agree that the working conditions of the company are

favourable whereas 25% of the workers feel that the conditions are not

favourable for them to work in the company.

70% of the workers are not satisfied with their pay, whereas only 22.5% of the

workers are satisfied.

50% of the workers agree that they are completely exhausted after a days

work.

95% of the workers agree that they are not paid depending upon their hard

work.

40% of the workers agree that their absence from work is not going to affect

the overall efficiency of the work in hand, whereas 52.5% of the workers feel

that their absence will affect the efficiency of the work in hand.

25% of the workers feel that they have been given lot of work for a single

person, 27.5% of the workers feel that they have been given sufficient and

adequate amount of work.

85% of the workers feel that their promotion is not dependent on their hard

work.


56

--------------------------------------------------------------------------------------------------------------------------- 90% of the workers feel that their hard work is not recognized by the

company.

90% of the workers agree that they are not gaining anything even if they are

working very hard.

25% of the workers feel that they neglect their family due to their job.

65% of the workers agree that their job does not provide with opportunities for

career development.

2.5% of the workers agree that their training has not been utilized in the

company, 77.5% of the workers disagree that their training and expertise is not

being utilized in the company.


57

---------------------------------------------------------------------------------------------------------------------------RECOMMENDATIONS

Improve the working conditions in the company especially in the heat areas

i.e., give proper ventilation.

Introduce a reward system for any improvement to sick leave rates.

Provide flexible work practices that meet the needs of your business and your

workers.

Increase promotional opportunities.

Recognize and reward workers contribution.

Improve the skills of supervisors.

Monitor annual leave and long service leave data to ensure your workers are

taking adequate recreational breaks.

Recognize a problem developing and intervene early before it escalates.

Talk to workers who are abusing leave and see if their behavior stems from a

personal problem. Help them referrals if this is the case.

Appoint a fulltime nurse.

Provide with opportunities for career development for the interested workers.

Recognize & reward the workers for their hard work.

Change working conditions.

Develop an attendance policy.


58

--------------------------------------------------------------------------------------------------------------------------- Provide training and development.

DISCUSSIONS

Measures to reduce absenteeism

When a firm is faced with high levels of absenteeism it will look to the HRM

department for remedies, such as:

Flexi time – allows workers some degree of control over the hours they are at

work. It can help to relieve pressures caused by such things as child care and

transport problems, which would otherwise lead to workers taking time off as

though they were sick.

Job enrichment – a satisfying, challenging job will ensure that workers will

want to go to work.

Improved HRM – making workers feel more valued will allow people to feel

more committed to the workforce. Employees who feel part of a team will not

want to let others down.

Attendance bonuses – these are paid to workers who attend regularly. This is

a controversial idea; recent studies have shown that they may not actually

increase attendance.


59

---------------------------------------------------------------------------------------------------------------------------Using the standard U.S. Department of Labor formula, the rate of absenteeism is

calculated by dividing the number of working days lost through absence in any given

period by the total number of available working days in that same period, as follows:



Combating Absenteeism

For Supervisors/Managers:

Sometimes managers may have to deal with the fact that on any given day

10% of their employees are absent from work. The problem of employee absenteeism

is a problem best resolved by taking the following four positive interventions versus

taking a negative or punitive approach.

Change Management Style:

We are all aware of the fact that when employees call in ill, it does not mean

they are truly too physically ill to work. One reason, outside of illness, that employees

are absent is stress, and the number one reason employees are stressed has to do with

their relationship with their manager/supervisor. Management styles that are too

authoritarian tend to promote high levels of absenteeism among employees.

Authoritarian managers are managers who have poor listening skills, set unreachable

goals, have poor communication skills, and are inflexible. In other words, they yell

too much, blame others for problems, and make others feel that it must be their way or

the "highway." Authoritarian managers tend to produce high absenteeism rates. By

identifying managers who use an authoritarian style, and providing them with


60

---------------------------------------------------------------------------------------------------------------------------management training, you will be taking a positive step not only toward reducing

absenteeism, but also reducing turnover, job burnout, and employee health problems

such as backaches and headaches.

Change Working Conditions:

The employees in the company probably work in a well-lighted climate

controlled building. The working conditions referred here relate to coworker

relationships. Not only does relationship stress occur between the employee and

manager, but it also exists between employees. Frequently it is heard that employees

say they did not go to work because they are fearful of or angry with another

employee. These employees usually report they just could not deal with "so and so"

today, so they called in ill. Companies that adopted policies and values that promote

employee respect and professionalism, and promote an internal conflict resolution

procedure, are companies that reduce employee stress. A reduction in employee stress

reduces employee absenteeism.

Provide Incentives:

Giving employees incentives for reduced absenteeism is not the same as

rewarding or giving employees bonuses for reduced absenteeism. An incentive

provides an employee with a boost to their motivation to avoid unnecessary

absenteeism. It simply helps the employee decide to go to work versus staying home

and watching world cup. The types of incentive programs used by companies are

numerous. Some companies allow employees to cash-in unused sick days at the end


61

---------------------------------------------------------------------------------------------------------------------------of every quarter, others give an employee two hours of bonus pay for every month of

perfect attendance; and still others provide employees with a buffet lunch, a certificate

of achievement, or even a scratch-off card concealing prizes. The type of incentive

program that a company uses should be one created especially for that particular

company. Management can create an incentive program tailored to its unique

company by allowing employees to help it develop the incentive program. The

duration of the incentive program is also very important. The management of the

company should allow its employees to help guide it to determine the length of time

between incentives. Some companies find that they can simply reward employees

with perfect attendance once a year, while others decide once a month is best, and still

others decide once a week works best. The general rule of thumb is to reward workers

more frequently the younger they are and the more difficult the work is to perform.

Also, it is best to start with small incentives and work up to larger ones if necessary.

Develop an Attendance Policy:

Every company should have an attendance policy. An attendance policy

allows a manager to intervene with an employee who is frequently absent. Besides

stress as a primary reason for employee absenteeism, other causes relate to

alcoholism, domestic violence, and family problems. If you confront an employee

about his or her frequent absenteeism, and they inform you it is due to personal

problems, consider referring the employee to an Employee Assistance Program

(EAP). If the employee's absenteeism relates to a medical problem or a family

member with a medical problem, you may have to consider allowing the employee to

use the benefits allowed to them under the American's with Disability Act (ADA) or

the Family and Medical Leave Act (FMLA). Early identification of these employees

will get them back to work as fast as possible. Lastly, make sure that you have an


62

---------------------------------------------------------------------------------------------------------------------------attorney review your attendance policy to make sure it does not violate any State or

Federal labor laws. By incorporating the above four strategies into your company you

will not only reduce absenteeism you will reduce employee burnout, turnover, poor

morale, and workplace negativism.

ATTENDANCE POLICY

An organisational policy on attendance provides a clear statement of the

objectives and principles by which attendance will be promoted within an

organisation. The policy statement is an important communication tool to assist

managers, supervisors and employees to understand their roles and responsibilities.

The following are suggested as desirable components of an attendance policy.

Define the objectives, acknowledging the importance of attendance in

productivity, workplace morale, and the physical and social work

environment.

State the value and importance of individuals to the workplace.

Define responsible officers and line management responsibility.

Define application in terms of work areas or workgroups.

Procedures for absence notification - responsible officer. (It is preferable to

use the worker’s supervisor for this function).

Define acceptable and non acceptable attendance.

Absence follow up

- Informal contact procedures

- Formal contact procedures

- Problem solving resources

- Protocols for independent medical referral


63

--------------------------------------------------------------------------------------------------------------------------- Procedures for long-term absences should be different from those used for

short-term absences. Prognostic information can assist in determining training

and manpower. Opportunities for rehabilitation may need to be explored.

Statement of confidentiality.

Leave provisions, entitlements and definitions.

Define leave approval mechanisms and decision latitude.

Specific initiatives to deal with causes.

Procedures for grievance resolution.

Statement of consultation and agreement with workforce.

Regular policy review.

ATTENDANCE MANAGEMENT

Purpose of Attendance Management

The purpose of attendance management is 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 our 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.

Successful administration of an attendance management program requires

managers and supervisors to be aware of, and create work environments in which the

following can be actualized.


64

---------------------------------------------------------------------------------------------------------------------------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.

Commitment to Attendance

Here the information is provided which is necessary to begin an effective

attendance management program which will yield long term results. This part is

intended to be a guide rather than an instruction manual or policy. To make an

attendance management program truly successful, it will require 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


65

---------------------------------------------------------------------------------------------------------------------------attendance is to be achieved. Attendance is the responsibility of the facility

management and ultimately the administrators.

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 for an attendance management program to get maximum results.

Goals must be tangible. Attendance expectations must be clearly communicated and

followed.

Income Protection

A common misconception about income protection plans is that they are a

benefit as are vacations, and as such, should be fully utilized. The truth is income

protection plans are insurance. The sole and only purpose of pay for sick leave is to

assist in protecting employees against loss of income in the event of an unavoidable

absence due to sickness or a non-work related injury. Use of income protection plans

for any other purpose negates their intent and, therefore, is intolerable.

Communicating the true intent of income protection plans and our commitment to

maintaining this original intent is an essential aspect of attendance management.


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---------------------------------------------------------------------------------------------------------------------------

ATTENDANCE MANAGEMENT PROGRAM

An attendance management program can be split into three basic parts:

1. Development of information/communication systems.

2. Information Testing.

3. Taking appropriate group action.

1. Information Communication Systems

The first step of an effective attendance management program is to identify

specific areas which are affecting attendance. Some general causes of absenteeism are

listed at the beginning of this report. The best way to find which specific areas are

affecting absenteeism in a specific work environment is to develop open

communication between managers, supervisors and employees. The reason for this is

that it is not really the physical realities of the work place that influence employee’s

willingness to work but rather their perceptions of these realities. For example,

workload is only a problem if it is thought to be one. It is important that employees

are encouraged to voice their concerns so their perceptions of the work place are clear

and can be dealt with. This type of communication is especially important in

unionized environments as employees often tend to communicate only with their

union representatives. The result is that vital feed back necessary for effective

management is lost. Cooperation with union representatives can be very helpful in

attendance management and should be encouraged if possible.


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---------------------------------------------------------------------------------------------------------------------------Formal communications networks such as regularly scheduled department meetings

are an excellent way not only to hear employee perceptions and concerns but also to

communicate organizational goals. When employees are encouraged to make a

difference they are less likely to withdraw their participation through absenteeism.

Employees must not only be heard, they must be answered in such ways as to assure

them their input is worthwhile. Staff development meetings are important in molding

company ideals with employee needs. They are also important in developing a sense

of team spirit among coworkers. Full participation in such meetings is to be

encouraged if they are to be effective.

Informal communications are also very effective in identifying and dealing

with employee needs and perceptions. Informal communication involves all levels of

managers and supervisors. Supervisors are especially important because of their

hands-on approach and contact with employees. An employee's relationship with their

supervisor can greatly influence their feelings about their work, their coworkers and

thus their attendance at work.

Insight, intuition, creative thinking and listening are all powerful ways of

finding areas which affect attendance. Ideas and information should be encouraged

from all sources. The establishment of varied communication channels is useful in

gathering information and to an extent, in confirming it. Effective communication in

itself can effectively reduce absenteeism.

2. Information Testing

Once communication networks are established, information on perceived

problems from employees will be bountiful. Before taking action on any issue, no

matter what the source of information, it should be confirmed.


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---------------------------------------------------------------------------------------------------------------------------A simple and effective way to check whether a specific issue truly affects

absenteeism is by finding correlations through using attendance records. If it is

suggested, for instance, that absenteeism is increasing due to employee dissatisfaction

with their workload, all one need do is match the attendance records during a period

of "high" workload to a period of "normal" workload. If absenteeism is found to be

significantly higher during increased workload periods, then it has been confirmed

that actual workload "is related to" absenteeism levels. If no correlation exists it may

be that employee perception of workload affects absenteeism. In this case the

importance of the employee perception could be confirmed through staff development

meetings. In any case two different problems have been distinguished which require

different types of attention.

Attendance records also should be used to monitor attendance trends. Are long

terms or short term absences more common? What percentages of employees have

excessive absences? The answers to these questions trigger attention to individual

employees when their absences become excessive are discussed in the Guidelines for

Absenteeism Control section.

Attendance record forms are designed to facilitate the determination of

whether or not absenteeism patterns exist.

3. Taking Appropriate Group Action

The best way to handle any given situation is to handle it on its own merits

and within the guidelines of the goals one is trying to achieve. This paper does not

attempt to give all the answers to every possible situation but rather, offers

suggestions and guidelines on which answers can be built.


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http://www.benefits.org/interface/cost/absent2.htm

http://www.benefits.org/interface/cost/absent2.htm

---------------------------------------------------------------------------------------------------------------------------In summary, to run an effective attendance management program it is

important to:

1. Develop ways for each and every employee to feel free to contribute ideas and

suggestions even though these may be outside the scope of their job

responsibilities.

2. Make each employee aware that they are a valued member of the "team", that

they play an important role in your organization and that their attendance is

critical.

3. Hold regular meetings, keep your staff informed and involved.

4. Know your employees; without prying show an interest in their personal lives.

5. Be aware of problems that may affect employee attendance or performance.

6. Familiarize yourself with community programs which you can recommend to

an employee if he/she has a need for assistance (i.e. marital or financial

Counselling).

7. Awareness, commitment and involvement by all levels of staff.

Positive motivation should be the main body of any attendance management

program because it produces the best results. If an employee's experiences in the work

place are pleasant, if he/she feels valued and appreciated, if supervision is fair but

firm, that employee will be more motivated to attend work regularly.

HYPOTHESIS

H1: More than 50% of the workers feel that working conditions are favourable in the

company.

H2: More than 60% of the workers feel that their pay is adequate.


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---------------------------------------------------------------------------------------------------------------------------H3: More than 60% of the workers feel that their absence from job will not affect the

overall efficiency of the work in hand.

H4: More than 80% of the workers feel that their promotion is not dependent on how

hard they work.

H5: More than 80% of the workers feel that their hard work is not recognized by the

company.

H6: More than 50% of the workers feel that their job does not provide them with

opportunities for career development.

Hypothesis Testing

Z = P – λ / √ [λ * (1 – λ)] / n

λ Population Proportion,

P Sample Proportion,

n Sample Size.

H1: More than 50% of the workers feel that working conditions are favourable

in the company.

H0=0.5

λ = 50% i.e., 0.5 agree = 23 n = 40

P = 23/40 = 0.575

Z = 0.575 – 0.5 / √ [0.5 * (1 – 0.5) / 40]


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--------------------------------------------------------------------------------------------------------------------------- = 0.075 / 0.079 = 0.94

Since Zcal is less than Ztab at 95% level of significance i.e., ±1.96. Therefore accept H0.

H2: More than 60% of the workers feel that their pay is adequate.

H0=0.6

λ = 60% i.e., 0.6 agree = 9 n = 40

P = 9/40 = 0.225

Z = 0.225 – 0.6 / √ [0.6 * (1 – 0.6) / 40]

= - 0.375 / 0.077 = - 4.870

Since Zcal is greater than Ztab at 95% level of significance i.e., ±1.96. Therefore reject

H0.

H3: More than 60% of the workers feel that their absence from job will not

affect the overall efficiency of the work in hand.

H0=0.6

λ = 60% i.e., 0.6 agree = 16 n = 40

P = 16/40 = 0.4

Z = 0.4 – 0.6 / √ [0.6 * (1 – 0.6) / 40]

= - 0.2 / 0.077 = - 2.59


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---------------------------------------------------------------------------------------------------------------------------Since Zcal is greater than Ztab at 95% level of significance i.e., ±1.96. Therefore reject

H0.

H4: More than 80% of the workers feel that their promotion is not dependent on

how hard they work.

H0=0.8

λ = 80% i.e., 0.8 agree = 34 n = 40

P = 34/40 = 0.85

Z = 0.85 – 0.8 / √ [0.8 * (1 – 0.8) / 40]

= 0.05 / 0.063 = 0.79


H5: More than 80% of the workers feel that their hard work is not recognized by

the company.

H0=0.8

λ = 80% i.e., 0.8 agree = 36 n = 40

P = 36/40= 0.9

Z = 0.9 – 0.8 / √ [0.8 * (1 – 0.8) / 40]

= 0.1 / 0.063 = 1.58



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---------------------------------------------------------------------------------------------------------------------------

H6: More than 50% of the workers feel that their job does not provide them with

opportunities for career development.

H0=0.5

λ = 50% i.e., 0.5 agree = 25 n = 40

P = 25/40= 0.625

Z = 0.625 – 0.5 / √ [0.5 * (1 – 0.5) / 40]

= 0.125 / 0.079 = 1.58



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---------------------------------------------------------------------------------------------------------------------------CONCLUSION

Based on the findings reflecting the workers' views, reasons for absenteeism fall

into two broad categories:

1. Controllable

Relationship with the boss.

Unsafe working conditions.

Excessive rework.

Poor craft supervision.

Poor overall management.

Poor planning.

Excessive surveillance by owner.

Inadequate tools and equipment.

2. Uncontrollable

Travel distance from the residence to the job.

Overtime availability on another job.

Personal and family illness.

Attendance improvement programs can work! What the employees require is

commitment and support from all levels of management, an effective attendance

record-keeping system, consultation and open communication on the reasons for the

attendance program.

Implementing and maintaining a work environment where open

communication and team spirit can thrive will at first sometimes seem a mammoth

and somewhat unrealistic task. If you need encouragement just consider some of the


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---------------------------------------------------------------------------------------------------------------------------benefits; reduced absenteeism, open communication, team spirit, reduced grievance

and greater employee satisfaction.

Only when the positive approach is unsuccessful does the employer need to

use the remedial approach to deal with habitual abusers or with excessive absentee

cases. In all cases the employer's actions must be fair and reasonable and consistently

applied.

With a well communicated, implemented, and administered program, the majority of

the employees should agree with the attendance management program and

cooperation should follow.

Suggestions

My first suggestion is that your absenteeism goal should be 3 percent per

annum. Although it probably will require some serious commitments on your part, it

certainly is an achievable goal.

But before we begin any analysis, a definition of "absence" must be

established. For the purpose of this column, an absence refers to time an employee is

not on the job during scheduled working hours, except for a granted leave of absence,

holiday or vacation time. Using the standard U.S. Department of Labor formula, the

rate of absenteeism is calculated by dividing the number of working days lost through

absence in any given period by the total number of available working days in that

same period, as follows:



For Example:

a. Average number of employees in work force 100


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---------------------------------------------------------------------------------------------------------------------------b. Number of available workdays during period 20

c. Total number of available workdays (a x b) 2,000

d. Total number of lost days due to absences during the 93

period

e. Absenteeism percent (d [divided by] c) x 100 4.65%

I like to think of absenteeism as 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.

Establishing the Basic Facts

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 questions, and as you begin to dig for the answers,

you likely will become aware of many ways to address your problems.

Getting to the Root of the Problem

Once you have completed the above checklists, your responses should give

you food for thought and direction for combating absenteeism. If you have not made

it a policy to keep track of the items above, your first step now should be clearly

mapped out for you. As a next step, consider the following four questions, which

should help you further focus your ideas and put a plan into action.


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--------------------------------------------------------------------------------------------------------------------------- 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.

Where and when is excessive absenteeism occurring?

Numerous studies have concluded that under trained supervisors are 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.

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. The responses have revealed

rather surprising results: low pay, poor benefits and high workloads were not major

causes, nor was actual sickness. Instead, absenteeism generally was found to be a


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---------------------------------------------------------------------------------------------------------------------------symptom of low job satisfaction, sub-standard working conditions and consistent

negative and unfair treatment received by first-line supervisors.

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. If your employees

perceive that your company is indifferent to their needs, they are less likely to be

motivated, or even to clock in at all.

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. Of course, if your supervisors have made no efforts to get to

know the employees 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.

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.

If you have an absenteeism problem, it should now be clear that the place to

begin the cure is with its main causes: under-trained supervision and unsatisfactory


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---------------------------------------------------------------------------------------------------------------------------working conditions. Without improvement in these areas, you can expect your high

rate of absenteeism to continue.

How can I reduce absenteeism?

There are many strategies that you can initiate that will help you to reduce

absenteeism in your business:

1. Promote a high performance work culture and emphasize the importance of

the employee fitting into this culture.

2. Provide flexible work practices which meet the needs of your business and

your employees.

3. Promote the use of carer's or domestic leave.

4. Introduce a reward system for any improvement to sick leave rates.

5. Try to eliminate or decrease "boring" or repetitive jobs.

6. Widen job responsibilities.

7. Increase promotional opportunities.

8. Recognize and reward your employees' contribution.

9. Improve the skills of supervisors.

10. Provide training and development.

11. Work with employees to develop strategies to reduce absenteeism.

12. Implement preventative occupational health and safety strategies in order to

minimise worker's compensation absence.

13. Monitor annual leave and long service leave data to ensure your employees are

taking adequate recreational breaks.

Here are some tips on how to manage unscheduled absenteeism abuse cases:


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--------------------------------------------------------------------------------------------------------------------------- Recognize a problem developing and intervene early before it escalates.

Talk to employees who are abusing leave and see if their behavior stems from

a personal problem. Help them referrals if this is the case.

Learn to say "no." Don't let employees get away with abusing leave policies. If

you hear a ridiculous request to misuse leave, politely decline.

Tackling absence positively

Leaving aside surveillance, interrogation and other more draconian

approaches, which no doubt some employers might favour, there are preventative

measures which employers could take. For example

Family friendly policies, from flexible hours to workplace crèches to help

employees cope with childcare problems.

Providing more varied/interesting/responsible work to combat "low

morale/boring job" syndrome.

Compressed working week options to cater positively for those who may need

longer weekends.

Mentoring, counselling, fitness programmes, on-site massage etc to help

people through stress, emotional problems or personal problems, plus careful

monitoring of workloads.

The Industrial Society suggests other steps organizations could take:

Having a clear policy on absence monitoring.

Training managers to manage attendance.

Training employees to recognize and manage signs of stress.

Improving employee motivation through training and development

opportunities.


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--------------------------------------------------------------------------------------------------------------------------- Using return-to-work interviews after illness and informal procedures to keep

individuals informed and to resolve problems by consensus.

These approaches tackle absenteeism by seeking to reduce the number of absences.

Questionnaire

Dear Sir,


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---------------------------------------------------------------------------------------------------------------------------I am pleased to introduce myself as a student of PES & T’s Belgaum Institute

of Management Studies, MBA, Belgaum. As a part of curriculum I have undertaken a

research study “ANALYSIS OF EMPLOYEE SATISFACTION AND ITS IMPACT

ON ABSENTEEISM”. The information provided by you will be strictly kept

confidential and used for academic purpose only.

1) Name _________________________________________________________

2) Age :- __________________

3) What is your family background? ___________________________________

4) Marital status: - Single _____ Married _____

5) Qualification ____________________________________________________

6) Have you worked before in any other company? If yes then why did you leave

your previous job? _____________________________________________________

____________________________________________________________________

7) When did you join this company? ____________________________________

8) What do you know about this company? _______________________________

____________________________________________________________________

9) Which department do you work in? ___________________________________

10) Have you been trained with safety measures by the company? ______________

________________________________________________________________

11) Does your company provide with Personal Protection Equipments? _________

________________________________________________________________

12) What are your hobbies? ____________________________________________

________________________________________________________________

13) What is your duty time? ________________________________

14) Under which shift are you comfortable in? __________________

15) What duties do you enjoy most about your current/former job? _____________

_______________________________________________________________

16) Do you work best

Independently _____

As a team _____

Under supervision _____

17) Do you like to create your own solutions to problems or do you feel more

comfortable with a manual to follow? ______________________________________


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---------------------------------------------------------------------------------------------------------------------------_____________________________________________________________________

18) You get sufficient support and attention from your supervisors.

Strongly Agree ___ Disagree ___

Agree ___ Strongly disagree ___

Uncertain ___

19) Working conditions are favorable in this company.



Uncertain ___

20) How many times your work interrupted because of an equipment failure?

Never ___ 9 – 12 ___

1 – 4 ___ 13 – 20 ___

5 – 8 ___ More than 20 ___

21) My pay is adequate.



Uncertain ___

22) I find myself completely exhausted/drained at the end of each day.



Uncertain ___

23) Our salary is not depending upon how hard we work.



Uncertain ___

24) My absence from the job is not going to adversely affect the overall efficiency of

the work in hand.



Uncertain ___

25) It often seems like I have too much work for one person to do.


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---------------------------------------------------------------------------------------------------------------------------Strongly Agree ___ Disagree ___


Uncertain ___

26) Our promotion is independent of how hard we are working.



Uncertain ___

27) There is hardly any recognition associated with how hard one is working.



Uncertain ___

28) In this job if one is working more he is gaining (reward) more.



Uncertain ___

29) I feel guilty about neglecting my family due to job demands.



Uncertain ___

30) My job does not provide me with opportunities for career development.



Uncertain ___

31) The demand of my job makes it difficult to be relaxed all the time at home.



Uncertain ___

32) At times I feel helpless that I cannot strike a balance between work and family demands.



Uncertain ___

33) I do not enjoy my work since my training and expertise are not being utilized.


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---------------------------------------------------------------------------------------------------------------------------Strongly Agree ___ Disagree ___


Uncertain ___

Thank you for your kind co-operation


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---------------------------------------------------------------------------------------------------------------------------

BIBLIOGRAPHY

Websites

[email protected] http://www.hrsolutionsinc.com/ www.fairfieldmfg.com


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http://www.fairfieldmfg.com/

http://www.hrsolutionsinc.com/

mailto:[email protected]

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